The Importance of Branching Out

Macksons Group of Companies is no stranger to branching out. Over the years, our family has grown across the industry mix, from home scaping and hospitality to artisan biscuits. As our main focus is to help build the Sri Lankan economy and workforce, our ever-expanding business scope is the pillar of our success.

Look at what’s within your existing range of possibilities

Today, let’s look at why branching out is important, especially if you’re a small business enterprise looking to broaden your horizon and not ‘lay all your eggs in one basket’ as the saying goes.

If Covid-19 and the ongoing global recession has taught us anything, it’s that any business can be vulnerable depending on supply and demand. For example, if you’re in the hospitality and tourism business, you’re probably going through a rough time. The war in Ukraine, combined with the global recession, is taking a toll on business. But what if you’re able to immediately switch your business model and turn your vehicle fleet, which is usually used for whipping around tourists, into a local rent a car model?

During the Covid-19 pandemic, Multilac, Sri Lanka’s leading paint provider, started the production of sanitizers under the product name ‘Multilac Care’; as the paint demand declined, the need for hand sanitizers sky rocketed. This strategy kept all Macksons operations afloat, in terms of maintaining the highest safety standards while at work and consumer satisfaction with a quality local sanitizer product at their nearest retailers' shelves.

Leverage your brand

Expanding into a new sector doesn't mean you have to look too far away from your main brand. Look at how you can upsell a sub product from your main brand and add value to both brands simultaneously.

Mandarina Hotels, a city hotel known for its modern design and delicious buffets, holds another sub brand within: Mandarina Biscuits, a product loved by many for its seasonal boxing and excellent gifting capabilities. Mandarina biscuits can be purchased online and are available at the Mandarina hotels. Since Mandarina biscuits is a luxury product carrying the Mandarina brand name, this creates top of the mind marketing for and adds value to both brands in the consumer’s mindset.

Test Markets

New Markets are volatile and market leaders are always at risk. However, if you’re not a gambler, why not be a market follower? After assessing what’s within your scope and financial capabilities, adopt an existing service or product model with your own twist and branding. This model can also be risky if it is too crowded.

Branching out can be a great deal of work, but rewarding if done correctly and successfully. Remember to always seek advice and insights from industry specialists and financial aids.?