Market penetration is where the company is the market leader and has the most share of the market. They do this by pushing their existing products into the existing markets. Product development is where they develop new products or modify existing products and put them into existing markets for example, coca cola has coca cola cherry, life, diet and zero. Market development is where they put existing products into new markets in the hope that they will sell, this could be in markets abroad or just different regions. Diversification is where a company will make new products and put them into new markets, this is a massive risk as the company have no idea of the product or of the market it is going into, this is good because it stops the company from being stuck in one market e.g. virgin they have virgin trains, Atlantic, broadband etc.
Marks and Spencer’s use Ansoff’s Matrix to grow their company even more. In the eyes of the public Marks and Spencer’s is seen as the market leader in terms of having all products under
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Some of these strategies are; watch cash flow, don’t spend too much money where it isn’t needed; don’t buy too much stock that you won’t be able to sell; cut costs where possible and focus on retaining customers so that they will come back again. Marks and Spencer could retain customers by offering loyalty cards and giving them offers. Marks and Spencer’s have just launched a loyalty card called the “Sparks” card. This is for customers who regularly buy M&S products and every time they buy something they gain points and then claim the points to get money off their shopping. Also if you increase your marketing activities, this will also increase your brand name and in the NSPCC’s case this will have an impact on the number of donations and in Marks and Spencer’s case it will increase the amount of people who shop in their stores or
Breaking into new markets helps the company grow and brings in new customers, which leads to higher profit margins.
They have proven with their high profit margin that once customers come into the store, TCS can do good business. The next step is increasing customers in the store. Adding more stores in one way but marketing is another important strategy toward this goal. Some of the new marketing budget should go towards improving engagement on their social media platforms. TCS does have active accounts on the main social channels and publishes a blog. Engagement on these owned channels should focus not only on deepening customer relationships but also driving awareness. Beyond these owned platforms, TCS should also explore paid channels that promote the employee expertise and exclusive products that set the company apart. Prioritizing marketing as part of the company strategy (to emphasize for potential new customers the things TCS already does well) could help them see renewed returns on their current growth
The business was in a cash cow phase with business and financial risk being medium.
Marks & Spencer is one of the UK's foremost retailers of clothing, foods, homeware and financial services, boasting a weekly customer base of 10 million in over 300 UK stores. Marks & Spencer operate in 30 countries worldwide, and has a group turnover in excess of £8 billion. It has specific values, missions and visions. It’s main vision is ‘to be the standard against which all others are measured’, it’s main mission is ‘to make aspirational quality accessible to all’, and it’s main values are quality, service, innovation and trust. (www.marksandspencer.co.uk).
According to the annual report of Mark& Spencer, they has been set up 776 stores in the Uk and aim to keep selling high quality ,great value food and staying ahead in womenswear, lingerie and menswear. Moreover, M&S has attributed the high level of trust on the high street, and has also concentrated on ensuring their corporate governance is meaningful, relevant and underpin their decision-marking with high quality in all areas of strategy, performance, responsibility and accountability. Their collective and individual performance review is constructed by honest and constructive feedback to make the border play the biggest role in the boardrom. The goverance framework is also published on their website. Therefore, M&S's shareholders and stakeholders can easily find what standards the board of M&S set for themself.
Tesco has been particularly successful because of its powerful brand. It has a reputation for value, low prices and for being customer focused. Its brand and associations have helped the company to expand into new sectors and markets. Tesco has also been strong in public relations, advertising and building profile in catchment areas on a local level. This local approach to marketing appears to be a key driver for success. Tesco has a good range of products, including own label products. It seeks to provide excellent customer service, and ensure high levels of customer satisfaction.
After the mistake that Tesco did, they begin to loose their market share so, the competitors were trying to gain what Tesco was loosing, and they did. For example, Lidl had increased 10 percent in their sales, which is a big threat for Tesco because other companies are taking Tesco’s place in the market. In United States and Australia there are some stores that it sell very cheap products without looking at their quality. This was very tough for Tesco to handle because they cannot compete with this amount of discounts. In the same time, Tesco are trying to return to its position as before but, their competitors are using Tesco’s falling into their benefit by expanding more and making offers so they can get higher market share. For example Sainsbury, Asda, and Morrisons are investing more while expanding as well to take Tesco’s position and prevent Tesco from coming back as they were
Ansoff’s Matrix was designed to show how the markets and their products can be manipulated to the advantage of the organisation. It has four sections that are depicted as, Market Penetration, Product Development, Market Development and Diversification.
Diversification is where a company grows into new business areas either similar to existing business or different from existing business allowing a firm to create value by creatively using excess resources. Seprod operates in a number of different and distinctive product markets and several businesses using corporate-level strategy. Seprod operates in the fats and oil business, milk and juice and the sugar industry
In the case, Marks & Spencer and Zara, it discusses two business process designs that each company took. You first had Marks & Spencer, who had a more traditional approach. Their chain started of with the buying team, design, developers, merchandisers, technologist, suppliers, logistics, and lastly the store. Zara, however, comes up with a new innovative design. With this new design in effect the delivery of new collections only has a lead-time of 5 days. They were able to cut down this time due to the fact that products where mainly produced on Galicia.
Marketing is a process of determining a consumer’s needs, devising a product or service to satisfy those needs, and trying to focus customers on the goods and services you are offering. Marketing is extremely important, and a fundamental building block for business growth. A marketing team is given the task of creating customer awareness through a variety of different marketing techniques. If a business does not pay close attention to their consumer demographic and needs, they will eventually fail over time. Two important aspects of marketing include acquiring new customers, and the preservation and growth of relationships with current customers. Marketing has always been viewed as a creative outlet, which encompassed advertising, distribution, and the selling of goods and services. Marketing staff will also try to anticipate what customers will want in the future, often being accomplished with market research. In summation, a good marketing plan should be able to create a favorable proposition or series of benefits that a customer can value through goods or services. The marketing mix is normally described as the strategic positioning of a product or service in the marketplace, using the specification of the four Ps. During the early 1960’s, Professor E. Jerome McCarthy of Harvard Business School stated that a marketing mix contains four elements. The four key points are product, pricing, promotion, and placement. It is recognized that all these aspects must be present to ensure a successful business model within a given industry. We will now take a thorough look at the four marketing mix points.
The food and staples retailing is an increasingly competitive industry. The market giants (competitors) are Coles (owned by Wesfarmers) which has 741 stores across Australia and plans to add 70 m...
On the Ansoff matrix below is shown what growth strategies for new and existing products and markets can be used from the company.
Bibliography: Lawson, A. (2013). Analysis: Is Asda’s five-year strategy the right one?. [Online] Retail-week.com. Available at: http://www.retail-week.com/sectors/food/analysis-is-asdas-five-year-strategy-the-right-one/5054989.article [Accessed 23 Jan.
...re chances of growth and development for the company which is clearly understood through the research done on the Ansoff’s matrix. P&G is much ahead of its competitors and has also won many honors in terms of offering quality and innovative products. The company’s products are also sold by wide variety of retailers around the world and also through many e stores that sells the product online. Finally the company has also got more expansion opportunities which is clearly understood through the Yips model of Internationalization. As the company continues to acquire international brands over the years and succeeds in offering quality and innovative based products to the people all over the world it tend to give a much better completion to its competitors and of course get a wider market share making its competitors give a tough time in the industry.