MARKETING: The Michelin Brothers’ Lightbulb Moment

How Michelin Used Behavioural Science to Sell Tyres (Before It Was Cool)

When we discuss successful applications of behavioural science in marketing, we often think of recent digital campaigns with sophisticated data analytics. Yet one of the most brilliant examples dates back to 1900, when the Michelin brothers created what would become one of the most prestigious culinary institutions in the world, originally as a clever ploy to sell more tyres.

A Problem of Demand

In 1900, the automobile industry was in its infancy. In France, where the Michelin tyre company was based, there were fewer than 3,000 cars on the road. For the Michelin brothers, André and Édouard, this presented an existential business challenge: how could they grow their tyre business when so few people owned cars?

The brothers identified the fundamental behavioural challenge underlying their business problem. Car ownership wouldn’t increase unless people had compelling reasons to drive – and drive often. Their tyres would only wear out (requiring replacement) if motorists felt motivated to embark on journeys.

The Behavioural Insight

Their solution was ingenious: create demand for driving itself. The brothers understood a key principle we now recognise in behavioural economics, i.e. if you want to change behaviour, reduce friction and increase motivation.

They published the first Michelin Guide – a free handbook for motorists that contained practical information including maps, instructions for changing tyres, listings of mechanics, and importantly, places where drivers could find petrol stations, accommodation and good food while travelling across France.

The brilliance of this approach was multifaceted:

1. Reduced uncertainty: The guide removed a significant psychological barrier to travel – the fear of the unknown and the anxiety of not knowing where to find essential services.

2. Created social proof: By documenting places others had visited, the guide normalised the idea of recreational motoring.

3. Leveraged the endowment effect: Once motorists received the free guide, they felt compelled to use it.

4. Applied loss aversion: The guide highlighted experiences motorists might miss if they didn’t venture out on the roads.

From Marketing Tool to Cultural Institution

What began as a marketing tactic evolved significantly. In 1920, the guide was no longer free, with André Michelin reportedly saying, “People only respect what they pay for.” By 1926, they introduced the now-famous star rating system for restaurants.

The Michelin brothers had tapped into something deeper than they initially intended (aka the Law of Unintended Consequences) the human desire for quality experiences and authoritative guidance. The restaurant ratings became so prestigious that chefs would dedicate their careers to achieving Michelin stars.

Lessons for Modern Marketers

The Michelin Guide case study offers several timeless lessons:

– Understand the ecosystem of your product: Michelin realised their success depended on the broader adoption of automobile culture.

– Address behavioural barriers: They identified and systematically removed reasons not to drive.

– Create value beyond your product: The guide offered genuine utility that extended far beyond tyres.

– Play the long game: What started as a marketing tool became a complementary business and brand-building exercise that has lasted over a century.

Long before the terms “content marketing” or “behavioural economics” entered our lexicon, the Michelin brothers were pioneering these concepts through intuition and business acumen. They understood that to sell tyres, they needed to sell the journey first.

In our current era of data-driven marketing, the Michelin story reminds us that understanding fundamental human behaviour and motivations remains the cornerstone of effective marketing. Sometimes the most powerful applications of behavioural science don’t come from complex algorithms but from simple insights about what makes people tick, or in this case, what makes them drive.

Next time you’re developing a marketing strategy, ask yourself: What’s your equivalent of the Michelin Guide? How might you create value that extends beyond your product while subtly driving demand for it? I say this looking at the EV manufacturers who are marketing ‘the performance’ of luxury EV brands when buyers already know that!


Steve Coulter is a 35+year career sales and marketing professional. Author and researcher of the digital transformation resource ‘The Definitive Guide To Digital Transformation For Legacy Businesses’ and ‘Audit-Fix-Maximise’ a – do the simple things well – strategy for all digital marketers. 

