Competition
My strategy will have to be carefully planned to work around my competitors ideas. At the moment the biggest rivals of Coca Cola are Pepsi. You will find that in competition, Coca Cola and Pepsi are dedicated to increasing they’re market share, at the moment, Coca Cola has the highest market share in the soft drinks industry in the UK with 15.2%, and Pepsi second highest with 13.8%. The competition is not hard to notice as nearly all they’re drinks have similar flavours, e.g. Coke Vanilla, and now Pepsi have released a new drink by the name of Pepsi Vanilla, this shows that big brand names like Pepsi will take the release of a new drink by Coca Cola very seriously, and are very likely to release a new drink to compete with Coca Cola, or introduce a better strategy. At the moment, Pepsi do not have an orange flavoured drink in the market, but there are still competitors like tango, who do many fruit flavoured drinks, including orange. There are other existing rivals such as Sunkist who specialise in orange flavoured soft drinks. These companies will definitely take this new strategy from Coca Cola very seriously, and it is very likely that these companies will come out with new strategies to drive the new drink out of the market. Other than that, there are drinks already existing within Coca Cola which could also be a means of competition for my marketing campaign; Fanta is a very popular Orange flavoured drink, and many people prefer it over other similar drinks in the market, this is also proven in my Primary Research. Other than that, there are many other drinks existing that are controlled by Coca Cola, a lot of these are fruit drinks such as ‘Five Alive’ and ‘Fruitopia’, these products can also be considered competition for my marketing campaign.
Another competitor is an Arabic company from the East, well known as Qibla Cola, they see Coca Cola as their main rivals, and it is very likely that they introduce a new drink to compete with Coca Cola Crush. Research shows that they have already made fruit based drinks, like Qibla Cola Mango, a mango flavoured drink; although this is not in the same market, it might be a bit of a competition.
Consumers
According to an article by BBC, Fizzy drinks companies are to face a decline in sales. Apparently market saturation is the cause of the problem and that sales have reached their peak. Consumers are looking for alternative drinks such as bottled mineral water, and fruit drinks. This could be a benefit to my product, and a downfall; Coca Cola Crush is a fizzy drink, and if sales of fizzy drinks are going down, then that means that Coca Cola Crush might face some problems, but, it is also a fruit drink, and consumers are turning to fruit drinks as an alternative. Another problem is the Coca Cola drinks in India; there has been a lot of controversial news over the amount of chemicals used in Coca Cola in India, at one point Coca Cola was facing a ban from the country. Another issue that has risen is Coca Cola’s bottled water that was just released in the UK by the name of ‘Dasani,’ it is said that the water is no different from tap water, and contains a high level of cancer causing chemicals; these kinds of problems set a reputation for the company, and can be effective on the Products themselves, and therefore could cause problems for my drink.
Research also shows that in local shops and stores, competitors sell their 350ml cans for around 32p. This can help to give a better decision when putting up the price. This kind of research is called Competitive Pricing, where research is done on competitors pricing, and then a decision is taken according to that price.
Place of business
Coca Cola has strong worldwide distribution ties; this should make it less of a problem for distribution. There are very few Coca Cola shops that specialise in their beverages; instead they mostly use intermediaries, retailers, like local shops and Supermarkets. They would usually give a recommended price to the retailers or they would use branded pricing.
The Marketing Strategy
Marketing Mix
The marketing strategy will be a long term plan, lasting for more than 5 years, this is because the product is new, it needs to be planned out in detailed ways, if this was an existing product, then it would’ve been a medium term plan, which lasts for 5 years, and is usually used at a maturity stage in the product life cycle.
The principles of the marketing mix are basically tools to help businesses meet their marketing objectives. The marketing mix consists of four basic variables which can be considered as the main and most important tools used by businesses, known as the four P’s:
The marketing mix does have some drawbacks. It’s very rigid and restricts strategies to only four factors, and does not consider more of the ethical stature that exists. It should have the ability to consider such things as, employment, whether the launch of the new product will require employing more people, or just raise the employment rate in a certain area. It should also consider more of the cultural factors, e.g. checking if the product is accidentally offending a culture, which could attract negative public relations.
Sometimes marketing mix is just referred to as the four P’s because of the extent to which the four P’s are used by businesses.
We will look at each of these variables in more detail.
Product Strategies:
When a product is brought into the market, a number of things have to be considered. This requires the business to answer questions related to the product, which in time will help meet the marketing strategies objectives. My questionnaire also shows that consumers look at both taste and packaging when buying, so I would have to consider the quality and the packaging of the product.
