Business Growth Through New Product Development

• Rating: 4.7/5
• Posted On: March 5, 2021
• Written by: Emenac Packaging Canada
• Category: Blog

Any business that has a growth plan surely has a plan for product line expansion as well. Expansion is an integral part of business growth strategy. In addition to increasing sales, sustainable growth needs equal growth in the product line as well. Nevertheless, expansion of the product line does not come that easy. There are numerous factors in play when it comes to expanding your brand, from releasing time and market demand to manufacture costs and the competition. Only after the analysis of all such factors can a brand hope to increase the variants of their products.

Here is our analysis of the different aspects involved in the development of new products to promote the growth of your brand:

Why is Expansion Necessary?

When you have realized the success of your products in the market through the gain of revenue, it is the best time for you to push even higher. With more time and resources on your hand, it is your best opportunity of making your brand a bigger name. The benefits of expansion are plenty and some are:

• New Customers, New Markets: The more product types your business offers, the wider range of audience it covers. You get to appeal to the interests of customers that had no interest in your previous products at all. This allows your products to enter more and more markets where they are demanded.
• Show Diversity: When it comes to the store shelves, it is easy for one product to get lost among the crowd of competitors. However, with a range of various products under your brand, you get to cover more customer needs and be recognized as a diversified and dedicated brand.
• A Response to Customer Demands: What sparks the customers’ interests is new. Although, your new has to be put out by keeping in mind previous performances of products. If your products have demand by customers, or certain products have more demand than others then you are good to go.

Challenges:

Although starting a new line of products sounds tempting and exciting, doing it without the necessary preparations can be disappointing and denting for your business. To warn you ahead of this journey, we have highlighted a few of the challenges that your business will have to overcome:

• The Expense of Time and Resources: While sending out new products, you might be distracted from your original ones. The creation and dispatch of new products need the dedication of time and resources, although this can be worthwhile, the production of new products cannot be interrupted by the development of the new line.
• Probable Self Damage: Releasing new products can sometimes cause a decline in the sales of older ones. It is caused by the excitement of new products that overshadow the ones that came before. So your brand must be prepared for this decline with a course of action.
• More Inventory Management: Whether it is the number of products that you are increasing or the lines of products, an increase in numbers will mean an increased need for management in your warehouse or inventory. You want to make sure of the space you will need before taking your next step.

Staying in the market race for the most revenue can be challenging, however, focusing on your brand and constant improvement can make it easier than one can imagine. New product development is one way of doing so, concerning customer demands and needs, any business can improve their sales.