One great way to expand your market is taking advantage of a product which is especially successful, this will allow you to offer your other products to customers while they are drawn in by your best-selling product. Another way is to introduce more products into the market, which gives you access to multiple groups of potential customers. The best thing to do is to accomplish both.
Your best-selling product is usually one that outsells your other products by at least ten times, if your product is great it might even outsell by a hundred or more times the average. Having one best-seller makes growing your revenues and profits an easy task. In order to create a best-selling product, you must keep looking for something that people will be excited about. Many alternatives should be tested, and when you find one that sells, refocus your marketing strategy on that product. It should be the heart (lifeline) of your company; all the ads and sales calls should be focused on that specific product.
The moment you do have that best-seller, you should be riding it for as long as you can. Your marketing plan should concentrate on that product and most of your budget and efforts should be spent on it. The best-sellers tend to lift all sales by attracting customers, so you can take it easy on the rest of your products. You will see profits grow, and some of them should be used to search for your next best-seller, because every product loses its momentum at some point. So, it is a safe bet to start investing into new ideas and options.
Take the Iphone for instance, the flagship product of Apple. When it came out in 2007 it revolutionized mobile communications, but as substitutes and alternatives rolled-out (in particular Samsung), the company was forced to further research and develop their best-seller. This is precisely the reason why every year we have a new model. Any best-selling product needs to adapt to the needs of the market. In Iphone’s case: a better camera, more storage, more functionality, speed etc. What Apple has done right, is that they have created a product which will always be in demand (a best-seller) and have fashioned a number of products around their best-seller (chargers, adapters, external speakers, the latter) – a great upsale. In other words, if you want to enhance your experience with the best-seller then it makes sense to purchase all of the attachments.
When you, as a business, introduce new products, your market share eventually expands. Imagine you only sell 5 products last year, and this year you sell 20, you may realize that your sales are doubling. It is probable, that new products won’t sell as good as the old ones but with patience and persistence the sales will ramp up.
Usually, when businesses want to follow the path of offering more products, they chose to either: add new products by reselling or distributing products that complement their current line of products and meet some current needs of their customers, or create some new products from scratch that nobody else has. Whichever path you chose, you still have to inform your customers that you are selling something new and convince them that it is worth it. Therefore, being visible and persistent is very important at the beginning of your campaign. A concentrated blast of marketing communications is key for a successful product in a market.
Show your brand to people in a professional and consistent manner. This can be achieved by advertising, direct mail, sales calls etc. When creating a new product, risks and costs increase, so ideally you should discount your first year’s sales projections for a new market, to reflect the degree of risk. Usually, businesses cut back projections by 20-50% to account for the unaccountable, and so should you.
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