Question

Topic: Strategy

Outsider With A Good Marketing Idea For Product

Posted by Anonymous on 9/9/2010 at 12:49 AM ET 25 Points
I appreciate any help you can provide with the following question.

My friend and I recently came up with a marketing and branding plan for an existing product that we believe has the potential to expose a niche customer base in a moderately mature industry.

What advice do you have on how we can capitalize on this idea. Specifically, what is the viability, pros, cons, costs and benefits of the following options? Are there other options we should consider?

Our initial options are:

- put together a group of investors and purchase a smaller operation that we could scale up if successful (most risk)

- approach small to medium size operations, pitch our plan and hope someone buys into it (medium risk)

- work directly with a marketing consultant to clean up the rough edges and then attempt to sell to a current operation (least risky)


More about this specific question:
This is in the consumer foods industry. In this particular part of the industry there is not a high level of product differentiation between competitors. Marketing and branding seem to be one of the primary ways companies separate themselves from each other. However, there doesn't seem to be a lot of marketing innovation in these markets, it is due for a refresh.

Our idea could go so far as re-branding an existing product, developing a video, web, and print ad campaign and re-launching the product to the market. It could also be just a marketing campaign. We have experience with web marketing and no experience in other mediums.

We also appreciate any web or book references you think may be helpful.

Thanks again
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RESPONSES

  • Posted on 9/9/2010 at 7:52 PM Accepted
    Phil's right. Looking at your three approaches ...

    1. If you really believe in your idea, the best approach is to buy a company and use the idea to make a zillion dollars. Sure it's the greatest up-front risk, but the value here is the ability to prove the concept. The idea itself has no value until it's proven effective.

    2. Your middle approach isn't really medium risk. It's no risk and no reward. It won't cost you anything, but nobody is going to buy an unproven idea. There are too many great ideas floating around.

    3. And working with a marketing consultant, even a really good one, is worse. You'll have to pay the fee, and the chances you'll ever be able to sell the refined idea (still unproven) for an amount that will let you recover the fee are virtually nil. Again, the value isn't in the idea itself; it's in proving that it works. You can put lipstick on the pig, but it's still a pig.

    Sorry there's no great answer here, but better you should know that now, before you invest a lot of time and effort (and money).

    If you really think we're missing the point, I'd be happy to sign an NDA and consider the idea before giving you a professional opinion. I've spent a lot of time in consumer packaged goods and food processing sectors -- for large companies as a senior marketing exec, and as a consultant.
  • Posted by telemoxie on 9/14/2010 at 1:37 PM Member
    congratulations on having such a wonderful idea.

    Unfortunately, I would estimate there is a 90% chance that someone else will steal your idea and pay you nothing.
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