Marketing Spoonful

If you’re not sure what to do next to make your food product line more competitive, consider adding a tier.

It might make sense to add a lower tier. It might make more sense to add a higher tier. Which way you move depends largely on the gap in the market, consumers’ willingness to pay and your ability to meet that need economically. And, as we always say here at Marketing Spoonful: YOU GOTTA BE DIFFERENT!

Most recently, we’ve seen kitchen stalwart Crisco add a line of olive oils to its bevy of baking and cooking products. It’s really not a huge stretch for a brand known for making stuff you can fry, sautee and bake with, but there are plenty of olive oils out there at all different price points and benefits, so what’s the deal?

Well, apparently it’s not that different. It’s not much less expensive–in fact it’s more expensive than some. But it is from a brand people trust. There is still a large population of really good cooks out there who still don’t use olive oil much, if at all. But give them olive oil from Crisco–a name their family has trusted for generations–and they might be more willing to try it.

So, Crisco is an example of a product line extension–an added tier in this case because of the prestige of imported olive oil. We’ve also seen brands in other industries add tiers.

Trek bicycles, a longtime maker of premium bicycles, was known for years for four-figure bikes. But the company successfully introduced bikes that cost $200. Like the Mercedes C Class, it was clear that the $200 Trek wasn’t the same as the much more expensive model.

Yellow Tail, famous for $7 bottles of wine, is quietly creeping up in price and stature, not unlike Ernest and Julio Gallo has done with limited success.

It’s not right for everyone, but adding a tier can be a useful strategy for extending your market.

Tags: brand extension, Crisco, Ernest and Julio Gallo, Mercedes, product line extension, product tiers, Yellow Tail