November 2011

Jerry Tyler

Blue Highways | by Jerry Tyler

 

Increasing Abundance Through Market Diversity

With our economic outlook forever changing, many are now looking at ways to increase revenue potential in this shifted landscape.

First, take a step back and look at your individual and collective business brands to identify the components that make up your brand profile.

Next, see what you are now creating in today’s business reality, if you are being perceived as the brand you wanted. One question to ask: “Is our desired brand profile in alignment with today’s market demands?” 

Many businesses following old business principals and paradigms are finding their market share and profits declining because they are now out of sync with a changed market and the requirements it demands.

The link between what the market demands, in addition to what and how the target market is serviced is paramount, as this dynamic is constantly shifting and evolving.

Continually identifying what motivates the target market allows you to not only meet the challenge of satisfying them, but hopefully exceeding their expectations. This almost always guarantees client loyalty by extending yourselves beyond your perceived value.

While many successful business models were created to meet the needs of one part of the overall market, or a certain demographic, that has changed. Due to market saturation or a shift in what that market area demands, they are seeing very little growth in that area now or possibly even a decline.

The key here is twofold. First, to bring the brand into alignment with what now motivates that demographic. Next to ascertain where they are now in today’s present reality. In some cases the once new area of the market place that was wide open may have reached maximum market penetration creating market saturation.

 To meet this challenge many brands are diversifying by adding new or overlooked market demographics to their intended client pursuits. As some demographics needs and attentions have shifted so have the potential service and product offerings targeted to that demographics desires and needs. The brands recognizing this new potential are actually expanding their spheres of influence therefore growing the size and scope of their brands.

Having a strong and well identifiable brand profile is a strong first step in reaching multiple markets with varying demographics. What is elemental here is to be understood in the market as having integrity in languages each demographic understands and can relate to.

One example is the marketing of hair loss services and products. This challenge affects millions of people across all lines of age, gender and ethnicity. While the challenges and potential solutions to hair loss with a brand could be the same for various markets.

To reach the various areas of this market and connect them requires the brand to identify what that area is looking for and then present it in a way that demographic can embrace is to being the “go to” solution for their challenge.

While the hair loss challenge to a generation “X” or “Y’ potential client might be based on “hair loss prevention.” The target to the “Baby Boomer” client with hair loss may be “salvation of existing hair” or “hair replacement” -- same challenge but different approaches from different market demographics.

If all challenges are met in the different markets, you have created multi-market penetration, expanding the influence of the brand.

By exceeding the perceived value as to the needs and desires of our existing markets, and diversifying into new and emerging potential service/product sectors, we are assured continued growth as an industry in any type of economic climate.

Jerry Tyler's column Blue Highways is his "Road Less Traveled" perspective on the solutions and challenges facing the beauty industry. Jerry Tyler has been a stylist since 1975 serving as the former artistic director for Vidal Sassoon Academy and currently as Director of Industry Relations for Carlton Hair salons. He is also a licensed cosmetology instructor and has served as President of the California State Board of Barbering and Cosmetology.