Products and Services expansion is considered a key factor in the growth of an organization. There is a huge amount of research that needs to be done before introducing a new product line in a new market.
If not done correctly, there is a risk of heavy losses that might lead to the closure of the business.
Unfortunately, many organizations fail to build reliable and adequate product/service strategies to enter a new market.
In this article, we discuss 5 product/service strategies that you can implement in your business that would give you an edge over your competitors.
What is Product/Service Expansion?
When an organization introduces a new product/service under the same product/service line, it’s known as Product/Service Expansion.
For example- Coca-Cola, a renowned brand has extended its product line in the form of other drinks like Sprite, Fanta, Limca, etc.
Strategies To Expand Product/Service Line
- Understand Your Audience: Knowing your Audience and how to reach them plays a key role in product expansion. Research their pain points and develop adequate strategies to tackle such problems. You can also opt for customer surveys or feedback that can help you to further understand the pain points deeply.
- Study Market Trends: Before launching a new product/service in the market, it’s important to study the latest trends & downfalls. Consider probabilities like ‘What If’, ‘How Can We’, or ‘ What If We Fail’ to develop new tactics & strategies.
- Conduct Competitor Analysis: Make sure you study and conduct a competitor analysis in which you relate your new product/service with your competitors to know why people should buy your product/service and in which areas your competitors are lacking to satisfy the needs of the customers.
- Expand Distribution Channels: Reconsider your existing distribution channel strategy to achieve new heights of growth & profits for your business. Add new retailers, wholesalers, or distributors to supply your new product to a broader market. Similarly, use new promotional tactics like loyalty programs, email marketing, digital marketing, sales promotions, and so on.
- Bring In Experts: Don’t rely on your existing workforce for your new product/service launch. Make sure you hire industry experts or consultants that can align your organizational goals with your products & services.
Key Takeaways
A new product/service needs time and research. You should be able to demonstrate key features that the competitors are lacking in the market. Most importantly, your products/services should be aligned with your core values, vision, and mission.
If you’re a business owner looking for professionals to build solutions & strategies for your new product/service,
Book a FREE strategy call with us.