Gaining Market Share with New Brands

Gaining Market Share with New Brands - April 5th, 2010
How the current slow down benefits new players!

Consumers worldwide are feeling apprehensive about the trends in the global economy and how it impacts on their financial status. This is reshaping consumer behaviour in a number of ways. For some it means lifestyle changes that reduce expenses without compromising on quality of products.

Established brands are being effectively challenged by new brands offering a lower price for the same quality in the bottle. Consumer pressures are encouraging retailers to stock alternatives to established brands thereby creating an opportunity for new players in the market to tap into a global supply chain that has traditionally been dominated by the established brands of multinational corporations.

Thinking out of the box is the key to successful marketing. The challenge for new brands is to tap into the existing supply chain through non traditional means beyond trade shows and traditional marketing.

Consumer behaviour has changed and is continuing to change as global economic forces reshape consumer thinking and lifestyles even as national economies suffer and multinational corporations feel the financial squeeze.

While there is a reluctance to spend as easily, consumers still feel the urge to shop to fulfill needs and experience a sense that perhaps things are not so bad. So the night out at a fine dining restaurant may not be a good idea but the weekend can still be enjoyed with a home cooked gourmet meal. Luxury at home with no worries about the no drink and drive rule. This is where businesses that are able to tap into the need for a little luxury at reduced cost can benefit.

Offering quality ingredients which are easy to cook at home through a marketing campaign that paints a picture of a family enjoying a home cooked meal with quality time that enriches their lives may be a winner. People are slowly but surely changing how they spend their time and this impact on purchasing behavior.

Another factor playing on the minds of consumers is the amount of trust they have in multinational corporations. The degree of trust can impact on perception of the brands carried by these corporations. Corporate scandals, the big bonuses for senior levels of corporate management and the financial imprudence of corporations all impact on perceptions of trust in the “big boys”. This is good news for new players who can sell quality of product and customer service. This is a market opportunity worth exploring. The key is to get the new quality product or service out to the consumer through promotions that should include the internet and supply chain networks that incur a lower distribution cost. An internet buzz campaign that subsequently gets picked up by the mainstream print and electronic media may be just the thing to create awareness.

Staying genuine is the key as ultimately it is trust and not necessarily pricing that builds loyalty and repeat sales. Changing the presentation and differentiating the new brand in town from the old established brand are some of the ways to establish an independent and distinct identity in the minds of consumers. Tapping into the changing lifestyle patterns of the consumer is therefore important in establishing a new brand in the market successfully.

A social network around the new brand could well create the consumer advocates that a new small player needs to become the new kid on the block that strikes gold.

Siddha Param

International Business Consultant
Winnipeg, Manitoba, Canada, North America
The geographical centre of the worlds’ largest market.

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E-mail:siddhaparam@worldwidebusinessconnection.com

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