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Market share magic: College kids get on the bus with Minnesota's Jefferson Lines

Chasing market share is about as productive as chasing the pot of gold at the end of a rainbow, writes Bruce Henderson for Harvard Business Review. Instead, businesses should expand the size of their market.

Minnesota's Jefferson Lines is one company that is doing just that — expanding its market share by targeting college students. "In the past 20 years, the bus industry has experienced a steady decline in student passengers. We accepted the idea that all college kids have cars," said Bonnie Buchanan, vice president of marketing. "Before we gave up on the college market, we held focus groups with students from a number of colleges in Minnesota and Iowa. We asked them, 'what is it going to take to get you on the bus?' The focus groups confirmed some things for us, but we learned some things that really surprised us."

Buchanan found that students didn't want to go to a bus depot, preferring to board buses on campus. They liked the idea of purchasing tickets easily at a campus store.

"Participants in our focus groups even told us how to advertise to them," added Buchanan. As one young man told her, "Don't create ads that say things like 'affordable'; if you say 'cheap,' I'll take a look at the ad.'"

Buchanan and her creative team decided to advertise in media that reached students directly, such as the college newspapers, university websites and fliers in dorms, with the slogan: "Road deals so great, we'll even throw in your own driver." (Click here to view flyer.)

"Our strategy is working," said Buchanan, who had anticipated capturing 1 or 2 students per run. "We've had 30 students at a time lined up to board. It's been very gratifying. We intend to utilize the same strategy on other market segments."

Based in Minneapolis, Jefferson Lines operates a fleet of 61 coaches and its own maintenance facility. The company, founded in 1919, remains family-run under the leadership of Charles Zelle, who recently finished his term as president of the American Bus Association.

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