Entrepreneurial marketing and hybrid entrepreneurship: the case of JM Reid Bamboo Rods

ABSTRACT

Through the presentation of the case of James Reid, a hybrid entrepreneur that transitioned towards full-time entrepreneurship, this paper discusses a number of entrepreneurial marketing issues faced by a small business. When presented with several opportunities for business growth, Reid evaluates the extent to which growth could impact his business model, brand image and his passion. The case study demonstrates the importance of maintaining brand values and establishing a clear strategic orientation in order to create a strong brand. However, these are shown to also significantly limit the growth prospects of the business. The discussion of the case delves into these issues together with an examination of the entrepreneurial journey of a highly skilled transitory hybrid entrepreneur. This paper further introduces the concept of a comfort entrepreneur, one that willingly halts the growth of their venture, and examines the business implications thereof.

KEYWORDS:

• Entrepreneurial marketing
• hybrid entrepreneurship
• growth strategy
• strategic orientation
• brand equity
• comfort entrepreneur

Introduction

The recent past has seen a flurry of academic interest in the overlap between the disciplines of marketing and entrepreneurship. The term, entrepreneurial marketing, refers to this apparent intersection, although an exact definition of this term appears elusive. Jones (2010) suggests that this is partially due to the fact that entrepreneurial marketing draws on more than one discipline, with marketers, entrepreneurs and academics typically emphasising different aspects of the concept to advance their own interests. Entrepreneurial marketing is a flourishing (Gilmore, McAuley, Gallagher, & Carson, 2013) and evolving subject area that remains somewhat fluid as researchers extend the boundaries of its definition.

Traditional marketing advocates that the customer should serve as the focal point for all marketing activities; whilst entrepreneurial marketing acknowledges that the entrepreneur plays an equally important role in the marketing process (Morrish, Miles, & Deacon, 2010). While some authors argue that the concept of entrepreneurial marketing is of importance to all businesses regardless of size, there appears to be a general understanding that it is of particular pertinence to small businesses (Jones & Rowley, 2011; Morris, Schindehutte, & LaForge, 2002). Hills, Hultman, and Miles (2008) discuss the importance of examining marketing efforts used by entrepreneurs to gain a competitive advantage as opposed to the predominantly researched large, resource-abundant organisations. Literature proposes that making use of an entrepreneurial approach to marketing assists firms in their ability to identify and exploit opportunities and manage their marketing efforts (Shaw, 2004). Thus the importance of an entrepreneurial approach for small businesses is readily understood.

The case presented in this paper is used as a means of exploring a number of important issues that form part of the interface between marketing and entrepreneurship. This case seeks to further understand the entrepreneurial marketing issues that one faces when growing their small business and how these issues influence business growth. The analysis of the case resulted in the identification of several specific entrepreneurial marketing issues, including the entrepreneurial journey from hybrid entrepreneurship towards full-time entrepreneurship, the implications of an unyielding strategic orientation and the importance of the development and maintenance of brand equity and brand value.

The following section provides a summary of literature pertinent to the field of entrepreneurial marketing and examines existing literature pertaining to hybrid entrepreneurship. Following this, an overview of the case methodology used is presented followed by an introduction to the case. Thereafter, a discussion of entrepreneurial marketing issues, as they pertain to the case, is presented.

Entrepreneurial marketing

Entrepreneurial marketing has emerged as a significant field in both academic study and marketing practice over the past thirty years (Gilmore et al., 2013). The many commonalities between entrepreneurship and marketing resulted in the emergence of this field, aptly named entrepreneurial marketing (Gilmore et al., 2013; Shaw, 2004). Early researchers have argued that both entrepreneurship and marketing focus on the importance of identifying opportunities and operating in a constantly changing environment (Omura, Calantone, & Schmidt, 1993). More recent researchers have expanded on the work of Omura et al. (1993), identifying a number of further areas of apparent overlap in marketing and entrepreneurship theory (see, for example: Bjerke & Hultman, 2002; Collinson & Shaw, 2001).

Entrepreneurial marketing is conceptualised by Morris et al. (2002, p. 5) as ‘the proactive identification and exploitation of opportunities for acquiring and retaining profitable customers through innovative approaches to risk management, resource leveraging and value creation’. A further fundamental component pertaining to entrepreneurial marketing relates to the functions of a firm being entrepreneurial in nature (Anderson, Kreiser, Kuratko, Hornsby, & Eshima, 2015). Anderson et al. (2015, p. 1579) seeks to establish a reconceptualisation of entrepreneurial orientation from existing literature, referring to the ‘decision-making practices, managerial philosophies, and strategic behaviours that are entrepreneurial in nature, with entrepreneurial referring to three components – namely innovativeness, proactiveness, and risk-taking’. Aligned to the conceptualisation of Morris et al. (2002), Gilmore et al. (2013) explain that all businesses, regardless of size or degree of establishment, are seeking to offer a product or service to a particular market at a particular price using a specific promotional message, therefore carrying out several fundamental marketing activities. However, whilst marketing serves as a key factor influencing the success of both small and large businesses alike, a number of entrepreneurial characteristics appear to contradict traditional teachings of marketing (Stokes, 2000). For example, Stokes (2000) suggests that entrepreneurs often place an over-reliance on a small customer base and have limited marketing expertise, often with variable effort.

