Market Diversification Does Your Business Need To Change
So what happens when you have sold all of your existing products or services to all of the potential available customers i.e. you have completely saturated the market.
Well if you have delivered a great product / service to these people then there is always the opportunity for some product diversification.
So you could develop / introduce some products that allow up sell or cross sell. Just think about the last time you purchased an electrical item. Hopefully at the point of purchase the assistant asked you the questions
- Do you want the batteries
- Have you seen the cover / bag / bracket / lead etc to go with the product
- Are you interested in purchasing a guarantee / extended warranty
Increasing The Value
So all of the above elements help to increase the value of the sale (and hopefully allow a significant increase in the profitability of the transaction) as well as making the customer feel more valued within the transaction.
What if you need to find a new customer segment to sell to? Well that’s where Market / Customer diversification comes into play. Perhaps your product has been developed for a customer segment of Large businesses / organisations? Could the product be made suitable for Medium size enterprises.
If your service is geared at the 18 to 30 Female segment, could this be adapted to make the service suitable for either an older or younger female segment or even a male market.In some cases the product / service might need to be slightly modified / adapted to make it fit for purpose (so in some ways this could be considered product diversification – but I don’t want to split hairs)
Is there a market available to you that you have previously not targeted. For example as a manufacturing company have you sold to aerospace and marine, is there now an opportunity to sell the service to off shore / energy or pharmaceutical.
Market Diversification For Blue Dolphin
So what if Blue Dolphin could encourage a new segment of customers to benefit from its strategic and marketing services? Alternatively there’s some product diversification we can introduce (see image)
For more information on market diversification strategies click here or for more information on market diversification contact Andrew Goode an experienced marketing professional