Small company that produces garden furniture. These past few days a new German agent came to visit us. His impressions of the company are precious because he knows the market and it’s the first time he’s seen us. His observations are made with competence and objectivity. He likes the product, when we thought we were lacking in this regard. The prices are fine; this is not the problem which would explain why we have never been able to get into this vast market. In his opinion, the element on which to improve is to remain focused on outdoor furniture. Product Specialization ! In other words: focus the business on just one area, you’re not a large company that can afford to cover several market areas and specializations.
Medium-sized company that produces eyewear. Since 1969 the company has been specialized in the production of glasses in metal but over the past few years has added glasses in acetate since the bulk of the market has moved to this type of material. The company is a strong sub-supplier but its own brand name is struggling to carve out a niche for itself – especially abroad. It wonders why? And so, by analyzing its competitors along with some opinions collected in the market, it turns out that here, too, the specialization of the product pays dividends. There are those who produce glasses only made of titanium (light and resistant), those who invented glasses without screws (with a special type of hinge) and they are successful !
The error made by both of the companies I have highlighted is to give in to the temptation to widen their range of products in the mistaken belief that the market will become bigger. That the more products I have the more I can satisfy everyone! The result, however, is that I will have just increased my number of competitors while losing my identity.
But be careful: investments on the product alone are not enough, it’s necessary to also communicate your identity well. Product specialization and communication are a combination that must be coherent and which must travel parallel to each other for a company to be able to cut out a place in the market for its product and for the brand that accompanies it.
I have already talked about these themes in Product Customization