As one delves further into the intersection between entrepreneurship and marketing, the intertwined nature between these disciplines becomes apparent. For example, Morris, Davis, Mills, Pitt, and Berthon (2013) suggest that the marketing mix is developed based on a marketer’s understanding of an opportunity, whereas an entrepreneur develops a venture based on the understanding that an opportunity exists. This sentiment is echoed by Stokes (2000) who suggests that marketing as an organisational philosophy proposes that an assessment of market needs is required prior to product or service development, however, entrepreneurs frequently delve into the development phase and look for a feasible market thereafter. Whilst the context, and potentially the implementation would differ, the thought process behind these activities stems from the same understanding of opportunity recognition.

It is important to note that when discussing components such as opportunity recognition and exploitation that it is not thought of from only the perspective of an established company or that of a full-time entrepreneur. Recent research has formally presented the phenomenon of a hybrid entrepreneur, an individual that willingly engages in the development of their entrepreneurial venture whilst maintaining salaried employment (Luc, Chirita, Delvaux, & Kepnou, 2018; Solesvik, 2017). In this instance, individuals may opt to engage in hybrid entrepreneurship in order to fully evaluate the opportunity they have identified and examine whether they are able to actively exploit this opportunity.

Hybrid entrepreneurship

One school of thought defines hybrid entrepreneurs as individuals who are active entrepreneurs, but who primarily support themselves financially by means of other employed income (Folta, Delmar, & Wennberg, 2010; Viljamaa & Varamäki, 2014). Another group of scholars refer to these very same individuals as part-time entrepreneurs (Petrova, 2012; Schulz, Urbig, & Procher, 2016). In contrast, Schulz et al. (2016) do not necessarily infer that part-time entrepreneurs have another paid form of employment, but instead employ the term hybrid entrepreneurship as a term to denote the combined state of both employment and self-employment. The dominating conceptualisation in the literature is that a hybrid entrepreneur refers to an individual that makes the conscious decision to maintain salaried employment while simultaneously engaging in their own entrepreneurial venture (Folta et al., 2010; Luc et al., 2018; Petrova, 2011; Solesvik, 2017; Thorgren, Nordström, & Wincent, 2014). It is pertinent at this stage to distinguish hybrid entrepreneurship from a number of different sub-categories of entrepreneurship in order to establish the boundaries of the phenomenon. User entrepreneurs refer to individuals that experienced a need in their daily lives, created a solution and have a ‘passionate desire to share their solution with others’, ultimately resulting in the commercialisation of their solution (Shah & Tripsas, 2007, p. 123). User entrepreneurship differs from hybrid entrepreneurship, as the definition of a hybrid entrepreneur does not require that the individual be directly involved in the process of product or service development as a user themselves. It is also pertinent to contrast hybrid entrepreneurship and hobby-related entrepreneurship. Hobby-related entrepreneurship relates to individuals that establish their entrepreneurial venture out of a strong passion for their product or service provided (Milanesi, 2018). Whilst hybrid entrepreneurs may establish their ventures based on a passion motive (Nordström, Sirén, Thorgren, & Wincent, 2016; Thorgren et al., 2014), the key distinction is that hobby-related entrepreneurship does not suggest that entrepreneurs necessarily maintain salaried employment whilst establishing their venture, unlike hybrid entrepreneurs (Folta et al., 2010; Petrova, 2011; Solesvik, 2017; Thorgren et al., 2014). As evidenced, phenomena such as user or hobby-related entrepreneurship tend to consider the motives for establishing an entrepreneurial venture, as opposed to the concomitant maintenance of salaried employment.

The concept of hybrid entrepreneurship is not an entirely novel phenomenon in practice; however, the importance placed on the phenomenon in academia has grown drastically in recent years (Folta et al., 2010; Schulz et al., 2016; Solesvik, 2017). Solesvik (2017, p. 33) suggests that this growing interest could be a result of changes in the employment market with a marked shift ‘towards temporary or part-time jobs’. Entering hybrid entrepreneurship may be attributed to three closely-linked factors: changes in the labour market (Solesvik, 2017), the heightened occurrence of non-standard working arrangements (Folta et al., 2010), and the emergent result of governmental efforts due to favourable public policy (Schulz et al., 2016). Current and projected future instability in the conventional labour market has led to an environment conducive to self-employment (Kelley, Singer, & Herrington, 2016). One such change in conventional labour market structure pertains to the rise of the ‘gig economy’ (Kuhn, 2016, p. 157), which primarily comprises of short-term independent working arrangements. According to Folta et al. (2010), the rise in hybrid entrepreneurship ties in with the higher incidence of non-conventional work arrangements. Employment instability and job uncertainty has seemingly become the norm (Popiel, 2017) and employees increasingly work part-time, hold more than one job, or engage in temporary or contract work (Kalleberg, 2000). As a result, ‘hybrid entrepreneurs represent a distinct and growing category in the labour market’ (Folta et al., 2010, p. 267).

