When you want to expand your product market, you always need to consider many intricate factors and don’t know where to start with. So it is necessary to use the market product grid to help you make a clear developing plan.
What is the market product grid?
The market product grid, also called Ansoff Matrix or product market expansion grid, is a tool to help expand your business. This growth can take many forms, from launching a new product to entering a new market for more customer segments.
The market product grid is an evaluation framework that can help you analyze the relationship between new and existing products, new markets and existing markets, such as the market where potential customers are distributed, the supply of various products, etc., and get to know challenges and risks you will encounter in business expansion. In this way, you can reasonably plan existing product marketing, and arrange new product development and sales.
How to use the market product grid?
You need to consider your budget and ability to take risks first, and then implement the following 4 strategies.
Market penetration
Market penetration is always the first consideration. You need to know whether the product you sell can get more market share in the existing market, i.e. grab customers from competitors. You can lower the price and do promotional activities like advertising, improving service quality, and other ways to attract more customers.
For example, many Chinese suppliers open stores on different B2B platforms such as Alibaba, Made in China, and Globalsources, to achieve market penetration. In this way, they can widely contact different customer groups and increase opportunities to expand the market.
Market development
You should consider whether existing products can explore some new markets, such as developing new audiences or geographic regions. For example, Tik Tok shop develops new markets by cooperating with Internet influencers from local countries, who can promote Tik Tok products via video or live streaming.
If you sell in a new region, it is vital to know the local compliance and mandatory certificates. This strategy also requires adjusting product positioning and localizing sales methods.
Product development
You can make some adjustments to existing products for more uniqueness and attraction, or develop brand-new ones, which are riskier and more expensive.
It usually takes the following steps to develop your products.
Create a design sketch for a simple representation of your idea. Or directly ask your supplier for help. Tell them your ideas and requirements, and let their designers help you draw the sketch.
Make product samples. Most samples need refinements many times, so it is important to find a supplier who can fully understand your needs and ideas. Otherwise, you may spend a lot of time and energy, but still not get satisfactory results.
After you confirm the final sample meets your standard, mass production can begin. In this process, you should control the manufacturing lead time and product quality to avoid extra loss.
Release your products to the market after receiving them. You can check the market feedback for further improvements.
Diversification
This strategy is used to bring a new product to a new market. It requires a combination of all the above strategies, and the risk is also the highest. It needs lots of investment in the early development stage, and if mold opening is required, the cost will be much higher.
Therefore, before implementing this strategy, you must do market research to check the trends. In this way, you can check the product value, if you have sufficient budgets, and if the overall plan is feasible. In this way, it is more possible to be successful and offset the huge costs with large penitential gains.
Jingsourcing helps you customize products and expand your market
If you want to get help with product development, Jingsourcing is a wise choice. As a leading sourcing company in China, we have helped 4000+ clients source and customize products, including a large number of Amazon and Kickstarter items. We have a lot of experience from 0 to product landing, and can customize most product categories. We also offer you flexible solutions to realize your complex customization, even if you order several hundred pieces.
When making samples, we will ensure that we fully understand your meaning and needs, and make samples according to your requirements. If you are not satisfied, you can continue to ask for modification until the PP sample is passed. In mass production, we will also supervise the whole process. If you have an urgent delivery time, we can also help you push the factory to speed up.
In addition, we can arrange product inspection and shipping to your door if you need.
