Brand Expansion/New Product Category Research

One of the thorniest problems companies face is where to go next.  What product categories do they have license to enter?  At first blush it would seem that any company can go into any new product category they want.  And to a degree that’s true if they have a truly outstanding new product to take them there.  Realistically, however, most companies find success by following a logical path and expanding from one related category to another.  The challenge for many comes in identifying related paths.  Suppose you sell candles.  What is the logical next step?  Is it other products that give light and set atmosphere or is it other products with scents?  Which are you better known for?  Can you do both?  Are the opportunities the same size? 

Research can help you to identify what you are known for now and it can be used to identify product categories that you can easily move into next.  Usually this is done by taking consumers through your brand and products and then taking them through a list of potential product categories that you are considering.  Studies like these often offer maps to your future.  Think of each new product category as a stepping stone to others.  Follow the right path and you’ll enjoy logical expansion.  Jump to far and you might fall in.