Expanding Sales With An Accent

Remember when I lost 20 pounds four years ago? I’ve kept it off, but it’s been challenging. Temptations lurk around every corner, and countless trigger foods constantly beckon.

Fortunately, we’re not big cereal eaters since my daughter left the nest. However, my recent discovery of Churros cereal threatens my undoing.

Made by General Mills since 2018 and positioned on shelves near forerunner Cinnamon Toast Crunch, Churros are apparently the old cereal with a new shape.  

Two problems: I LOVE Cinnamon Toast Crunch, and Churros are my favored snack.

UH OH!

I distract myself by asking the obvious: if the only significant difference is the shape and the name, why did they bother bringing this product to the market?

Companies introduce product extensions to leverage brand equity and reach new demographics, expand the customer base, increase overall sales, and boost profit margins.

Since Cinnamon Toast Crunch’s 1984 introduction, there have been five offshoots of the cereal, including Chocolate, Peanut Butter, and Sugar Cookie. Each had different flavors, making them unique.

So with reviewers confirming there’s nothing novel about Churros cereal, perhaps their introduction in San Diego is due to our proximity to the border. Or perhaps it’s because the county is one percent of the US population and, if it sells well here, it can be rolled out nationwide.

Obviously, extending a franchise isn’t a new concept. For years automobile manufacturers have repackaged their cars with different looks, slapped new names on them, and voilá: expanded sales to different audiences.

Regardless of what you sell, you too may be able to build on your offerings and reputation while allowing you to re-introduce a mature brand and reach a new market.

Delivering your wares thoughtfully potentially enables you to improve profits with minimal investment. New audiences based on ethnicity, geography, economics, or age are probably waiting.

Start by examining your perfect customer’s profile and the demographics of the markets you serve. Understand who buys what from you, and why. Then determine how you can utilize the same skills or items and repackage them towards a more (or less) commercial audience.

Bottom line: sometimes a new offering is based on years of market research and intellectual debate. Other times, a new name lets you expand sales with little extra effort.

With that said, I wish you a week of profitable marketing.

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