Are you looking for a larger share of the market? Instead of fighting with your competitors over the same group of customers, why not look for brand new markets your competitors haven’t yet discovered?

Are you looking for a larger share of the market? Instead of fighting with your competitors over the same group of customers, why not look for brand new markets your competitors haven’t yet discovered?

Plano Molding Company was already successful with their lines of outdoor equipment, including tackle boxes. When they discovered that women were using the tackle boxes to store cosmetics, a new opportunity was born. Caboodles plastic organizers are made in bright colors, with compartments to store lipsticks, trays for brushes and mascara, and even mirrors (not features commonly found in tackle boxes).

Since its introduction in 1987, the Caboodles line has expanded to include organizers for beauty professionals, cosmetic bags, a line of cosmetics, and bath and body products. By taking an existing product line and modifying it to fit the needs of a new market, Plano Molding was able to multiply their sales. Once they captured this new market, they found additional products to sell to them and leverage the value of the Caboodles brand name.

How can you apply this concept to your business? Find out how current customers are using your products. You may discover that customers, like the women who were using tackle boxes to store cosmetics, have already found uses that you did not anticipate. Survey customers to find out how they are using the products, what they like best about them, and how they could be improved.

Put a few of your most creative staff members in a room with some customers and even a couple of people who are unfamiliar with your products. Have them examine the products and brainstorm new uses, as well as what groups of people outside the current market might find them useful. What changes would be necessary to appeal to that new market? Color, style, materials, packaging, pricing and name should all be considered.

It may be that a current product or service would appeal to a new group of customers, even without modification. However, it may take education. Customers have to learn that the product or service exists, and they need to understand what it can do for them. What features and benefits will they find most useful, and how will you reach them to tell them about the product?

Don’t wait for these new customers to figure out for themselves why they should do business with you. Make the benefits clear, and explain why the product is perfect for them. Your choices to communicate with these new customers might include advertising, free seminars, demonstrations, sampling, and more. If you can get your product into the hands of trendsetters and influencers in the new market, they can have a powerful effect.

When expanding to new markets, don’t get distracted from serving your current customers. It is easy to lose focus and forget the primary mission of your business. However, finding compatible new markets can increase revenues and profits, and even keep your business afloat if your present market slumps or disappears.

As the Idea Lady, Cathy Stucker helps entrepreneurs and professionals attract customers and make themselves famous. Get free marketing tips at http://www.IdeaLady.com/

Posted on: April 4, 2012, by : AfricanSisters