Perhaps contrary to expectation, research asserts that individuals who engage in this hybrid state may do so for non-pecuniary benefits (Raffiee & Feng, 2014) and not solely to supplement their waged income (Folta et al., 2010). This serves as the distinction between the commonly used term ‘side hustle’ and a hybrid entrepreneur. Existing literature suggests that individuals engaging in a side hustle do so purely for the additional income stream, in order to supplement waged income beyond their salaried employment (Clark, 2018). Petrova (2012) examined entrepreneurial dynamics and similarly concluded that financial constraints do not impact hybrid entrepreneurship. Whilst changes in the labour market may be driving individuals towards hybrid entrepreneurship, there may also be a number of motivating factors that are attracting individuals to this hybrid state. The individuals who engage in hybrid entrepreneurship may be driven by creative challenges (Florida, 2014), a desire for autonomy or independence (Block & Landgraf, 2016), a need for social recognition (Kelly et al., 2016), or entrepreneurial competency development (Morris et al., 2013; Viljamaa & Varamäki, 2014). While hybrid entrepreneurship is typically associated with the early stages of entrepreneurial venture development, it is worth noting that establishing a part-time business is not necessarily indicative of a desire to enter full-time entrepreneurship (Viljamaa, Varamäki, & Joensuu-Salo, 2017). However, in some cases, it may initially be preferred to full-time entrepreneurship for a number of reasons. One of the key reasons for this preferential strategy of entrepreneurial entry is the learning process associated with being a hybrid entrepreneur (Folta et al., 2010). As one is only truly able to evaluate their learned competencies when in use, the entry into hybrid entrepreneurship and subsequent full-time entrepreneurship may be a cyclical process. The understanding of this phenomenon is that the decision to enter hybrid entrepreneurship appears to be a relatively complex decision with a number of both intrinsic and extrinsic factors guiding this decision.

Whether explicitly or implicitly identified, several researchers have alluded to the fact that hybrid entrepreneurship serves as a vital opportunity for learning (Folta et al., 2010; Viljamaa & Varamäki, 2015). This learning opportunity allows individuals to develop skills relevant to their entrepreneurial venture (Solesvik, 2017) and establish the market demand for their offering (Raffiee & Feng, 2014). Over time, as hybrid entrepreneurs learn more about their own ventures, expanded skill sets and knowledge of the industry tends to smooth the transition towards full-time entrepreneurship. This is evidenced by research suggesting that the ventures of hybrid entrepreneurs, which allow for a staged entry into entrepreneurship, exhibit higher rates of success than non-hybrid entrepreneurs (Raffiee & Feng, 2014; Solesvik, 2017).

Examining the entrepreneurial journey of a hybrid entrepreneur who opted to transition towards full-time entrepreneurship provides a practical understanding of the potentially cyclical entrepreneurial process. Furthermore, examining the entrepreneurial marketing issues faced by an entrepreneur seeking to grow their business, while remaining true to their brand values, provides valuable and practical insights into these issues.

Methodology

Aligned to the research objective of enhancing the understanding of entrepreneurial marketing issues facing individuals when establishing and growing a business, a qualitative approach was adopted for this study. This approach was selected as it is predominantly concerned with the subjective assessment of attitudes, opinions and behaviours of individuals (Kothari, 2004). In selecting the research method, Yin (2009) suggests evaluating three conditions to determine which method would be most appropriate. The first concerns the nature of the research question, the second considers the degree of control that the researcher is able to exert over behavioural events and the third pertains to the degree of focus on contemporary versus historical events. In addressing these three conditions, first, it is apparent that this research seeks to address a how or why question. Second, the researchers do not require any control over behavioural events and third, this research seeks to examine contemporary as opposed to historical events. This unique combination of conditions suggests that the case study approach is an appropriate method (Baškarada, 2014; Yin, 2009).

The findings are based on the data generated from the single case study of Mr James Reid, a hybrid entrepreneur that made the transition towards full-time entrepreneurship. James Reid was selected as the ideal case for two reasons. First, his transition from hybrid entrepreneurship to full-time entrepreneurship would provide insights into how the entrepreneurial journey affected his business growth. And second, the concept of entrepreneurial marketing is of particular importance to small businesses (Jones & Rowley, 2011; Morris et al., 2002), such as that owned by James Reid. This qualitative form of inquiry involves a detailed investigation of one particular entity with the ultimate aim of providing an analysis of the context and processes involved in the phenomenon under study (Henry & Foss, 2014). Case study methodology has grown in popularity as an effective research tool due to its inherent ability to generate insights concerning complex issues in real world settings (Harrison, Birks, Franklin, & Mills, 2017; Patton & Applebaum, 2003; Yin, 2009). Single case studies are most commonly used when research requires in-depth, qualitative comprehension in order to provide rich insights into substantive topics (see for example: Elms & Tinson, 2012; Inglis, 2008; Jones, Temperley, & Lima, 2009). Whilst the use of a single case study is not without its limitations, it appears that the rich insights offered by this design could otherwise be lost under a different design (Geiger & Prothero, 2007). The single case study further provides researchers with the ability to gather potentially sensitive information, which may be difficult to elicit through other forms of data collection (Inglis, 2008).

The data collection for this case study, which forms the empirical content of this research was collected as follows: two of the authors visited the subject of the case study, James Reid, at his place of business on two separate occasions. During the first visit, Reid was interviewed and this interview was audio recorded. During this visit, certain parts of the business operations were also captured through the use of video recording. The video recording served as a means of confirming what had been recorded in the interviews and as a reminder to the authors of the technical aspects of Reid’s business. The total length of this first interview and site visit lasted approximately four hours.