- Who is the product aimed at?
After the analysis of my results from my questionnaire, you can see that mostly youngsters and teenagers took part in the questionnaire. If you look at the analysis of question number 1 (Pg 3) you can see that mostly 14-25 year olds took part in the questionnaire, so I could target that age group. Even on question number 12 (Pg 9) most of the people agree that the new drink will be an encouragement to children for a healthier diet. But, also considering the fact that the new drink is healthy and rich in Vitamin C, a lot of older people might consider it as well, as the new drink is very good for bones and joints, which could mean improvements for people who suffer from arthritis.
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How will the product benefit the consumer?
The product will be rich in Vitamin C, which is good for the skin, the bones and joints. It could be very useful for people who suffer from arthritis. Vitamin C is also needed to make antibodies, which fight off diseases. All in all, the Coca Cola Crush is a healthy form of drinking for everyone, from children to adults.
- What advantage do you have over your competitors when it comes to differentiating your product?
The product in concern here is better than the competitors because it provides healthier ingredients. The orange flavour derived will not be artificial; instead, real oranges will be used to fulfil the taste and health.
The product also coincides with a well established company, so it shouldn’t be that hard to introduce it to the public.
It is an opportunity as well because according to question 6 of my questionnaire, many people think that normal Coke is not very healthy, so this could be a benefit for my product as it is healthy.
Product Design:
The design of the product would include the design of the bottle/can, the material used, its shape, the logo and the slogan. These are important to attract customers, the more differing your product looks, the higher the chances of it being bought, so the design could have an affect on the eventual outcome of the sales. ‘The great taste of Health,’ I am considering this slogan for my product.
Product Quality:
Coca Cola is known for its quality, like all Coca Cola products, the bottles will be made out of Durable and recycled plastic, cans will be made out of durable and recyclable tin, which will be crushable to enable effective recycling, this can be another effective fact that can help in promoting my product, the material is all recycled. The drink will be vacuumed to keep it fresh, and to keep it carbonated. The drink will be made out of natural oranges, with no artificial flavouring; each product made will go through a consistent quality control system, which will check the drink for the ingredients, check the packaging for any damages and any other concerning flaws.
Product Features:
A product feature that I will ass is Coca Cola Crush Diet, this will be good for people who are diabetic, because it reduces the intake of sugar from the drink. I won’t be using a discriminatory pricing policy for this because looking at the competitive pricing, in the diet range, major beverage companies are charging the same as the original drink, and even Coca Cola have the same policy. If I were to increase the price, then customers will prefer more of my competitor’s diet beverages than my Diet drink. Another product feature will be the amount of the drink sold, the bigger the bottle you purchase, the higher the amount you’re buying, for this, a discriminatory pricing policy will be used, as it concerns the direct profits. To make a bigger bottle will cost more, and therefore we will have to charge more, the cheapest will be the canned drink of 350ml, and the highest will be the 2litre bottle at around
1.29p.
Branding:
This is one of the most important decisions a marketing manager can make, brands have the power to sell the product, technically, and it is the brand that the customers buy. It is what holds the reputation of the company, and lets the customer know of its reliability and quality. The brand differentiates your product from everyone else’s. I am using the brand of Coca Cola, it is well known, has a high rate of profitability, and can be identified as Cash Cows, meaning that they produce a lot of money and need less investment to hold the market share. I have to be aware of companies using a ‘copycat’ strategy, where the company would make a similar product, or have a similar design, to make it look like the genuine product, and psychologically trick the customer into buying it.
Pricing Strategies:
This is considered as one of the most important aspect of the marketing mix, this aspect results in the turnover for a company/organisation, it is the one aspect that the remaining three P’s of the marketing mix rely upon heavily, it costs to produce things, it costs to distribute things and it costs to promote. It has to reflect a lot upon supply and demand, if the pricing cannot keep up, then it could mean a loss in the initial turnover. When considering pricing, the following things should be kept in mind:
- Costs (Fixed & Variable)
- Strategies for Positioning the Product
- Competition
- Target Market and the reluctance to pay.
- Objectives
There are many pricing strategies that organisations can choose from, they are mostly set upon the organisations objectives, the following is a description if different pricing strategies, and which strategy is most suitable for my marketing campaign in accordance with my objectives.
