‘Spin-off,’ which means ‘subsidiary,’ ‘by-product’ or related product, has expanded to the food industry, leading to a new trend. The food industry has recently actively applied a ‘Spin-off’ strategy that transforms existing brand products. Through this, companies are actively reflecting the preferences of Millennials and Gen Z consumers by introducing unique products.
Spin-off products are attracting attention because they are new products that can enjoy a variety of popular products, including new flavors, packaging, and concepts. This can be seen as a strategy aimed at Millennials and Gen Z consumers who value unusual experiences in particular.
The most significant advantage of the spin-off strategy is that it can lower consumers’ psychological entry barriers to new products. It is highly likely to naturally attract attention as it can add new elements to familiar brands and provide fresh experiences to consumers.
A representative example is ‘Fanta Zero Sugar Orange.’ The product is released to reflect consumers’ needs for zero-sugar carbonated drinks by inducing a refreshing taste and fun image unique to Fanta. While maintaining the tangy fruit scent of the existing fantasy, it is receiving good responses by providing options considering health. Another example is ‘Goraebab sweet cheese.’ This is a sweet reinterpretation of the existing Goraebab and reinforcement of the concept of ‘fun,’ and introduced sweet products to broaden consumers’ choices further.
Expectations are also high for whether such a spin-off strategy can be a game changer in the food industry. This strategy can easily attract consumer attention by utilizing existing brands’ high recognition and reliability. Through this, additional profits can be generated while saving marketing costs and time. However, this strategy does not guarantee success. If it fails to maintain discrimination from existing brands or remains at a simple level of transformation, there is a high risk of being ignored by consumers. Therefore, it is essential to strengthen the competitiveness of original products while maintaining a brand’s core identity.
Distribution industry officials believe spin-off products will continue stimulating consumer interest and increasing brand loyalty. As a result, food companies are expected to actively utilize this strategy by releasing various spin-off products one after another in the future.
