A couple of years ago, an entrepreneur approached me with an idea: to start a new chain of juice shop outlets in his city.
He was already a successful retail entrepreneur, running a chain of profitable salons.
He wanted something different, something unconventional that would stand out in the crowded juice market. Intrigued by the challenge, I agreed to take up the project.
To understand the market better, I spent a month visiting various juice shops around the city.
I observed customers, ordered juices, and tried to blend in just like any other consumer. I focused on sensing the emotions and motivations behind their choices, aiming to answer the question: why do people drink juices in the first place?
Through this immersive experience, I discovered two distinctive segments of juice drinkers.
The first segment consisted of young men who frequented juice shops after their workouts.
Their conversations and body language revealed that their primary motivation for drinking juice was health improvement.
They talked about their fitness routines, discussed the nutritional benefits of various juices, and chose options that would aid their recovery and enhance their performance.
The second segment was more surprising.
I noticed young, unmarried couples who visited juice shops not just to drink juice but to spend quality time together.
They often chose secluded corners, maintaining a sense of intimacy and engaging in deep, intimate conversations. They lingered over their drinks, savoring the moment and each other’s company, using the juice shop as a private retreat from the outside world.
Based on these insights, I proposed two distinct concepts to the entrepreneur.
Concept 1: Health-Centric Juice Shops
For the health-conscious young men, I suggested opening juice shops near gyms and fitness centers. These shops would cater specifically to fitness enthusiasts, with a menu focused on health benefits.
We would brand these shops with names like “HealthFuel” to emphasize their purpose.
The interior decor would feature images of bodybuilders enjoying juices and panels with quotes about the health benefits of various ingredients.
The atmosphere would be designed to resonate with those committed to a healthy lifestyle, reinforcing their choice to drink juice as part of their fitness regimen.
Concept 2: Intimacy-Focused Juice Parlors
For the young couples seeking a private space, I proposed creating juice parlors with intimate settings.
These parlors would have private tables and cozy nooks, offering a sense of seclusion.
The branding would be subtly romantic, with names like “JuiceHaven” or “IntimacyBlend,” appealing to couples looking for a quiet place to connect.
The ambiance would be warm and inviting, encouraging meaningful conversations and creating memorable experiences for the couples.
The entrepreneur embraced both ideas with enthusiasm, but he was particularly convinced about the health-centric route because he himself belonged to the market and had sensed this firsthand in the juice shops he had visited.
As I heard recently, he experimented with the idea by launching the first retail outlet in localities clustered with gyms, and it was an instant success.
That’s the power of micro-segmentation.
I believe this can be applied to any generic mass market.
The more you dig down and ask why people really consume a product or service, you would be amazed by the various reasons.
For example, fresh juice seems to be a generic product, but two different segments of people consumed it for two different purposes.
Essentially, we need to uncover the hidden story and belief behind the consumption of the product.
I call this the ‘belief-driven’ segmentation.
The idea behind micro-segmentation is that when the main market becomes saturated with similar offerings, we can potentially identify a new micro-segment that is underserved and develop a specialized product or service to cater to that market.
I believe this concept of micro-segmentation can literally open up new markets for entrepreneurs.
