...which is market penetration strategies, product development strategies, market development strategies and also diversification strategies. As for Mistine they can used the product development strategies and also diversification strategies. Product development strategies are we produced a new product for the current markets. It’s like we make some product improvements, product – line extensions or new products for the same market. Mistine is producing a beauty product line so by using these strategies they can produce a new product extension which is a natural cosmetics line. They can produce new cosmetics products with a 100% organic and no chemical in it. A natural cosmetic line can be successful if they produced the right thing like Body shop everyone knows that most of the products are 100% organic. This can attract the health conscious people to buy the products as the world is now moving into healthy lifestyle so they would also want a healthy and natural cosmetic product. This can attract customers to buy the products and also this can attract new customers to buy Mistine products. This strategy can helped Mistine in their product line extensions which are producing a natural cosmetics line. The next strategies are Mistine can used diversification strategies. This strategies is very costly and dangerous but if it successful Mistine can generate their profits through the new products for quite some time. This strategy is producing the new products for the new market. As we...
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...and Wellness Company delivering improved shareholder value by being a preferred corporate citizen, preferred employer, preferred supplier selling preferred products (Nestle, n.d.) 3.1. 5-year objectives 5-year objectives (2015-2019) (fulfilled SMART and linked with vision): + Objective 1: Increase market share to 30% in Vietnam by the end of 2019 + Objective 2: Improve the quality of products to satisfy Vietnamese customers’ needs + Objective 3: Keep the complaint rate from customers averagely < 4% 3.1. Stages for 5 years Objectives Stage for 5 years Stage 1 (2015-2017) Stage 2 (2018-2019) Objective Achieve market share Increase market share 1 20% from 20% to 30% Objective Improve the quality of products to satisfy 2 Vietnamese customers’ needs Objective Keep the complaint rate Keep the complaint rate 3 from customers < 7% from customers < 4% 3.1. Alternatives for Nestlé's strategies (archive 5 year objectives) Alternatives Option 1 Strategy Joint venture Option 2 Option 3 Market penetration Diversification + Market development + Build up new business 3.1. Key activities for each alternative Alternatives Option 1: Joint venture Option 2: Market penetration Key activities Find a partner that has good reputation, good infrastructure for joint venture + Open more representative and introduced stores + Conduct “Competitive pricing strategy” + Promote the advertising programs Option 3: + Expand the distribution to the central region, Diversification rural...
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...1.0 Barriers to entry Porter's five forces model is often used to access an industry's attractiveness. pg 59. The degree of the barriers to entry lead outcomes at variance. Following are the barriers to entry and also the crucial factors that new entrant not to be overlooked. The large economies of scale is the major barrier to entry for entrant. With the incumbents controlling the productions, quantity of cars that produced are overwhelmed; in results, low production costs. However, new entrant will be required to produce similar amount of cars to reduce the production costs. It might be difficult for the new entrant as the demand might be not as positive than incumbents. Following by the absolute cost advantage, in comparison to incumbents, new entrant could be losing at the beginning stage because the inexperienced factor could be lead to higher production costs. For new entrant that performs exceptionally brilliant, they would need to face expected retaliation as the incumbents will not be intimidated and will be follow up with forms of full force revenge to protect their positions in the automotive industry. Price war would occurs whereby the incumbents that have lower unit costs per car, able to slash the price to the minimum margin. Reality hits new entrant when they need to possess the higher capital requirements in order to compete or in the attempt of matching up with the incumbents. The consequence if new entrant failed to do so, will be facing strategic drift...
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...and Western Countries, moreover, they even entered in developing countries such as Tanzanian, Zambia, Mozambique and Angola All entered market has a steady growth of sales which is determined by market conditions and potential of business. In South Africa, is the place of origin of SABMiller, this country provide a steady proportion of sales and profits during the early stage of business, unfortunately, it spread of AIDS/HIV during Year of 2001 and caused SABMiller facing the threat of business, it show decline sales start from here. This is negative impact on disposable income of population which will be affected SABMiller’s business. As a conclusion, SABMiller is under threat in South Africa. In Africa, including Angola, Botswana, Mozambique, Tanzania, Uganda and Zambia, those business are show a significant growth of sales because of clear segmentation strategy and distributor policy, although there is high potential growth of business in these countries, but the political risk is the main issue will be affected the business. Fortunately, they are successful to operates across and get the protection from the domestic government. Besides, there was trade in soft currencies in Botswana, it will increase the risk on business under this condition. In Asia and Eastern Europe, both of these countries is underdeveloped in beer market, it can provide a major opportunity of SABMiller to growth their business. SABMiller merged with small breweries to enhance the scale...
