Market Growth Strategies

Basically there are four strategies available to expand market. Igor Ansoff has suggested a valuable framework, popularly known as Product/Market Expansion Grid to pursue market share growth. These four strategies are discussed here:

1. Market Penetration Strategy 
When there are opportunities for the current product to grow within the current or existing market. It aims to increase the market share among existing customers. Mainly, there are three approaches to increase market share of current product.

    

a. Persuade and encourage existing customers to consumer and purchase more.
b. Appeal and attract customers of competitors.
c. Encourage and influence non-users to use the product.

2. Market-Development Strategy 
Under this option, there are opportunities to develop market share by launching a current product in a new market. In general there are three ways to develop market share.

a. Increase reach to new markets or expand marketing/distribution channels.
b. Start to sell in new locations or new places.
c. Consider and recognize the new or potential users.

3. Product-Development Strategy 
This strategy aims to launch a new product or innovated product in the existing market, the growth approaches include:

a.  Include or expand new product features.
b. Enhance or develop different category of products or quality levels.
c. Use technology to improve product.

4. Diversification 
In diversification strategy, a new product is launched in a new market. This is a good option when a marketer seeks growth opportunities outside current business. The diversification strategies are of three types: 

a. Concentric Diversification: Develop new products with the use of existing technology and technological know-how for new customers

b. Conglomerate Diversification: Develop new products for new markets which have no any technological or commercial synergies with current products.
c. Horizontal Diversification: Develop new products that are technologically or commercially unrelated with current products.

Feel free to post your comments on this post.

                

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Grocery Stores with “LCBO Express”: Expanding Wine Retailing in Onratio

Charles Sousa, Finance Minister of Ontario, declared on April 1, 2014 to open LCBO locations in grocery stores.

It is planned to open initially 10 LCBO Express kiosks by the end of year 2014. These kiosks would sell Ontario craft beer and VQA (Vintners Quality Alliance) wines.

The hours of business of LCBO Express kiosks would remain same as LCBO. At the same time, there would be a separate checkout location for those buying LCBO products against grocery items. This will allow shoppers to buy groceries and wine together, making it easier and convenient for shoppers.

The LCBO has already issued a ‘Request for Proposals’ for up to seven LCBO Express kiosks. The condition is that, all retailers who are interested in must be capable to spare at least 2000 square feet of space within their stores.  Also, the proximity to rest of LCBO locations would be considered to open LCBO Express kiosks.

Please express your opinion by responding following questions. Also you can leave your comments below.

*This article originally appeared in "Canadian Grocer"

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Introduction to Marketing Planning

Hello there…! 

I have created a video lecture on ‘Introduction to Marketing Planning’. Please click below YouTube link to watch it.

Let me know your feedback on this video.  Also feel free to contact me for further discussion on it. 

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Define Key Concepts in Marketing

Needs, Wants and Demands

      Needs are basic requirements for everyone. Needs are basic things for survival. For example, food, clothing, shelter and air. Apart from above needs, people have strong needs for recreation, social interaction, and education.

      You need “food”, but you might want a Pizza Pizza’s Pizza. People want a specific item or branded item.   

     The ability and willingness to pay for a want makes it a demand. For example, many people want a BMW car, but few are able to pay for it.

Products and Brands

      All those goods, services, and offerings offered by a marketer to satisfy needs and wants of customers. For example, a computer, car repairing, and amusement park.

      A brand is simply a product or an offering from a well-known source. For example, Apple’s Iphone, Dell’s Laptop, and Kellog’s Cereal.

Value and Satisfaction

      A product’s success depends on how much satisfaction and value it can deliver. Always marketers’ goal is try to maximize value to the customers.

     The value is the ratio between perceived benefits (functional and emotional) and perceived cost (monetary and non-monetary).  For example, a customer might choose more expensive product if perceived benefits associated with product are greater.  

     Customer satisfaction is a measure of how products and services offered by a company meet or surpass customer expectation. Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals.

Marketing Environment

     The marketing environment is what surrounds and effects the organization’s marketing and business activities. The marketing environment can be dividing into 1) Macro-Environment and 2) Micro-Environment.

      The micro-environment involves factors that affect the company directly. These include target customers, suppliers, distributors and the company itself.

      
The macro-environment involves broader factors such as demographics, technology, politics and the state of the economy.

      Competition

     Competition is one of the key concepts in marketing. Competition includes any potential alternatives a buyer might consider while making a buying decision. It includes both similar products as well as substitutes. For example, as substitute for a cola drink, a consumer might consider buying a milk drink or a fruit juice.

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