When is the Right Time for the Brand to Diversify its Portfolio?

For any brand, the diversification of its portfolio is not a matter of yes or no. A myriad set of factors affect the possibilities or impossibilities of diversifying the product portfolio, and brands must consider them to plan growth accordingly. 

At the end of the day, every brand is a ‘familiar face’ to a certain set of consumers, and when is it the right time to pull out an ace is a matter of time, relevance, and of course availability of the card in your pocket.

Is Diversification Important?

How the brand functions is more or less a reflection of the community, it thrives in. If we speak about the 21st century, the consumer is much more aware, cautious and sensitive towards its role as a consumer viz-a-viz its impact on the environment. If you plan to diversify your portfolio, the key is to question everything, even your decision to launch new products and answers to them can lead you to the path of awareness. You can, however, consider the following scenarios to begin your journey of discovering the answers you seek:-

Relevance - Is it Relevant for my Consumers? Or to Anyone?

The best recent example is brands launching sanitizers and face masks. Due to the steep rise in the demand for these items in recent times, many brands found the opportunity to set up a new product line quickly. The chances are the demand for these items will continue to be enormous in the future too, and hence, every brand has a chance to stand in the market with these products.

Funds - Do I Have Funds to Do so?

This is an important aspect that no one can overlook. Intention and ideas can come to life with the right funding. Funds are required to initiate a project and also to sustain it.

Time - Is it the Right Time to Do so?

Timings do play an important role in introducing a product to the customer. Only when there is a realization of the need there will be acceptance of the product or service. When the time is right, your product will find a place even in over-saturated markets. 

Raw materials – Do I Have Resources?

You need to be extremely aware of what you put in the products and if it is possible to source that same material for the next 20-50 years if that is your vision. Most consumers are too specific about using a product because it has a particular ingredient.

There can be more reasons beyond the ones stated above. Since there is no science behind how or when a brand must diversify, it is extremely subjective and personal. Having said that, logic must not be ruled out because every product you put out in the market impacts your finances and your relationship with the customers. After all, brands are built to serve the customers, and if your product is not relatable to the audience, what is the point of even thinking about it?