Niche markets are sometimes larger than you expect. The case of Pedon.

Niche markets are sometimes larger than you expect. The case of Pedon.

Pedon is one of those brands that has a solid market share but is not known very well, even in Italy, its home country.

A manufacturer of dozens of private labels product, Pedon has also its own lines of products, one of which deserves special attention.

Pedon has developed a line of gluten-free products which Luca Zocca, the marketing manager, saw as a natural extension of traditional product lines. Especially interesting was the typology of consumers who adopted the product.

The gluten-free label is given only after a series of very though controls and accreditation (clearly mentioned on the packaging by the way) which explains why this product eventually got adopted by a population who does NOT suffer of a gluten-related pathology.

According to Luca Zocca, the US market for gluten-free products is estimated to 30 million people, 9 millions of whom actually suffer from a gluten-related pathology.

 

Our take:

The business case shows vividly what a market research may probably not have revealed, namely that side features of a product enable it to transcend its initial market and dramatically increase its potential. Think about it for one second. Although the gluten-free products of Pedon are not even organic, the additional control procedures applied are sufficient to attract three as many customers as you may expect.


Posted in Marketing, Strategy.