OXO, the maker of popular kitchen tools is extending its brand to office supplies, medical devices and children’s products.
Unique Selling Proposition
Each company should be able to articulate its unique selling proposition (USP). In the case of OXO, the USP is the cool design, comfort and ease of use of their products. Historically, OXO defined its field of play to be kitchen and household products.
Grow Share of the Pie
Companies can grow revenues by gaining greater share of the market. This is known as “increasing your share of the pie”. With many competitors it may be difficult to grow your share of the pie. There is an alternative.
Grow the Pie
Companies that play in a larger market have a larger pie to split. For example, OXO expanding into the office supply, medical devices and children’s products allows opportunity to gain market share in other pies.
Using Your USP to Grow the Pie
The OXO brand carries a premium price for its products. The USP of cool design with comfort and ease of use allows for the higher pricing and presumably margins.
As OXO enters these markets the potential purchaser already has an image and value proposition in their mind. OXO is leveraging the brand cache to take share in new markets – growing its pie.
Look At An Example
OXO president Alex Lee is not concerned about the pricing. In a recent Business Week interview he said, “At every dinner I go to, someone says, “OXO should make … a garage door opener! Just fill in the blank.”
Knowing and exploiting your Unique Selling Proposition will allow your company to grow its share of the pie in addition to growing the pie.
Over to you. What do you think?
- What is your Unique Selling Proposition?
- Are you pursuing growing your share of the pie, growing a larger pie or both?
- Does OXO’s move into these new markets make sense as extensions to their brand?