Intensive strategy

Intensive Strategies

Author:,

Prof. Hafiz M.BilalProf. Anser Javed(Department of Banking & Finance)

Intensive Strategies Those three strategies are sometimes

referred to as intensive strategies because they require intensive efforts if a firm’s competitive position with existing products is to improve.

The aim of intensive strategies is to broaden the market share and to increase the profit by making the existing products more effective and by introducing new and various sets of products in order to increase the market share too.

The strategies require intensive efforts if a firm’s competitive position with existing products is to improve.

Types Of Intensive Strategies

IntensiveStrategies

MarketPenetration

MarketDevelopment

ProductDevelopment

Diversification

Old Product

New Product

OldMarket

Penetration

ProductDevelopment

NewMarket

MarketDevelopment

ConglomerateStrategies

Market Penetration strategy...

“Deals with enhancing the share of market by effective and innovative strategies in order to make the present product more

effective and attractive.”

• A market-penetration strategy seeks to increase market share for present products or services in present markets through greater marketing efforts.

• Market penetration includes increasing the number of salespersons, advertising expenditures, and publicity efforts or offering extensive sales promotion items.

Five guidelines for when market penetration is especially effective:

When current markets are not saturated.When usage rate of current customers could

be increased.When market shares of major competitors

have been declining while total industry sales have been increasing.

When the correlation between dollar sales and dollar marketing expenditures historically has been high.

When increased economies of scale provide major advantages.

GlaxoSmithKline (GSK) To Penetrate More In India And Nigeria;Raised its stake in its Nigerian and Indian

consumer healthcare units as part of boss sir Andrew withy's attempt to shift it away from "white pills in western markets".

Is to almost double its stake in its Nigerian division, whose products include sensodyne toothpaste, panadol painkiller, and drinks horlicks and lucozade, to 80 per cent in a 15.4bn naira (£60.5m) deal.

A similar deal in India sees its stake in GlaxoSmithKline consumer healthcare rise to 75 per cent from 43.2 per cent

Market Penetration

For the following brands Unilever’s strategy is Market Penetration..

Clear All Shampoo BadamiVimWalls.Surf excelDirt is good (Daag to achay hotay hain).Lifebuoy

◦ Hand Washing Campaign

Market Development strategy...

“Deals with adding products in different geographic areas.”

• Developing a new market for the existing company product is called market development strategy. This is the process of finding new market for the new customer to increase company performance by increasing sales and profits. Companies can develop market on geographical such as city,country,region,state etc and demographical such as age, sex, gender, class etc. example• Pakistan State Oil(PSO) developing new market by exporting oil to Afghanistan.Chinese products developed new market for their product worldwide.

Six guidelines for when market development may be an

effective strategy

When new channels of distribution are available that are reliable, inexpensive, and of good quality.

When an organization is very successful at what it does plus capital and HR plus has excess production capacity.

When an organization’s basic industry rapidly is becoming global in scope.

Examples of market development

Pakistan State Oil(PSO) developing new market by exporting oil to Afghanistan.

Chinese products developed new market for their product worldwide.

Market Development:For the following brands unilever’s strategy

would be Market Development.Vaseline

This is an old product but now they are working on its market development.

SunsilkIn order to further develop sunsilk’s market they have come up with an innovative idea that is by exploiting the religious Semitism of Muslim women. They have launched a new product to address the HIjabi Women. 

Product developmentProduct development is a strategy that seeks

increased sales by improving or modifying present products or services.

Product development usually entails large research and development expenditures.

The best thing about this strategy is you’ve already established yourself in your current markets and you know what your customers want. You have the distribution channels, and you know how to reach them.

“Deals with increasing the sales as well as revenues by enhancing the quality of existing products.”

“The quality of existing products can be easily enhanced by adding different flavors in it.”

Guidelines for product development to be an effective strategy;

When an organization competes in an industry that is characterized by rapid technological development

When major competitors offer better-quality products at comparable prices.

When an organization competes in a high-growth industry.

. When an organization has especially strong research and development capabilities.

product development examples;

Apple’s focus on new product development. iMacs, iPods, iPhones, and iPads are great examples of Apple’s ability to bring new products to the market over the past decade

Product Development:

DomexIt is a new product in the market and its is launched against HARPIC of Reckitt Benckiser.

Fair Menz A new product to address specifically men in

terms of fairness

Unilever Pakistan Intensive Strategies