A further on-site visit occurred one week later, where again, two of the authors were present. The purpose of the second visit was to confirm the findings and observations of the first visit and to clarify any misunderstandings following the initial visit. This second visit lasted approximately ninety minutes. This second visit is indicative of ‘the linear but iterative process’ of case study research as suggested by Yin (2009, p. 25). As Yin (2009) recommends that researchers make use of multiple sources of evidence throughout the case study method, the researchers generated individual field notes throughout both site visits, later comparing these notes to provide additional information to the audio and video recordings. These field notes sought to capture additional information that would otherwise not be recorded in the audio recording. All audio recordings were fully transcribed to aid the analysis.

The researchers both separately analysed the field notes, audio transcripts and video recordings, identifying prominent themes. Following this, the researchers compared their initial analysis and the common themes formed the basis of the description of Reid’s business as it appears in this paper. These included aspects pertaining to his life story and his entrepreneurial journey as well as the establishment of his business, his methods of operation and marketing, and, his attitudes towards growing his business. The case is presented in the following section.

JM Reid Bamboo Rods – an exploratory case study

James Reid was born in the small town of Kingsville, Ontario. As a boy, he would often fish for bass in the stream behind his house. At the age of 17, Reid quit high school and left home. His professional career saw him working as a chef, a bicycle mechanic, a logistics manager and an apprentice mechanic in Canada and Australia. His hobby for fishing meant that he was well acquainted with available commercial fishing rods, however he was often unsatisfied with the quality of the off-the-shelf rods that were sold commercially. This entrenched dissatisfaction sparked an innovative, and ultimately entrepreneurial idea for Reid to build his own rods. He started with graphite, but searching for something more authentic, Reid bought an old bamboo rod on eBay and restored it to the original condition. Despite maintaining full-time employment, Reid restored approximately 35 vintage bamboo rods outside of work hours. Ultimately, Reid decided to expand his rod-crafting hobby to building his own rods. He produced approximately 40 rods, a majority of which were given away as gifts. After being approached to build a rod for a passionate angler, Reid opted to resign from full-time employment in order to pursue rod building on a full-time basis in 2012. At the time that Reid resigned, he had amassed sufficient orders to keep him busy for a full year.

The rod-making process

The process of creating a James Reid bamboo rod is a specialised and labour-intensive process. The process begins with an imported piece of bamboo being scraped clean and cut into straight, thinner strips, which are heat-treated. Six strips are joined together to form a long, thin, tapered hexagonal pole, which becomes the rod. This part of manufacturing, referred to as making the ‘rod blank’ takes up about 75% of the total manufacturing time. The other 25% of the manufacturing time includes attaching the reel seat to the base of the rod and attaching the line guides. Each rod is extensively customised to the individual client’s requirements, and this typically requires between five and six hours of discussion with each client before commencing work on the rod. Reid states that: ‘the rods on my website are really just a guide to what can be done, and almost every customer ends up with something different, and unique to them’. This is decided after intensive discussions with a client to determine their exact specifications. Reid produces between 30 and 35 rods annually, with a small number set aside for prototyping new models, improving older models, demonstration rods and personal fishing rods. He delivers, on average, 2.2 rods per month to his clients.

The rod market, customers and marketing

Prices of rods vary according to the model and specifications of each client. For example, a Standard Trout Rod sells for approximately US$1400 (cost price US$225) and a Summer Run rod sells for approximately US$2000 (cost price US$360). Competition in the bespoke rod market is moderate with Reid suggesting that his main competitors are small, usually one-person operations like himself. There are many makers of bespoke bamboo rods, however, Reid states that his advantage lies not only in the performance of his rod designs, but in the fact that few others offer the range and extent of customisation that he does.

Bamboo rod enthusiasts form a tight-knit consumer community who frequently discuss fish, fishing, and their equipment. Word-of-mouth and his website form Reid’s major marketing communication vehicles. He has also been very active on various online forums and the attention he gets on these forums has been important for building his reputation. These forums enable Reid to interact directly with anglers, answering questions about the rods he makes and displaying photographs of his work. An informal network of fishing guides and influential anglers are vocal supporters of Reid’s rods. He regularly holds events in different cities in North America where anglers can meet him and try his rods, as well as rods made by a select few other bamboo rod makers. He calls these very informal gatherings ‘the grass roots’.

Reid describes his typical client as someone, almost always male, who values ‘a connection to the history of the sport of fishing’. He currently has a three-year waiting list for rods. ‘People aren’t really willing to wait for longer than that,’ Reid says. He also estimates that 70% of his customers are long time fishermen, while 30% have been fishing for less than two years. Reid states that around two-thirds of his clients own more than one James Reid Bamboo Rod. One client in particular owns eight rods and keeps a permanent position on the waiting list. When a client wants to sell a James Reid Bamboo Rod, Reid offers to repurchase it, or to put the seller in touch with a buyer on his waiting list. ‘I hate the idea of my rods sitting on the second-hand market’, he says. When considering future growth prospects, Reid suggests that at the ‘top end’ of the fishing rod market, growth is stagnant. He says:

My market seems to stay about the same size. The number of people entering it seems equivalent to the number of people exiting it, and my feeling is that people usually exit because they have become too old to go fishing.