Penetration Pricing:
This is where an organisation sets a low price to try to penetrate a market with a new product, eventually when the product becomes well known, the price would increase. This strategy would not be suitable for me; it would be suitable for more technical items like electronics. As the product I’m selling is a beverage, it would be sold at a low price anyway; any lower would not be affordable and may cost the company with declines in profits.
Skimming Pricing:
When an organisation uses this strategy, it usually starts of with a high price; gradually the price would be lowered to make it available for the wider market. This way the organisation would be skimming the profits from the market, thus giving this strategy the name Skimming Pricing. This wouldn’t be much suitable for my product either as it is a new product in the market, and the market is already well known, if the market was new, then it wouldn’t have been much of a problem as their would not have been as many competitors, but this market contains many customers, and if I set a high price, then the well known brands can see this as an opportunity and use it against my product by reducing their prices, thus driving my product out of the market.
Competition Pricing:
This is a price set in comparison with your competitors. This was already done as part of my Secondary Research; it does seem rather suitable for my product as it gives a better insight into similar existing products and the prices that they charge.
Product Line Pricing:
This strategy sets the price in accordance with the amount of benefits that the product provides. The greater the benefits, the higher the price, the lower the benefits the lower the price, this type of price discrimination is very helpful in terms of the organisations turnover and profits. This type of strategy would be useless to my product as I am not adding any extra benefits to the drink.
Bundle Pricing:
This is where an organisation bundles a group of products, and sells them at a reduced price. This could be useful as I do plan to sell multipack cans and bottles, so in a bundle, I could charge a less price, this would attract quite a few customers.
Psychological Pricing:
This is where the organisation sets its price in a psychological way to in a way trick a customer into thinking that it is a cheap price, when their might be not much of a difference e.g. a seller might charge 99p instead of 1.00 pound, the figures don’t change much in terms of value, but psychologically, a consumer will be attracted more to the 99p product rather than the 1.00 pound product, only because of the visual change of the product. That would be a good idea for my product, and seeing as many of my competitors seem to be using the same strategy, it might be very useful, so at the moment I am charging 32p per can, even though I can charge 30p per can, in a 750ml bottle, I would be charging 72p, when I could charge 70p.
Premium Pricing:
This pricing strategy is adopted by organisations that sell the exclusiveness of their product, e.g. a First Class Airline ticket would be very expensive compared to an Economy Class ticket. This wouldn’t be of much use to my campaign as my target audience is pretty much all age groups, and if I use this kind of pricing strategy and increase the price, then it wouldn’t be fair to a lot of customers, and compared to competitors, I would have a very low market share.
Optional Pricing:
This is used by organisations who sell optional extras with their products, e.g. a computer would cost more if you put on extra memory into it. My product will not be concerned with this strategy because it does not give any optional extras.
Promotional Strategies:
In order for the Product to be successful, its benefits need to be conversed to the target market, there are also many costs involved which can be very high. Again, in the Promotional Mix there are many strategies that an organisation may take up:
Advertising:
Advertising is a paid form of communication of a product through a mass form of media, such as TV, Newspapers, and Magazines, I would have to decide upon whom to aim my product as, according to my questionnaire, it was mostly young people who took part in it, but I feel that people from all age groups can benefit from this drink because of its health factors. The questionnaire also shows that people here most about the questionnaire through television and the internet, so I would consider advertising through these ways of communication. This type of promotional method will definitely be considered when introducing my product. It would help the product gain influence in the market, and will definitely attract customers.
Public Relations:
This involves the development of positive relations between the public and the organisation; it involves gaining favourability of the public. This strategy is not only about having good relations with the public, but also to efficiently handle negative attention from the public. E.g. recently it was thought that Coca Cola has too much concentration of chemicals, this attracted a lot of negative attention towards the company, and Coca Cola was facing an initial ban, but with the handling of the Public Relations strategy proved successful for the Coca Cola Company, they managed to prove the claims wrong and publicised it through the media. This wouldn’t be useful in a rapid, but the strategy may need to be considered if negative attention is imminent to the product.
Sales Promotion:
This is used to increase sales for a short period; it may include special offers like BOGOF (Buy One Get One Free), where if the consumer buys one product, they can get another one for free, or money off coupons. This would be good to penetrate the market, I could start off with special offers, that way more people will purchase the drink, and the drink will eventually be well known.
Personal Selling:
This involves selling a product one-to-one, e.g. a door to door Salesman that sells security systems is considered as personal selling. This wouldn’t be such a good idea as the distribution could take a long time this way.
