While the first day of fall isn’t till the 22nd of this month, Labour Day is always the unofficial start of the fall season. It’s the season of falling leaves, apple picking, and pumpkin spice everything!
Trying to think of new and creative topics to cover in this newsletter can be hard. Admittedly, I dragged my feet on this one, wanting to enjoy the summer weather a little longer. The brilliant Egle, who handles all our marketing, jokingly told me I should write about the aforementioned pumpkin spice latte. So here it goes … Pumpkin Spice Lattes (PSL) and Startups. What can learn from the PSL trend? And what do pumpkin spice lattes and startups have in common? More than you might think. Let’s dive into this frothy concoction of whipped cream, caffeine, and pumpkin
spice.
🎃 Timing is Everything:
Pumpkin spice lattes are strongly associated with fall. Their release is timed perfectly to coincide with the first signs of cooler weather, instantly creating a connection to the coziness of the season. This is a lesson that many startups can learn from: timing is crucial. The success of a startup often depends on launching at the right moment, when the market is ready, and the consumer mindset is aligned.
PSL Food for Thought: Just like how PSLs would not be as popular in the heat of summer, an innovative product launched at the wrong time can miss its window of opportunity.
🎃 Creating a Niche Market:
The pumpkin spice latte wasn’t just a new flavor; it was (and is!) a carefully curated experience. PSLs carved out a niche market that blends nostalgia, seasonal traditions, and social status. Similarly, successful startups often identify a specific gap in the market and create a unique offering that resonates directly with that niche.
PSL Food for Thought: Startups that zero in on a niche can build a dedicated audience just as enthusiastic as the one that lines up for their pumpkin spice fix.
🎃 Riding the Hype Train:
PSLs are more than just coffee; they are a trend. Each fall, social media buzzes with the return of this seasonal favorite, and grocery stores release new products to capitalize on the trends. Startups often rely on a similar kind of buzz — the hype that surrounds a new idea or technology.
PSL Food for Thought: The “hype cycle” is a well-known concept in the tech and startup world. It starts with a period of high expectations, followed by a letdown, and then eventually reaches a phase of stability and productivity. The pumpkin spice latte is a great example of this cycle, as it generates excitement and urgency due to its limited availability. Similarly, for startups, it’s important to effectively turn initial excitement into long-term customer loyalty to achieve lasting success.
🎃 Seasonal and Iterative Innovation:
One of the reasons the PSL remains popular year after year is because they are not available all year round. This limited availability creates anticipation and excitement. Startups can learn from this approach by embracing scarcity and iterative innovation. Rather than trying to perfect a product on the first go, many successful startups release a minimum viable product (MVP), test it in the market, gather feedback, and continue to iterate.
PSL Food for Thought: The “limited edition” model of innovation keeps customers engaged and always looking forward to what’s next. Much like how there are variations of the PSL including cold drinks and food items, startups need to innovate continuously to keep their audience excited and engaged.
☕️Building a Strong Brand and Emotional Connection
Pumpkin spice lattes are more than just a beverage. It evokes feelings of warmth, comfort, and nostalgia. This emotional connection is key to their success. Startups, too, must create strong brands that resonate on a personal level with their customers.
PSL Food for Thought: The most successful startups understand that people don’t just buy products — they buy experiences, identities, and emotional connections.
🎃 Leveraging FOMO (Fear of Missing Out):
One of the biggest drivers of PSL sales is FOMO, or “fear of missing out.” The drink is only available for a limited time each year, so get it while it’s hot! Startups often use the same tactic to drive demand, especially when they are just starting out.
PSL Food for Thought: Leveraging FOMO can create urgency and demand, making consumers feel like they are part of an exclusive club. There is much to be learned from the humble PSL. By understanding the importance of timing, creating niche markets, capitalizing on waves of hype, iterating on products, building emotional
connections, and leveraging scarcity and FOMO, startups can create their own “pumpkin spice moment.
Whether you’re a fan of the PSL or not, there’s no denying its impact. So next time you sip on that pumpkin spice latte, remember: it’s not just a drink — it’s a lifestyle. Well, maybe it’s not a lifestyle you subscribe to, but there’s no denying that it’s a masterclass in branding, innovation, and market dynamics.
And if you’re like me and you want to hang on to summer for as long as possible, there is always the iced version!
Many thanks for reading!
Kate Tomen
This post came from the September edition of the AIO Newsletter. Sign up below to get your copy delivered directly to you every month and stay up to date on everything happening in the angel investor ecosystem.