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Welcome to VAPE U!

What’s a USP?Competitive Positioning and Branding

Maria Verven� VapeMentors’ partner and chief

marketing mentor

� Entrepreneur and founder of Vaping VampsTM

� 30-year career in P.R., former V.P. with Fleishman-Hillard

� Lecturer at the University of Minnesota

� Passionate about helping vapreneurs define their brand

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What You’ll Learn Today

� What’s “positioning” (or a USP)

� Why you need to establish a

USP in today’s vape space

� Steps in creating your USP

� Brand identity and elements

� Brand experience

The Five-Step Brand Positioning Process

1. Identify competitors and how they’re positioned

2. Investigate potential areas for differentiation

3. Develop a distinctive, value-based positioning

concept

4. Create a positioning statement and key messages

5. Use these statements in all communications

Step #1: Identify Your Competition

� How are your competitors positioning their business?

• Best prices?

• Largest selection?

• High-end products?

• Unique space?

• Focused on a market segment?

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Step #1: Research Your Competition

� Crawl their website

� Stealth research: Go to their vape shop!

• Who talked with you?

• What did they want to sell you?

• How long did they spend with you?

• What was your overall impression of

their service?

Step #2: Identify Areas for Differentiation

� Identify what makes YOU different!

• Your core strengths

• Your demographics

• Your story/background

• Your interests

• Your passion!

Step #2: Areas for Differentiation

� Best prices?

� Largest selection?

� High-end products?

� Location? (Only if there’s no other shop nearby or if

your store is unique/different)

� Focused on a market segment?

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The Market: Who’s Vaping Now…

60% - Millennials

30% - Gen X

10% - Boomers

The Market: Who’s Vaping Now…

The Future of Vaping….

40% - Millennials

40% - Gen X

20% - Boomers

The Gen X and

Boomer market

is growing…

Your Customers

� Who are they exactly?

� What are their primary issues/needs?

� What are their primary beliefs and

values?

� How will you attract and retain them?

� How can your brand participate in this

culture?

� Ho

Competition = Saturation� VapeFinds

� Yelp

Location, Location, Location

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Do Your Research

�Google Maps: Details on the surrounding area

�Google Earth Pro: Demographic and traffic data

�CityData.com: Area-specific demographic info

�CityFeet.com: Search available sites using the “Zillow”

of commercial real estate

�OpenStrate.gy: Tools and links for in-depth research

into consumer usage and trends

Step #2: Areas for Differentiation

� Scarcity/exclusivity on certain brands

� Resolve customer issues/barriers

� Set the “gold” standard (i.e. no clones)

� Feature an expert

� Share your personal story (or their stories!)

� “Disrupt” the category: be different!

Step #3: Develop Your Positioning Concept

� Focus on what makes you unique

� Do this BEFORE you do anything else

� Make sure it’s customer-focused

� Share with friends/partners/potential customers.

Revise and refine it.

� Your core positioning concept should have “legs”

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Steps #4 & 5: Create a Positioning Statement

� Create a positioning statement and key messages

� Develop your tagline (short-form) from this statement

� Use these statements in all communications

� Make sure the brand experience matches the message

Example: Waldo Vapes, Waldo, MO

� Jon Brower researched other stores in Kansas City

� Competitors had low quality e-liquids and poor

customer service

� He listed the top quality e-liquid makers, developed

relationships before opening the door

� They spend an hour with each newbie

� Now making over $1,000/day

Example: Vapor Solutions, Costa Mesa, CA

� Original store in this location failed

� Just another vape shop wasn’t going to cut it

� Vapor Solutions also has stores in Fullerton, CA, Falls

Church, VA and Houston

� They invested $100K in rebuilding the large space

(3,000 sq ft)

� It’s now a combined vape/coffee shop with free wifi

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Example: Vapor Cave, Las Vegas

� Owners: bartender and pool

service guy

� Idea! A man-cave for vaping

� The concept was masculine

without alienating women

� Artificial boulders and

branding fit the theme

Example: Cuttwood

� Estimated 5,000 e-liquids on the market

� Starting fall 2013, they’ve attended

virtually every vaping event in the U.S.

� Cloud competitions, contests, give-aways

� Austin, “the Sauce Boss” is highly visible

� Sponsored a race car at Daytona 500

� They’re one of the most recognized and

respected e-liquid brands on the market

Your Brand

Define your:� Company Name

� Logo

� Brand Identity

� Business Description

� Tagline

� Desired customer

experience

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Company Name

� Descriptive

� Evocative

� Funny or punny

� Local

� Personified

What’s In a Name?

� Large Selection

• Vapor Barn, Vapor Emporium

� Bargain Prices

• Vapor Outlet, Penny Vapor, DiscountVapers

� Cool Hang

• Vapor Den, Speakeasy Vaporium

Logos

� Unique symbol

� Can incorporate your name

� Clarify, don’t confuse

� Doesn’t have to cost thousands

• 99Designs

• Elance

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Brand Identity

� Use of Logo

� Colors

� Type fonts

� Website

� Brand Identity Guidelines

� Be Consistent!

Business Description

� Use Keywords

� Use local keywords if you’re a brick and mortar store

� Include your positioning statement or brand promise

Tagline

� Start with your USP, core positioning

� Summarize your USP in a few words

� Try different iterations

� Make it short (less than 6-7 words) & memorable

� Be consistent: use it everywhere!

“Igniting Your Success in the Vape Space”

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Brand Experience

� You’ll selling products AND a service

� What impression do you want to leave?• Caring

• Professional

• Knowledgeable

� Hire employees for attitude, not skills

� Looks matter; employees ARE the brand

� Don’t take training for granted

Leverage Your Brand

� Make it easy for people to share

their experience with your brand

� Social media is HUGE

� Take in-store photos, videos

� Encourage them to share their

“switch” story

� Develop content they’ll want to

share such as “how to” videos

Next Class: Product Selection

� Your instructors: Michael Guasch (Molecule

Labs) & Grimm (Nick) Green