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Market penetration strategy case study
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The Ansoff Matrix was designed by Igor Ansoff. It is a growth based matrix with can increase market share and sales. The Ansoff Matrix classifies strategies whether they are new or existing markets or new or existing products. It includes 4 quadrants which are the Market penetration, Product development, Market development, and Diversification.
The Market Penetration Strategy is aiming to achieve more sales in the existing market. There is no modification of the product but the organisation is seeking to increase revenue by either repositioning its products or promoting. Increasing usage and frequency by existing customers and encourage non-users to buy. This strategy is used when there is potential growth and when increases in volume leads
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This strategy involves Product Innovation, Product Augmentation and Product Line Extension. These consist of replacing old products, creating new products, improving a product, or complement an existing product and extending the product line. When adopting this strategy you may consider the volume needed for profitability, market size, cannibalization and the resources to deliver and create the new product. Doing this will give you a distinctive competitive advantage in the market and also satisfies the customer. For Doyle’s, they could implement a Delicacy into the seafood platters such as the Puffer Fish. This dish is may attract new customers as the community hear about the delicacy, they may want to try it. You must have a licensed chef in order to produce this dish. Doing this will avoid cannibalization as it is a food you will not eat every time you visit Doyle but will increase customers and …show more content…
This strategy will potentially gain new markets, new customers and new segments. The Market Development Strategy is used when an organisation has excess capacity. It involves using different distribution outlets and changing the advertising. This also determines the firms’ ability to adapt to new markets to evaluate their success. This strategy consists of four forms, Exporting, Licensing, Joint Venture and Direct Investment. Doyle’s could use the Joint Venture strategy, teaming up with a nearby grocery store or supermarket so they can get discounts on resources they need to prepare the food at their restaurant. Doyle’s may gain access to new geographic markets and knowledge they offer. Doing this will also increase their advertising to a larger audience which enables Doyle’s to reach more customer with their
Nevertheless, it must “defend” its current market share if not increase it, by maintaining premium quality and develop innovative products. The marketing mix strategies will effectively achieve targeted revenue and profitability in the near future.
...ormance trend over time relative to the units sold net profit cost of goods sold gross profit, account balance, market share and advertising spending. The positioning map provided us information on the competitive positioning on price and product attributes. Those metrics were useful in the way that they allowed us to figure out how to position our product according to the image we needed to portray in the market.
Both Porter and Miles and Snow’s strategy typologies are based on the concept of strategic equifinality, or the ability for firms to be successful via differing managerial strategies (Hambrick, 2003, p. 116). Porter 's strategy is more generic while Miles and Snow’s is more specific in nature. Porter’s generic strategy typology is based on economic factors centering on the source of a firm’s competitive advantage and the scope of a firm’s target market (González-Benito & Suárez-González, 2010). Porter’s typology emphasizes a firm’s cost, product differentiation or non-differentiation and market focus. When utilizing Porter’s strategy typology, a firm must first decide to target its products toward the mass market versus a market niche or focus. Secondly, a firm will determine if it wishes to minimize costs or differentiate its products with differentiation meaning that firms will most likely forego lower costs (Parnell, 2014, p. 184). This can lead a firm to develop a myriad of strategies between these options. Strategies which may have or not have focus, may or not be differentiated, may or not be low cost or any combination of strategies. In contrast to Porter, Miles and Snow’s typology is more specific in nature.
Business strategy is the means by which firm’s plans to achieve its goals and objectives. It can also be termed as organization long-term planning. The strategy covers periods between 3-5 years and sometimes longer. Businesses use two major types of strategy, general or generic and competitive strategies. The overall strategy involves strategies of growth, globalization and retrenchment. The competitive advantage includes low pricing, product and customer differentiation. We will look at the business strategy used by Marks and Spenser (Cole, 1997). The company is a British multinational located at Westminster London and specializes in clothes and luxurious food products.
The strategy book by Max McKeown is an excellent book for managers or leaders in general to read and follow in order to create a unique strategy for their business. The strategy book includes examples of strategies that were previously constructed and followed by small, medium and large companies. The book gives readers the chance to know the strategies that were employed by different types and sizes of business and how successful they were. These real life cases are what make the book so interesting and informative. The book is divided into different parts that inform the readers about formulating and then following the appropriate strategy.
On the Ansoff matrix below is shown what growth strategies for new and existing products and markets can be used from the company.
So, for the future, she must implement his strategies to continue and improve his efficacy and efficiency. To propose achievable strategies, we will use Ansoff matrix. This tool allows to classify and explain the different growth strategies for a company. Ansoff 's Matrix is also known as the market options matrix (Lynch, 2009, p.313) and is designed to identify “the product and market options available to the organization, including the possibility of withdrawal and movement into unrelated markets”. It is represented diagrammatically as follows.
“The Ansoff Matrix (appendix C) shows four different growth strategies that result by combining existing or new products with existing or new markets: market penetration, market development, product development,and diversification” (Fadaei, 2014).
The adaptation of the major business strategy to all the markets where the company’s products are presented.
An evaluation of the restaurant’s strengths, weaknesses, opportunities and threats served as the foundation for this marketing plan. The plan focuses on the restaurants marketing strategy, suggesting ways in which it can build on new customer relationships, and development of new food products and targeted to specific customer groups.
This strategy is very much about the business which is carried out as usual. In this strategy the marketer is focusing on both the product and the market opportunity.
Studies and analyses regarding variations between companies performing higher or lower regarding their marketing practices has helped out to assure that a central textbook marketing strategy principle; which is to achieve success regarding that in the long term the products and services of a firm have to be well ‘positioned’ in the market. This paper aims to highlight the common formulations or ‘anatomies’ for strategies and the isolation of some of the most important inclusions that were thought to be really important in achieving success. Just to bring some “flesh on the bones”, this article examines the method through which theory is translated into practice.
Mr Price Group can implement the growth strategy to expand in the current market and gain a larger market share. This can be done by reallocating resources such as spreading out stores more to reach more customers instead of having many stores close together. This will ensure that more customers are able to reach a Mr Price store and purchase from them. They
Once the product is accepted the organisation would experience a high growth rate. For example, PAX Yogurt Company which originates on Mount St. Benedict, is a local company which developed seven different flavours of yogurt into the market, they are: almond, guava, passion fruit, pineapple, soursop, strawberry, natural (plain) and vanilla. The primary objective was to meet the customers’ needs with a good quality product at an affordable price in order to return high sales and profitability for the company. It is imperative at this stage, that particular attention should be placed on creating strategies for pricing, place or distribution and promotion so as to establish a market presence and create a suitable demand for the product. Pricing strategies include price skimming and price penetration. It is advisable at this stage to employ the price skimming strategy for example, pricing the product at the highest point possible. Prices can then be lowered when demand starts to
The main topic for this Extended Essay is to analyze the effectiveness of company’s market strategy. A marketing strategy can be defined as a process that helps a business to optimize the opportunities in order to complete business objectives, which mainly gain profits. It includes all basic and long-term field activities of marketing that deal with the analyzing of initial strategy, evaluation of the strategy, and making of a new strategy if the initial strategy is found to be ineffective or even might cause loss. (Homburg, Kuester and Krohmer 2009) To make sure the effectiveness of marketing strategy, its crucial to establish the right marketing mix which cover all the element needed in marketing a product. (Clark, et al. 2009)