4 reasons to expand your product line
It may be scary to create a new product, mostly when you already have one that sells well. But expanding your product line can be very beneficial for the growth of your company. It's a great way to maximise the potential of your current customers while also attracting new ones. Furthermore, no company can exist just based on a single product. There will always be competitors who will make those goods cheaper, faster, or better. One of the most effective strategies to mitigate this risk is to expand the product line.
Here are a few reasons why you should be thinking of a product line expansion.
Increases Customer Loyalty
If you decide to offer additional products in the same category, customers will have more opportunities to acquire your products instead of one of your competitors'. Customers will be more loyal to your brand as a result of this, and they will return to purchase new products while still buying the original.
Retailer and Customer Relationship
It is less complicated to launch a new product without having a successful product. If your products are already retailing in different stores, those retailers will be more likely to allow you to put the product in-store. Additionally, existing buyers of your products will be interested in buying the new products that you will be offering.
Unless you've landed on the right recipe, like Coca-Cola, the lifetime of most products goes through four stages which are launch, growth, maturity, and decline. Trends, tastes, and behaviours are constantly changing, meaning that there are only a few products that can avoid market death. If this happens to one of your products, you will have other products at the beginning of the cycle, ensuring that your company maintains traction. Having a higher diversity of products can help you to continue having consistency in your company.
Great Brand Awareness Strategy
Selling a variety of products will boost the likelihood of your brand being viewed by new people. This greater reach is very important if you want to grow your company, not only because of the revenue of the new product but due to the increased brand recognition of your company. If you have a company that sells pancake mixes, adding cake mixes to your product line can be a great way to reach new audiences, while still maintaining the brand’s identity. Moreover, you can't underestimate the value of a new audience being aware of you. Creating new, quality products is a great way to improve credibility, and this will, in turn, continue to bring new customers, while increasing loyalty from the existing ones.
How Can I Expand My Product Line
Adding new products along with your existing ones can be done in different ways. You could provide an improved version of your existing product, with an upgraded recipe, or premium ingredients. You could add a product that appeals to a certain group of people, such as vegan products. You could also add products that compliment your existing products.
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