In this video I discuss why it’s so important to build and brand for your Amazon products, not just a product.
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Hi, I want to welcome everybody to today’s episode of the Private Label Report, what we’re going to talk about today is something that’s really pretty interesting, we’re going to talk about how to build a brand versus just to have a single product for all of your products and your business on Amazon.
Before we get started, I want to thank everybody if you’re watching this on YouTube or either you’re listening on iTunes. Let’s go ahead and get started and jump right in.
One of the things that I see so many people do is they don’t get their strategy right when they’re starting and I think that’s so, so important. I have a lot of conversations through my coaching students and the members of my course and so many people come in to this and they think in terms of selling a single product on Amazon. I think that’s fine and that works, however, when you only have one product, you’re somewhat vulnerable, goes the old cliché I guess of having all of your eggs in one basket.
Anything could happen, it could be increased market competition, it could be change in something from the supplier, you’re still very, very vulnerable as a seller. I think through this, the ideal way to do this is to literally think in terms of a brand, but launch products within that brand.
When you’re launching your first product I want you to really not only think of that product and also that product has to work, but I want you to think of being able to launch second, third, fourth, fifth, sixth, seventh product behind that. Ultimately that’s what will make you successful in the long run.
The strategy I guess I teach really within my course and to my students is go find a thousand dollar a month product, it’s really fairly easy to do that, there’s lots of markets left within that price range. Be able to launch a product under the heading of a brand and then be able to learn what you’re doing in scale and then grow from there. As you learn how to do that you’re going to find to launch additional products within your brand is pretty easy.
When you’re thinking of that first brand, it’s easy to get sidetracked, or first product of your brand. I think it’s pretty easy just to think in terms of a product, so when you’re doing your first product think of the second, the third, fourth, that you can release after that.
If you go back and you look at any brand, any product’s company, they will release their first product but their intent is to release other products within the brand. I think of one of my favorites brands is Nike shoes when they first came out with the running shoe and now of course they have all different types of different products within that Nike brand, whether it be basketball shoes or any type of athletic shoe, tennis shoes, wearing shoes, walking shoes, whatever they might be, they have introduced those under that brand.
You look at Coca Cola, Coke has Coke products. They have Diet Coke, Coke Zero, they have all different types of things under that brand and then even different brands under that particular item.
When I got out of school my first job was with Procter & Gamble and I worked with food products. It was basically the line of products I had was Pringles, Duncan Hines, and Crisco and Jif Peanut Butter. I sold and marketed some of those particular products.
One of the very valuable lessons I learned when it came to building and growing a brand is, Pringles has been out by the time I was there, but it was really only the original Pringles that were in the can. The goal was to expand the brand in to different products under the Pringles name. I, and many, many other people of course, worked on expanding Pringles in to what it is now.
There’s a good case study that we can think about when we talk about Pringles in a situation like this, this is how maybe one way you can go about building your brand on Amazon.
If you walk in to any grocery store right now you’ll see a long line of bagged potato chips, well the problem with bagged potato chips is there’s a lot of air in the potato chip bag and because the potato chips are not protected well, they break very easily. They take up a lot of space on the shelf.
One of the metrics that grocery stores manage is sales per square foot off of their shelves. If you can take and come up with a product and create a product that protects its potato chips so they don’t break, that has a container where there’s not very much air in there, you can get literally four times the amount of product in the same amount of square footage as you do a potato chip bag.
That’s exactly what Pringles did, they figured out a way to protect their potato chips and they condensed them in to a smaller size and it increased ultimately the sales per square foot.
If you go in to the grocery store and say “Look, we want to put Pringles in here and here’s what you’re going to get versus the traditional potato chip bag.” Of course, they’re all on that.
As that product gets up and running and you know it works, then you expand in to other variations, whether it be sour cream and onion potato chip or whatever variations and flavors there are, Pringles Light, etc etc. I don’t know how many Pringles flavors there are now, probably twenty.
I want you to take that lesson and think about that in your own product, in your own brand and say what are you doing, are you introducing something that’s unique in the market as your brand, then you’re also thinking longer term so you can go ahead and establish something with that.
Again, once you get multiple items established within your brand, all kinds of good things start happening. One, you start getting greater sales in all of your products because Product A leads to sales in Product B, B to C, C to A and all a leadership cycle that you can market and cross promote between all of your products.
The next thing that happens is you now have a real company, you really have a brand, a real brand that has some tangible value that if you ever choose to sell, you can sell for an asset. I think one of the third things in that too, is that if you have enough products you can have your own E-Commerce website, if you choose, and sell your products through your E-Commerce site, eBay, whatever it happens to be, other retail outlets and sell your product.
The last thing is at this point, you really have a wholesale company where if you want to do it yourself or either have somebody else do it, you can go stand at your industry trade show and sell your products, or have your sales team do that for you.
All kinds of good things happen, I think, to an Amazon seller if you think in terms of a brand versus just creating a product.
I’ve just been thinking about that a little bit lately as I’ve had some people talk about products and going from their first product to their second, but I wanted to put that out there just as a thought process you could go through and think through that and how that relates to your own strategies in building not only your own product, but again, think in terms of building a brand.
A little bit of a shorter one today, but just wanted to discuss that as a topic. Again, I thank you for watching on YouTube or listening on iTunes, whatever the case may be, or my blog, where or however you’re getting this content. Thanks so much and see you next time.
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Mark Scott Adams is a serial entrepreneur who has started, built and sold six businesses. He has sold millions of dollars of physical products on and offline over the last two decades. He is currently a speaker, author and successful Amazon Seller. To take his free amazon sellers training click here. To Get his free product checklist list click here