Any business that has a successful product in 1 market, should consider testing that success in new markets. For some business owners, that looks like a daunting job. New markets are scary and unknown. Here is a motivational story for you. We can learn three marketing hints 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 nations to grow and increase their earnings. Whether you hire a marketing consultant or attempt to execute the strategy yourself, always don’t forget the marketing classes from this report.
Specifically, Kraft Foods determined they had to perform better in creating markets. Kraft knew they can do a better sales job away from the USA. Though some of their products had been selling abroad for 22 years, sales were stagnant. The growing markets was a laggard and they had been seeking to increase their position.
How did Kraft do it?
I believe that we can learn three things from Kraft foods plan that resulted in a revenue increase from growing markets to 21% of total revenue in a couple of years. Earnings of Tang in growing markets grew 30% in 1 year.
#1: Focus on a specific job, instead of attempting to do everything.
Kraft discovered their ten best brands, also known as their power brands, which have been under-marketed and had the best profit margins. Some of the brands recognized were Oreo cookies, Philadelphia cream cheese, and Tang. These ten products would get committed funds in R&D and marketing, while the other brands weren’t part of this strategy.
#2 Do market research
The next principle we can learn from Kraft Foods is they did market research. I believe this is crucial. We occasionally just jump right into it and we think a product or service, or an e-book works regardless of what country or new places. But if you understand your target market, then you can understand their requirements and problems. Then, you can create an answer to this problem.
In the event of Kraft, they found through market surveys that in China, moms believed their kids needed approximately six glasses of water every day. Of course, being hydrated is a good universal habit. Mothers really wanted their kids to drink plenty of water, but the kids felt water was boring and dull. Problem identified. Kraft Foods smartly pitched to the parent and into the children that if they used Tang, it would make water more exciting. It turned into an attractive way for moms to use Tang to get their kids to drink extra water.
Secondly, Kraft looked to expand their flavors to match the culture of their new sector. It’s still Tang, however, they experimented with fresh berry flavors, such as mango, tamarind, and maracuja (passion fruit), directed at local palates at Philippines, Mexico, and Brazil. This reminds me of those worn out cliché -“When in Rome, do as Romans do”.
Eventually, Kraft tweaked the packaging. The study demonstrated that the Chinese chose to make up powder beverages by the glass instead of from the pitcher. Given this behavior, Kraft created single serving packs of Tang. Kraft designed new single-serving packaging like the powdered sugar pixie sticks found in the US market.
#3 Enormous product launch – free samples
When Kraft was prepared to introduce the new Tang tastes and packages, Kraft spread 27 million complimentary trials in 2009, which can be a big commitment. Consider that Kraft gave away 300,000 samples in 2008, therefore 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 relationship with the brand and a client relationship with Kraft. Kraft really delivered value to potential clients in developing markets. New customers were discovered.
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 attempt to do that, just concentrate on some products that have the best possible and greatest profit margins. Do your market research. Commit to a huge product launch. With minimal merchandise changes and a focused localized marketing strategy, products could be successfully introduced to new markets.
New Marketing Techniques
It only makes sense that an industry that thrives on being cutting edge would adapt quickly to the trends of today.
Those who work in the marketing and communications field have had to work hard not to just catch up but push the boundaries of marketing and communications in a world where instant gratification is desired. Because of this, a complex web of traditional and technological marketing was weaved, and its consequences can be observed almost everywhere.
Can you recall when you needed to really fork out money for a magazine at the corner store to get your fix of celebrity gossip? Well not anymore. Now there are an array of sites and websites; Facebook and Twitter groups that aren’t just devoted to star gossipers or the celebrities themselves, but also to marketing products on a much larger scale.
What type of nail polish does Lindsay Lohan favor while out on bail or in between rehab stints, you ask? I really don’t understand why you would ask that, but for those people who are dying to know, Lilo is wearing Fresh/Maple Bar polish. She says it is the”NEW black nail!” And motivates you to”Tell your friends!”
Everything from charities to clothing lines has been hocked on social networking websites such as these, making celebrities look like close friends on our networks, and bringing marketing to new levels. Check out more at burkedesign.ca.
Even papers, whose readership in progressively online-focused, use their hard copies, with sections known as”Digital Culture,” and texting alternatives at the end of tales to share through cell phones.