No company can survive on a single product. Having multiple product lines may allow a growing business to diversify risk and capitalize on its established reputation. Different product items in a product line can attract buyers with different preferences, and increase profitability thanks to market segmentation.
There are different reasons for product line expansion: besides adding new versions of existing products and providing upgrades to existing products, many businesses add new products to their portfolio. For some electric appliance businesses, your business often suffers due to seasonal changes in sales. For example, your air conditioners or refrigerators sell better during warmer months; then adding new products can ease this burden. You can try to add products that are not seasonally bound or products like microwaves, heat pumps, and dishwashers that can be sold during your off-season to even out seasonal sales patterns.
You must have your own reason to introduce new products to your customers. Just be sure to take these four steps before moving forward:
1. Diligent research is the foundation.
As previously mentioned, proper research is critical when considering an expansion of your product line. Determining what new products to offer can be a challenging task, and without sound researched decisions, you risk making poor choices that could leave you with slow-moving inventory and significant financial loss. It’s crucial to remember that any new addition should complement your existing product line and contribute to its improvement. Therefore, in-depth research is necessary to identify the specific needs of your customers in high-priority market segments and determine the product/service bundles that would be most appealing to them. Taking the time to conduct thorough research will ensure you make informed decisions and increase your chances of success.
2. Use a special introductory offer
Rather than just announcing your new product or service, you can make it available as a part of a special introductory deal. This deal can take many forms, including discounted pricing, jointed promotion with a complementary business, free gift for every referral. Whatever your promotion, be sure to emphasize that it won’t last forever. Customers whose purchase power is limited, either by time or inventory, will feel a more pressing sense of urgency to buy.
Your loyal customers are a key part of how to promote your product because they are most likely to not only buy it, but also promote it to their networks. This can be a private, in-person or virtual pre-launch party, an online tour, a preview, or a demo. Or, it could even be a special invitation to test it out and give feedback. These exclusive offerings are not only a great customer engagement strategy, but they also reinforce how much you value them—and engagement and loyalty are essential for any successful growth marketing strategy.
3. Get customer feedback
In all, you’ll need to use market research and speak with customers and marketing partners or distributors and evaluate competitive products. This will help you to validate the present level of demand for the product and the best channels for sales distribution, plus shape the product messaging. If you do your homework and proceed with an analytical eye, your line extension will increase sales, help you reach new markets and build market share overall for your growing business.
4. Show Enthusiasm to Inspire Your Team
It’s always important to be enthusiastic when speaking about a new product. Enthusiasm can significantly inspire your team and customers. If you sincerely believe in your product, showing your excitement for it will inspire your staff to work harder and make better plans.
Early access to the product for team members is another technique to motivate your team during the product introduction phase.
If you have enough quantity of the product, provide each team member with a prototype so that they can examine it in further detail. Personal evaluations from your team can direct product improvements.
You might feel a little nervous at first. But it always sounds better when you come off as excited to share your product with the world. It helps to project your enthusiasm and share your vision with the audience.
Finally, let me clarify why expanding your product line is recommended over establishing new brands. When you have an established brand, you have a pre-existing customer base who is already familiar with and loyal to it. By adding new products within the same category, you provide your customers with more options and encourage them to purchase from your range instead of your competitors. An excellent example to use here is Smeta, a brand that has multiple product lines such as refrigerators, dishwashers, freezers, and microwave ovens. Selecting products from its extended range has the potential to increase customer loyalty over time, as it provides customers with options to try new products while continuing to purchase their favorite products from the brand.
