Is 2021 the Year of Growth? Yes, When You Leverage Your Strengths
Last week while standing on-line for my COVID vaccination at CVS, I was surprised by the plethora of new products available due to the pandemic. Fourteen months ago we needed face masks and face guards. Who knew that months later the protection would also create the need for face lotion, Vitamin B, clarifiers for acne-prone teenagers and hypo-allergenic materials for sensitive skin?
While so many printers stepped up and started manufacturing protective devices this time last year, personal cosmetics brands uncovered an opportunity. By understanding their customers’ requirements, they develop and position products that lead to growth by leveraging their core business strengths.
Proceed cautiously.
Often vendors tell us about the new opportunities to enter different vertical markets. Buy their software, workflow, and even press and you’ll have the ability to increase revenue by selling to these new prospects.
Buyer beware. Entering any new market is time intensive, resource intensive and requires a laser sharp focus. Coming off of a year with continual uncertainty, it’s important to proceed cautiously.
“Opportunity is expanding, but the margin for error is shrinking.”
- Andy Paparozzi, chief economist for PRINTING United Alliance
When evaluating new markets, look for similarities with the market(s) that you currently serve. Consider your core strengths and the probability that you can expect to support the market with your expertise. Ask yourself:
Are you currently meeting your business goals?
Do your offerings fulfill the requirement(s) of the market?
Do you have the right resources to enter the market?
Do you have a sales and marketing strategy to position/promote your offering?
Will you need certification to support the market?
Will you have credibility in the market?
The Opportunity.
Along with the potential to grow your revenue, you can also impact your bottom line. The benefits of entering similar vertical markets allows you to:
Repurpose materials that you have developed, with minor messaging changes
Leverage existing resources
Expand your capabilities for current customers
High level business questions to ask your team include:
What value will the new market bring to your business?
Is your team passionate to support and sell into the market?
Are you prepared to develop a strategic plan for entering the market?
If you see value and your team is on board, start working on your plan to execute.
Regarding the protective face masks at CVS, I’m sure these companies are planning for a post pandemic world where we may need masks for flu season, Halloween, mascaraed parties, and whatever may be in store this year. Stay tuned.