Hot to Expand Your Product Range Effectively
How To Expand Your Product Range Effectively
You don’t have to be the owner of a large business to benefit from this type of expansion. In fact, multiple product lines allow any growing business to capitalise on its reputation whilst diversifying risk. On top of this, the number of product lines that can attract buyers with different preferences the better. It can not only increase profits by attracting a wider market segmentation but can also even out any seasonal sales patterns. To put it simply, adding new products to your current product line can help you compete better in your industry. Read on to learn more about how to expand your product range offering effectively.
Know When It’s Time
The best time to introduce a new product is at the end of your current product’s life cycle. Every product you introduce has a life-cycle – some being long, others being very short. At each stage of the product’s life, your marketing strategy differs:
Introduction phase – here the marketing objectives are all about creating awareness.
Growth phase – in this phase you need to penetrate your market and target for growth.
Maturity phase – in this phase, marketing initiatives are all about defending market share which has been earned.
Decline phase – when your product starts to decline, it’s time to phase out the weak product and reduce expenditures. This phase is the optimum time to introduce a new product and retain your loyal customers.
Of course, that’s not to say that a new product cannot be introduced at any stage, often businesses opt to introduce new products merely for expansion. It’s just important to create a unique value proposition for the line extensions and work to position them to the market segments, whether they be current customers or new.
Know What the Customer Wants
A good product to add to your portfolio is one that you know your customer wants. How do you gauge this? Mine for customer feedback. If you own a retail space, keep track of the times a customer makes a request and leaves disappointed. If it’s a webstore, analyse web data to understand the searches your customer makes. Ensure that every single sales representative keeps a list of all the products customers request, the date requested, and the intended use for the product.
Watch Your Competitor
No business is an island and you would be naive to think you cannot learn a lot from your competitors. One sure fire way to learn the most about your competitors is to speak to your suppliers. Believe it or not, your suppliers are a sure-fire access point to your competitors because they probably service your them or because they’ve made it their job to understand them simply to court you better. Building on market trends, rather than just inventing them, is the smartest way to avoid wasting money on those trends that turn out to be fads.
Find A Leading Expert
Product range expansion can be a mine-field and it’s wise to partner up with experts in this field. At Think Positive, we help businesses expand their product ranges effectively and profitably. Get in contact to learn more.
To arrange a free consultation with Think Positive call us now on 0044 (0)20 8678 7378 or email firstname.lastname@example.org.