Many of Reid’s affluent clients invite him on their fishing trips. He considers this personal engagement with his clients of vital importance, and uses the opportunity for promotional purposes. Luxury fishing lodges often invite him for complimentary visits where he is able to interact with guests, with the ultimate goal of enhancing his customer base. He states:

What I love about my business is that I have a lot of freedom, a flexible schedule, free trips, and a great quality of life. I’m really doing what I love.

Growing the JM Reid business

Reid has considered a number of ways to increase the number of rods he produces annually. He has considered the possibility of employing a craftsman to boost production, however due to the skilled nature of the craft, this is not a possibility in the short-term. As Reid says:

It’s really difficult finding someone with the right skills and dedication. I’ve also had retirees offer to work for nothing just to be able to enjoy the pleasure of crafting a product like this. However, I find I spend more time supervising them and fixing their mistakes, and this distracts me from my own work.

An alternative means to increase his output would be to invest in machinery of around $15,000 (Canadian Dollars), which would allow Reid to craft an additional six rods each year. Also, if he reduced customisation to the bare minimum, he could produce another six rods annually. However, it appears that the monotony associated with producing a homogenous product is not a desired outcome as Reid states, ‘I’d get so bored doing this. I would hate doing the same thing over and over again.’

Reid has considered extending his product offering to include fiberglass or graphite rods. Many modern fishing rods are made from fiberglass, which gives them both strength and flexibility. They are stronger and less susceptible to cracking than graphite rods, and also less expensive overall. In 2016, as a test run of the fiberglass rod market, Reid purchased blanks from a manufacturer and crafted them in his own distinctive style. However, the manufacturer refused to make the blanks in a more distinctive colour for Reid, who suggested that unique colouring was required for customers to identify them as ‘his rods’. He has continued negotiations with another fiberglass rod manufacturer, who will cast the blanks in a unique colour on condition of a minimum order quantity. The production cost is higher than that of a bamboo rod, however the overall margin would be higher as it takes less time to finish. One of the reasons that Reid is interested in getting into the fiberglass rod market is because fiberglass, which replaced bamboo, was in turn made redundant by graphite. He believes that there are a number of anglers who would readily return to using a traditional fiberglass rod.

Graphite rods, as a further alternative, are light, strong and flexible. Reid states that he could easily produce graphite rods at a respectable margin, based on his brand. However, he says:

That would mean becoming a factory, and I’m not interested in that. People replace graphite rods every few years; they have no real attachment to them. I want to make something that people pass on to their children.

Reid has sold a limited number of JM Reid fishing shirts and caps, predominantly through social media and personal interactions with clients. He also produced an exclusive line of engraved fishing accessories, which were snapped up rapidly by enthusiasts at premium prices. He states:

I could probably have ordered many thousands of each from China at about a tenth of the cost and they might also have been sold easily. However, I think that would have cheapened my brand. As it is now these have all become collectors’ pieces.

New opportunities

Reid appears somewhat reluctant to grow his business, seemingly fearful of the tension created between his passion and the necessity of an income. He explains:

My initial objectives in giving up being a mechanic, and to build rods full-time, were to simply do something that doesn’t feel like work, and that I love doing. I was happy to roll the dice and see if this could actually be a way to earn a small living. I could always go back to being a mechanic if I couldn’t pay the mortgage. I wanted to build the finest casting, modern bamboo fly rods in the world. I don’t really want to grow the rod business, although I am happy to build my brand in other ways. I’ll sell branded products in limited batches, sometimes in serial numbered runs.

Despite his reluctance to expand his business, Reid stated that he has recently been presented with several opportunities to do so.

Importing bamboo

Reid has always sourced the bamboo for his rods from a supplier in Seattle, Washington. The supplier had developed the business over the past 15 years and established a relationship with a Chinese grower of Tonkin cane. However, the supplier recently passed away, leaving Reid with uncertainty regarding his long-term supply of bamboo. He had considered taking over the business, but it would not be feasible to do so from Canada as the majority of the market was outside of Canada and logistics from the US seaboard were more feasible.

A retail alliance

In the past, Reid had resisted all offers from retail stores to stock his products, as he believed his margins and production volumes would prohibit him from a successful partnership. He stated that the volumes at stake were so small that it would be illogical to add another level into the distribution channel. He states:

Regardless of what they say, at the end of the day they will be looking for volume and turnover and I’m just not able to do that. Second, I’m worried that the time I spend trying to increase my production, and also dealing with stores will be time that I have to take away from being with my clients. I think that the real problem with that is that I would lose touch with my loyal client base. And I don’t want to lose touch: not only is it how I do business, I also enjoy it immensely.

Despite his reluctance, the opportunity to establish a relationship with a major outdoor sporting goods retailer is one that Reid is finding particularly attractive. The partnership would allow Reid to triple his sales and establish his brand beyond his current product offerings. In addition, the potential partner had indicated that they were willing to invest significantly into a rod manufacturing company that Reid would be given free rein to run.

Reid is currently presented with a number of different, seemingly mutually exclusive, growth opportunities for his business, each with their own set of benefits and drawbacks. Reid needs to critically analyse how each of the opportunities would influence his clientele and established brand equity. Of further concern is Reid’s assessment of his entrepreneurial competencies, considering whether he possesses the motivation and skills to successfully manage a scalable business.

