Do you know what Apple Inc, General Motors and Amazon have in common? Except for the fact that they are among the most successful companies in the world, there is one more thing – they continue to add new products to their existing portfolio. Despite being giants in their own right, they know the value that product line expansion brings to business and are constantly looking for opportunities to develop a new line of products.
Companies, both big and small, need to constantly work on their product portfolio and add new products to the list in order to increase their market share. Stagnation may lead to a lack of business opportunities or even losing out to competitors in the long run. So, whether it is creating a new version of an existing product, upgrading a product, or even creating a completely new product, product expansion holds the key to the growth strategies for a given business. Here’s what it helps achieve.
Switch places and think of as a customer – do you still use the products you used a year (or even 6 months) back? Why not? Have your needs changed with time? Well, you aren’t the only one.
Things that we buy now lose relevance and are traded for better or improved products that meet evolved needs. Bearing that in mind, expanding the current product line to incorporate the changing needs is important in order to meet the renewed preferences of your customers.
An expanded market
If you are eyeing business expansion, what can be better than introducing a new product line in your current product portfolio! Remember, every product comes with its own market, which could mean more business opportunities. Also, new products could mean more options for your existing customers to choose from.
Every product moves through four stages of lifecycle – introduction, growth, maturity, and decline. Companies whose current products are at the last stage of the product lifecycle need to come up with new products that can fill in the void as soon as an old product loses demand. This is where product line expansion comes in handy. It avoids losing business to competitors and gives companies the opportunity to come up with better products that are developed using newer materials and technologies.
There are costs involved in product line expansion – manufacturing, packaging, and marketing – but none can deny the source of revenue opportunity that comes with it. Adding new products to the existing line-up can help increase the revenue of a company, and could mean more business and more profits in the long run.
Creating market buzz
If you want to be the latest talk of the town and create a market buzz around your brand and products, adding new products is the best solution. The excitement that a new product brings with it creates hype and helps your company remain top-of-mind of customers and clients. New fresh products also open a new whole new world of marketing opportunities for the business.
How you can expand your product portfolio
Now that you know the benefits of expanding the current product portfolio and are looking at widening your product range, know that manufacturing or packaging isn’t the only solution to adding new products. You can add to your line-up by trading your goods and services with other companies!
At Bartercard Australia, we provide you with a networking opportunity that allows you to ‘barter’ your existing products for new products and services, thus expanding your product line and helping you get more business and more profit. Get in touch with a Bartercard representative today!