Expanding from puzzles to napkins seems illogical, but Peacework did it to support a marketing campaign for a tomato-themed puzzle. The napkins sold surprisingly well, becoming a major new business arm. This shows that ignoring conventional product expansion advice can uncover unexpected opportunities.
Conventional wisdom to 'stay focused' is flawed. Breakthrough growth often comes from making many small, exploratory bets. YipitData's success wasn't from perfecting one thing, but from the one small, tangential bet each year that drove 90% of the growth while others failed.
A company with modest growth experimented with niche content for a small user segment, revealing a massive, underserved market. This led to a second, separate app that quickly surpassed the original product's revenue and drove hyper-growth, challenging the "focus on one thing" dogma.
Peacework noticed customers asking to buy the unique props featured in their maximalist puzzle photography. They leveraged this direct feedback to launch a curated collection of giftable items seen in their 'puzzle worlds,' creating a natural and successful product line extension.
Canva's success wasn't from targeting competitors but from identifying a real market gap through their first niche product (a yearbook tool). When users asked to use the tool for newsletters, it validated a larger, unsolved pain point that Canva then focused on exclusively.
Rejection from Adidas and Puma forced Dick's to partner with an unknown Nike, which became a huge growth driver. Similarly, being strong-armed into selling apparel revealed a highly profitable new category. This shows that external constraints and unwanted demands can accidentally steer a business toward its biggest opportunities.
To grow an established product, introduce new formats (e.g., Instagram Stories, Google AI Mode) as separate but integrated experiences. This allows you to tap into new user behaviors without disrupting the expectations and mental models users have for the core product, avoiding confusion and accelerating adoption.
When an experiment succeeds (e.g., positive framing after a loss), don't just iterate. Exploit the core psychological insight by applying it across adjacent product areas, turning one team's discovery into a company-wide growth strategy.
A key breakthrough for Au Bon Pain was realizing customers didn't just want bread; they wanted sandwiches. By seeing their core product (the baguette) as a platform for a larger "job to be done" (a convenient, quality lunch), they unlocked massive growth. This empathetic shift in perspective is a powerful tool for innovation.
While competitors followed the prevailing minimalist, 'beige-on-beige' aesthetic, Peacework Puzzles deliberately chose a maximalist and colorful brand identity. This contrarian approach made them stand out, resonated authentically with a specific audience, and helped build a loyal following.
If your product category becomes commoditized, redefine your business around your core expertise. A kombucha maker isn't just selling a drink; they are in the 'probiotics' or 'gut health' business. This strategic reframing can unlock higher-margin opportunities like consulting and R&D.