A marketing professor known for his challenging questions posed a thought-provoking scenario to his students:
“Imagine you were opening a ramen shop in Tokyo. How would you ensure the success of your new brand?”
The students’ answers varied: “Better ingredients!” "Variety of noodles!" “Cheaper prices!” “More unique flavours!” "Free refills!" "Student Discounts!"
The professor acknowledged these responses with a nod and said: “You’re not technically wrong. All these strategies can work to some extent. But the easiest — and perhaps the most direct way to be successful — is to find the starving crowd.”
The Starving Crowd Theory offers a powerful strategy for success by targeting an audience with a desperate need for your product or service. It is marketing’s biggest cheat code to success. This approach is especially relevant in Japan, where consumer behaviour and cultural nuances play a significant role in purchasing decisions. Let's get into it.
Table of Contents
Defining a Starving Crowd
A starving crowd is characterized by three key traits: urgency, passion, and willingness to pay. In Japan, where consumers are known for their meticulous attention to detail and high standards, identifying such a crowd can lead to remarkable success.
Urgency: They have an immediate need for a solution.
Passion: They are emotionally invested in finding a solution.
Willingness to pay: They are ready to spend money to solve their problem.
These consumers actively seek solutions and are willing to pay a premium for practical solutions.
Implementing the Starving Crowd Theory in Japan
How to Measure a Starving Crowd for Your Product or Service
To find your starving crowd in Japan, start by looking at your existing customer base. Identify those who have repeatedly purchased your product or similar products, especially those who have made high-value purchases recently. These customers have already shown they trust and value what you offer.
Next, conduct market research to identify similar groups of people willing to spend money on solutions in your niche. In Japan, this might involve analyzing consumer behaviour on social media, participating in online forums, and conducting surveys to gather insights.
Targeting a starving crowd means higher conversion rates. These people don’t need convincing—they’re already primed to buy. You’ll spend less on marketing because your message will resonate immediately. And when you solve their problem, you build trust and loyalty, turning them into repeat customers and brand advocates.
Key Steps to Follow
Step 1: Identify the Problem
Start by identifying a specific problem that a group of people in Japan is facing. This could be anything from a lack of convenient meal options for busy professionals to a need for affordable skincare products for young adults. Conduct surveys, interviews, and market research to gather detailed information about the problem.
Step 2: Validate the Solution
Once you’ve identified the problem, validate your solution by testing it with a small segment of your target audience. This could involve creating a prototype, offering a limited-time trial, or conducting focus groups. Gather feedback to ensure that your solution effectively addresses the problem and that people are willing to pay for it.
Step 3: Tailor Your Messaging
Craft your marketing messages to resonate with your starving crowd's needs and desires. Use language and imagery that directly addresses their pain points and highlights how your product or service provides the solution they seek. In Japan, where consumers value authenticity and quality, ensure that your messaging reflects these values.
Step 4: Leverage Local Channels
Utilize local marketing channels to reach your starving crowd. This could include social media platforms like LINE, popular online forums, local influencers, and targeted advertising. Understanding where your audience spends their time and tailoring your outreach to those channels will maximize your marketing efforts.
Step 5: Monitor and Adjust
Continuously monitor the effectiveness of your marketing efforts and be ready to adjust your strategy based on feedback and results. In Japan, consumer preferences can shift quickly, so staying agile and responsive is key to maintaining success.
Five Key Questions to Answer Before Launching a Marketing Campaign
Before launching a marketing campaign, consider these five questions to ensure you’re on the right track:
Who is my one starving customer? Define a specific individual who represents your target market. Create an accurate persona to understand their needs and preferences.
How will I reach them? Based on your current competencies and resources, identify the most effective channels to reach your target audience.
What is their biggest pain point? Focus on the most pressing issue that your product or service can solve.
How much do they know about my product? Understand their level of awareness to tailor your messaging accordingly.
What is the state of market sophistication? Assess the competition and market dynamics to position your product effectively.
Examples of Japanese Companies Leveraging the Starving Crowd Theory
Example 1: Nitori
Nitori, a popular Japanese home furnishings and decor retailer, has effectively utilized the Starving Crowd Theory. Recognizing the urgent need for affordable, stylish, and functional home furnishings among young families and individuals setting up their homes, Nitori positioned itself as the go-to store for high-quality yet reasonably priced furniture.
By targeting this specific group with tailored messaging and a focus on affordability and style, Nitori has built a loyal customer base. Their products address the immediate needs of their audience, resulting in higher conversion rates and customer satisfaction.
Example 2: ZOZOTOWN
ZOZOTOWN, Japan's largest online fashion retailer, identified a starving crowd among fashion-conscious consumers who crave the latest trends but face challenges with sizing and fit. By introducing the ZOZOSUIT, a revolutionary body-measuring suit, ZOZOTOWN solved a significant problem for their audience.
The ZOZOSUIT allows customers to measure their exact body dimensions at home, ensuring a perfect fit for online purchases. This innovation addressed a clear need and boosted ZOZOTOWN’s sales, as consumers appreciated the convenience and accuracy provided by the ZOZOSUIT.
Example 3: Calbee
Calbee, a leading snack food company in Japan, identified a starving crowd of health-conscious consumers looking for tasty yet healthy snack options. By developing products like "Jagabee" and "Frugra" (fruit granola), Calbee catered to the growing demand for healthier snack alternatives.
Their focus on natural ingredients and nutritional value resonated with health-conscious consumers, increasing sales and brand loyalty. Calbee’s success demonstrates the power of understanding and addressing the specific needs of a targeted audience.