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...Small | Attract more customers | Reach 10% of return on investment in first year | Medium | Increase profit | Reach 5 million sales by the end of the year | Large | Expand internationally | Increase market share by 15% by the end of the year | 3 Explain the difference between market orientated routes and product orientated routes in Ansoff’s matrix Market orientated routes includes market penetration and market development. Market penetration is when a company grows its sales without changing its product. The company may spend more in advertising or promotion. Market development is when a company enters new market with same product. For example, expanding geographically, demographically or introduce new use of the product. Product orientated routes includes product development and product diversification. Product development is a strategy that suggests firms to develop new or modified products to the same market. Product diversification occurs when a company offers new products to new market. In conclusion, the difference between these orientated routes is change in market or in product. Market orientated routes focuses on sales of same product in either existing or new market. Product orientated routes focuses on sales of new product in either existing or new market. 4 Consider the decision taken by Kellogg to opt for product development. Suggest a way in which it could have diversified instead. Justify your answer Kellogg as a food company could acquire other type...
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...Table of content: Introduction: I) Presentation of Caroll a) Caroll and Vivarte b) Historic of Caroll II) The company’s mix marketing: a) The product b) The place c) The price d) The promotion III) Chinese market audit - PESTEL analysis: 1) The political environment 2) The conomical environment 3) The social environment a) Chinese cultural specificities b) The chinese purchasing attitude 4) The legal environment IV) The SWOT matrix a) Strengths b) Opportunities c) Threats d) Weaknesses V) PORTER’s five Forces matrix: a) Threat of new entrants b) Power of supplier c) Power of buyer d) Treat of substitute e) Industry rivalry VI) The Boston Box VII) The Ansoff matrix: Conclusion: References Introduction: In order to build a marketing plan properly we need to introduce the subject which is the expansion of Caroll in the Chinese middle class market. First it’s important to get to know the market we want to enter; PESTEL analysis will give us an overview of the particularities and difficulties of the Chinese environment we will have to overcome. We will then highlight the strengths and weaknesses of the company and point out the opportunities and threats we’re to meet. To do so we will use different tools matrixes -The Boston box, Ansoff matrix - and analysis schemes such as the marketing mix 4 P’s, SWOT and Porter 5 forces. These elements will help us to define properly the marketing strategy that matches with the Chinese expectations...
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...diversification the best strategy to achieve profitable growth? (40 marks) Diversification, one of the four strategies in the Ansoff’s Matrix, is a corporate strategy to enter a new market or industry which the business is not currently in, whilst also creating a new product for that new market. Profitable growth is a term often used by CEOs when describing the firm’s strategic objective. Business growth can be achieved either by boosting the revenue of the business with greater product sales or service income, or by increasing the profitability of the operation by minimising costs. Diversification plays a great role in the growth of many large businesses, however, the extent of the growth is largely dependent on factors such as: the type of industry that the business is in or the risks involved into entering new markets. There are many ways in which to diversify a business, all which may be included in the strategy to achieve profitable growth. The most straightforward of these is to provide a natural extension of the goods or services that you already offer to customers. The best example of business that has undergone diversification is Samsung. Samsung is best known for its smartphones, tablets and televisions, however Samsung’s business activities and operations are spread wider than just those two important markets. The electronics giant also makes military hardware, apartments, ships and operates a Korean amusement park. The business currently had around 350,000 employees and in...
