BUILDING FOR THE "OUTLIERS"

WHY BRANDS THAT TARGET "EVERYONE" END UP WITH NO ONE

Most consumer brands optimize for the average customer and in doing so, they miss the segments that actually drive disproportionate growth. I call this the "outlier opportunity." The markets that get labeled as "niche" or "too specific" are often 60%+ of the population. They're not small, they're overlooked.

THE STARBUCKS COMMUNITY STORE STRATEGY

When I advised CEO Howard Schultz on Starbucks' Community Store model, we were building stores in moderate-income, diverse neighborhoods. The conventional approach would have been to replicate the "general market" merchandising strategy. Instead, we looked at the data. We discovered that Starbucks' Frappuccino and Pike Roast massively over-indexed in these communities.

Rather than treating this as an anomaly, we leaned in, partnering with local, culturally relevant food vendors, like St. Louis Gooey Butter Cake, to complement what customers already loved.

The result:

• 12x product revenue lift

• +32% brand sentiment improvement in pilot markets

• A commercially viable model that balanced profitability with cultural relevance

THE PATTERN: "NICHE" MARKETS THAT AREN'T NICHE AT ALL

This same dynamic plays out across industries: Good American launched into size 14+ (representing 60%+ of women). Critics said it was too niche. The brand is now a category leader. Pattern Beauty launched into textured hair care (60%+ of the global population has texture). Critics said it wasn't for "everyone." It's now one of the fastest-growing hair care brands in the market. The brands that win don't build for everyone. They build for someone specific and do it so well that everyone else wants in.

THE FRAMEWORK: 3 QUESTIONS TO IDENTIFY YOUR OVERLOOKED AUDIENCE

1. What's the Total Addressable Market (TAM) for this "niche"? Often, segments dismissed as small represent significant revenue opportunities. Size 14+ isn't niche- it's the majority.

2. Does this audience over-index in consumption? Look for segments that represent 20% of your customer base but drive 40% of revenue. That's where growth lives.

3. Are they underserved by current market options? If your competitors are ignoring them, you have an opening to build loyalty and capture share.

WHY THIS MATTERS FOR BRANDS AT INFLECTION POINTS Whether you're preparing for IPO, entering mass retail, or stabilizing after hypergrowth, understanding where you're leaving opportunity on the table is critical.