JM Reid: an exploration of entrepreneurial marketing issues

As evidenced by the case, James Reid has built a prestigious, connoisseur brand that has become a well-known, luxury offering to his clientele. The demand for products far outstrips the ability to supply and the brand has been developed without any reliance on paid-for mass media. There does not appear to be any resistance to the premium pricing strategy used, and Reid has not relied on any intermediary financial support to bring his products to market. Word-of-mouth for his product appears strong and stakeholders in the market such as fishing lodges, travel websites, and fishing communities seemingly clamour for his attendance at special events. These personal interactions serve as vitally important opportunities for Reid to meet with potential customers and gain a better understanding of distinct customer needs.

Despite having established a successful brand, Reid has not yet accepted any opportunities to grow his business and appears overtly resistant to change. In examining the opportunities for growth available to JM Reid Bamboo Rods, it appears that there are obstacles limiting this growth. We contend that the JM Reid Case offers several key aspects of entrepreneurial marketing that are worthy of further examination. First, we discuss Reid’s entry into entrepreneurship as this plays a vitally important role in the development of his venture. Second, we discuss the strategic orientation of the venture, examining how this influences the growth potential of the firm. Third, we examine the role of brand equity and brand value in guiding the growth of the firm and the potential limitations this may have on growth prospects. The following presents each of these entrepreneurial marketing issues in the context of James Reid.

The entrepreneurial journey

Reid initially established his entrepreneurial venture as the result of an inherent dissatisfaction with commercial product offerings coupled with his passion for fishing. Reid stated that he produced rods during his spare time, whilst maintaining full-time employment as a mechanic. It is evident that this period served as a vitally important opportunity for learning, as has been suggested by Viljamaa and Varamäki (2015) and Folta et al. (2010). It is apparent in the case that Reid’s experiences as a hybrid entrepreneur granted him the ability to evaluate his entrepreneurial competencies (Solesvik, 2017), establish a demand for his product (Raffiee & Feng, 2014) and develop his brand. This provided Reid with a ‘safety net’ as he was able to build a network of potential clients, whilst maintaining his salary. Reid was never motivated by financial prospects, stating that he only wished to earn a ‘small living’. In this instance, the psychological benefits offered to Reid far exceeded the financial benefits. This is aligned to the research of Folta et al. (2010), which examined the various psychological benefits that hybrid entrepreneurship offers. The tipping point at which Reid transitioned to full-time entrepreneurship was buffered by the fact that he had built-up sufficient demand to ensure he would have at least one full year of work. This provides evidence for Reid being a transitory hybrid entrepreneur (Viljamaa & Varamäki, 2015), using the hybrid phase to establish his entrepreneurial competencies and assess the market demand, ensuring his success as a full-time entrepreneur.

While passion has been defined as an important motivator for individuals to pursue hybrid entrepreneurship (Thorgren et al., 2014), this same passion appears to be stunting the future growth prospects of the business. Reid is abundantly clear in the fact that he does not wish for his entrepreneurial venture to ‘feel like work’. The cyclical interaction between hybrid entrepreneurship and full-time entrepreneurship is evidenced as Reid suggests that he would readily return to his full-time employment as a mechanic should his financial situation necessitate it. He further stated that he had no intention of creating the volumes of rods required by retailers, as it would reduce the time that he was able to spend with customers – an aspect of the business that he enjoyed immensely. Walker and Brown (2004) suggest that it is not inconceivable for growth to be willingly stunted, as evidenced in the case, in order for an individual to maintain a business size that they are comfortable with. Nordström et al. (2016) established that entrepreneurs who lead their businesses alone are more likely to be driven by passion than those who lead the business as part of a team. This could serve as a likely explanation for Reid guiding and growing his business based on his passion, as opposed to making decisions that could ultimately further the growth prospects of the business. As Reid has not experienced substantial uncertainty in his venture, due to the continuous demand for his product offering, it is more likely that he would make emotive decisions, based on his passion (Nordström et al., 2016).

Reid does not appear to align to existing typologies of entrepreneurs, for example he is neither classified as a survival entrepreneur, an individual who starts a small enterprise in order to survive (Morris & Pitt, 1995; Pitt & Kannemeyer, 2000), nor is he focused on growth or wealth. This specific type of entrepreneur, one that willingly halts the growth of their venture, despite the potential for growth, is one that is not defined in existing literature. In light of this, we term this distinct entrepreneurship archetype a comfort entrepreneur. A comfort entrepreneur refers to an entrepreneur that seeks to remain within their comfort zone, not willing to scale their venture through potentially high-risk decisions despite future payoffs. The comfort entrepreneur is likely to base business decisions on the maintenance of their lifestyle or passion as opposed to long-term business growth. It would appear that a comfort entrepreneur might evaluate the success of their venture using metrics other than scalability or business growth. The case study supports an argument that Reid has established a successful, profitable venture, potentially as a result of his staged entry into entrepreneurship (Raffiee & Feng, 2014; Solesvik, 2017). However, it is evident that Reid’s metrics of success do not consider scalability or the future growth of the business. The business decisions of Reid, as a comfort entrepreneur, are guided by his unwavering strategic orientation, where personal interests dominate over business interests. In light of this, it is vitally important to establish the mechanisms through which the strategic orientation influences the growth prospects.

