Sydney small business marketing consultant on the pros and cons of introducing a new product line
At Little Marketing, our Sydney marketing consultants for small businesses encourage small businesses to not be restricted by size and consider bold marketing strategies – like introducing a new product line!
A new product line is a highly effective way to expand market share by targeting new markets, through which additional revenue is also generatable. Introducing newer products – which raises the total number of products available in the market – also better exposes your business to potential customers. This ought to lift overall customer conversion rate. A new product line can also fill in the gaps between current customer needs and current product offerings, which can help solidify loyalty.
One drawback of a new product line, however, is that it may alienate current customers and dilute the current perception of a business. This will correlate with negative impacts on sales revenue. Furthermore, a new product line would require small businesses to increase their production costs to account for excess manufacturing. If forecasted revenue is not met, then this would reduce profit margins.
The pros and cons of introducing a new product line will affect small businesses differently. By taking the aid of a Sydney small business marketing consultant, small business owners can accurately deduce the personal viability of the strategy. It would be determined by weighing out all pros and cons and then identifying where most of the weight sits (pros over cons or vice versa).
To book a consultation with a marketing consultant for Sydney small businesses, you can call us on 02 9700 1869.