Aaron Hinde is the founder of LIFEAID, a functional beverage brand that provides energy drink alternatives for health-conscious consumers. We had a chance to connect with Aaron at BevNET Live last month, where he told us he found his niche the way many founders do -- he needed a product which didn’t yet exist on the market.
As explained on the LIFEAID site, “[the founders] were equally convinced that consumers were looking for more functionality than the caffeine found in energy drinks or isotonic sports drinks.” Aaron and his partner, Orion Melehan, decided to take things into their own hands. Some research and experimentation later, LifeAID was born. But the work didn’t stop there.
LIFEAID has taken on a “nontraditional approach” to market, as Aaron described it. We asked what his secret to success is. His response? “We really focused on going very deep into target markets.”
What is the “inch wide, mile deep” strategy?
While the founders of LIFEAID had a viable target market, they didn’t want to be seen as just another energy drink. They implemented the inch wide, mile deep strategy by focusing on smaller, specified segments (inch wide) and then investing heavily into them (mile deep). Most energy and sports drinks are used by a lot of different people for a lot of different reasons, but the founders saw an opportunity to tailor their products to the nuanced needs of the diverse group that makes up the functional beverage market.
The company decided to take LIFEAID and actually divide it up into seven different brands, all operating under their main brand, LIFEAID. Aaron mentioned two of them, saying the company focused on consumers engaged in “crossfit with our FITAID brand and golf with our GOLFERAID brand.”
With FITAID, LIFEAID went deeper than just the functional beverage market. They focused on the active consumer who does intense workouts like CrossFit, which has a cult following of its own. By creating a brand that offered an alternative to unhealthy energy drinks and also contained what CrossFit athletes need and have been missing out on with competitors, FITAID cornered this market and established themselves as a quintessential brand for fitness junkies.
The second example that Aaron used is GOLFERAID, which contains natural ingredients that are designed to benefit golfers. Again, by getting highly specific with their target market, LIFEAID was able to develop a following among golfers, a market that may not have been cultivated if the company took the traditional route of competing beverage brands.
Diversifying their product line allowed them to get into retailers they may have otherwise not been considered a good fit for. Unlike many of their competitors, “[LIFEAID’s] products can be found in hundreds of golf courses, thousands of gyms, and nationwide in fine retailers such as Whole Foods, Sprouts, and The Vitamin Shoppe.” I mean, how many golf courses would pass up selling a functional beverage called “GOLFERAID?”
So how can you put LIFEAID’s strategy to work with your own brand? We've broken it down into three simple steps: Start by identifying a niche to go after, doing your research, and diversifying your product line.
Find your niche and go after it
Like I said earlier, LIFEAID’s success came from finding a niche market that was in need of something new and fresh. Going further, they didn’t just find one niche market to go after -- they discovered niches within their niche.
In your category, look at your target market. Come up with a buyer persona. Then, ask yourself, “what are the variables? What differentiates one individual from the next when we are going after this buyer persona?” By understanding the personal values and idiosyncrasies of your audience, you make it easier to cater to their needs. Achieve this by conducting polls online or in person, monitoring chatter on social media, and keeping an eye on the advantages and disadvantages you have over your competition.
Get to know your customers better
You've found your niche, but your customer base is made up on tons of different people with varying demands. When conducting your market research, try to go a step further. Let’s say you know your customers want something that gives them energy -- But what else are they looking for? Some people prefer an energy bar, others a beverage. Some might want a caffeine boost while others avoid it. Identify consumer problems that your competitors don’t offer a solution to. Then, specify your product to remedy those problems to pave your road to success.
Don’t put all of your eggs in one basket
Okay -- so you've done your market research. You've identified your niche and the multiple buyer personas who it appeals to. Now, your plan must turn away from the market and back to your product.
Start with an agile strategy, which means being flexible in your approach and moving quickly to make informed decisions based off of quality data and analytics. Instead of going all in on a new product launch, start with a smaller project like a seasonal launch to give you an idea of how the project will work out in the long run. If it seems like it is working, invest more. If it is looking like it’ll flop, try something different. Think about the annual Lay’s “Do Us a Flavor” Contests, which works as a test run for new products and a fun way to engage customers. Talk about a win-win.
So whether you are a brand just starting out or you are already established and looking to scale your business, going an inch wide and a mile deep with each of your market segments can be the defining factor that positions your brand as a leader in your category.
