GrowthANSWERS » Jose Cuervo – The Power of Picking a Market Niche

September 1, 2008

Jose Cuervo – The Power of Picking a Market Niche

Filed under: branding/differentiation, marketing strategy, General —

BY STEVEN WINOKUR www.TPStrategies.com

As a strong proponent of figuring out an optimal target market and building messaging to target that group (versus being everything to everyone), I was quite pleased to see the current ads running by Jose Cuervo. Instead of trying to appeal to anyone who may want to buy tequila for any purpose, they’ve built their messaging after a market niche – margarita drinkers.

There are other reasons people buy tequila. But you can’t create positioning that effectively appeals to every group. You have a pick one - create the most powerful, appealing message to that group and then consistently express that message to your chosen target market.

Their ads purport Jose Cuervo to be THE tequila to use when making margaritas. Now, when you’re in the liquor store looking to buy tequila for a party where you’ll be making margaritas, which brand are you going to buy? When looking at the myriad of choices, consumers will go with the one that best fits their need. And Jose Cuervo is well positioned to fulfill the margarita drinker needs.

Think about all the reasons people buy services for you and your competitors. Is there a market niche there you can own? Remember one of my favorite sayings, “Trying to be everything to everyone means you end up being nothing to no one.”