- July 31, 2020
- Posted by: TRWCBlogger
- Category: Marketing
by Gail Cohen
When a product becomes so trendy and popular competitors steal it
Strategy One: Penetrate New Domestic Markets
When the folks at Avon discovered their Skin So Soft lotion had become a wildly popular insect repellent, they embraced the news. In addition to keeping it in their beauty product line, they opened new markets by advertising the brand to campers, vacationers and people spending time outdoors. Adopt this type of strategy to open new avenues for your product if you’ve discovered new use for it. Consider rolling out a second package design with copy, art and colors targeting the new audience, because you’re re-purposing, not re-formulating, your product.
Strategy Two: Export Your Product
A saturated domestic market calls for an assessment of overseas expansions. This isn’t a strategy for the timid, as tariffs, export duties and bureaucratic paperwork make exportation a tricky business. Find distributors for your goods in cyberspace, and contact the best prospects to negotiate contracts. A trusted agent overseeing both ends of the export process — from bills of lading to container transport — is worth the fee you’ll pay to penetrate overseas markets. Be sure to check out credentials before hiring one.
Strategy Three: Diversifying Your Product
Though the Skin So Soft case study shows the benefits of identifying and contouring a product so it’s acceptable to a new buying segment, diversifying is a more complex task. Assume you own the rights to a t-shirt that’s selling like crazy, and sales show no signs of letting up. Your copy or art holds the universal appeal that drives sales, so you’d be foolish not to capitalize on this by making, for example, mugs, aprons, golf caps, towels and other demographic-appropriate products for which a ready-made market already exists.
Strategy Four: License Your Product
If you walk into an Aldi supermarket, you will find very few name brands on shelves. The store prides itself on low prices thanks to carrying mostly house brands. Meanwhile, your pasta sauce is not just delicious, but it’s healthy — a perfect fit for the Aldi Lite & Fit line. If you find yourself in a situation like this, pitch your recipe to the larger store. By splitting the manufacturing operation so your sauces are poured into your brand’s labeled jars and that of your licensor, you get placement within a national chain that won’t impact your brand’s sales.
Strategy Five: Expand Your Demographic
This additional strategy is a logical way to increase sales if you start out with a product appealing to a narrowly defined audience. For example, assume you sell blemish medication to teens and your brand is selling nicely when you overhear a senior complain that she’s battling outbreaks amid wrinkles. You do some research and realize there’s no product available to mature women capable of dealing with both skin complaints. If your hunch is right, a second market for your product opens on the spot.
Culled from Small Business