The product expansion strategy is a growth method used when a business intends or introduces new products into prevailing markets. A business would characteristically product expansion strategy when current products are non-extensive to provide the desired outcomes. The new capabilities and skills may be essential by the business to deliver the desired outcomes. Product expansion strategy is expected to be little more exclusive than being the market intensive strategies and requires some time & effort before implementation. It is vital to have detailed analysis related to client needs, introduction ensuring products which are first to be delivered to market. The companies can use diverse methods to encourage the growth and product development involving the launch of new products over targeted markets. There are diverse kinds of business growth models. However, when business progresses to a more mature phase in its life cycle, all is desired to build a strategic growth map which complements the product expansion plan.
Every company seeks expansion either by targeting new market niches in prevailing countries, or in quest of new markets. The product expansion strategy also includes aiming new customer segments, in a limited market. Typically, it is an initial point for most companies looking to enlarge with being consistent to resources which are owned. Almost every organization is not sure about how new product or service would perform globally or domestically. Generally new product are tested with offerings from their product portfolio scaling up from there if the results are favorable. When a company serves different markets but in a few countries. Product expansion strategy is highly suggested for the companies which want to grow and expand into new markets and wish to diversify their product range by modifying their existing products or creating new global products. It is classic wide-ranging strategy in which a company seeks the advantage giving exposure to their products. A company can further achieve higher sales and lower costs than competitors and, therefore, will have added competitive advantage. Product expansion strategy is also employed by the companies viewing to extent in the services sector, further allowing them to getting into local alliances which going forward without considerable investment.
Expansion followed by analyzing growth results and directing the resources within the purview of businesses accompanying customer needs, functions or technology. The strategy must communicate about product, pricing, distributing, and promotion plans to be used in marketing the planned products. It is relevant to understand that all strategies should be flexible which can be modified to follow to the vitality of the situation. The potential buyer analyzes diverse data obtained and match different product landscapes and benefits such as price, performance, quality, availability, or durability by making efforts to rationalize the consumer decision. The customer are always interested buy the product repeatedly based on the satisfaction that they derive by using it.
There are many responsibilities involved in developing a product that is appropriate for the customers.
Developing and screening new ideas
Mounting new concepts
Testing concepts
Examining market and business plan
Testing and Designing new products
Executing and commercializing products.
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https://www.kenresearch.com/blog/2020/02/product-expansion-strategy/
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