Tag Archives: Brand extension

Netflix Launches Netflix.shop

Movies have long generated revenue from sales of merchandise related to the shows (think Disney). According to trade group Licensing International, sales of licensed products tied to shows was roughly $49 billion in the U.S. in 2019, and $128 billion globally. That’s a big number and one that has attracted Netflix to enter the market with its own merchandise line and shop.

Not content to have us all streaming entertainment constantly, Netflix now wants us to shop on its platform, too. Netflix has launched an online store with items that are highlighted in its shows. While Netflix holds a dominant lead in streaming, it also needs to have new sources of revenue in order to expand. Competitors such as Hulu and HBO Max charge streaming fees, but they also show commercials to generate additional revenue. Netflix does not have that revenue stream.

The new online store will sell apparel, merchandise, and collectibles from favorite shows such as “Stranger Things,” “Lupin,” and other shows. Limited edition street wear and action figures based on “Yasuke” and “Eden” (anime series) are now available. Lupin merchandise includes baseball caps, shirts, hoodies, throw pillow, and even a side table. All of the Lupin products were designed and produced in cooperation with the Louvre Museum. Future products will be based on popular series including “The Witcher” and “Stranger Things” along with Netflix logo apparel.

This isn’t Netflix’s first foray off screen. It has previously created video games based on popular shows and has agreements with department stores to sell products as well.

What will you buy?

Group Activities and Discussion Questions:

  1. Poll students: What movies and shows can they list that have licensed products for sale?
  2. Have they purchased items related to these shows?
  3. Show Netflix’s new store: https://www.netflix.shop/
  4. Discuss the various promotional tactics that can be used for marketing a product. Have students come up with tactics and list all the tactics on the white board (ex: billboards, print, direct mail, etc.).
  5. Divide students into teams. Have each team outline a marketing plan for Netflix.shop and have each team select three different tactics. For each tactic, explain why it was selected and how it will be used.
  6. How can this plan be expanded to new geographies outside the U.S.?

Source:  New York Times; Reuters; other news sources

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New Products for Snacks and More

It seems as if there is a proliferation of new food products hitting the market this spring. In just one week recently we found a number of new food products from Pillsbury, Kind, and Target. What’s going on? Are consumers hungrier than usual, or are they just hungry for change?

Well, it’s a little of both. Yes, consumers are hungry, but we are now at the one-year point in the Covid-19 pandemic and consumers have also made changes to their eating, cooking, and shopping habits. We eat out less and snack more.

In Target’s case, it is launching a new grocery brand named “Favorite Day” with more than 700 snacks and treats that are focused on consumers who want to indulge. The new line includes cookies, trail mix, ice cream, snacks, beverage mixers, frozen desserts, and more. Target’s research indicates that customers want to treat themselves as they juggle hectic schedules and stress. (The new Favorite Day private-label store brand replaces Archer Farms and Simply Balanced which generated more than $2 billion in sales last year.)

Pillsbury is launching its first-ever ready-to-eat cookies, after years of successfully selling frozen cookie dough. Why the switch to pre-made? Pillsbury’s research shows that consumers are tired of constantly cooking and cleaning and are looking for convenience and shortcuts in the kitchen. Pre-pandemic, the pre-made cookie category was only a single-digit growth market. But now the category has grown in sales by roughly 12% in the past year.

In Kind’s situation, the company has a new frozen smoothie bowl for breakfasts. Smoothie bowels have spiked in popularity, including new kitchen appliances focused on smoothies. And, when a year ago consumers might have eaten a breakfast at a restaurant, there has been a sharp decline in eating breakfast out and instead consumers have turned to granola, cereal, eggs, bagels, fruit, and pancakes. According to research company IRI, frozen breakfast foods increased by 7% last year to $3.7 billion.

Try them out. Will they make it into your regular shopping rotation?

Group Activities and Discussion Questions:

  1. This is a great example of introducing new products.
  2. Show Target’s new products: https://www.target.com/b/favorite-day/-/N-q643lewlzpu?lnk=snav_rd_favorite_day
  3. Show Pillsbury’s new cookies: https://www.pillsbury.com/products/already-baked-snacks/soft-baked-cookies/soft-baked-butterscotch-chocolate-chip-cookies
  4. View Kind snacks: https://www.kindsnacks.com/
  5. Discuss the steps of the product innovation process.
  6. Discuss the importance of environmental scanning. What are some of the factors that have led these companies to introduce new products?
  7. Finally, use these examples to discuss the various stages of the product life cycle. What are the marketing objectives in each stage?

Source: AdWeek; CNN News; Minneapolis Star Tribune; other news sources.

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Doggie Desserts

We love our dogs, always asking them “who’s a good dog?” And then of course, rewarding and treating our very good dogs. One snack that dogs love to munch is ice cream. And now Vermont ice cream company Ben & Jerry’s has introduced a new line of frozen dog treats – Doggie Desserts.

Doggie Desserts is the company’s first movement into the growing markets of pet foods and treats. According to the American Pet Products Assoc., the number of U.S. households with pets grew to 84.9 million homes in 2020. During these trying Covid times, pet adoptions are at an all-time high, meaning that more pets than ever are trying to keep their humans sane. From 2015 to 2020 spending on dog treats jumped 44% to $5.5 billion.

Doggie Desserts follow the Ben & Jerry’s model and are made with fairtrade-certified, non-GMO ingredients. The company stated that it worked with a veterinary nutritionist and other consultants to make sure the non-dairy products are safe and easy for pups to digest. No one wants Spot to have an upset tummy!

There are two flavors sold in 4-ounce cups: Pontch’s mix of peanut butter and pretzel swirls, and Rosie’s Batch of pumpkin and mini cookies. Prices at $2.99 per cup (four for $4.99) and the frozen treats will be placed near popsicles in the frozen food aisles, conveniently located near Ben & Jerry’s ice cream. That’s one pint for us, and one for our dogs.

Now, who’s a good human?

Group Activities and Discussion Questions:

  1. Discuss the four primary marketing strategies: market penetration, market development, product development, and diversification.
  2. Show Ben & Jerry’s website: https://www.benjerry.com/flavors/doggie-desserts
  3. A video can be found at: https://youtu.be/h2lzIEeRVsQ
  4. Which strategy is Ben & Jerry’s using for this product? Why?
  5. Discuss setting SMART objectives (specific, measureable, achievable, realistic, and time-bound).
  6. Divide students into teams. Have each team set three SMART objectives for this strategy.
  7. How would these objectives change if a different market strategy was used?
  8. Have each team determine the marketing mix (4Ps) to support their strategy choice.

Source:  Minneapolis Star Tribune; Washington Post; other news sources

 

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