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With such a saturated field of consumer goods, what is it that makes a new product really fly?
"You go fishing in the pond with most fish," explains Adrian Goldthorpe, vice president of strategy and innovation at FutureBrand. "A saturated market is often where most revenue is still to be had."
But while it may be easier to steal revenue from competitors than create new markets from scratch, it still is not easy. Dave Dolak, an independent marketing, branding and sales expert, says that any new product has to stand out. "The product has to offer some unique value. Just a bit of snazzy packaging is not enough to win a market. It has to offer consumers something different—and that is communicated through a brand."
The launch of Cravendale milk in the UK illustrates this interplay between product and brand. "The milk market before Cravendale was own-label driven. It was a commodity and people wouldn't spend more than two seconds in the milk aisle," says Thryth Jarvis, senior brand manager at Cravendale. "But Arla saw an opportunity to add value to the category," she says, referring to Arla Foods, the brand's parent company.
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The company took filtration technology used in the beer industry and applied it to milk. Cravendale milk passes through ceramic filters, which, the company claims, trap almost all the bacteria that cause milk to sour. "Our milk tastes fresher and lasts longer," says Jarvis. "It has a shelf life of 20 days and lasts seven days once opened.
"When we launched we were offering something unique," continues Jarvis. "There was nothing else like Cravendale and consumers like choice. It is not an easy battle to get consumers to change their perceptions and choose a different product. But we've got a fantastic brand built on a product truth."
According to Dolak, challenger brands must promise something of value, offer something unique and then deliver on the promise. Certainly, the product must offer a real benefit (better taste, meets a need, solves a problem). "If consumers perceive there is a low risk to trying something new, they will do it once. But if the new product does not live up to its promise the consumer is more than likely to switch back," he says.
Cravendale focuses on its fresh taste. "Our target audience is mums with kids," says Jarvis. "Children are the greatest consumers of milk, so to get the best returns we target this audience. Cravendale has exactly the same nutritional benefits as other milk, so we couldn't market it on nutritional benefits. Our message is all about its fresher taste—so good the cows want it back! This is very motivating to mums. By providing a fresher tasting product they are reassured that they will still get it down their children." Jarvis also concedes that children, who are increasingly "brand-savvy," also like the branded product, although she says Arla has no intention of using "pester power" to further boost sales.
Karan Bilimoria, founder of Cobra beer in the UK, certainly knew what he wanted his product to offer: a less gassy beer that had all the taste of ale, but was as refreshing as lager. In its early days, when Cobra was building up its distribution through Indian restaurants, the beer focused on what it had to offer: its distinct product characteristics. Even when the brand went mass market in 1997 with its "Curryholic Dave" series of advertisement, the emphasis was still on its Indian heritage and its less gassy nature. Cobra quickly became the "curryhouse beer."
It is important to find a niche, says Dolak, and he argues that the days of mass marketing are over. "It is healthy to see any market as a collection of niches," he says. "I feel that mass market appeal to hundreds of millions of consumers is over. Consumers want products they feel are customized to just the way they want it. Focusing on a niche, at least at first, is the preferred way to go. You can find an under-served segment and specifically address its unmet needs."
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Of course, sometimes a niche can be large and lucrative. Vacuum cleaner manufacturer Dyson could have targeted people who wanted machines with style. Instead, the brand focused on consumers who wanted cleaners with more suck—just about everyone in other words. Haagen-Dazs meanwhile positioned ice cream as an adult treat. "It is still ice cream," says Goldthorpe. "They still do vanilla, strawberry and all the classic flavors. But they redefined the market and created a niche. Ben & Jerry's did the same, making ice cream an indulgence with a social conscience."
But a product need not be always limited to its niche—as Cobra beer has proved. "We have penetrated 90 percent of the Indian restaurant market but we are not stopping there," says Simon Edwards, marketing director at Cobra. "We now need to grow volume sales, which means making Cobra more than just an 'occasion beer' that is perfect with Indian cuisine. Around 2000, we decided to venture beyond Cobra's Indian associations. We did a lot of research, and at the same time we realized that we were getting lots of requests for us to sponsor events. Even the London Philharmonic wanted us to be their official beer. We realized that the Cobra brand was already existing beyond the Indian restaurants. We just needed to give it a nudge."
A few tweaks to the packaging and a change in advertising were enough. There's no more mention of curry (sorry, Dave). Cobra is now a world-class beer with global aspirations. You might even find it in your supermarket, somewhere among the forty or fifty other beer brands that fill the shelves.
[31-Oct-2005]
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Edwin Colyer is a science and technology writer based in Manchester, UK.
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Oct 24, 2005
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Branding, a Job Well Done -- Dale Buss
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How do major brands like Costco and Ritz-Carlton become household names without relying on traditional advertising? By tapping into their greatest resource: Employees.
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Aug 8, 2005
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Hotel Brands Break the Chain -- Rob Mitchell
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After decades of perfecting the known experience at chains around the world, hotel brands are now trying to create boutique hotels as guests go on a quest for the one-off experience.
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Jul 25, 2005
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Best Global Brands: Focus on UBS -- Robin Rusch
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Among the top five fastest growing brands on the list of 100 Best Global Brands 2005, Swiss financial services company UBS reflects the work in progress of growing and sustaining a global brand.
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Jun 20, 2005
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Growing Pains Small Brands -- Alicia Clegg
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How can a brand remain true while broadening its reach? Popular but small brands like Innocent Drinks, Tyrrells and Hill Station risk losing their original fans in their quest to grow bigger.
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Apr 18, 2005
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Dove Gets Real -- Alicia Clegg
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Unilever’s Dove is the latest beauty brand to use "real" women to sell product. But can this campaign turn ugly?
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Mar 7, 2005
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Should Global Brands Trash Local Favorites? -- Randall Frost
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When P&G, Unilever and Nestlé clean house, they risk losing local markets for beloved brands. Companies like Henkel, on the other hand, retain a portfolio of national and international brands to satisfy both global and local tastes.
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