Expanding your product line is an essential thing to do for your business. It helps a business to have a competitive edge in their market. Therefore, as an entrepreneur, it’s important you see the value of expanding your product line.
Here is why you should expand your product line to help boost conversion.
It’s An Ideal Tool For Diversification
If your products are diversified and one fails, it can be supported by the others. For example, Apple does not concentrate on iPhone alone. Much as this is the main product of the company, it has others too including adapters, accessories and plugs.
Apple is also wading into uncharted territories by thinking about its own form of Netflix. Still on diversification, when you spread out your risks, it becomes easier to survive when a certain problem hits your business.
Continuation In The Product Life Cycle
There are four main stages of a product life cycle: introduction, growth, maturity and decline. As much as a product might be in demand for a long time, it will inevitably reach its decline.
At this stage, the sales drop in a significant way. Again, at this stage, only the loyal customers look out for the product. The question then becomes how prepared a company is for the decline.
This is where the expansion of the product line is important. Furthermore, a new product helps keep the business afloat after a previous one reaches its decline.
Helps You To Expand Your Earning Potential
Brainstorming about new products is going to help you increase the amount you earn over time. In connection to this, you’re able to tap a new market potential and capture a new audience.
For example, Kraft Foods, in its product portfolios added Jelly- O (cream pies, puddings and gelatin desserts). Similarly, Gillette has expanded its products to Lady Gillette, Sensor and March 3 among others.
This helps such companies to earn more than they would with a single product line.
Attract New Talent
Small and medium-sized businesses have to attract new talent if they’re to survive in a turbulent economy. Talented employees want to work in a company which shows innovation tendencies.
This is because they’ll be taking up challenging tasks which means that they’re going to work in an environment that promotes practical learning. In addition to that, the ability to attract talent will lead to a better reputation for your company.
Conclusion On Expanding Your Product Line
When thinking about expanding your product line, it’s important that you think about products that fall in the same category as what you’re already dealing with.
You can do this through developing a new version of an already existing product, upgrading a product or developing a completely new product. Launching a new product requires due diligence because of the high failure rate that is common.