Supermodel, CEO, author and Renegade Creative Tyra Banks has been making the rounds on the news shows to talk about her latest venture, ModelLand. ModelLand is a beauty attraction, I imagine it to be like DisneyLand for fashion and beauty enthusiasts, set to open in summer 2020.
Even though Tyra Banks is known for being a top model, creating the TV show that became a cultural phenomenon, America’s Next Top Model, being a producer, television show host and advocate for body inclusivity, entrepreneurs of every type can learn this business development strategy from what Tyra Banks is doing with ModelLand, her beauty-themed theme park.
Guests can visit ModelLand and get the supermodel treatment, complete with hair, makeup, styling and a high-fashion photo shoot. Anybody can live out their champagne riches and caviar dreams…
Even with the glitz and glamour of the ModelLand announcements, I don’t want my fellow entrepreneurs and small business owners to miss this very important business development strategy lesson: the value of product diversification.
Product diversification is the practice of expanding the original market for a product. This can be done by changing the packaging, the method of delivery, the name or even the price. After looking at the tickets for ModelLand, the product diversification strategy is pretty exciting.
There is ONE product for sale at ModelLand (at the time of this blog post): access to the park. Instead of trying to launch “all this things”, there is one item that consumers can buy, and they have options. Depending on the ticket cost, which ranges from $59 to $1500, guests get access to an expanding menu of services that will provide the supermodel experience. This one product is available to the budget-conscious consumer, the high-end shopper and those in between that desire this experience.
One product with multiple versions and multiple price points, that’s product diversification.
Small business owners can follow this same roadmap for building awareness, expanding audiences and increasing sales. Here’s an example from my own business:
- Social Media 365 Playbook: $27
- Social Media In-Person workshop: $100
- Socially Productive course: not currently available (being updated!!!!!)
- Social Media Content Creation + Publishing: starts at $650/month
One product (social media training) with multiple version and multiple price points, appealing to a variety of consumers depending on their need. Particularly in the online business arena, creating this type of “product ladder” is very commonly seen in the progression from ebooks, to digital courses to coaching programs.
It may seem like a lot to the average small business owner to do the work to diversify their products, bu the ROI is clear. Product diversification allows a business to:
- stabilize cash flow
- expand brand awareness
- minimize business losses
- penetrate more markets with less risk
As the business owner you may think you know EXACTLY who the person is that will buy your product, and you might be right and that person. Don’t make the mistake of neglecting other customers by not making your product accessible to them.
Product diversification can be expensive, but technology allows us to do amazing things today! Challenge yourself to think outside the box. Put yourself in a position to recover the money that you don’t know you’re leaving on the table.