Direct Mail:
This involves sending samples of the product to a named person with an organisation, recently there has been massive growth in this strategy, and organisation spend a mass amount of money to get databases containing the names and addresses of impending customers. This strategy is useful because you can send a product to a named person who falls into the category of your target audience, this is useful because you know that they are potential customers, and initially they may purchase something from you after experiencing a sample. The advertising is personalised, therefore the response is great, which initially means that sales increase. This could prove to be efficient in finding out where your potential distribution ties are. My product would be sampled mostly by other organisations who would be potential sellers of the drink.
Message and Media Strategy:
A successful campaign should include a well thought out message that gives your target audience a quick overview of what your product is all about. This can include the use of branding, a logo, or a slogan, these type of things strengthen the benefits that the product is providing and helps the positioning strategy of the product. Here are a few examples of effective message strategies:
Peugeot: ‘The drive of your life’
Currys: ‘Always cutting prices’
Similarly, Coca Cola already has a few of its own Slogans:
‘Always Coca Cola’
‘Coca Cola, Enjoy’
But these slogans for Coca Cola are for the whole company itself, I have comprised a Slogan for the product Coca Cola Crush itself:
Coca Cola Crush = ‘The great taste of Health’
Media Strategy:
This is the actual decision that an organisation makes to decide where they are going to promote their product; they would have to take into account the behaviour of their target audience before deciding upon the media strategy that they will take up. Questions like ‘what newspapers are read by the target audience and what TV programmes do they watch?’ could result in the saving of financial resources. This would be very important to the successful promotion of my product, I would have to gain behavioural information on the target audience in order to out into action an effective media strategy.
Push & Pull Strategy:
An organisation doesn’t always direct its product straight to the consumer, they also try to attract retailers to stock their product, and this is called a Push Strategy. This strategy can include many strategies from the promotional mix, these can be identified as Personal Selling and Direct Mail, therefore the product is pushed onto the retailer, which is where the name ‘Push Strategy’ comes from. A pull strategy is a way to create demand from consumers. If the demand is high, then the consumers will pull the product i.e. buy the product a lot through the distribution channels, this will in turn force the retailers to stock more of the product from the manufacturer. Both the Push and the Pull Strategies are popular with organisations because it is a god way to create demand from the retailers and the consumers. This strategy will most definitely be very useful for my product; Coca Cola distributes its products vastly using this strategy. You don’t find many Coca Cola shops, instead their products are usually stocked in many other retail distribution chains like supermarkets, and local shops etc, and because Coca Cola is so popular, its demand is very high, therefore they employ a pull strategy by insuring that the push strategy efficiently working. I would definitely use this strategy in order to increase the demand for my product.
Communication Model – AIDA
Aida is a communication model that is utilised by organisations to help them sell their product. Aida short form of: Attention, Interest, Desire, and Action. The first intention of a firm when they launch a product is to grab the consumer’s attention. For example, Coca Cola uses many celebrities to advertise its product; this gets the product attention from the potential consumers. This is a skill that is used by Coca Cola to grab the attention of consumers. After grabbing the attention, there is the task of holding the interest using promoting characteristics, this is done by showing the benefits that the product has to offer, in this case, Coca Cola Crush is a very healthy form of drinking, with Vitamin C, it changes the way people look at Coca Cola Coke. The next stage is to make the product Desirable, this can be done by showing demonstrations, or sending samples, in Coke Crush’s case, it would be more appropriate to send samples to retailers because there isn’t really much to demonstrate. The last stage of this model is the Purchase Action, if the strategy proves successful, then the target customer will acquire it.
Promotion using the Product Life Cycle:
The product life cycle are four stages that a product goes through, at each stage, an organisation may acquire a promotional strategy to either make it get to the next stage, or to stop it getting to the next stage, or just slow the process down.
The four stages are known as the following:
Introduction – this is the stage that every product starts at when it is brand new to the market, at this stage, the organisation would try to inform the potential consumers of the product and make them aware of it, this would involve a lot of advertisement, and the media to aid the organisation in meeting its objective, this is when organisations will try to push it up to the next stage. At this stage I would try to acquire as much attention as possible by using advertisement, and promotional methods such as Direct Mail, to attract retailers to stock the product, and the Media & Message Strategy, and the Sales Promotion Strategy to help Coca Cola Crush go to the next stage of the Product Life Cycle.
