Expanding product line is one can be considered as good achievement and new opportunity to reach new markets. However, it also means that you are leaving your business’s comfort zone. Entering new market is not something you can take so lightly. It is new challenge you need to tackle with the right plan and execution. There are also many things to consider before jumping straight to expand your product line such as market data, production capability, as well as your business’s potential.
Things to consider before deciding to expand your product line
There are various homework you should do before deciding to expand your product line. A SWOT analysis is essential to perform before determining if your company is ready to expand the existing product line. Through SWOT analysis, you will get clarity over your company’s strengths and weaknesses more accurately. Hence, you can make best decision in the most efficient way.
Before actually producing, you need to perform a testing of your new product line. You can do it using social media platforms. There are many of them to choose that suits your business value and objective. You can offer questionnaires to your followers so you get insightful ideas of what to choose for your new products. This is also a good way to see if your customers are interested with the idea of new product line.
You also need to make sure that the plan to expand your product line is a way of new solution you can offer to your customers. If your new product doesn’t offer any problem solution or value, then it is highly likely to fail because your customers will find it useful or interesting. Thus, do not put your focus solely on the money. It will surely follow if you do it right.
Before expanding, you need to review your business’s current sales. Are they growing and stable? If they are still wobbly in term of performance, it is better to rethink or even put your plan to expand on hold. If your sales have the growth and stability then you can consider for expanding your product line. Think of it as complementary to the existing products. Your new product should compliment the existing ones to have more chance that it will be just as successful.
Expanding product line is not an easy tasks especially because the market is not stagnant. Hence, it is essential to do proper research before deciding to expand. You need to find out and learn more about the current metrics and the resources required to scale as well.
It is also important to hold a trial launch. You can offer a per-order session for your customers who are interested to try your new product line. This provides you with more accurate data of the interest of customers to the new product. You will also lose too much if the result is not as you expected because you don’t have to make large investment right away.