The grocery part of the grocery store hasn't been doing as
well as perimeter perishables in recent years. One of the reasons for
its failure to do well is that products that once seemed so very
convenient no longer do. When products do become more convenient,
it's in retailers' interest to make sure their shoppers know
about it. This should be just as important to food retailers as it is to
manufacturers like Nabisco. When big brands flood the retail shelves
with profit-building extensions, it's up to retailers to uphold the
Law of Oreos so that shoppers who want the old original can find it.
Many retailers including Wal-Mart and Tesco are considering smaller
stores that would attract shoppers on the basis of making shopping
easier. Differentiating original from new products would do that in
traditional formats. There are dozens of product categories, including
orange juice and ice cream where consumers have trouble finding the
original. In recent months, we've heard a gaggle of complaints
about Coke, Pepsi, Crest, Colgate, Heinz, Olay, L'Oreal, and more.
Since extending brands has become an almost surefire way of
increasing brand profitability for manufacturers, it behooves retailers
to take the Law of Oreos seriously and to make sure that original
products weren't hidden in the variations. Many shoppers love new
products, many others want the classics. Vive la difference! Both
customers need to be satisfied for retailers to win.
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