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Entrepreneurial questions on repositioning products: Baking soda

Sometimes the use of a product may decline over time. The product may have been well-known for this particular use, but with usage declining, a company may have to find a new use for the product and communicate this to the market. For example, Arm & Hammer experienced a stall point when the use of baking soda for baking at home declined. The company could not simply encourage customers to increase their baking at home. So, the company attempted to find other ways customers could use the product. This is known as repositioning the product: or, more accurately, repositioning by creating new-use situations. The company repositioned the use of baking soda and achieved growth.

Question:

What was the nature of this repositioning? What were the new use situations that help revitalize the sales of baking soda?

Instructions: Compose your answer as an MS Word document (Arial 12).

Solution Preview

For decades, Arm & Hammer Baking soda has sold its product for baking
purposes. Though some consumers have used the product for other purposes during
that time, baking has been the main use for this product, that once was considered a
staple, in the pantry of many homes. However, as lifestyles have changed, leading to
less baking at home, the use of Arm & Hammer baking soda for this purpose has
sharply declined. Rather than develop a new product for home use, Arm & Hammer
made the decision to re-invent the product, for a host of new purposes.

Many people are aware of the use of this product for brushing teeth and for the
temporary relief of intermittent indigestion. It has been discovered to be an excellent
aid for ...

Solution Summary

The entrepreneurial questions on responding products for Baking Soda is examined.

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