growth
TRANSCRIPT
Growth Strategies
Sales Growth
Focus on current customers
-Heavier/more frequent usage
-New type of usage
Look for new segments
-New demographics-New distribution
channels
Convert-non category users
-Increase awareness-Provide incentives
Convert users of competing brands
-Make switching easier
-Provide incentives
Based on Doyle, 1994
ANSOFF MatrixMARKET PENETRATION
STRATEGY
-Increase usage frequency-Find new ways of using the product-Increase usage quantity-Focus on advertising and promotion methods that worked in the past
PRODUCT DEVELOPMENT STRATEGY
-New line extensions-New flavors, new product forms (liquid, spray, tablet ,etc.)-Improved product features-New products in the same product category & flanker brand
MARKET DEVELOPMENTSTRATEGY
-New distribution channels-New target segments-Increasing the number of category users-Re-branding & Re-launching
DIVERSIFICATIONSTRATEGY
-Totally different products in different product categories (e.g. Airlines and media)-Vertical integration (acquiring suppliers or distributors)-Horizontal integration (acquiring competitors, similar brands)
Current products New products
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-Why did people repurchase/recommend your
brand? *Emphasize these-Why did people
repurchase/recommend your competitors? *Strengthen these
-Why did people buy your brand? *Emphasize these
-Why did people (who were aware of your brand) choose to buy your competitors? *Strengthen these
-How did people become aware of your brand? *Emphasize these
How did people become aware of your competitors? *Strengthen these
-How did people start to use these types of products for the first time?
*Reach more people and communicate more efficiently
*Eliminate barriers to use these types of products
Total
Population (households)
People who are current or potential
category users
Brand Aware
Bought the brand
Recommended/
repurchased
Not recommended/repurchase
d
Bought a competitor
Recommended/
repurchased
Not recommended/repurchase
d
Brand Unaware
(Competitor Aware)
Non Category
Users
Market Penetration Strategy
Blue Ocean Strategy• Blue Ocean strategy:
o Brands should not pay attention to their competitorso Brands should create new products that have zero competitiono These new products should drive new categories (e.g Ipad (tablet),
Iphone (smart phone), Cirque du Soleil (circus + dance))o Brands can achieve this goal by using the following framework
ELIMINATE
Eliminate features that people are not interested in
INCREASE
Focus on product features that are related with unique customer experiences and “feelings.” Increase some product features way above the industry standards.
REDUCE
Reduce variety, reduce complexity, reduce the emphasis on the benefit all the competitors are focusing on
CREATE
Offer benefits that have never been available in the industry
Based on Kim & Mauborgne, 2005
Value Co-creation as a Brand Strategy
• Brands can co-create a new value with consumers by sharing their resources, personalizing their products, initiating a dialog with their customers and educating people in their communities.
• Examples of value co-creation marketing: o A brand gives free samples to a certain
group of people and those people test the product and gain new skills. Meanwhile they spread the word on the new product.
o A brand organizes a competition and asks people to suggest a new design.
Value Co-Creation marketing
Goods are indirect services. Any purchase can be turned into an experience or a customer journeyValue should be created together with consumersMarketing should be relationship based (brands and consumers establish relationships)Brands should initiate conversations and dialogsBrands should teach new skills to consumers, community membersKnowledge and know-how are the biggest assets of brands and they should be shared with consumers
Traditional Marketing
Companies should sell goodsCompanies should sell value added productsMarketing should be transactionalMarketers should run promotional campaignsMarketers should educate customers Based on Ramaswamy & Goulliart, 2010)