Strategic Product Line Extensions Create More Value for Customers
“We can do that by ensuring that each product entry provides new and distinctive value to our customers,” Lucy replied. “For example, hurricane season often wreaks havoc on torches left on beaches, patios or front yards. A wind-proof torch that could stand tall in strong winds would be a valuable addition to our torch product line.”
“Some of our business clients have complained that our classic torches aren’t big enough to fully light their large offices,” Zoot related. “An extra-large, ‘superflame’ torch would allow these clients to work long after it got dark.”
“Now you’ve got it!” Lucy exclaimed.
“I know that product line extension isn’t the only strategy for expanding FEI’s product offerings,” Org said. “What if we identify a need for a new fire-related product that doesn’t fit closely with anything we currently offer?”
“Then we consider entering a new product category,” Lucy replied. “But that’s a discussion for next week.”
Today’s FIRE! Point
To achieve sustainable, profitable growth, printing businesses should focus on intelligent product line extension. This means bringing new, improved and, most importantly, value-added products to your customers.
Fire in Action
2K sports Discovers Simple Equation: Unique Product Experience Equals Sales Success
The video game company’s NBA 2K series offers an interactive gaming experience that includes online contests, exclusive clubs for top players and ultra-realistic graphics. This compelling product sold more than two million units in 2008, besting the stalwart “NBA Live” series and breaking its own sales record by 40 percent.
Next week: The FEI tribe discusses entering a new product category.