The Ansoff Matrix is a strategical tool that provides a framework to help executives, senior managers and marketers to devise strategies for growth.
I. Market Penetration: In this strategy, the organization tries to grow using its existing offerings (products and services) in existing markets. In other words, it tries to increase its market share in current market scenario. This involves increasing market share within existing market segments. This can be achieved by selling more products or services to established customers or by finding new customers within existing markets. Here, the company seeks increased sales for its present products in its present markets through more aggressive promotion and distribution.
For our brand which is Ritu Kumar there is a lot of scope for penetration in the Indian market. As it is they do not advertise using print media and the only medium through which they promote their product is participations in fashion weeks and this obviously does not reach out to the masses. Keeping in mind the exclusivity which Ritu Kumar wants to keep for her brand, she can divide the advertising thing as well; the prêt line which is Label Ritu Kumar can be highly advertised as it is meant for the contemporary working women of India then why not advertise it.
Ritu Kumar as a brand is leaving no stone unturned in penetrating the Indian market as they realise the need of it as mentioned before Amrish Kumar, CEO of Ritu Kumar Group told about increasing their number of stores by almost doubling the prevalent stores in about 4 years’ time.
II. Market Development(Extension):
In market development strategy, a firm tries to expand into new markets (geographies, countries etc.) using its existing offerings.
This can be ...
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... the business firm and there lies the challenge and the statement “With high risks come great rewards”.
Therefore what lies ahead is a great challenge for Ritu Kumar as well if she adopts this growth strategy. What she has done till now is in the field of bridal wear and off late started with the Label which attracts the contemporary working woman of India but what she has not done till now is a clothing line for the Girls or the Under-25 category if you can say. India comprises of 70% of youth population that is below the age of 25 which means the target market is already there waiting. As is the USP of Ritu Kumar, promoting the Indian heritage by her masterpieces and being such an intelligent woman in this field she can surely play with fabrics and colours to give her dresses a complete western look but still containing that tinge of ethnic or culture touch to it.
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