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Yesterday I went to Walmart to buy my dog some dog food. After picking up a few other staples I got to the pet section and looked for my usual brand of dog food that I buy, and after a very short search i spotted the familiar glossy brown bag in the distance and headed to get me a 50 pounder.
I have purchased this same dog food since 2003 and knew the bag like the back of my hand, so it caught my attention that there was something different about the bag. There in a big grey swipey banner were the words "NEW AND IMPROVED." There was some other writing about why it was new and improved that said something about omega 3 this gluten free that blah blah blah. But my marketing mind went to work.
New and Improved? Dog Food? Are you serious?
Why would this dog food brand feel the need to add to or change their formula? It's already selling pretty good. Were the dogs complaining about the taste? Mine weren't I know for sure. Did some animal loving customer decide to taste it on behalf of his beloved pooch and became appalled by the taste and jumped into action advocating on behalf of his dog? Or was there a bigger picture I was missing?
After thinking about it for a while I thought back to buying that first bag in 2003 when that same bag cost a little over 16 bucks. That same bag, same food now cost close to 24 bucks. So what do you do to justify an impending slightly higher cost? You convince the customer that they are getting a little more for their money, and they are. Even if the price difference is only .25 cents, if your selling it in every Walmart in the US, imagine how much that quarter equals after you have sold 8 million bags. It's 2 million extra dollars on top of what you were already making.
The same rule applies to taking a product that's already out there and making it better. "New and Improved." Same thing right? Or taking your own product that did well and reinventing it, add a little spice to it. How much of a difference could a $1.00 increase make on a product that you already sold 10k of? Or .50 cent on a product that you sell 15000 of every 6 months? Just a thought -Ball Out
I have purchased this same dog food since 2003 and knew the bag like the back of my hand, so it caught my attention that there was something different about the bag. There in a big grey swipey banner were the words "NEW AND IMPROVED." There was some other writing about why it was new and improved that said something about omega 3 this gluten free that blah blah blah. But my marketing mind went to work.
New and Improved? Dog Food? Are you serious?
Why would this dog food brand feel the need to add to or change their formula? It's already selling pretty good. Were the dogs complaining about the taste? Mine weren't I know for sure. Did some animal loving customer decide to taste it on behalf of his beloved pooch and became appalled by the taste and jumped into action advocating on behalf of his dog? Or was there a bigger picture I was missing?
After thinking about it for a while I thought back to buying that first bag in 2003 when that same bag cost a little over 16 bucks. That same bag, same food now cost close to 24 bucks. So what do you do to justify an impending slightly higher cost? You convince the customer that they are getting a little more for their money, and they are. Even if the price difference is only .25 cents, if your selling it in every Walmart in the US, imagine how much that quarter equals after you have sold 8 million bags. It's 2 million extra dollars on top of what you were already making.
The same rule applies to taking a product that's already out there and making it better. "New and Improved." Same thing right? Or taking your own product that did well and reinventing it, add a little spice to it. How much of a difference could a $1.00 increase make on a product that you already sold 10k of? Or .50 cent on a product that you sell 15000 of every 6 months? Just a thought -Ball Out
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