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Tuesday, July 20, 2010

The Spaghetti Decision













MODELTM Opportunity: Line Extension

Spaghetti was a somewhat foreign commodity when it was introduced in the U.S. early in the twentieth century. Over time it developed to be a staple item in the family pantry.

Some of the original food companies marketed it under Italian names at less than seventy cents a box. About 15 years ago, the innovative companies saw the opportunity to introduce line-extensions of the product. One of the first moves was to reframe the word to “pasta” with several twists.

Consider that Linguine, Fettuccini, Angel Hair, Bow Ties, Ziti and multiples of other shapes, sizes and colors took their place on shelves in most retail grocery stores. Then, sauces became the next natural target. Sauce with additions of meats, spices and veggies joined the old traditional sauce that used to dominate the shelf space.

In essence, the marketing innovators converted a stock product into a stylish food. You can now find in the refrigerated units of a store, fresh pastas, Ravioli, Fettuccini, Pesto, Alfredo on and on. The original 69-cent box of Spaghetti moved in a strategic direction. The big shift now is that you are willing to spend $6.99 and more for the newest fashionable fare of sauce and pasta…a long way from $.69.

It’s also happened in other markets and brands like the sporting goods industry, clothing, drug companies and about every other industry: Zillion$. Point is…in the decision making process, consider the marketing principle of line-extension in both company and personal applications.

Remember, Step One of the MODELTM is Opportunity.

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