Question

Topic: Other

Introdusing A Fmcg Product

Posted by Anonymous on 9/21/2009 at 11:51 AM ET 125 Points
Planning to Introduce a locally manufactured New Brand of Balm to the market. There a two major player dominating the market and they have been there for ages. How ever we believe our product much superior in quality and has a definite advantage over price. We want to go for a new colour to differentiate as the two competitors have the identical coluor combination. Since we have a Price and Quality advantage what would be the best way to go about it considering the present economic conditions .
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  • Posted on 9/21/2009 at 12:37 PM Accepted
    Stop thinking about your price advantage. Sell the benefits, not the price. (Price isn't a benefit.)

    Besides, if your product isn't priced higher than the incumbents you're sending the wrong signal. When you say something is "better," and then it costs less, you're creating dissonance for your target audience. We've been trained that things that are better cost more.

    Besides, if YOU don't think it's worth more, how are WE supposed to think so?

    And if you charge more for your product, you'll have more money available for marketing. When you're a new entry in FMCG the whole game is marketing. You need to make sure you get high awareness quickly, that your product has the full support of the distribution channel(s), that the packaging and product aesthetics communicate your superiority, etc. Those things require a marketing investment.

    If your price isn't high enough to support aggressive marketing you've lost before you even launch the product.

    I am concerned that your mindset is condemning the product before you even introduce it to the world.
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