Tips For Making A Product Line Expansion Plan
Want to take your business to the next level? Well, one of the best ways to manage that is to diversify what you sell! But if you want to bring more products into your business in the near future, you’re going to need a plan to make it happen! Adding value to a product line never happens overnight, and you’ll need a hardy foundation in place before you make any moves. And to help you make that happen, here are some tips for putting together a proper product expansion action plan.
Think About the Customer You Want to Target
You don’t necessarily need to sell to the customers you already have here, although it would be nice if they bought your new product too. No, you’re going to want to focus on a section of the market you haven’t hit yet. You’re trying to expand, not just roll in the same profit, and that takes some serious market research on your part. What could you create that’s related to your company but hits a different demographic? And how can you develop into your niche more to really hit the center?
Think on Ways to Add Value
Once you’ve got an idea for a new product, and you’re sure you’ve found the market you want to target next, it’s time to relate it back to your other product lines. How can you add value to them without compromising? And how can you stay true to your already loyal customer base and not entirely alienate them with this new release? Value is all about building on blocks and developing something new that makes sense.
Look at Ways to Scale Sustainably
Once you’ve got your new product off the ground, how are you going to turn it into a real success story?
You’re going to need to scale, and at a sustainable rate. For example, if you’ve got a few confectionary lines that are doing well, adding a new flavor into the mix shouldn’t be hard. However, you will need to contact a gummy manufacturer to help maximise your factory to churn out even more product.
- How much will that cost?
- What effect will it have on your current output, both in terms of profit and waste?
These are the questions that need answering now.
Include a Prototype Stage Before Launch
Before you go live with any of the ideas you’ve generated thus far, you’re going to need to work with a prototype. You need to have a physical representation of your new product in front of you; seeing what it looks like and how it functions can help you discover the early flaws in the plan. Prototyping is such an integral part of the expansion process but so few businesses actually take the time to complete it – don’t make the same mistake, and save yourself some money here.
If you want to add in new product lines to your business, do your research and make a proper plan!