Any business that has a successful product in one market, should consider testing that success in new markets. For some business owners, that seems like a daunting task. New markets are scary and unknown. Here is an inspirational story for you. We can learn three marketing tips from Kraft Foods about entering new markets or increasing sales in those markets. This will be relevant for any business considering re-niching a product line or entering new countries to increase and grow their revenue. Whether you hire a marketing consultant, or try to implement the strategy yourself, always remember the marketing lessons from this article.

Specifically, Kraft Foods decided they needed to do better in developing markets. Kraft knew they could do a better sales job outside the USA. Even though some of their products had been selling overseas for 22 years, sales were stagnant. The developing markets was a laggard and they were looking to improve their position.

How did Kraft do it?

I feel that we can learn three things from Kraft foods strategy that resulted in a revenue increase from developing markets to 21% of overall revenue in two years. Sales of Tang in developing markets grew 30% in one year.

#1: Focus on a specific task, instead of trying to do everything.

Kraft found their ten best brands, also known as their power brands, which were under-marketed and had the best profit margins. Some of the brands identified were Oreo cookies, Philadelphia cream cheese, and Tang. These ten products would get committed resources in R&D and marketing, while the other brands were not part of the strategy.

#2 Do market research

The second principle we can learn from Kraft Foods is they did market research. I think this is critical. We sometimes just jump into it and we think a product or a service, or even an e-book works no matter what country or new areas. But if you understand your target market, you can understand their needs, and problems. Then, you can create a solution to that problem.

In the case of Kraft, they found through market surveys that in China, mothers believed their children needed about six glasses of water a day. Of course being hydrated is a good universal habit. Moms really wanted their children to drink plenty of water, but the children felt water was boring and bland. Problem identified. Kraft Foods smartly pitched to the parent and to the kids that if they used Tang, it would make water more exciting. It became an appealing way for moms to use Tang to get their kids to drink more water.

Secondly, Kraft looked to expand their flavors to match the culture of the new market. It is still Tang, but they experimented with new fruit flavors, such as mango, tamarind, and maracuja (passion fruit), aimed at local palates in Philippines, Mexico, and Brazil. This reminds me of the worn out cliché -”When in Rome, do as Romans do”.

Finally, Kraft tweaked the packaging. The research showed that the Chinese preferred to make up powder drinks by the glass rather than by the pitcher. Given this behavior, Kraft created single serving packets of Tang. Kraft designed new single serving packaging similar to the powdered sugar pixie sticks found in the US market.

#3 Big product launch – free samples

When Kraft was ready to introduce the new Tang flavors and packages, Kraft distributed 27 million free samples in 2009, which is a big commitment. Consider that Kraft gave away 300,000 samples in 2008, so 27 million samples allowed them to reach an audience over 81 times greater in 2009. This meant that more prospects had an opportunity to try Tang and develop a relationship with the brand and a customer relationship with Kraft. Kraft really delivered value to prospective customers in developing markets. New customers were found.

Bottom line: Tang sales shot up 42% in Latin America, and 25% in Asia Pacific.

Conclusion

Applying these marketing principles can help any business expand into new markets for top line growth. Don’t try to do everything, just focus on a few products that have the best potential and highest profit margins. Do your market research. Commit to a big product launch. With minimal product changes, and a focused localized marketing approach, products can be successfully introduced to new markets.

Taking inventions from concept to reality can be difficult. In fact, it’s quite confusing. I’ve been down that path several times myself, and without help simple matters become daunting. Twenty years ago I attempted to go it alone and spent tens of thousands with a prototyping house, an engineer and more. Outside of finances, I also faced challenges when deciding who to talk to, how to patent and the path I should take when pursuing my inventions.

Thinking of these subjects, I compiled a list of five things to consider about your inventions.

1. Know the problems your invention will solve

Every invention or great idea aims to solve a problem. Everyday people recognize problems on a regular basis. Inventors choose to solve them.

Before pursuing your idea, clearly understand the problem your invention will solve. Does your solution work? Does your invention need a little help? Is it too complicated? Working with a trusted company that understands design and engineering helps clarify problems and reveal solutions.

2. Your invention’s market

Once you know the problem your idea will solve begin thinking of the market in which you invention would sell. Is it a home product? Maybe it’s an automotive invention? Will it stand alone in its own category.

Understanding your invention’s market, will help you in every step you take. You can now compare it to other products in that category and the companies that make those products. This will help you later when identifying a company you’d like to see license your invention.

3. Invention security

If you choose to disclose your invention idea with someone, whether it be family, an attorney or a company you hope to work with, security should always be on your mind. An inventor’s greatest fear is losing their invention idea to someone else.

The most dangerous times can be when you deal with an outside company to help you with your invention. Always ensure they have security precautions in place to protect you and your invention. Don’t sign anything unless it explicitly states it’s there for your protection.

At Inventionland we protect client inventions with a confidentiality agreement that every employee must sign. As well we make sure our clients sign an Idea Security Agreement with us. This is an extra layer of protection for their invention.

When dealing online, you should ensure it’s a legitimate company. Always look to see if they have established security systems. Some invention companies exist solely on the Web, lacking roots in a community. Before sending your invention information out, make sure you know they use a trusted secure server or security system like VeriSign.

4. Product sales sample – A working invention

I believe that a product sample is vital to the success of an invention. Without a product sample, you won’t truly be able to understand the invention’s function, manufacturability and you’ll have difficulty holding a business conversation.

Building the product sample takes good design work, engineering and prototyping, each of which can become quite expensive on their own. As well, jumping between these entities causes confusion that could damage the value of your invention. It’s much like the telephone game we played in elementary school with our peers. With each additional person speaking for you, your invention’s message gets lost. Keeping all these necessary processes together, keeps your vision aligned.

5. How to patent

Often the first thing on an inventor’s mind when they finish their creation is how to patent. Perhaps a more pertinent question should be “When should I patent?” or “Am I really done inventing?”

There are a lot of companies that push inventors to patent their invention idea immediately. Unfortunately, patenting is a costly and time-consuming process that far too often results in frustration when an inventor discovers they have to change their invention to either interest a buyer or make it manufacturable.

One of the reasons I encourage fellow inventors to prepare a product sample is to identify unique areas of the invention that further protect it in a patent. This also keeps competitors and those who may seek to knock off your invention at bay.

When pursuing your invention, keep these five invention tips in mind and save yourself time, effort and money.