There are numerous ways online businesses are growing their reach and increasing their respective online sales. Once they understand this term, it may be another beneficial outlet to improve their online business. As a business owner, you cannot simply put your online business at risk all the time. Businesses that have weathered the early storm and come out of the initial challenges have the opportunity to create a brand identity for themselves.
What is a Product Line Extension?
If you want to improve your online sales, you need to understand what product line extension is. It is defined as a strategy imposed when a business contains a line of products working at their maximum capacity, and it adds to the number of overall products. There is a difference between this strategy and generating a new product line, where a business introduces a completely new product in the market.
The best example will be the Coca-Cola manufacturer, which has also introduced a “diet” version of its drink in the cola line.
Similarly, PlayStation 5, upon its release, has also introduced a digital console in the console line. Another example is a simple toy manufacturer looking forward to adding another cartoon character to its current line of medium-sized character-stuffed toys. These line extensions add value to an eCommerce product as they can become attractive to a wide range of audiences.
Benefits of Brand Extension Opportunities
1. Generates New Customers
When you get to know product line extensions, you will also understand the importance of attracting new customers. If you add exclusive product lines to your online store, there is no reason why it will raise a few eyebrows within your respective audience. If your added products are new in the market, customers would definitely be looking forward to hearing about them. For example, if a clothing website sells women's clothes in six different colors, a seventh color may drive attention.
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Let’s suppose that the seventh color of the woman's dress is blue. This will attract many females who consider blue their favorite color in terms of clothes. Even if they don’t end up buying dresses in the new product, they will ensure that their family and relatives get to know about it. This will create a win-win situation for your online business as you would be attracting new customers.
2. Retains Current Customers
As much as generating new customers is essential, repeat customers also have a significant value to your online store. If you are selling the same product line repeatedly, it will hurt customer loyalty. They will feel bored and consider other online stores that add new product line extensions related to the same niche. Therefore, you must consider adding a new product line extension to satisfy your audience.
As a businessman, you must note that a customer would always demand innovativeness. No matter how successful your online business has been, your sentiment will only work for a little while before the customer becomes bored of you. If you want to retain your existing customers, you must always find out ways to satisfy them at the earliest.
3. Improves Profits
Any random product line extension example will make you understand that it has a huge influence on the business profits. When you are bringing new customers to your platform and keeping your repeat customers happy, it will only add to your overall business revenue. The more customers you bring to the table, the higher chances you will generate large profits and sales.
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In this case, you need to prioritize an effective product pricing strategy. If you create estimates related to your product price, it may also be beneficial as the ones who wouldn’t meet your final asking price may just about make it. If you are running an online store, increasing your product prices substantially may also result in a high bounce rate.
4. Marketing Benefits
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One of the most significant benefits of product line extensions is related to online marketing. As the line extensions would improve your customer base, you can run your marketing campaigns to a wider audience under the same budget. The best way of promoting your products is to include hashtags on your social media profiles with the product images. This would take your marketing strategies to unimaginable levels. Whether you are running an online business or promoting your products through retail outlets, you will get a lot of revenue through your marketing campaigns.
5. Larger Shelf Space
If you have numerous published eCommerce products on your online store, it doesn’t only increase the chances of online sales but also enables you to have a larger shelf space. By adding a product line extension, you will have a larger shelf space, which would positively benefit your retail store. Your customers will take extra time before getting their shopping invoices. You can also create planograms, which would help you decide what to do with the larger shelf space.
Strikingly is a massive advocate of eCommerce sales. By creating a professional eCommerce website on Strikingly, you can allow yourself to earn a huge bucket of revenue by selling your products. All you have to ensure is to bring adequate website traffic to your platform. Once you see people talking about your online store, you can imagine your targets getting fulfilled.
Things to Consider for Brand Extension Opportunities
1. Company Name
If you look at most product line extension examples around the world, one of their business owners consider is the company’s name and reputation. Usually, the original line of products has outstanding quality, but the extension in products may result in the quality of your online store dropping. This could be down to the lazy attitude of your farmer workers who do not review the products before considering them eligible to be added to your online store. Regardless of the reason, your added products must have an up-to-mark quality.
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Otherwise, your customers will be disappointed and walk away from your online store. Rather than bringing positive results to your online store, poor quality of added products may abandon all the hard work you have done previously. If you present your newly added products fairly well, it will encourage the customers to use more of your new products in the future. By going with this approach, you will not create any deficit in terms of your brand personality.
2. Finance
Apart from having a huge influence on your brand image, an unsuccessful brand line extension may also result in a huge deficit in your revenue. Similarly, if you create a successful product line extension, it will increase your online sales, which will greatly influence your overall business revenue. An unsuccessful line extension would mean that all of your invested money related to promoting your new products will go down the drain.
If you have opened up a new business, it is crucial to think twice before adding a new line of products to your online store. A new business may be highly volatile when it comes to financial losses. Therefore, it is better for you as a newcomer to disregard the idea of product lines. You should only focus on building a solid customer base and satisfying the demands of the public. If you can run the risk of financial losses, you shouldn’t think twice. If you fail on the first try, there will come up a time when you generate an effective product line.
Conclusion
If you have the objective to diversify your products, you couldn’t think of a better idea for revolutionizing your online store. Adding product lines to your online store may always be a judgment call for your business. You would almost feel at crossroads related to your business plan. Your online sales will increase to a larger extent, or your downfall as a businessman has begun.
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If you consider all of the product line extension examples worldwide, all of them believe in the development of an eCommerce website. Strikingly seems to be the perfect fit for developing online stores. By creating an online store on Strikingly, we will provide you with an option of not just adding product lines but also establishing multiple categories related to your eCommerce products. Ensure that you consider an effective website template before deciding upon your next move. So, rely on Strikingly and get the best out of your eCommerce products.
