Any business that has a successful product in 1 market, should think about testing that success in new markets. For some business owners, that seems like an intimidating task. New markets are unknown and frightening. Here is a motivational story for you. We can learn three marketing tips from Kraft Foods about entering new markets or increasing sales in those markets. This will be applicable for any business considering re-niching a merchandise line or entering new countries to grow and increase their revenue. Whether you hire a marketing consultant or attempt to execute the plan , always don’t forget the marketing lessons from this article.
Especially, Kraft Foods determined they needed to perform better in developing markets. Kraft understood they can do a better sales job away from the USA. Even though some of their products were selling abroad for 22 decades, sales were stagnant. The growing markets was a laggard and they had been looking to improve their position.
How did Kraft do it?
I feel that we can learn three things from Kraft foods strategy that led to a revenue increase from growing markets to 21% of total revenue in two years. Sales of Tang in growing markets grew 30% in one year.
#1: Focus on a particular task, instead of trying to do everything.
Kraft discovered their ten greatest brands, also referred to as their power brands, which have been under-marketed and had the best profit margins. Some of the brands identified were Oreo cookies, Philadelphia cream cheese, and Tang. These ten products would get dedicated funds in R&D and marketing, while the other brands were not part of the strategy.
#2 Do market research
The next principle we can learn from Kraft Foods is they did market research. I believe that is critical. We sometimes just jump into it and we believe a product or service, or an e-book works regardless of what country or new areas. But if you understand your target audience, then you can understand their needs and problems. Then, you can create an answer to that issue.
In the case of Kraft, they discovered market surveys that in China, moms believed their kids needed approximately six glasses of water a day. Of course, being hydrated is a good universal habit. Moms really wanted their kids to drink plenty of water, but the children felt water was boring and dull. Problem identified. Kraft Foods smartly pitched to the parent and into the kids that if they utilized Tang, it might make water even more exciting. It turned into an appealing way for moms to use Tang to get their kids to drink extra water.
Second, Kraft looked to expand their tastes to match the culture of their new market. It’s still Tang, however they experimented with new fruit flavors, such as mango, tamarind, and maracuja (passion fruit), aimed at local palates at Philippines, Mexico, and Brazil. This reminds me of those worn out cliché -“When in Rome, do as Romans do”. Burke & Burke
Finally, Kraft tweaked the packaging. The study demonstrated that the Chinese preferred to make up powder drinks by the glass rather than by the pitcher. Given this behavior, Kraft created single serving packets of Tang. Kraft designed new single-serving packaging like the powdered sugar pixie sticks found in the US market.
#3 Enormous product launching – free samples
When Kraft was prepared to introduce the new Tang tastes and bundles, Kraft spread 27 million complimentary trials in 2009, and it can be a big commitment. Take that Kraft gave away 300,000 samples in 2008, so 27 million samples let them achieve an audience over 81 times greater in 2009. This meant that more prospects had an opportunity to attempt Tang and develop a connection with the brand and a customer relationship with Kraft. Kraft truly delivered value to potential customers in growing markets. New clients were found.
Bottom line: Tang sales shot up 42 percent in Latin America, and 25% in the Asia Pacific.
Applying these marketing principles can help any business expand into new markets for top-line growth. Don’t try to do everything, simply focus on a few products which have the best potential and highest profit margins. Do your market research. Commit to a big product launch. With minimal merchandise changes and a focused localized marketing approach, products could be successfully introduced to new markets.
New Marketing Techniques
It only makes sense that a business that thrives on being cutting edge would adapt fast to the tendencies of today.
Individuals who work in the marketing and communications field have really had to work hard to not just catch up but push the boundaries of marketing and communications within a world where immediate gratification is wanted. Because of this, a complex web of traditional and technological marketing was weaved, and its consequences can be seen almost anywhere.
Do you recall when you had to actually fork out cash for a magazine at the corner shop to get your fix of celebrity gossip? Well not anymore. Today there are a plethora of sites and websites; Facebook and Twitter groups which are not just dedicated to star gossipers or the celebrities , but also to marketing products on a much bigger scale.
What kind of nail polish does Lindsay Lohan favor while out on bond or in between rehab stints, you inquire? Well, I really don’t know why you’d ask that, but for those people who are dying to know, Lilo is wearing Fresh/Maple Bar polish. She says it’s the”NEW black nail” And motivates you to”Tell your friends!”
Everything from charities to clothing lines is being hocked on social networking sites such as these, making celebrities seem like close friends on social networks, and bringing marketing to whole new levels.
Even newspapers, whose readership in increasingly online-focused, use their hard copies, with segments known as”Digital Culture,” and texting alternatives at the end of tales to talk through cell phones.