SOCIAL MEDIA: Back To The Futurism 3

Futurist Preamble Ramble Pt.3:

The Clubhouse app analogy. Like attracts like, people follow those they respect and meet more like minded, all these people invite their friends to join the app and a ripple effect of like minded & a virtuous circle. An app that existed before the pandemic but floundering, came alive when we were stuck at home and realised that interactive podcasting meant you could contribute to the discourse of your pet subjects and interests. Typically, the larger platforms are now on the bandwagon with their own offerings. Speaking and sound was the last of the senses to be properly catered for by Social Media, the effect of hearing tone in someone’s voice is more personal than text creating an unexpected hit. Unexpected seems to be a thread.

At the creator level, ideas from people across the world are disseminated and applied to individual markets. Collaboration is a natural effect.

On a buyer level, obviously influencers are embedded, but micro influencers are targeting a smaller niche audience from subsets of interests. It’s simpler to market a niche product or service than larger.

How many have dyed their own hair during the pandemic and how many have sought reviews online? Some ultra agile smaller brands have capitalised mightily in the last twelve months by creating simple to use products and receiving rave reviews. The rise of the #RavingFan !

Social Media Groups are simple to create and market to. Brands who interact at a quantum level in these forums build trust in a subscriber that they are the most qualified supplier of goods and services (Social Listening). Backed up by encouraging great feedback within these forums and the Internet in general. Your brand’s clean fingerprints have never been more vital in a world where you simply cannot erase a poor review.

SOCIAL MEDIA: Back To The Futurism 2

 

Futurist Preamble Ramble Pt.2

Creatives can use Blockchain as a method of dating and copyrighting their output – Intellectual Property is becoming critical when nation states are prepared to steal copy ideas and products. Leading creatives will create a Cryptocoin that reflects any rise in their stock. Imagine investing in designers Johnny Ive, Dieter Rams or architect Frank Lloyd Wright stock at the beginning of their careers.

The development of creator to brand exchanges where creatives will bid for work and brands can pick from the most competitive and creative talent to bring new messages to their customers.

We have only scratched the surface of the effect of Blockchain and Cryptocurrency. There is nothing to prevent well known brands jumping this bandwagon, encouraging investment in their coin generating interest bearing tokens that can be exchanged for limited edition products, uniquely offered sale goods and media launches and cross brand endorsements. Brands expanding outside of the regular economy into the decentralised economy that even countries like the newly independent Great Britain*, a G7 economy are considering entering – maybe tied into Free Port policies.
*I am Remainer lol but we are stuck with Brexit so we have to make it work.

In summary, a new breed of independently funded creators will provide infinite new competitively priced content to brands wishing to personalise their offerings to a savvy consumer.

Convenience
Consumers want Ease, Speed, Reliability & Consistency.

The rise of apps. Expedited delivery. Free Returns

Tribes & Influences
People want advice from like-minded people or people they admire & respect. We all want to belong.

They want to support brands they relate to and admire too. Cont.

 

If Not Me, Who? If Not Now, When?

I had in mind a different post this morning but inspired to publish this great quote after listening to a number of contributors in a superbly managed Clubhouse* club ‘Breakfast With Winners’ the room entitled ‘Winners Mindset vs Self Doubt’.

At some time or another, everybody suffers from self doubt or ‘Imposter Syndrome’, I learned that this is a precursor to the fight or flight reflex for when we feel threatened. Our inner voice is sending a warning and triggers the nerves and doubts that hold us back – ‘saving’ us from the scenario our brain wishes to remove us from. The key seems to be to recode our mind so that the scenario is no longer threatening, and affirmations and training are perfect for this.

A number of highly successful people running the club expressed examples when self doubt appeared and the tactics they employed to overcome. One admitted it was rare but went back to basics and read the numerous self-help and business books they have collected then RESET. But that takes time. Another quoted the Louise Hay book ‘Feel The Fear & Do It Anyway’ which mentioned that 90% of the time, the fear that is holding us back usually turns out to be only 10% of what we feared in reality. My own I learned from my daughter’s first employer a decade ago. If not me, Who? If not now, When? Think about that, take a deep breath or two and Just Do It! Okay, I lifted the last slogan!

Let me know of any strategies you use when self doubt holds you back.

* I have a number of Clubhouse invites if you would like to join, iPhone is required presently. Please DM