Strategic orientation

The typical progression of strategic orientations explained in marketing academia moves from the notion of a production orientation, through a selling orientation to a market orientation to finally, the societal marketing concept (Kotler & Armstrong, 2010). The two orientations that in fact receive most attention are product orientation and market orientation. The societal marketing concept is merely a market orientation with corporate social responsibility (Kotler & Armstrong, 2010). Most marketing textbooks eschew a product orientation, which contends that customers will always buy a high quality product, in favour of a market orientation, which argues that firms will succeed by first finding out what customers want and giving it to them (Gheysari, Rasli, Roghanian, & Norhalim, 2012; Kotler & Armstrong, 2010).

The 1990s saw a flurry of research devoted to the measurement, understanding, and management of market orientation (see for example: Kohli & Jaworski, 1990; Kohli, Jaworski, & Kumar, 1993; Narver & Slater, 1990). However, as Berthon, Hulbert, and Pitt (1999, 2003) establish, neither product orientation nor market orientation are necessarily the best strategic orientation for an organisation. Rather, these authors argue that the most appropriate orientation is contingent upon a number of factors. Using two simple dimensions of innovation orientation, indicating a product focus, (high or low) and market focus, indicating a customer orientation, (high or low) they identify four distinct modes of focus that an organisation could have. They name these: Isolate (neither focusing on product nor customer), Shaper (believing that the product shapes the customer or market), Follower (assuming that success flows from giving the customer what they want) and Interact (suggesting that there is an on-going dialogue between product and customer). The matrix presented by Berthon et al. (1999, 2003) is presented in Figure 1.

Figure 1. Strategic orientation modes (Berthon et al., 1999).

Considering the mode of focus presented in the case study, it is evident that James Reid’s business places a great importance on innovation orientation, ensuring that only the highest quality and performance rods are created. Reid only sources the finest quality raw materials and expends a great amount of effort ensuring that only the best products are associated with the brand. However, the extensive consultation time that Reid affords his customers before beginning work on their customised order indicates a high degree of importance is placed on the customer orientation. In addition to initial dialogue, Reid engages in continuous dialogue with customers, offering a series of rod modifications until the final product is delivered. The labour-intensive nature of this process is evidenced in the total number of rods delivered to clients each month. While the Interact mode of focus results in a seemingly perfect product and a highly satisfied customer, this too appears to be an obstacle that is hindering the growth of the business. The degree of customisation provided by Reid is both expensive and time consuming, limiting his ability to expand his personal output and his ability to employ labour. While the positive impact that a market orientation has on organisational performance is well documented in the literature (Leminen & Westerlund, 2012), it appears that this strategic orientation is detrimental to the sustained growth of a small venture requiring highly skilled labour.

The detrimental nature of this strategic orientation is alluded to in the research of Piller and Tseng (2010). They discuss that the heterogeneities of demand from customers should not be considered a threat, but more an opportunity for profits. This coincides with Reid’s beliefs, which allow him to earn additional profits through customisation and personalisation. However, the caveat provided by Piller and Tseng (2010) pertains to the specific set of capabilities that a firm needs to establish in order to capture value from customisation. The fact that Reid’s personalisation efforts are acting as a hindrance to growth as opposed to an opportunity for growth indicates that the correct capabilities to allow for personalisation have not been established. While Reid’s personalisation efforts have delighted his customers, they have also resulted in both an apparent inability and unwillingness to grow the business. Despite the negative effects that this business decision may have on the long-term growth of the business, the positive effect on the JM Reid brand has seemingly been indisputable.

Reid places a great degree of importance on the brand name that he has established for his product offering. This is evidenced in the fact that he does not want his products to be sold on ‘the second hand market’ for fear that this would cheapen his brand. The importance of maintaining the brand equity and value that has arduously been developed over several years, again appears to be negatively influencing the growth prospects of the business. This will be further explicated below.

Brand equity and brand value

Brand equity can be evaluated and defined from two opposing perspectives, the first being a financial perspective and the second being a consumer behaviour perspective. The former tends to view brand equity and brand value as synonymous. A simple financial perspective holds that brand equity is the value premium that a company realises from a product with a recognisable name as compared to its generic equivalent (Aaker, 1996; Baltas & Freeman, 2001; Yoo, Donthu, & Lee, 2000). From the financial perspective, brand equity is critically important, as it is a strong indicator of the overall value of the firm that owns that brand. The second perspective on brand equity is the consumer behaviour perspective, which has to do with the consumer awareness of a brand’s features and associations that in turn drive attribute perceptions (Keller, 2003). This perspective appears to disregard the value of the brand from a financial perspective, instead, viewing value entirely from the perspective of the individual consumer.

The James Reid case provides an example of an instance whereby the brand equity (the financial value of the brand) is substantially different from the value of the brand to the customer. From the customer’s perspective, the JM Reid brand is immensely valuable as evidenced by the continuous demand for the products and the fact that customers are willing to wait up to three years to acquire a JM Reid rod. Reid is aware that customers value his brand for the intensive customisation offered, offering one-of-a-kind, unique pieces. The acceptance of the pricing strategy employed by Reid indicates that the benefits offered to customers outweigh the cost, including not only the financial cost but also the perceived ‘cost’ associated with the extensive waiting period. Reid understands that his efforts to establish an exclusive brand have resulted in a loyal following, with a majority of his clientele making repeat purchases.

