Pearson Education Marketing Success Stories Eskimo Joe's

Chase Wilson Organization

12 Aug 201307:01

Summary

TLDRStan 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.

Outlines

00:00

🍻 Beginnings of Eskimo Joe's

Stan Clark introduces Eskimo Joe's, a bar that opened on July 21st, 1975 in Stillwater, Oklahoma. Initially, it was a small beer joint with a focus on providing a good time with great music and ice-cold beer. The business started spontaneously without a master plan and quickly gained popularity due to word-of-mouth advertising and a loyal customer base. The iconic logo featuring Eskimo Joe and Buffy the Wonder Dog was introduced on the first day, and its popularity indicated the bar's potential for success. The challenge of the drinking age being raised from 18 to 21 in Oklahoma was overcome by adding food service and expanding the product mix, which ultimately led to significant growth in both the hospitality and retail sides of the business.

05:02

🚀 Expansion and Evolution of Eskimo Joe's Brand

Eskimo Joe's expanded its business model by incorporating food service and leveraging its brand name to reach a wider audience. The decision to add food during a critical period was pivotal, as it allowed the business to thrive when the drinking age was raised. Stan Clark highlights the importance of the t-shirt business, which became a significant revenue stream, with over 10 million Eskimo Joe's t-shirts sold worldwide. The business also ventured into the promotional products industry, offering marketing solutions and screen printing services to other companies. Today, Eskimo Joe's operates an online store and has a strong social media presence, with nearly 50,000 fans on Facebook. Additionally, the company owns two other successful restaurants in Stillwater: Giuseppe's Italian Kitchen and Mexico Joe's.

Mindmap

Keywords

💡Eskimo Joe's

Eskimo Joe's refers to a bar and restaurant business that was established in Stillwater, Oklahoma, in 1975. It is central to the video's theme as it represents the business venture that the speaker, Stan Clark, embarked upon. The name Eskimo Joe's is mentioned multiple times throughout the script, highlighting its significance as the main subject of the narrative.

💡Beer joint

A beer joint is a colloquial term for an establishment primarily serving beer. In the context of the video, it defines the initial concept of Eskimo Joe's, which started as a small venue focusing on providing a good time with great music and ice-cold beer. The term is used to illustrate the humble beginnings of what would later evolve into a much larger business.

💡Core product

The core product refers to the main offering of a business. For Eskimo Joe's, as described in the script, the core product was a good time, which included great music and ice-cold beer. This concept is integral to understanding the video's theme as it sets the stage for how the business was initially perceived and what it aimed to deliver to its customers.

💡Loyalty

Loyalty in this context refers to the strong allegiance and repeat patronage of the customers to Eskimo Joe's. The script mentions that the crowd was very loyal, indicating that customers not only enjoyed the establishment but also returned frequently, which is a key factor in the success and growth of any business.

💡T-shirt

T-shirts in the video are a significant part of Eskimo Joe's brand and revenue. The script describes how a t-shirt featuring the Eskimo Joe and Buffy the Wonder Dog logo was sold from the very first day and became a popular item. T-shirts serve as a walking billboard for the brand, expanding its reach and recognition.

💡Drinking age

The drinking age refers to the legal age at which individuals are allowed to purchase and consume alcohol. The script mentions a significant challenge when the drinking age in Oklahoma was raised from 18 to 21, as it threatened to eliminate Eskimo Joe's target market. This event forced the business to adapt and diversify its offerings.

💡Food service

Food service is the provision of food to customers, either via dining in or take-out. In response to the challenge posed by the change in drinking age laws, Eskimo Joe's decided to add food service to its business model. This decision is highlighted in the script as a turning point that allowed the business to grow and reach a broader audience.

💡Hospitality business

Hospitality business encompasses the provision of services to guests or travelers, often including accommodations, food, and entertainment. The script mentions the growth of the hospitality side of Eskimo Joe's, indicating the expansion from a simple bar to a more comprehensive service provider that includes dining and potentially other amenities.

💡Expansion

Expansion in the video refers to the growth and development of Eskimo Joe's beyond its original size and scope. The script describes how the business expanded by adding a kitchen, increasing seating, and eventually leasing a larger space next door. This keyword is crucial as it signifies the evolution and success of the business over time.

💡Promotional products

Promotional products are items, such as t-shirts, that are used to advertise a business or brand. Eskimo Joe's leveraged its successful brand to enter the promotional products business, offering marketing solutions to other companies. The script explains how this diversification allowed Eskimo Joe's to grow its reach and impact even further.

💡Social media

Social media refers to online platforms that allow users to create and share content or participate in social networking. The script mentions the business's presence on Facebook, where it has nearly 50,000 fans, illustrating how Eskimo Joe's has adapted to modern marketing strategies to engage with a wider audience.

Highlights

Eskimo Joe's was founded in Stillwater, Oklahoma on July 21st, 1975 as a small beer joint.

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

Eskimo Joe's started with less than 900 square feet and no master plan, just a spontaneous idea.

The business quickly grew through word of mouth and a loyal customer base.

The iconic Eskimo Joe and Buffy the Wonder Dog logo was introduced on the first day and sold 72 t-shirts in the first week.

The logo's universal theme of a boy and his dog with a big smile was key to the business's friendly and welcoming image.

When the drinking age was raised to 21 in Oklahoma, Eskimo Joe's faced its biggest challenge.

The business had three options: keep the bar, focus on retail t-shirts, or expand the product mix with food service.

Adding food service and leveraging the brand name helped Eskimo Joe's stay viable and grow the hospitality business.

In 1984, it was discovered that more people eat daily than drink, which helped Eskimo Joe's food business grow.

Eskimo Joe's expanded in 1987 by leasing the building next door and has since expanded it five times.

Today, most direct business is done via the internet and Eskimo Joe's has an online store operating 24/7.

Eskimo Joe's has a strong social media presence with nearly 50,000 Facebook fans, surpassing their mailing list.

There are two other successful restaurants in Stillwater - Giuseppe's Italian Kitchen and Mexico Joe's.

Eskimo Joe's uses standard retail metrics like inventory turns and gross profit margin, along with the impact of being a walking billboard.

Over 10 million Eskimo Joe's t-shirts are distributed worldwide, making it a significant promotional product.

The company expanded into the promotional products business, selling B2B and providing marketing solutions with screen printing and design expertise.