How to expand your product into a new industry?

Companies have traditionally created products with a primary target audience in mind. However, as technology opens up new markets and inclusion continues to be a growing CSR initiative, it is important for companies to consider a larger, multidimensional audience.

If you’re trying to expand your product into a new industry, here are a few tactics to consider.

1. Define your new target audience

With many products, the target group presents itself naturally. A luxury car manufacturer will sell to wealthy individuals. A technology company that makes workflow tools targets professionals and businesses.

However, when a brand decides to expand its target audience, they often have to do so consciously. This is due to the fact that while they see potential, their new audience may not just connect those dots.

That’s why it’s important to clearly define a new audience when expanding into an industry. Why do your new audiences want the product? What need does it meet for them?

A great example of this concept in action is Laundry Sauce. The luxury laundry detergent company makes premium washing machine pads for a better washing experience. While laundry detergent is something everyone needs, the company has consciously put the luxury message in its products, branding and even… the package from day one. This has ensured that his target audience can see the need that his products fulfill.

2. Don’t Expand Too Soon

When you decide to start a new industry with your products, it can be open ended. Often a product can be useful in many different settings. A software company that makes communication tools for businesses may want to chase consumers, but that could be a very large target audience.

It is important to clearly define your current goals to avoid overloading your growth efforts. Uber set a good example of this when it expanded to the food delivery sector a few years ago. The company’s proprietary software was ideal for connecting drivers with drivers. It took a simple edit to reallocate the software’s potential to deliver food to hungry customers as well.

However, Uber was smart enough not to proceed for the time being. It could have started delivering all kinds of purchases, USPS style. But it limited its growth strategy to ensure it could find sustained success and consumer buying in its new market.

3. Offer incentives

Perhaps you have a proven product that you know will meet the needs of your current customers. But that doesn’t mean another group will recognize its inherent value.

With that in mind, you may need to find a promotional element or incentive to attract your new target demographic to your product or service. Walmart has done this through its online and pick up services for several years.

The retailer wanted to continue the business of online shoppers and those who don’t want to do their shopping in a brick and mortar store. It has achieved some of these goals with Walmart.com. Along with the exclusive e-commerce initiative, the company also launched its in-store pick-up program, where orders could be placed online and then taken to a vehicle outside the store itself.

Walmart.com orders ship for free only if they are above a certain threshold or if the customer is a Walmart+ member. However, curbside pickup is always free, which encourages customers to try the service.

From defining your target audience to strategic growth to offering incentives, there are many ways to expand your product into a new industry. This can improve a brand’s image and increase profits, making it well worth the effort – if done correctly.