Articles About Satellite And Dish Networks

The Soap Dish™ - A Lesson in Lateral Marketing

(PRWEB) April 16, 2005 -- Big businesses do it, and now small business owners are following the trend. No, I'm not talking about spokesmodels, endorsements, or catchy theme songs -- although certainly you could use those if you wish. What I am referring to is Lateral Marketing -- and if used properly, it can be a solid business building tool.

For this example, we're featuring business client The Soap Dish", a family operated business offering a line of handmade Goat's Milk soap, lotion, and sundries. In addition, The Soap Dish offers an assortment of soap making supplies, packaging items, and a full recipe library. It is this selection of items that we will be focusing on for the basis of this discussion.

The owners of The Soap Dish learned, as many small business owners do, that few companies can, (or will) accommodate the unique needs of cottage industries. Many small businesses are unable to meet larger companies' order minimums, or simply do not wish to bring in the quantities needed in order to benefit from bulk rate pricing. This niche provided The Soap Dish with the opportunity to provide a service to other small businesses within the same market.

By ordering basic supplies in larger quantities, The Soap Dish was able to enjoy the benefits of bulk pricing discounts, then pass these discounts along to competitors who utilized these same items. In so doing, their supply business grew significantly, while establishing themselves as an up and coming player in the competitive market of soapmaking supplies. The additional revenue generated by the supply sales has allowed them to penetrate new markets, introduce new product offerings, and update internal systems at a rate that might not have been possible without the lateral expansion. In addition, the availability of a recipe database has allowed new and inexperienced hobby soapmakers a venue from which to gain knowledge, as well as affordable startup supplies. The presence of the resource helps in building customer trust and loyalty -- both are key elements in customer retention.

The basic principles of lateral marketing in this example are quite simple. Look at your existing product offering, and identify items which complement that offering, and also appeal to others serving your general market. Identify a need in the market for the item or service - based upon price, availability, or strictly on service. Then, develop a solid strategy to satisfy this need. By positioning yourself to meet the challenges created by the need, you also position your business to benefit from the solution you create.

About the Author
© 2005 Traci Hayner Vanover, The Promo Diva". Traci is the owner of The Creative Concept, http://www.TheCreativeConcept.com. The Creative Concept offers a wide assortment of design, marketing, and promotional tools to help small businesses and the cottage industry. The Promo Diva" is also the owner of Botanical Elements Trade Association, which serves handcrafters of home and personal care, home fragrance, and herbal products.

They are located at www.BotanicalElements.com.

To learn more about The Soap Dish", visit them online at www.TheSoapDish.com.

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