Pearson Education Marketing Success Stories Eskimo Joe's

Summary

Stan Clark, founder of Eskimo Joe's in Stillwater, Oklahoma, shares the story of the establishment's humble beginnings as a 900-square-foot beer joint in 1975. The business quickly gained popularity through word of mouth and a loyal customer base, leading to the iconic t-shirt featuring 'Eskimo Joe and Buffy the Wonder Dog.' Faced with the challenge of the drinking age increase to 21, they pivoted to food service, which became a significant growth driver. Today, Eskimo Joe's has expanded to include two other restaurants, an online presence, and a promotional products business, leveraging their brand to provide marketing solutions for other companies.

Takeaways

• 🍻 Eskimo Joe's was founded in 1975 as a beer joint with a focus on providing a good time, great music, and ice-cold beer.
• 🏠 The business started in a small space of less than 900 square feet and quickly grew due to word-of-mouth advertising and a loyal customer base.
• 🐕 The logo featuring Eskimo Joe and Buffy the Wonder Dog was created on the first day and became a universal theme, selling all 72 t-shirts in the first week.
• 📈 The change in drinking age from 18 to 21 in Oklahoma was a significant challenge, prompting the business to consider diversifying or closing.
• 🍔 To adapt to the new regulations, Eskimo Joe's expanded its product mix by adding food service, which became a key growth driver for the business.
• 📈 The decision to add food service was successful, as it allowed the business to reach more people and grow the hospitality side alongside the retail business.
• 📈 In 1984, it was discovered that more people eat daily than drink, which helped Eskimo Joe's to overcome the challenge of the drinking age change and grow its food business.
• 📈 The business expanded to include a web store and social media presence, with nearly 50,000 fans on Facebook, surpassing their mailing list of 10,000.
• 🏢 Eskimo Joe's expanded to include two other restaurants in Stillwater, Giuseppe's Italian Kitchen and Mexico Joe's, both successful in their own right.
• 📊 The business uses standard retail metrics such as inventory turns and gross profit margin, but also considers the impact of their t-shirts as walking billboards.
• 🎁 Eskimo Joe's entered the promotional products business, offering marketing solutions and screen printing expertise to other companies.

Q & A

When did Eskimo Joe's first open its doors?

Eskimo Joe's first opened on July 21st, 1975.

What was the original concept of Eskimo Joe's?

Eskimo Joe's started as a beer joint offering a good time, great music, and ice-cold beer in less than 900 square feet.

What was the core product that Eskimo Joe's offered initially?

The core product was a good time, with great music and ice-cold beer.

How did Eskimo Joe's grow its customer base initially?

Eskimo Joe's grew its customer base through word of mouth advertising and a loyal crowd that really liked the place.

What was the significance of the t-shirt with the Eskimo Joe and Buffy the Wonder Dog logo?

The t-shirt was a significant part of Eskimo Joe's branding and was for sale from the very first day of business, with all 72 sold in the first week.

What was the biggest challenge Eskimo Joe's faced?

The biggest challenge was when the drinking age in Oklahoma was changed from 18 to 21, which threatened to take away their target market.

How did Eskimo Joe's adapt to the change in the drinking age?

They adapted by adding food service to the mix, leveraging the brand name and facilities they already had, and growing the hospitality business along with the retail side.

What was the critical requirement for Eskimo Joe's to remain viable after the drinking age change?

They had to get more than half of their revenues from non-alcoholic products in a six-month window to avoid becoming a 21 and over only establishment.

When did Eskimo Joe's expand to include a physical space for customers to interact with the products?

Eskimo Joe's expanded to include a physical space in 1987 when they got a lease on the building next door.

How has Eskimo Joe's retail business evolved over time?

The retail business has evolved from selling t-shirts over the bar to having an online web store and a significant social media presence, including nearly 50,000 fans on Facebook.

What other businesses does Eskimo Joe's own besides the original bar?

Eskimo Joe's owns two other restaurants in Stillwater: Giuseppe's Italian Kitchen and Mexico Joe's.

How does Eskimo Joe's measure success in its retail business?

They use standard metrics for any retailer such as inventory turns and gross profit margin, and also consider the impact of their t-shirts as walking billboards.

What is the promotional products business that Eskimo Joe's is involved in?

Eskimo Joe's is involved in selling direct business to business, providing marketing solutions and promotional products to help other companies with their marketing efforts.

What types of products does Eskimo Joe's offer in its promotional products business?

They offer a wide range of promotional products from inexpensive items like keychains and plastic cups to high-end corporate gift items, with a special focus on t-shirt design and screen-printed t-shirts.