Even businesses from the most niche beginnings will, at some point, find a way to diversify their product offering.
This can come as a spark of inspiration from your own product knowledge, or even as a way to respond to customer feedback. Being open to researching product options is always good practice for any business, regardless of size.
Now, there are many ways to approach a product range expansion. You could extend an existing line with new options, diversify by jumping into adjacent product categories, or expand to bring more variety to your total offering. Here are some tips along with some examples of how other businesses have successfully landed their product range expansions.
What to Consider for a Product Range Expansion
One of the best ways to nudge yourself into the phase of expanding your product range is to think about how you can change the products that you currently offer. Small tweaks can make a big difference and open up the range to even more people. It’ll take some research and extra manufacturing, but it’s relatively cost-effective compared to larger expansions.
You should also be thinking beyond your own offering. Being in-sync with current trends, what people are looking to buy, and thinking of ways to add value to these are all essential to a successful product expansion. However, it’s integral to not aim to replicate your competitors. This invariably leads to a lesser product and takes away any shine that you had as an innovator. Instead, see how you can improve on what’s going to solve customer problems.
However, there are a few things to weigh up even if you think you’re on to a winner. For a start, there’s the cost of development, and the time taken to get it into action. There’s also a chance that your expanded ranges won’t sell as well as your original products, which is worth keeping in mind for your projections.
Businesses that Nailed Product Expansion
The entertainment industry is one that is constantly looking to expand and evolve. For example, the classic game of roulette, had just three or four variants for centuries. However, the rise of the internet and the iGaming industry saw famous in-person casinos like the Hippodrome expanding to offerings like online roulette. Since then, online roulette itself has only continued to expand, with games like Immortal Romance Roulette and 9 Masks of Fire Roulette using elements of slot games to diversify the roulette product. Developments to classic games like these show how companies in the iGaming industry continue to seek expansion and diversification of their offerings.
For a more recently-created example, you can look to social medial management tool HootSuite and its many extensions, who now offer much more than just this single offering. Its biggest expansion came by way of the Hootsuite Academy, which offers training courses for marketing on social media with a focus on using their own tools, an inventive move to develops talent and grow their customer base
One of the most successful modern product expansions, though, was done by Apple. Innovators through and through, after the iPhone, they revolutionised tablets with the iPad. It created the product between the touchscreen smartphone and a laptop, offering the convenience and usability of a smartphone with the required larger screen and extra power more akin to a laptop.
There’s a lot to consider before committing to a product range expansion, but there’s also a lot to gain by sticking the landing. After your first hit, there’s a good chance that you’ll have the momentum to go again.
Read more:
Assessing Product Range Expansion and Checking Out Some Prime Examples of Successful Moves
