Background:
Market expansion strategy is a business strategy in which a company that is already the market leader tries to expand existing services into new markets. In a fragmented and heterogeneous market, where some segments are less well developed than others, a market expansion strategy may generate substantial additional volume growth.
Market expansion strategy include:
- domestic geographic markets
- new customer
- private-label brands
Increased penetration strategy is a move by management to increase its market share held by current products in currently serviced markets. Market share may be increased by some combination of (1) attracting users of competitive brands, (2) persuading current users to increase usage, or (3) attracting nonusers of the product category.
(Market expansion is seeking market share in new markets, but penetration strategy is seeking shares in the present market)
Extended use strategy is extending uses of products by improving current products or services in mature markets. This is a product development strategy and development occurs in the same industry.
Introduction:
Chesebrough-Pond Incorporated's Vaseline petroleum jelly brand exhibited a very high market penetration for the brand as a whole and consumer reviews of the product were favorable ; however, the firm's research indicated that repeat purchase is very low. The market is considered mature and the product is saddled with a bland, "unexciting" image.
Question:
Recommend a marketing strategy, or strategies that will help the firm achieve its sales growth and identify specific marketing actions that you would use to implement the strategy.