lessons from the patron way

Given what I’m doing here with OKKA, it’s worthwhile to share some of my notes about relevant stuff I’ve consumed.

The Patron Way is the story of they built Patron and the brand around it. Premium tequila wasn’t a thing until Patron came along, so forging an identity in a nascent industry was bloody interesting.

I’ve included some of my favourite tidbits, and a couple of the good lessons from the end of the book.

They would not break the cardinal rule: quality above all else. Never be distracted from the fundamental importance that everything that is great and differentiating about your product should be maintained and always exceed expectations. Remember, you are your own best customer, so follow your own high standards

I just love this gorilla marketing technique

We'd soon created an entire network of friends and acquaintances two or three times removed and instructed them to please ask for Patrón wherever they went-liquor and grocery stores, bars and restaurants, airport duty-free shops-even when we knew they were living in states where we did not yet have distribution. If three people asked for Patrón at any establishment, management would remember and seek out our product on its next purchase orders. It was what we called "pulling from the front." One by one, 10 by 10, and 20 by 20, we were steadily creating an enormous energy flow that was fueling demand, and it was a thrill.

On big brands trying to entrench on Patron’s turf and offer a similar product:

no amount of time, money, research, or labor will produce a product that possesses soul, personality, a true identity, or any of the essential elements that captivate. Those are intangibles that cannot be bought, manufactured, manipulated, or even faked; they seem to evolve purely organically when intention and desire, honesty and humility, humor and creativity, and passion and fun are all present, balanced, and in harmony

On being curious, creative, and just having a crack:

We didn’t know how it was done in the business. We were flying by the seat of our pants and imagining how it should be done. We were fairly intelligent people with business sense and a lot of creativity. We thought we’d figured out the most logical route, only to learn that was never the way it was actually done. For the most part, by not knowing any better, we actually did better. We weren’t boxing ourselves in with a certain standard. We didn’t even know what the box was! At the same time, we weren’t trying to be different. We were simply trying to do the best we could with what we had.

Be Ready for Whatever the Universe Has to Offer

The greatest opportunities can come from out of the blue if you are open to them. You cannot discover anything great with your eyes or mind closed. Martin’s senses were alive to the possibilities, so the moment he tasted the original Patrón spirit, he understood perfectly the value of what he had found. Many others would have simply enjoyed a drink, moved on, and forgotten about it. But Martin knew that what he had in his hands was incomparable and that if he felt this way, millions of others would too. You cannot force a great brand into existence, but when it presents itself, you can recognize and respond to the opportunity and be prepared to make the most of this monumental gift.

Presentation Broadcasts Your Message

Packaging must creatively, truthfully, and precisely reflect the quality and experience of its contents. Design is not just a look; it also creates an emotion in your consumers. […] But we took it a step further, borrowing freely from other industries and applying the best ideas where they were most relevant. In our case, it was the perfume industry, where the detail and quality of the packaging beyond the bottle conveys that a product is a special gift. It’s an approach that makes the difference between an iconic consumer brand such as Coke, Chanel No. 5, even Campbell’s Soup and another product that gets lost in the crowd.

Never Allow Conventional Wisdom to Constrain You

Sometimes ignorance really is bliss. Of course it’s important to know the basics of business, but that doesn’t mean you must always go by the book. Don’t be afraid to set your own bar. Winners don’t limit themselves by an industry’s norm. The only way to truly be a breakout success is to block out the noise and listen to your own best instincts. Besides, you can’t beat the right combination of common sense and creativity.

Everything Affects the Final Outcome

A great brand is a combination of the physical production and the intangible magic of the people who surround it. Learn every stage of your product’s journey: the production, packaging, and distribution processes. Become an expert on how it’s made, from the raw materials to its landing on the shelf in a store. Not only did this enable Martin to step in and troubleshoot whenever something went wrong, it gave him a much deeper appreciation of what he was selling and who was behind it. Once you have become intimately acquainted with the process, you will realize that a product is the result of all the energy of all those who have touched it along the way. […] Treat everyone associated with your product, at all levels, with love and respect.

Know Who the True Tastemakers Are and Use Them Wisely

Think about how all the people in your orbit, whether they are friends, members of the media, or product reviewers, can be best leveraged to promote your product. Celebrities in particular can be powerful tools in brand building. In the consumables business, word of mouth from fashionable and hip brand ambassadors speaks volumes to the mass market. But never, ever try too hard. The cachet of a brand must be organic. Martin quickly realized that we didn’t have to chase because we possessed the right relationships, a confident attitude, and a product people were genuinely passionate about. When you have those assets, marketing and promoting a consumer brand doesn’t have to cost six figures. And remember, not every star or movie vehicle is appropriate. Be selective about who represents you. At the same time, do not go after one particular market segment. Be inclusive.

You Are Always Your Own Best Brand Ambassador

The best way to promote your brand is to let it infuse every aspect of the way you live. […] Outside our home, we were careful to represent Patrón wherever we went, wearing stylish swag and carrying bags emblazoned with our branding so that thousands of pairs of eyes would notice. We had our friends do the same and had them ask for Patrón in every shop, bar, and restaurant, even in states where we did not have distribution. It had a ripple effect that became significant and helped generate huge demand. In a sense, we were cultivating our own authentic narrative for the brand. Our loyal customers did the rest.

Be as flexible as possible, addressing each issue as it arises. Do not assume someone else will take care of it. […] In creating an iconic product, you set the standard, and it is only by remaining hands-on and keeping your finger on the pulse that you can keep it as high as it should be.

Some Things Will Always Remain Out of Your Control

There is plenty you can do to insulate your business against negative external forces. When the tequila industry got screwed by the worst agave shortage in years, exacerbated by hoarding, crop disease, environmental damage, and changing farming practices, it was something we could not have predicted or changed. However, we were able to turn an industry disaster into an advantage with long-term relationships and sound planning. We survived because we had secured our source, even though it cost more, and consistently delivered quality to our customers when the competition was cutting corners. In addition, we maintained low overheads and enough liquidity to respond to the changing market through brand expansion.

Consistency of Quality Builds Lasting Brand Loyalty

This is the most crucial element of a consumable brand. There will always be temptations to cut corners. […] During the agave shortage, we’d already seen how hundreds of boutique tequila brands fell by the wayside when they resorted to improperly cultivated agave to maintain production volumes. […] Never be distracted from the fundamental fact that everything that is great and differentiating about your product should be maintained and always exceed expectations. Remember, you are your own best customer, so follow your own high standards.

In Business, You Are Your Reputation

Stand up for yourself. […] Assume from the outset that the big boys have got you out-lawyered and outgunned. That doesn’t mean you shouldn’t play, but know it’s not a fair game. Therefore, negotiate rather than litigate if you possibly can. Do all that you can to keep it out of court. Settlements are less stressful and less expensive in the big picture.

Once Established, Keep the Branding Message Simple

Let the greatness of your iconic product speak for itself. […] As Daymond John points out, there is no need to try too hard. Discerning and influential consumers such as the hip-hop community appreciate a brand that builds organically through word of mouth and educated connoisseurs. This is how we established ourselves from the beginning without ever going after any one particular market segment, ignoring the conventional wisdom of business schools with our open architecture marketing. When you create something that is as sublime as it is aspirational, there is no need to chase. Legions of devoted consumers will follow.