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.
Expanding into new markets and industries is a common way to improve both inclusion and profits.
If you’re trying to expand your product into a new industry, here are some tactics to consider.
1. Define your new audience
For many products, the target audience comes naturally. A luxury car manufacturer will market to wealthy people. A technology company that creates workflow tools will target professionals and businesses.
However, when a brand decides to expand its target audience, it often has to do so deliberately. This is due to the fact that while they may see potential, your new audience may not connect those dots on their own.
This is why it is important to clearly define a new target audience when expanding into an industry. Why will your new audience want the product? What need does it satisfy for them?
A good example of this concept in action is laundry sauce. The luxury detergent company creates premium washing machine capsules for a superior laundry experience. While detergent is something everyone needs, the company has been deliberate in weaving the message of luxury into its products, brands, and even its packaging from day one. This has ensured that their target audience can see the need that their products fill.
2. Don’t expand too quickly
When you decide to pursue a new industry with your products, it can be an open affair. Often a product can have utility in many different settings. A software company that creates communication tools for businesses may want to target consumers, but that can be a very broad target audience.
It’s important to clearly define your current goals to avoid overextending your growth efforts. Uber provided a good example of this when it expanded into the food delivery sector a couple of years ago. The company’s proprietary software was ideal for connecting passengers with drivers. It took a simple rework to reallocate the potential of the software to help deliver food to hungry customers as well.
However, Uber was smart enough not to go further at this point. It could have started delivering all kinds of purchases, USPS-style. But he restricted his growth strategy to ensure he could find sustainable success and consumer acceptance within his new market.
3. Offer incentives
You may have a proven product that you know meets 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 item or incentive to attract your new target demographic to your product or service. Walmart has been doing this through its online and pickup services for several years now.
The retailer wanted to cater to online shoppers and those who don’t want to shop in a physical store. He accomplished some of these goals with Walmart.com. Along with the exclusive e-commerce initiative, the company has also launched its curbside pickup program where orders can be placed online and then delivered to a vehicle outside the actual store.
Walmart.com orders only ship for free if they are above a certain threshold or if the customer is a Walmart+ member. However, curbside pickups are always free, incentivizing customers to try the service.
From defining your audience to strategic growth and offering incentives, there are many ways to expand your product into a new industry. This can help a brand’s image and increase profits, which is well worth the effort, when done correctly.
