One way for consumer products goods companies, especially those operating in the food industry, to increase sales is to launch new products or product extensions. This phenomenon can be particularly important for companies filling a niche. Jean Thilmany, writing for Baking Management, notes that commercial bakeries see growth stemming from:

  • Increased demand for gluten-free products
  • Increased demand for whole-grain products
  • Return to demand for carbs
  • Interest in alternative products such as tortillas

The typical commercial bakery targets both grocers and food-service clients such as restaurants and school cafeterias. Baking businesses spend about 2.5% of revenues on advertising but may spend up to 10% on promotional activities, especially as they launch and brand new products in both the consumer and business markets. Establishing a long-term relationship with a commercial baker in your market could lead to long-term sales growth for your agency and the client.

[Source: Thilmany, Jean. “Sandwich carriers reflect health trends“, Baking Management. 1.1.09]