Growth – when the product reaches this stage, it means that it has been accepted by the target audience, at this stage, the organisation would try to increase brand awareness so that they can create brand loyalty. At this stage, we could consider things like the sales promotion strategy, and the Media & Message strategy, to make aware the target audience of the benefits that the product is providing.
Maturity – at this stage, the product gains customer loyalty, and is well known within the market, but at the same time, it gains many competitors, at this point, organisations try to show the differentiation between their product and their competitor’s product, and why customers should buy the organisations product. They could do this buy maybe giving the product a new look to make it look more different.
Saturation – at this point, the sale of the product have reached their peak and will not increase, usually at this stage organisations may introduce a newer version of the product, buy doing this they are introducing virtually a new product, so it is likely that from the saturation point, the product goes back into maturity. They could also consider a change in their pricing strategies by reducing the price of the product, this would result in the sales increasing resulting in the product coming back into the maturity stage.
Decline – at this stage the product is in decline, and its elimination from the market is inevitable, at this point, organisations can do nothing but to slow the process down and try to keep reminding people of the product.
(fig1)
Internet Promotion
The World Wide Web has increasingly become a necessity for a lot of people around the country; it is also a crucial element to the Marketing Mix. The use of the world wide web means that consumers can instantly gain knowledge about an organisations product and make useful decisions on whether to purchase it or not. Many companies have a pre-ordering system online which allows consumers to order their product before it is released, and it can be delivered to them at their house.
The internet will be a very useful tool for my promotional mix. Coca Cola already have a website online giving latest news about their products etc.
Place Strategies:
This is a strategy which decides how an organisation will distribute its product to the end user. It is essential that the product is distributed to the user at the right place at the right time. It has to be efficient and effective in its distribution if it wants to meet its objectives. It is critical that the organisation does not misjudge the demand of the product, otherwise customers will not have access to it and this will directly affect sales.
There are two ways in which an organisation can distribute its products: Indirect and direct distribution.
Indirect distribution involves the use of a conciliator, this could involve places such as supermarkets, local shops etc. Direct distribution is when the organisation sells direct as the manufacturer to the consumer, this method gives more control to the manufacturer as they can decide such things as price etc. fig2 below shows the comparison between Direct and Indirect cost:
(fig2)
My product will mostly depend upon indirect distribution, it is the best way to distribute them as it would be very expensive to open a shop exclusively for the drink, and therefore, it is much cheaper and easier in terms of distribution and availability of the drink to the public by selling the product to existing retailers around the country.
There are also other distribution strategies. These are employed in accordance with the type of product that you are trying to distribute. Here we’re going to discuss the three most common strategies of distribution:
Intensive Distribution – This is a popular distribution strategy for cheap products which are desirable, e.g. Drinks, chocolates etc. these are vastly made available in many retailers. This is a suitable strategy for my product as my product is very cheap and has to be made available everywhere.
Exclusive Distribution – this puts a limit on the number of retails to one. The product concerned is usually very expensive, and requires a retail outlet that can give a lot of detail on it. Vehicles such as cars and Motorcycles are a good example of Exclusive Distribution. This would be a very unsuitable strategy for my product as my product is not as exclusive, it is an every day desire for consumers, and therefore it is not expensive either.
Selective Distribution – the organisation which adopts this strategy selects a small amount of retail outlets are chosen for the distribution of the product. E.g. most electronics manufacturers would only select retail shops who specialise in electronics to distribute their products.
If selective and exclusive strategies are chosen by the organisation, then retailers who specialise in similar products and are well known by the target audience should be chosen for distribution.
If we base this strategy on my questionnaire, question 4 shows that most people buy Coke from Local Shops and supermarkets, so these places would definitely be considered for distribution.
Principles of Marketing:
I have decided to launch this product because of the increasing awareness of health at present. Coca Cola Crush is a very healthy drink it can do very well in the market. It is an opportunity for Coca Cola as a company, by introducing a new product; they will increase their market share in the beverages industry. The new product will generate income and profits for the company. The product has been introduced so that competitors can be driven out of the market and to makes it difficult for them to overcome the strategies of Coca Cola. By adding a new product it will also develop the reputation and image of the company as it will be expanding.
External Influences that might affect the Marketing Strategy.
External influences can be considered as things that might affect the business in any way, but is not directly related to it, and is outside of it, hence the name External. This can be anything from the Government, to the Consumers themselves.