From a financial perspective, there is very little brand equity in the JM Reid brand. Reid’s physical assets, namely simple machinery, work-in-progress, inventory and small accessories are not of any substantial value. In this instance, it would appear that James Reid is the brand, and without Reid the business is likely to have very little value. This is further evidenced in the willingness of stakeholders, including luxury lodges and clients, to sponsor trips in order to be associated with the face of an exclusive brand. From an entrepreneurial perspective, James Reid has built a very successful brand, but does not have sustainable value without his presence. The fact that Reid exerts such influence on the value of the brand aligns to the description of entrepreneurial marketing of Morrish et al. (2010). They discuss that the entrepreneur plays an integral role in the marketing process, in this instance; Reid seemingly serves as a marketing tool himself. Reid’s attempts to reinforce the exclusive, luxury associations of the JM Reid brand, while helping to grow a strong brand, appear to be acting as a barrier to successful business growth.

Reid strongly opposes expanding his business through the development of graphite rods, despite the opportunities for an increased margin. The reason, he suggests, is that customers do not have a ‘real attachment’ to the product and would replace them often. While this would likely generate future sales for the business, Reid doesn’t believe that this product would carry the same rarity as his bamboo rods. This approach to brand management can be seen in a number of comments made by Reid, where he refers to not wanting to become ‘a factory’ and the importance of his products becoming ‘collector’s pieces’. This apparent obsession with ensuring that all components of the product-offering meet the exceptionally high standards set by Reid appears to be to the detriment of the growth prospects of the business. Reid’s fixation with ensuring that he only offers the highest quality products could stem from his inherent dissatisfaction with commercialised fishing equipment, which initiated his entry into hybrid entrepreneurship. He is adamant that he will build his business in a manner that ensures he is able to maintain his passion for his work, while safeguarding the standards of quality upon which the brand was built.

Conclusion

The James Reid case explicates the entrepreneurial journey of a highly skilled transitory hybrid entrepreneur who establishes a successful niche brand. Whilst the case may implicitly provide several examples of best practice for establishing a loyal customer base, it also highlights several entrepreneurial marketing issues that entrepreneurs may be confronted with when growing their venture. The case highlights how an inherent fear of turning a lifelong passion into ‘work’ and an obsession with ensuring that only the highest quality products are produced can significantly limit the growth potential of a business.

While Reid’s Interact mode of focus, has been greatly successful in establishing a high equity brand, the time and cost-intensive nature of this orientation places a proverbial glass ceiling on the growth potential. The personal abilities and the motivations of the entrepreneur play a vitally important role in determining the growth path of their venture, and it should be noted that on occasion, growth might be willingly stunted in order to maintain a business size that one is comfortable with. This appears to be a guiding principle behind Reid’s decision to not grow his rod business beyond its current size. The opportunities available to Reid could allow him to grow his business, however he would likely risk losing control over his brand and turning his passion into ‘work’, neither of which he is willing to sacrifice.

The James Reid case sheds light on the phenomenon of hybrid entrepreneurship in particular, and entrepreneurial marketing theory in general in two ways. First, it reemphasizes the fact that not all entrepreneurs seek to grow their enterprises at all costs, and to accumulate as much wealth as possible. Reid is abundantly clear that he loves his business, and crafting top quality products that he is proud of is his main objective, not financial gain. Second, it enables scholars to distinguish between survival entrepreneurs and entrepreneurs such as Reid, who engage in entrepreneurial behaviour for something far beyond survival. As some authors (see for example: Morris & Pitt, 1995; Pitt & Kannemeyer, 2000) have established, a majority of survival entrepreneurs would willingly give up their businesses when an opportunity for full-time employment arose. This however, is not the case with Reid, who would not close his business to seize a well-paying full-time job opportunity. We would argue that Reid is neither a survival entrepreneur, nor one focused on growth and wealth. This phenomenon is not as rare as it might seem. In some instances, owners may eschew financially attractive growth strategies because they simply believe in what they do, and appreciate the lifestyle and well being it affords them and their employees (see for example: Heskett, 1983; Pitts, 2006). However, both marketing and entrepreneurial scholars have given far less attention to comfort entrepreneurs than either to survival entrepreneurs or those focused on growth and wealth.

Limitations and future research

The most profound limitation of this research is the use of a single case study, which has implications on the generalisability of the findings. Whilst the benefits of using a single case study are well documented, including the ability to provide rich insights (Elms & Tinson, 2012), one cannot overlook the narrow, albeit in-depth, nature of the data collected. It is recommended that future researchers consider a comparative study that evaluates and compares the experiences of more individuals, potentially at different stages of their entrepreneurial journey. For example, comparing the experiences and business growth of a persistent and a transitory (Viljamaa & Varamäki, 2015) hybrid entrepreneur could provide insights into the development of entrepreneurial skills throughout the learning, hybrid phase. Future researchers should consider both conceptual and empirical research to further explore comfort entrepreneurs who willingly halt the growth of their ventures and the marketing strategies that accompany this decision. In addition to this, future researchers could consider an evaluation of the metrics of success used by comfort entrepreneurs in order to enhance the understanding of this decision to permanently suspend business growth.

Disclosure statement

No potential conflict of interest was reported by the authors.