Alcohol + Energy = Small Business Success?
Many people would question that equation, but Jeff Kanbar, owner of JETT Vodka, swears by it. This drink offers a fun and less filling option to the Red Bull and vodka cocktail that is a huge seller in night clubs all over the country. For Kanbar, finding a niche has been an easy choice that was naturally successful.
Jeff Kanbar began working in the vodka field while still a young adult. His uncle, Maurice Kanbar, was the founder of wildly successful SKYY Vodka. While the business was in its infancy, Jeff helped with sales and marketing, a lifestyle he enjoyed immensely because it allowed him to ‘work late’ in clubs and bars around New York, where he lived. After four years, Jeff was ready to branch out on his own.
However, the vodka market had changed immensely over the few years since SKYY Vodka was founded. Jeff knew that the market was already flooded with high quality vodkas, making it difficult for a new product to get its big break. The challenge was to create a product that offered a special feature.
Jeff noticed that the Red Bull and vodka cocktail was popular. However, many people complained about the calories and sugar that the cocktail included. The taste was also a problem, because this combination didn’t blend well with other drinks. If a person wanting that blend of energy and alcohol could get it without the limitations and with fewer carbs, they would be likely to buy it.
Creating the concept—a vodka with energy-creating ingredients such as caffeine, ginseng, and guarana—was easy. However, product development offered a new challenge. The energy ingredients were all either bitter or had a dark color. Jeff went through a long development and testing process before finding the right combination with the right taste and color.
Another challenge was marketing. Like many small business owners, Kanbar had a very small marketing budget in an industry where multi-million dollar campaigns are the norm. He had a professional, compelling brand and logo design created and began marketing his energy vodka through more economical options, adopting a grass roots approach that involved getting the word out through free or low cost methods.
This combined with a unique product has proven to be a recipe for success. JETT is sold with great success throughout Southern California and plans to expand once this key market has bought in completely.
Jeff is the first to warn against rapid expansion. Like his uncle before him, his strategy has been to identify a customer base and market aggressively to them. All growth is being held off until the demand is there. This keeps the company from being spread too thin and allows the owner to enjoy the process.
What can we all learn from JETT Vodka? First, that differentiating your brand should occur in the very earliest planning stages. Second, that a brand and a logo design are the two greatest investments you can make in your future success. Last, grass roots marketing may be cheaper, but it is nonetheless one of the most effective and most authentic ways to build demand for your product.
