Market expansion can be a successful strategy, especially if you have determined that your sales to current customers have maximized. In fact, market expansion is one of the most common strategies in marketing. Unfulfilled customer needs, customer purchasing ability, and access to products and services typically trigger its need. Here are some factors to consider as you are deciding whether market expansion is right for you and your business.
Increasing your sales and products in existing markets is the easiest and most risk-free way to expand. This factor may require a bigger location, new marketing techniques, and even different pricing strategies. Perhaps you own a supermarket and want to move to a bigger location to be able to sell more goods. In terms of pricing, you can adjust upward if you are looking to target a more elite customer segment. Pricing downward can mean a larger volume of people purchasing your products.
Introducing new products
Expanding your market base can be the result of introducing new products to your customers. This expansion is another relatively risk-free strategy compared to other methods, especially if you have received feedback from customers showing a need for the new product. This tactic can be positioned as adding value while also showing that you are responsive to customer needs. You can also attract a new customer base altogether as you are offering services or products that you haven’t offered before. With time, your new product should sell as fast as your older ones.
Moving to new locations
If you look at your present location and see that you can’t expand there, then expanding into new locations (and markets) can be a wise strategy. However, before you move, keep in mind what made your business a success in its present location. By keeping this success in your mind, you can reproduce it in your new location. Opening new outlets will mean additional costs, which you should weigh carefully before expanding your business. On the other hand, having your business in multiple locations will make it more convenient for your customers. Be sure that you have done the market research, beta testing and developed the right marketing strategies before you move your business to a new location.
Business expansion can be a big step. However, finding growing markets, increased consumer spending and an improved business climate might lead you to consider expanding internationally. Business expansion can take the form of exporting or a joint venture and manufacturing. Going global is not without its perils, and can require a great deal of patience.
Starting a chain
If you own a restaurant, retail or service business that’s easily reproduced, starting a chain can be another alternative. However, be mindful of what made your business a success in the first place. You will need to duplicate what made your first business a success while also meeting increased customer demands.
La Junta Economic Development (LJED) supports businesses that are expanding or relocating to the greater Southeastern Colorado area. The community boasts a revitalized and vibrant downtown, ample open spaces, excellent schools, and amenities that rival those of major cities. To learn more about the region and how La Junta Economic Development can assist your business expansion, contact us today. Give us a call at (719) 384-6965 or Contact Us via email.