Diversify without Cannibalize
How to Not Throwing your Old Product to Trash While Releasing a New One

Renting business in Indonesia is hard. It’s not because the market is not there. The market is standing there so huge, but also so not ready with commitment of subscribing monthly just to look nicer at work. As a company that rely much on subscription model, Style Theory really want to push this model into the market. We want to introduce a new way to get dressed. But what if the market is not ready?
The answer is on the diversification.
diversification | dʌɪvəːsɪfɪˈkeɪʃ(ə)n |
noun [mass noun]
* the action of making or becoming more diverse or varied.
* the process of a company enlarging or varying its range of products or field of operation.
This October, Style Theory released its new product, On Demand Rental. Unlike the subscription model that lets user to subscribe monthly and rent unlimited times, On Demand Plan lets women to rent per item specifically for an occasion. On Demand Plan gives the flexibility to rent by cause, meaning that you only rent when there’s special occasion that obligate you to dress up. As cool as it might sound, this model sounds like an opposite model of the subscription model. So, how to not to make them fight for each other?
* Give a Clear Use Case
A clear use case will not only benefit to not to cannibalize your product to each other. It also helps user to decide which product that they want based on their specific need. In Style Theory, we want to attract people that hesitate to commit on monthly subscription to taste a bit of the subscription model through renting per item. When they’re ready to commit, they will. Who doesn’t want such authority?
* Give Benefit of One to Each Other
Pair them like best friends. When you have two products that standing opposite, try to give each other benefits that more of pairing them rather than making them fight for each other. In Style Theory, subscriber of Unlimited Plan will always get a discount when they rent from On Demand Plan. And sure, it’s an easy way to attract customer, right?
* Build Equal Relationship In Between Product
Whether the new product is better or worse than the older one, try to build an equal relationship between these two. By providing a clear use case and giving the benefit of one to each other, you establish an equal relationship between your products; meaning no product is higher or lower than each other. The only thing between them is just a different use case.
The use case of Style Theory might not be applicable to all business, but we believe that we can serve better with more variety of products. Hopefully, more women will feel that we they have full authority to decide which one they want; Unlimited Plan or On Demand Plan. And sure, all of them are better way to get dressed anyway.
Ready to subscribe? Try our Unlimited Plan. And for those who are not ready to commit, you can try our On Demand Plan.
