What's the strongest brand in hospitality today? Some might say Aman. But insiders know one of the fastest growing (and most profitable) brands is Jimmy Buffet's Margaritaville.
Jimmy Buffett (may he rest in peace) and business partner John Cohlan have managed to translate the brand into a stunning business that spans media, restaurants, hotels, resorts, casinos, a cruise line, daiquiri makers, hammocks, retirement communities, RV parks, and more.
The brand earns over $2 billion+ in revenue, about 10% of the size of Marriott Hotels, but under a single brand, compared to Marriott’s 32 lines.
Expanding to new categories feels like an obvious strategy.
But its actually quite difficult:
Allbirds struggled to turn their shoe business into clothing.
Casper struggled to sell sleep products beyond the mattress.
Hilton owns hotels - but would you book a Hilton restaurant for your next trip? Or shop for Hilton branded merchandise?
How did Cohlan and Buffett turn Margaritaville into a thriving empire?
In short, by investing in the brand ‘idea’ of Margaritaville, and using that to inform the design of new products.
I wrote up a full story on Margaritaville, as well as a new framework for how brands can expand to new categories.
If you read it, let me know: What do you think of the product vs idea based strategy? Would you bet on the continued growth of Margaritaville? And does anyone want to visit the cocktail bar in Times Square with me…
#marketing #hospitality #advertising #brand
Hoteliar Voyage Series
2moThanks for sharing, Omar Boubess. Great insight! With the historical value of the location itself, I think it deserves recognition on its own, even without a specific brand. Yet, the brand managing it will eventually gain a different kind of reputation—respect—as this is one of its kind that others may not be able to easily replicate.