Adding a new product line to expand business or replacing an older line is effective when done after taking care of all the aspects. Some of the steps which should be taken care of include:
The needs of the customers in every market segment should be determined.
The company should identify the bundles of products/ or services which are most attractive to the customers.
The company should plan to create a unique value proposition for the planned new line and decide how to position the product line in the market.
Plans should be made regarding the channels of sales and distribution which will help to penetrate the product line’s target market
Proper market research through surveys and feedbacks should be done for validation of demand of the offering of the product line. This will also help in evaluating the competitors. In addition, the research information will help to choose the best sales and distribution channel and frame product promotion messages.
Importance of Product Width
A proper product mix strategy is very important for a company to update the types of product offerings based on their demands and sales. Some of how the width of product mix, which means the presence of some product lines is helpful, are:
Product width and depth help a company to diversify its products. Diversification helps a company to avoid risk because of lower dependency on an individual product line.
A wider product line helps a company meet the demand of varied consumers and thus tending to a larger market.
The presence of many product lines helps a company in its profitability by selling to different market segments and making seasonal sales.
A wider product mix can help a company compete more broadly and strongly.
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