Assessing How to Go About a Brand Expansion and How Far to Take the Expansion as a Startup

Many startups will rise to prominence riding one very good idea or product that’s filled a niche and found a strong customer base. However, a time will come when, to continue to grow, a startup will need to start expanding and diversifying the offering.

It’s the standard run of progress, but startups can’t simply pick a new range and expand into. There are many challenges to consider, but once they’ve been locked down, others have proven that the reach of expansion can be almost limitless. Here are some factors to weigh into a startup’s expansion assessments.

Almost Limitless Expansion Range, but Timing is Key

You can look anywhere to see brands actively expanding into new areas. In some instances, the expansions seem quite out there. Take the emerging scene of slingo, for example. It’s relatively new in the online gaming space, but from its core product, it’s expanded into many different themes, including Slingo Racing.

The core product was the merging of online bingo play with a slot gaming element. From there, new themes were explored, and new features were infused. Horse racing seems rather detached from both bingo and slots, and yet, the theme works well in slingo because the product draws from the sport in a natural way to bolster the gameplay.

In this way, the potential expansion range is shown as being almost limitless. However, what’s important is that the core product is very familiar. It’s still slingo at its core, even if the formula has been adapted. Looking at the list of the best products from Cadbury by Love Food, you can see a huge expansion within the core category.

Challenges to Consider Before Expanding

There are three main approaches to an expansion that a startup should weigh up before going further. Line extensions are generally quite low-risk. The product is similar, but tweaked. An example of this given by Harvard Business is Oreo coming out with Oreo Thins. It’s the same core product, but a bit different.

A category expansion is riskier. If you’ve created a brand based solely on a distinct product, it can be very difficult to convince your customer base to follow you into a new category. Plus, you’ll need to put in the groundwork to win over the new audience. That leads to audience expansions, such as when Dove launched Men+Care.

Before embarking on any kind of extension or expansion, because of the potential risks, it’s important to do a lot of research. There isn’t any harm or hindrance to reaching out to consumers to gauge interest. Surveys through accessible platforms or emails are a sound approach to lay the foundations of your plans.

Of course, this can then inform parts of your SWOT analysis. If it’s your startup’s first leap into a new area, unless you’re seen as a particularly bold brand, it’s probably best to test the expansion waters more generally with a lower-risk line expansion. See how that goes and build from there.

Not all startups can nail a big expansion right off the bat. Already, having taken on a niche and carved out a space, a startup is exceeding expectations. However, remaining stagnant is rarely an option. To fill the gap and continue to grow, a timely and well-informed line expansion could be the best way to go.