Some companies dream about extending there product line in order to capture new sales and drive new business.
Building a new product or product range is sometimes a matter of altering perception of the product. Customers only see the face of the product and rarely get to witness the infrastructure, business processes, technologies and other aspects that make the product what it is. By managing the product’s perception differently, what added value could be delivered?
Let us look at the car industry.
A saloon version of a car is released and boasts excellent safety, comfort and elegance. The car is given a brand and styling in order to appeal to a certain demographic. Let’s say that the car appeals to the businessman with a young family within a certain income bracket.
Now let us use the same car but give it a sporty twist by tuning the car and modifying it to fulfil a different requirement by altering mostly perception. This may add value for a specific demographic and therefore, voila, a new line of cars.
The car industry affects this method of refacing a product to meet different requirements substantially yet it is highly applicable to other industries which often goes unnoticed.
Think about it. If you changed your brand, approach, look and feel, yet utilise the same infrastructure, is there a different market that can be captured?
Let us take a software development company, as an example, that sells content management systems (CMSs) for websites. The company is looking to grow its business by entering a new market. It could redevelop, from scratch, a new CMS that will cater for larger corporates but that would require huge investments and put the company head to head with larger players.
Another option is to use the same CMS system, as is, though heavily simplified. With more and more people wanting to build and manage a website, a CMS system for companies or individuals with limited functionality and most importantly, easy to use, will appeal to a new demographic or type of customer. Think parents or grandparents, think individuals that are starting their own business yet find WordPress complex (ever showed WordPress to an unsavvy 60 year old?). Though, most importantly, the new product can utilise the same technology as the previous product.
This approach can be an effective way for an SME to tap into new markets in an efficient manner. Interesting? Could this be possible with your company?