THE easyGroup intends to do it later this year and Avon are apparently considering it. Diversification is a tried and tested way of developing a strong business and the most successful Young Enterprise companies are the ones that understand how to branch outwards in order to grow upwards.
Peter Guy, operations director for Young Enterprise, says: “With the sales peak of Christmas so closely followed by Valentine’s Day, Young Enterprise companies who have targeted seasonal markets have had to move swiftly to adapt their product.
“However, it is essential that they keep the momentum going into the latter half of the year by looking for new ways to stretch into new markets.”
This year’s Young Enterprise companies have already developed what they feel is a strong brand in a specific market. They must now see whether that brand can travel well into other areas.
For inspiration, students could look to the example of Stelios Haji-Ioannou, easyGroup chairman, whose brand began with easyJet but now includes businesses such as easyInternetCafé, easyCar, easyValue and, most recently, easyMoney. He hopes to expand easyMoney into motor insurance later this year.
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The key to expansion is to make sure that the initial concept is flexible and can apply to many different product areas. Last year the directors of the Young Enterprise company Pink Zebra from Ockbrook School, Derby, based their company’s products around a brand image featuring bright pink zebra stripes. This allowed for the development of a varied product range, including candle holders, jewellery and photo frames, each of which was instantly recognisable as part of the Pink Zebra brand.
Blink!, from Westfield School, started with stationery and photo frames but based the products around a theme.
Emma Black, managing director of the company, says: “Early on in the year the team of directors agreed on a set theme rather than a set range of products.
“This allowed for Blink! to later broaden its reach into different markets and include cards and other items within the product range as the suppliers arose.”