Current Starving Markets in Japan
So, what markets are being built in Japan using the starving crowd theory, perhaps without realising they are? Two come to mind immediately. One is the craft beer market, and the other is vegan restaurants. Both are in the F&B sector and are growing rapidly in Japan.
Craft Beer
Small breweries have emerged, offering unique and locally-inspired brews that cater to beer enthusiasts looking for something different from the mass-produced options. These breweries often create a distinct brand identity that reflects their local roots, such as using ingredients sourced from nearby farms or naming beers after local landmarks.
These breweries have built a loyal following by focusing on a niche market of craft beer lovers and providing a unique product that cannot be found elsewhere. They host events, engage with their community, and leverage social media to create a strong brand presence. Secondary services, such as Otomoni, a beer home delivery and gifting service, are also springing up around the craft beer sector, suggesting this market is maturing and taking hold.
Niche Vegan Restaurants
Another example is the rise of niche vegan restaurants in Japan. With increasing numbers of consumers becoming health-conscious and environmentally aware, several vegan eateries have opened, offering plant-based versions of traditional Japanese dishes, which was unthinkable 20 years ago. These restaurants attract a dedicated customer base by providing delicious vegan options that are hard to find elsewhere, creating a unique dining experience catering to a niche but growing segment of vegan consumers in Japan.
Shopping Behaviour in Japan: Key Insights
Price Sensitivity and High Standards
Japanese shoppers have become more price-conscious amid declining consumer confidence, leading to a rise in inexpensive parity products. Despite this, the high standards for the cost-performance ratio remain unchanged, pushing businesses to invest in service quality to ensure customer satisfaction. Marketing is crucial in communicating with potential customers and providing a satisfactory consumer journey.
Risk Aversion and Brand Loyalty
Japanese consumers are paradoxically risk-averse yet open to exploring alternatives. They trust familiar brands, primarily domestically produced goods, but are not hesitant to switch brands based on price. This behaviour is particularly evident in Generation Z, who are more prone to impulse buying and integrating technological services into their shopping journey.
Generational Spending Differences
There is a significant wage gap and spending power difference between senior and young consumers in Japan. Senior households, holding most household savings, are less prone to impulsive shopping. In contrast, younger consumers are more inclined to spend on recreational and entertainment activities.
Trends in Sustainable and Secondhand Shopping
With declining wages and economic uncertainties, Japanese consumers are exploring sustainable shopping options, such as buying smaller perishables, refillable or reusable products, and locally produced goods. The secondhand market, particularly for fashion and recreational goods, is thriving as consumers seek to balance saving money and satisfying their consumption desires.
How to Sidestep The Dangers of the Starving Crowd Theory?
If the Starving Crowd Theory is such an effective strategy, why doesn't everyone use it? The answer lies in the inherent risks and challenges associated with this approach. While technically anyone can apply the Starving Crowd Theory, success hinges on thorough research and a deep understanding of the target audience. The primary danger is missing the mark. Starving crowds are often niche groups with very specific needs, meaning that if your solution doesn't precisely address those needs, the campaign could fail spectacularly.
To mitigate this risk, A/B testing is your friend. A/B testing involves experimenting with different groups within your target audience to see which marketing tactics yield the best results. For instance, if you have multiple pain points, you can select the top two based on your research and split-test your marketing strategies. This way, even if one group doesn't respond well, you still have the other group to rely on.
The Starving Crowd Theory provides a compelling framework for achieving marketing success in Japan. By identifying and addressing the urgent needs of a specific group of consumers, businesses can build strong, loyal customer bases and achieve lasting growth. Companies like Nitori, ZOZOTOWN, and Calbee have demonstrated the potential of this approach, achieving remarkable success by understanding and fulfilling the needs of their target audiences.
For businesses looking to thrive in Japan, implementing the Starving Crowd Theory can unlock new opportunities and pave the way for sustainable success. Companies can build a strong presence in the Japanese market by focusing on existing demands and providing solutions that resonate with local consumers.
FAQ Section
What is the Starving Crowd Theory in Marketing?
The Starving Crowd Theory in marketing is a strategy that focuses on targeting an audience with an urgent, passionate need for a product or service and a willingness to pay for it. This approach aims to find consumers desperate for a solution, thus ensuring higher conversion rates and customer loyalty.
Why is targeting a starving crowd significant in Japan?
Targeting a starving crowd in Japan is essential because Japanese consumers are known for their meticulous attention to detail and high standards. By addressing an urgent and specific need, businesses can create strong customer loyalty and achieve higher conversion rates, as seen in the success stories of companies like Nitori, ZOZOTOWN, and Calbee.
How can businesses identify a starving crowd in Japan?
Businesses can identify a starving crowd in Japan by examining their existing customer base to find repeat and high-value purchasers, conducting market research to find similar groups, and analysing consumer behaviour on social media and forums. This helps pinpoint groups with urgent needs and a willingness to pay for solutions.
What are examples of Japanese companies successfully using the Starving Crowd Theory?
Examples of Japanese companies successfully using the Starving Crowd Theory include Nitori, which targets young families needing affordable home furnishings; ZOZOTOWN, which caters to fashion-conscious consumers with their ZOZOSUIT for accurate sizing; and Calbee, which meets the demand for healthy snacks with products like "Jagabee" and "Frugra".
What challenges do businesses face when applying the Starving Crowd Theory?
Businesses face challenges such as accurately identifying the niche group with specific needs, differentiating their product from competitors, and ensuring their solution precisely addresses the crowd's needs. A/B testing and continuous market research can help mitigate these risks and refine marketing strategies for better results.
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