Government:
The government has many strict policies for businesses, even if they are not specifically for the businesses, they still affect a great deal of the organisations. Things like taxation affect the costs of organisations, meaning that they would actually have to charge the consumers more to keep up with the costs. Laws such as the Trade Description Act prevent false or misleading statements of products, and the Sale of Goods Act covers the right of the consumers who claim that they have not been supplied with suitable goods, if laws like these are broken, then it could result in the prosecution of the organisation. Also, actions such as a change in interest rates, can affect organisations either in their favour, or against. If the interest rate goes high, like recently, then consumers will spend less, as they will not consider borrowing money because of the high interest rates, this could result in a decline of the organisations, and people will buy fewer houses, because mortgages will become very expensive. In this case organisations would have to resort to reducing the prices of their products resulting in a slump; this could eventually lead to a recession. Other things such as Micro Economic Policies which are directed at individual markets are also a factor that needs to be considered, these kind of policies influence the price and quantity of the goods or services that are traded. Macro Economic Policies are measures that the government can use to influence the Economy as a whole, so cannot only affect just one market, but many, it could include things like the change in taxation, or as mentioned earlier, a change in interest rates.
Competition:
Competition is a factor that affects all businesses. Nearly every organisation will face competition. Competitors are most likely to change organisation strategies all the time. It is where the organisation has to differentiate its product to make sure that competitors cannot get the upper hand. Monopolies and Oligopolies are a lethal threat to the survival of your organisation; they have the most market share, meaning that they have the most customer loyalty resulting in higher sales. But the Government does provide a law that prevents businesses from becoming Monopolies or Oligopolies, such as the Competition Act 1998 – designed to prevent the abuse of the dominant market position. Organisations may make a formal or informal agreement to abide by the law. Coca Cola itself has many competitors, as mentioned in the Secondary Research; one of its main rivals is Pepsi. In the primary research as well, you can see that products such as Fanta and tango are very much like by consumers (Question 11)
Public Related Influences:
Sometimes an organisation may attract negative attention from the public, this may influence the way the business operates. E.g. Coca Cola recently released a new product known as Dasani, this was mineral water, but there was a lot of controversial news that Dasani was nothing more than just tap water. This raised many issues and publicly their reputation went down, in response to these problems, Coca Cola had no choice but to stop selling them.
Demand and Supply:
This is an influence that varies, and businesses need to keep up with them to make effective sales, if the demand increases, then the organisation would have to Supply more of the product, if it decreases then it would have to reduce the supply of the product, if it doesn’t comply with these changes, it could suffer from heavy losses.
Evaluation of the Marketing Strategy:
To evaluate the marketing strategies, organisations use many tools to assist them, over here we will discuss some of these tools and how they can help with Coca Cola Crush:
SWOT (Strengths, Weaknesses, Opportunities and Threats):
This tool is used by businesses for their products to recognise its Strength, Weakness, Opportunities and threats. It is an overview which helps businesses decide its corporate, marketing or product strategies. Strength and Weakness is an internal factor which can be controlled by the business, but Opportunities and Threats are External factors which a business cannot control.
A Strength of Coca Cola Crush is that it is with a company which has strong and vast distribution ties, so it is easier for the product to become well known, however, it is not a well known product yet and is still in the introduction stage of the Product Life Cycle.
An Opportunity is that the product is grabbing a target market which is in need of healthy drinks like this, because at this time, health is a big issue, however, launching this new product means the rise of competitors who will definitely try to kick the product out of the market.
This analysis is a great tool to evaluate an organisations situation. Matters raised through this analysis can then be used to form an effective Marketing Strategy.
(fig3)
Ansoff Matrix:
Igor Ansoff developed a commonly used tool that could be used within marketing. It outlines 5 planned business options.
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Market Penetration - This is to introduce your product into its market by means of penetrations using strategies such as heavy promotion or the reduction of prices to increase the sales.
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Product Development – the development of a new product by an organisation in the same market in order to increase their market share. E.g. the development of new Car models in the motoring industry.
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Market Development – this is where an organisation might consider selling a product in a different market, at this point, you have to consider who else would be willing to buy your product, or they might consider selling the product to new markets overseas.
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Diversification – the change in the product or service that you are providing, for example, from selling Electronics to selling Groceries.
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Consolidation – This is where organisations consider withdrawing their operations from certain markets, and concentrate more on the existing products.
Appendix
The following sites were used from the internet in order to search for appropriate data.
The Following book(s) were used:
Advanced Business – Osborne
GCSE Business Studies, The Revision Guide – Coordination Group Publications
