We’ve seen many brand invasions into neighbouring product territory in the past year or so. It’s a general trend by struggling brands to expand their sales potential outside of their overcrowded traditional niches…
I thought I’d seen it all when Jif announced it was getting into the Instant Ramen business with two new products leveraging Asian Satay and Curry traditions. But now Kraft has launched a Ramen variant of their legendary Mac & Cheese…
I just don’t know…
I’m having trouble keeping up, conceptually, with the multitudinous and growing roster of territory crossovers by major brands. And some of them surpass my ability to accept them as real products. But these new offerings are not novelties or promo stunts. They ARE meant to be real products. And, in the case of the Ramens, particularly, they appear to be positioned as the pathfinders for major new lines. not just incursions, but occupations in new territory.
Calculated strategy
These new products are the first results of a calculated strategy to expand their brands’ overall mark-et footprints. Many food brands are facing saturation in their ‘home’ segments. Some are seeing sales slumps. And that would raise red flags for any red-blooded brand exec. The rationale seems to be… If you can’t snag the slice you need of your traditional market space, try for a slice of someone else’s.
Yah. The Packaged and Processed Foodsphere is becoming a kill or be killed proposition for some brands. And their survival tactics are getting more and more extreme the closer the UPFtown City Hall clock gets to High Noon.
Managing risk
The major brands are used to managing risk when they add new products or variants of established lines in their home niches. But trying to put down roots and grow the brand in foreign soil obviously poses some unknown risks.
So it’s no surprise that Jif and Kraft are moving cautiously, trying to introduce their flagship products into neighbouring market spaces leveraging what appear to be sound, proven associations.
Kraft has offered its regular mac & cheese products in instant, cup format for some time. Now they’re hoping fans will accept replacing macaroni with ramen noodles. Jif has been pushing online ‘cooking show’ videos suggesting new and very different ways yo use their product. Offering an instant ramen geared to appeal to Asian tastes is an obvious first step into that territory.
But neither brand is jumping in with both feet, much less belly-flopping into the instant ramen space. They’re barely dipping their toes in the waters. So much potentially to gain… And so much to lose if the new products don’t fly.
My take
I think we’ll see many more market space invasions in the next few years. Some will succeed and some will fail. But one thing is sure: any time a ‘foreign’ brand tries to stake a claim in someone else’s territory, stress is increased in that zone. And its natives must must look elsewhere for space to grow. It’s an insidious trend – what we used to call a vicious circle – at worst, an escalating spiral…
My questions for you:
On the personal side…
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- Do you think JIF and Kraft will be successful with their incursions into the Instant Ramen market space?
- If you are an instant ramen fan, will you try the new products?
On the business side…
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- Do you agree that brands invading other market spaces is potentially a bad thing?
- Do you agree that such expansions may end badly?
If so…
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- Do you see weaker brands being killed off by tougher competition?
- Do you see consolidation of brands resulting in a reduction in the overall selection of products available?
Muse on that!
~ Maggie J.