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...into the bike market using Ansoff’s matrix (12 marks) The Ansoff Matrix is a marketing plan that helps a business to decide market and product growth strategy; it looks at the degree of risk and potential for reward from the different strategic options. Using the Ansoff Matrix, the proposal to sell bikes in the existing shops is an example of Product Development, A benefit of this would be that it would help them reach there corporative objective which is Growth, in order to do this they are planning to start by converting 50 BnQs stores in the midlands, this will mean they can test out the bike with their existing market, as about 20% of bikes are brought from online and 38% are brought from their biggest competitors Halfords as shown in Appendix A, and only about 28% of that market are willing to definitely go back and buy it from the same outlet which mean there is about 72% of 16-35 year olds who are willing to shop from someone else. Using the Ansoff Matrix, the proposal to sell bikes in a new chain of high streets is an example of Diversification, A benefit of this would be that they will be able to spread the risk so if demand falls in one market the business will not suffer too much because it can still archive profits in its other market with its other products, this will mean they can spend £60millon on this project as the other market is slowly decreasing, but the main problem in this is Halfords plc who has 33% of the share in Britain’s Bike market tried to do the...
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...one of the segments of the Ansoff matrix; it is a type of strategic direction whereby a company decides to take a new product into a new market. There are two types of diversification; related and unrelated. Related diversification is the process of developing further than their original products and markets whilst keeping within the organisation’s strengths. Unrelated diversification however, allows the organisation to step out of its capabilities comfort zone to develop new products for a completely new market. When a company decides to diversify its portfolios in a related field, it will either embark on a vertical or horizontal integration. Quite often an organisation will decide to take over a stage within the value network that is adjacent to their own. They thereby take over the responsibilities that input into the business. This is called backward integration. Others decide to take control of the next stage of their supply chain; this is referred to as forward integration. Furthermore, other organisations may decide to either develop activities that are complimentary to their existing products, or buy out competitors. Which is known as horizontal integration. This often creates economies of both scale and scope. Since a related diversification allows a corporation to use its competencies in developing a new product in a new market, it will be able to share many of it’s common resources, creating the advantage of economies of scope. These resources not only include...
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...products and markets (customers). By considering ways to grow via existing products and new products, and in existing markets and new markets, there are four possible product-market combinations. Ansoff's matrix is shown below: Ansoff Matrix | |Existing Products |New Products | |Existing | | | |Markets | | | | |Market Penetration | Product Development | |New | | | |Markets | | | | | Market Development |Diversification | Ansoff's matrix provides four different growth strategies: • Market Penetration - the firm seeks to achieve growth with existing products in their current market segments, aiming to increase its market share. • Market Development - the firm seeks growth by targeting its existing products to new market segments. • Product Development - the firms develops new products targeted to its existing market segments. • Diversification - the firm grows by diversifying into new businesses by developing new products for new markets. Selecting...
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...Using ANSOFF’s Matrics business model the four possible strategies which organisations may adopt are- 1- Market penetration occurs when the company or organisation tries to sell more of its current or existing products to its existing markets through greater promotional efforts or vigorously advertisings. In the end the organisation will be benefiting from a increase in annual turnover and sales. This is the cheapest strategies of all Ansoff’s business strategic models. It also encourages companies to stay on existing market. There were a lot of competitors in this market but this strategy help JD Weatherspoon to reduce competition from rivalry. 2- Market development this happens when the company or organisation tries to sell its existing products in the new market or segment, for example if a Scottish organisation tries to enter into regional or global market to sell their existing products. This also helps the organisation to increase its base by attracting new Customers and increase its market share and portfolio. Favourable economic conditions and social culture changes force JD to adopt this strategy. 3- Product development this type of strategy occurs when the organisation starts to offer new products to the existing customer, so by bringing new products to the market, the organisation will be also attracting new customers. This also helps to keep its customers attracted to the organisation and its products e.g. Xbox 360 which has introduced Xbox 360...
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...relates to Berber Food case study and identify the relevant market possibilities and opportunities. I also would like to add to your view on Diversification, apart from Mr. Kelly previous experience was with several multinational companies than sold a range of products; another good point to consider is why the company enters new markets with new products?When this happens there must be a certain level of confidence (capital, resources, customer needs analysis etc.) and proper risk assessments with viable solutions in place in order to successfully penetrate new markets. Hi Renne , Great post your definition on growth strategy is very detailed. While I wish to agree with your strategies of the fruit cups, water , milk etc. in the market region since we both share the same view that the marketing strategies to expand on the product development strategies In the Caribbean regions is a good source of market penetration which would also help in the sales and promotion pricing strategies for Berger line products. While I agreed with some of your growth strategies, like the introduction of fruit cups, water and milk in your product development strategy and expanding the market in regions, I think our responses varied. The market penetration strategy you suggested of extending sales to a new age group of toddlers is really a market development strategy as it is the existing product, but for a new market. Good market penetration strategies may include increased advertising, use of...
