Recesion Proof Ketchup
In this miniseries of blog posts we expand on the examples covered on from our Products that Count podcast with Melissa Pickering on Product Innovation in Recessions.
When creating new, or adapting existing product innovations for a down turn, look at how other products handle the same problems. Taking a simple example from another category and adapting it for your industry allows you to accelerate and optimise your design and approach.
Let’s take Ketchup.
“It’s a really essential product in my house, I have little kids. And the fact is, they eat more food if it’s slathered in ketchup. But a bottle of Heinz ketchup costs about four pounds. That’s quite a lot of money, and in a recesion, we are all on tighter budget.”
So, what we would do in a workshop is ask: how can my business be more like Heinz ketchup? What would they do, and how can I emulate this?
Here are a few options, we might include in our creativity session:
What would happen if we did an own-branded version?
You would have less margin because you’ve only got the brand and the retail, you haven’t got a leading brand in there. And that will give a lower price to our consumers.
Or, we could go for smaller bottles.
A cheaper initial purchase can make your product into smaller size products, which means that it’s an easier purchase for our consumer.
Or perhaps a larger bottle
Higher initial purchase price, but more amortised margins (packing etc), and less cost per litre for the consumer.
Or something left field…
and this came from a workshop*… go to McDonalds and take a whole load of free ketchup sachets…
in your business model is there an equivalent of a free sachet model?
So, from that, if you’re business as Heinz ketchup, how would you deliver your business to that budget-conscious consumer?
And you can map this using the business model canvas to ideate options for your product range?
And it might be that your business needs to do a range of different things to your products to make it viable in the recession?
For example, including additional products in a bundle to make a high purchasing item have better value (Bigger Ketchup Bottle), better/longer warranties, or offering sachet size access to you brand with free, or part features at a lower cost, or leasing.
For more examples Products that Count podcast with Melissa Pickering Willow Innovations, VP of Product Management
* Actually this was a suggestion from my kids.
For more examples; listen to Products that Count podcast with Ben Diamant and Melissa Pickering of Willow Innovations, VP of Product Management; on Spotify and iTunes
