There are trends and there are fads. In your business you have to hedge your bets that your popular product or service will turn out to be a mere fad, like $4.50 gourmet cupcakes, and not a trend like nonfat milk.
THE WALL STREET JOURNAL reports that the bubble has burst on cupcakes, with Crumbs Bake Shop stock sinking from $13 per share to about $1.70. Not only is the Crumbs chain but also bakeries across the nation are experiencing significantly depressed demand.
That’s why Image Marketing Consultants warns about the risks involved in niche marketing. Sure, specializing in a one product or service has been profitable and a tactic to establish a strong brand identity. However, given the rapid changes in the marketplace, especially consumer preferences, businesses shouldn’t bet the ranch. They can introduce complimentary products and services, as has PepsiCo. They can also, under another brand, diversify, keeping the brands separate, as has News Corp.
Kate Sirignano, founder of Image Marketing Consultants, invites you to a complimentary consultation for your marketing, public relations, partnership, special events, and social media needs kate@imagemarketingconsultants.com, 203-404-4868.