New, From the Makers of…
There are only a few ways to make more money for your clients. You can add customers, raise prices, or give their customers something new to buy. I have always been keenest on adding new options to the product mix, for a couple of reasons. It re-energizes the brand, and let’s the customers know that you are thinking about what they need. And of course from a creative standpoint, it’ s the most fun.
I remember walking through the LifeSavers facility years ago. It was around the time that Tic Tacs came out. Tic Tacs was positioned as a breath freshener. They were a stand-alone with no brand power, but they were most definitely stealing share from LifeSavers. I asked my client since they already had the production line why they wouldn’t consider a breath freshener entry under the name of BreathSavers. Sorry Tic Tacs.
The same was true with L’eggs pantyhose. The brand was going great guns. If it was lacking anywhere, it was in the perceived area of fashion. We added Sheer Energy to the line. It turned out to be a huge contributor to the brand. Flavors, textures, colors, sizes convenience, price and needs are all part of the line-extension formula.
The way I go about it is kind of interesting. I will walk a retail store and scour the shelves for what’s not there. Then I’ll just fill in the blanks. It applies to non-product categories as well. Cruise lines with their all-inclusive positioning rely on incremental on board spending for their profit. That requires some research as to what cruisers would be willing to pay additional money for. On Seabourn Cruises, where fine wine and alcohol was already included, we kicked it up a notch with a program called Vintage Seabourn, a higher end choice of wines for an additional cost of 200-300 dollars. It was a difference made to the bottom line.
Every business needs fresh thinking.