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You Can't Turn Cheese Into Jelly

The numerical truth about Kraft's brand extension strategyOhio-based Smucker's owns 35% of the jams and jellies market. Kraft has 9%. Hellman's mayonnaise has 42% of the mayo market. Kraft has 18%. The plan for equal domination didn't quite work out as planned. Despite its dominance in the cheese market, Kraft was relegated to bit player status in these other categories. Their strategy of trying to leverage a great brand name into being all things to all people resulted in few real winning products.People who wish to expand into other product areas need to do so by using a strong brand identity as the foundation of its marketing strategy. Either that or create new product lines that somehow relate to your old product line, such as cheese companies putting out a line of pre-made cheese and cracker snacks. What Ritz did with Mini Ritz sandwiches, Kraft could have easily done by focusing the product's marketing slant on the cheese in the cracker.Over the long term, as your brand becomes synonymous with a specific kind of product or service, more people will turn to you for that product or service...and continue to do so because they believe they're getting quality only a specialist can provide.A jack-of-all-trades really is master of none. So if you are a master, or wish to become one, do it. Be it. Just no to everyone.