TU Patiala Aman Mehta- How can market leaders expand the total market and defend the total market share

HOW CAN MARKET LEADERS EXPAND THE TOTAL MARKET AND DEFEND MARKET SHARE

Ways to Expand Demand

Attract New Customers

More Usage

SO HOW TO DO IT?

ATTRACT NEW CUSTOMERS

Market Penetration Strategy

New Market Segment Strategy

Geographical- Expansion Strategy

ATTRACT NEW CUSTOMERS

MARKET PENETRATION STRATEGY

MAGGI NOODLES

MARKET PENETRATION STRATEGY

•A brand of Nestle•Launched in the year 1983•Initially targeted at Working Women•Then repositioned itself to target Kids•Market Driver in the Instant Noodles Category•Currently enjoys a market share of about 80%

MARKET PENETRATION STRATEGY

•Promotional campaigns in schools•Advertising Strategies•Power of 5•Availability in different pack sizes•New product innovations

REASONS

NEW MARKET SEGMENT STRATEGY

MERCEDES A-CLASS

NEW MARKET SEGMENT STRATEGY

Mercedes initially targeted only the A1 section of people.

But then it realized that a huge population of people are there in the other sections too so to increase their market reach introduced the Mercedes A- Class.

GEOGRAPHICAL EXPANSION STRATEGY

GEOGRAPHICAL EXPANSION STRATEGY

A lot of companies have started operations in India as part of their geographical expansion strategy.

MORE USAGE

INCREASING FREQUENCY OF CONSUMPTION

SURF EXCEL

INCREASING FREQUENCY OF CONSUMPTION

The size of the spatula that comes along with Surf Excel was increased so that customers scoop more detergent every time.

NEW WAYS TO USE A BRAND

NESTLE MILKMAID

NEW WAYS TO USE A BRAND

To increase sale of Milkmaid, Nestle published recipes of various delicacies made using it’s product Milkmaid.

PROTECTING MARKET SHARE

PROACTIVE MARKETING

SONY WALKMAN

PROACTIVE MARKETING

Despite claims by his company engineers that there is little demand of a product like this, Akio Morita decided to go ahead with the Walkman.

By the 20th anniversary of the Walkman, Sony had sold over 250 million in nearly 100 different models.

DEFENSIVE MARKETING

POSITION DEFENSEMeans occupying the most desirable market space in consumers’ minds and making the brand almost impregnable.

DEFENSIVE MARKETING

FLANK DEFENSEThe market leader should erect outposts to protect a weak front or support a possible counterattack.

DEFENSIVE MARKETING

PREEMPTIVE DEFENSE

This strategy involves attacking a competitor before you can get attacked by it.

State Bank’s strategy of launching ATMs in rural India is an example of providing competition to local and regional banks.

DEFENSIVE MARKETING

COUNTEROFFENSIVE DEFENSE

This strategy involves attacking your competitor at its weakest point when you are attacked.

After UPS invaded FedEx’s airborne delivery systems, FedEx retaliated by investing heavily by a series of acquisitions to challenge UPS on it’s home turf.

DEFENSIVE MARKETING

MOBILE DEFENSE

This strategy involves the penetration of niche markets.

After growing curbs on Cigarette smoking, the tobacco giant ITC started focusing on fast- moving consumer products and food businesses.

DEFENSIVE MARKETING

CONTRACTION DEFENSE

HUL’s divestment from noncore businesses that do not offer synergy is an example of that.

This technique is often used by the market leader and is often times seen as the last resort strategy as it involves giving up some portion of the business to maintain leadership.

Aman MehtaThapar University, [email protected]

THANK YOU!

“Created by Aman Mehta, Thapar University, Patiala, during an internship under Dr. Sameer Mathur, IIM Lucknow. www.iiminternship.com”