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.