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...Product and market options: Ansoff product-market matrix Case scenarios 2014 Authors: Delyth Samuel and Samantha Winter (updated by Anne Gleeson) Published by Deakin University on behalf of CPA Australia Ltd, ABN 64 008 392 452 © CPA Australia Ltd 2014 The contents are for general information only. They are not intended as professional advice, for that you should consult a suitable qualified professional. CPA Australia Ltd expressly disclaims all liability for any loss or damage arising from reliance upon any information in these papers. Contents Questions Ansoff product-market matrix Tasks Task 1: Australian Leisure Resorts Task 2: Life’s Little Luxuries Task 3: You Name It! Equipment Hirers 5 6 6 7 8 9 Solutions Task 1: Australian Leisure Resorts Task 2: Life’s Little Luxuries Task 3: You Name It! Equipment Hirers 10 11 13 15 Questions PRODUCT AND MARKET OPTIONS: ANSOFF PRODUCT–MARKET MATRIX Ansoff product-market matrix A model for assisting in the identification and assessment of strategic options is the Ansoff product-market matrix. The Ansoff product-market matrix looks at options from an organisation’s perspective based on two dimensions: product focused and market focused. The term product may refer to a service rather than a physical item, as well as physical products. The market dimension considers geographic markets, as well as customer markets and customer groups. The four quadrants of the Ansoff product-market matrix are: Market penetration...
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...price to hospitals for the heater/blower unit and the plastic blanket. The price set for the Bair Hugger Patient Warming System would influence the rate at which prospective buyers would purchase the system since the market was price-sensitive to alternative methods. Also, price and volume together would influence the cash flow position of the company. Before the company prices this system, several considerations are required in terms of organizational objectives, demand for the product, customer value perception and buyer price sensitivity, the price of competitive offering, and direct variable costs. The estimate of total potential market for heater/blower unit is 2737 units and 2737000 units for blankets. The direct cost of the heater/blower unit would be $380 and $0.85 per blanket. The initial investment, $500,000, for this system would cover the fixed cost of the company during first year of operation. Based on this information and other considerations, I will discuss the company’s pricing strategy for both products. Company Background Dr. Scott Augustine, an anesthesiologist , founded Augustine Medical, Inc. in Minnesota in July 1987. In early 1988, Augustine developed the Bair Hugger Patient Warming System to warm post- surgical patients. The targeted market for this system is the hospital operating rooms and postoperative recovery rooms. The system is designed to treat hypothermia which is a condition found in 60-80 percent of all postop patients where the body temperature...
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...approach between our group and other teams 1. Development of contingency plans - Symptoms to look out for - Alternative strategies 2. Analysis of market using macro and micro environment - Unlike our group, who analyze market trends, and competitive reviews - Different way of market analysis What else could be included in our marketing plan? 1. Personal selling to Business food partners - Was not explicitly mentioned in our marketing plan - More interactive, build customer relationship as tailored to individual customers 2. Identification of our competitive positing (market challenger) - Market leader include FoodPanda - Trying to outpace them with our product differentiation 3. Corporate social responsibility - to create brand awareness - Give back to the society Things that we could have done better! 1. Other ways of conducting primary data research (mail, telephone, personnel, etc..) - Pros & cons - Secondary data sometime does not really tell you what you really want to know 2. Public relation should carried out at the start - Immediate brand awareness Difficulties our team have faced 1. Market skimming vs Market penetration - Decision to use market skimming pricing to raise the quality of our service, compared to giving affordable pricing to reach out to a larger market - In the end, uses market penetration, and employ price adjustment strategies like promotional pricing to reach out to larger crowd 2. Using print media vs using radio ads - Print media...
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