Extend product lines through size, quality and product differences.
A product line is a group of products that have similar functions. Offering multiple products to your customers is a strong marketing strategy that provides customer choice and allows you to reach a broader audience. Successful companies look for methods to expand their current product line to enhance profits and increase their market share. The best product line extension strategies capitalize on the success of existing products and enhance the brand image of your products.
Size
Extend your product line by offering products in different sizes. If you sell a consumable product, offer your product in multiple sizes. Sell drinks in small, medium and large sizes to maximize your product placement options. Smaller-size products can be placed in convenience stores, near checkout counters, and can help introduce your product to new customers. Smaller-size options can encourage customers to try your product and can lead to an increase in overall sales.
If you sell durable goods, create products that cater to a wide range of individuals. For example, create large wheelchairs to cater to the plus-size market and small wheelchairs for children or petite individuals. Creating your product in different sizes is a logical extension of your current products and can lead to greater product awareness It enables you to reach targeted customer groups that are not serviced by your competitors.
Product Changes
Use slight product changes as an extension of products that are nearing the end of their life cycle. Recapture sagging market share by updating your products with new colors or ingredients. Consider reinvigorating your products by making them more ecologically friendly. Reinforce the impact of your product changes through marketing and product messaging. If you sell colored pencils, change your pencil material from wood to bamboo or a renewable product. Prominently note this change on your packaging and increase your sales to eco-conscious consumers and grab the attention of your traditional customers.
Quality
Extend your product line naturally through quality differences. Offer a range of products from low cost, lower quality to high cost, higher quality. This range of products allows you to reach customers at various price points and income levels. Offering products of the highest quality, you boost the prestige of your lower-priced options. You also help customers frame their purchases based on the quality they seek. For example, if you sell shampoo, offer a prestige product, a standard product and an economical product. Customers who want to pamper themselves will choose the prestige product, while customers on a strict budget will see your economical offer as more valuable than a generic competitor. By offering multiple quality levels, you also leave less room for new competitors to find a competitive niche against your products.
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