Recap of 19th nov,2010

Ansoff's matrix provides four different growth strategies:

Market Penetration - the firm seeks to achieve growth with existing products in their current market segments, aiming to increase its market share.

for example: Micromax is gaining its market share in an existing market created by majorbrands like nokia, sony ericsson, samsung etc. in an existing product ie. mobile phones.

Market Development - the firm seeks growth by targeting its existing products to new market segments.

for example: e-services,providing e-services to the banking system like transactions, account check etc.kelloge's has developed a breakfast habbit in india which wasnot there in the indian market.

Product Development - the firms develops new products targeted to its existing market segments.

For example, Mc.Donald's is always within the fast-food industry, but frequently markets new burgers.

Diversification - the firm grows by diversifying into new businesses by developing new products for new markets.

for example: pepsi was previously only in the soft drink manufacturing business but it diversified it's business into health drinks and snacks,

Bajaj was a scooter manufacturer then it diversified into bikes.

Then the concept of ' touch point ' was been discussed, it means interaction with the customers through various means.

like

through e-banking site,

through tollfree numbers to call, where consumers can interact and give their feedbacks or queries.

through message like ' chaat ke thaat ' where the tagline is ' hum sab chatore hai ' where consumers can relate themselves to the message.

through service like free demonstration of any product.

through media,

through retail like the product's placing in the retail stores.

first mover advantage and the first mover disadvantage:

first mover advantage is the advantage gained by the initial occupant of a market segment. This advantage is there from the fact that the first entrant can gain control of resources that followers may not be able to match.

for example: Maggi noodles which is the first mover in indian market in its category and created a huge market share in it.

first mover disadvantage:

first, it must educate its customers about the new product or service. This situation poses a significant risk since would-be customer response to products cannot always be predicted.

Second, the issue of having to educate market participants also holds true for partners and suppliers.

Third, first movers often make costly mistakes that enable later entrants to penetrate the market. for example: The internet search market. Yahoo! and many of the other search players treated search technology as a loss leader. As a result, they invested little in developing their search technology. This strategy provided Google with the opportunity to differentiate itself.