A constant expansion of your customer-base is the best recipe to grow your business. Expanding the number of customers involves innovative product for the existing customers, to give them a change, and penetration of new markets with the old product will save you money for the moment and will reduce the risk of capital, and introduce the new product later.
But, innovation, being a word with a large tail, may sometimes means lower cost of production and lower prices while at other it may an improvement in the quality, and improving quality seldom means higher cost of production.And, can only be offset by an increase in scale of sales and takes time.
A very popular concept in economics is that of economies of scale which verifies the above statement. It says that greater scales provide good opportunities for profit and decreases the cost of production. Identifying the potential consumer and tailoring your product according to their needs will help you enter the market and sustain in the presence of other players.
Try to earn brand loyalty
A loyal customer is the spine of a product. Winning customer’s confidence after introducing your product is very important to determine his regular show-ups. Periodic changes made as per the customers’ choice and preferences can ensure his loyalty to the brand. A happy customer carries the good will of a product to others who may turn to your product as potential consumers.
A good and prompt customer-care service helps you to build a positive-image for your brand. Another thing that often plays in the success and failure of a product is the targeted population. Products that appeal to the majority, often grouped as classes have a fair chance of success and winning its loyalty determines the course in the long-run, 10-15 years.
Enter markets with strategy
Only supplying to the market is not enough. The success of product in a market depends on the recognition of your product. Whether people know about you product or not decides every thing. Product’s presence at every possible selling point is the sole factor that decides that it will reach to the customer when he expresses his choice.
While launching a product in a new market a lower price as compared to the other available brands gives you an edge over them, quality being an understood. An innovation over the already existing brands can be a good idea, so that a contrast with others which consumers could understand can give you an upper hand.