Market penetration strategy business plan,video editing tips in hindi,marketing ideas for small business uk 2012 - You Shoud Know

12.04.2015
This strategy involves selling more to current customers and to new customers who can be thought of as being in the same marketplace. One key constraint is that you cannot allow anything in your drive to grow market share to compromise your existing success.
You should give this strategy careful consideration if you are not in a position to invest heavily or are not comfortable with taking risks, as the amount of risk associated with this strategy is relatively low. You can achieve this by adopting a strategy that is made up of a combination of competitive pricing strategies, advertising, and sales promotion.
Another approach you could take is identify a new demographic for your product, for example another age group. This was exactly what happened in the cell phone market when it was realized that teenagers were emerging as a key demographic.
Your role in the discussion senior executives will have in defining their strategy is that of providing the market intelligence or customer feedback that helps to inform the executive team of the current dynamics of the market.
If the team's chosen approach defines the growth market as a 'new' one then a market penetration strategy will be replaced with one of market development, which is covered in the next section.
Many organizations find themselves in a mature or saturated market and to achieve further market share requires a different approach.
With a mature market there are no more demographic sectors to exploit and the only way to attain market share is to take it from competitors.
Another approach to market penetration is to persuade your existing customers to use your product or service more frequently.
The tactics of this approach all aim to 'tie in' your customers to your product or service by making it more difficult for them to move to another supplier. A successful market penetration strategy relies on detailed knowledge of the market and competitor activities. The key role you are likely to be asked to perform is capturing the intelligence that is required to make informed decisions. Market penetration involves focusing on selling your existing products or services into your existing markets to gain a higher market share. You may also be interested in: Ansoff Matrix PDF, Introduction to the Ansoff Matrix, Market Penetration Strategy, Market Development Strategy, Product Development Strategy and Diversification Strategy. With its branches in different parts of the world, Wizie helps organizations to take hold of the existing markets. SEOUL, SOUTH KOREA10 December 2015 - 10:45amJung Suk-yeeThe Ministry of Finance and Planning said on Dec. A number of Korean companies are planning to make use of the fund along with the Korea-China FTA in making inroads into the Chinese market. Earlier in October this year, President Park Geun-hye said that Korea needs to be more engaged in M&A and equity purchase in China with European and Japanese enterprises taking sizeable profits by such means.
In the interest of the efficiency of operation, the fund is to be operated on a capital call basis, which means the execution is carried out when investment targets are fixed. The balance between voice and non-voice revenues in developing countries has not been reached yet. The average global smartphones penetration rate is 18 – 20% and varies by operators and regions. Credit Suisse forecasts the increase of smartphones market (1,8 bln.pcs until 2015) first of all due to the growth of not very expensive devices (up to 200$). Nowadays OTT services market is fragmented not only globally but also in separate countries. In 2013 for the first time the sales of smartphones were more than sales of featured phones.
Penetration of smartphone in the price range up to $90 is 39% (in the previous year this rate was 1%), in the price range from $90 to $153 – 51% (29% in the previous year). A market penetration strategy involves focusing on selling your existing products or services into your existing markets to gain a higher market share.


For example, if your current customer base consists of men aged between 16 and 25 then this strategy would involve attempting to sell more of your existing products or services to this same group. You need to be aware of what has made the product a success so far and ensure that nothing you do will undermine it.
This would involve focusing on the areas of sales and marketing responsible for managing the pricing and promotion of the product.
An excellent example of such a strategy would be for you to identify a change in the age distribution of your product users and to then aggressively market your product to this age group. Previously it had been users in their 20s who were seen as the biggest group of first-time users.
The data you provide will help the team decide whether a growth market is an extension of the current market or is truly a 'new' market. This strategy requires an aggressive promotional campaign, supported by a pricing strategy designed to make the market unattractive for smaller competitors. Examples of this strategy can be seen in the newspaper, telecoms, and cable TV industries, where the larger players now dominate. There are several tactics you could use to do this, including loyalty schemes, adding value to the current product, or making alterations to the product that encourage greater use. The ability of your organization to achieve higher usage by customers can be greatly enhanced by rapidly changing technologies that encourage users to upgrade or that offer more reasons to use the product or service. Understanding why this information is being asked for should help you to capture and pass on the most relevant and significant information.
Igor Ansoff defines Market Penetration as one of the four growth strategies of the Product-Market Growth Matrix.
While there are host of ways to do market penetration, one of the best among them is to gain competitor’s customers.
We offer high-end consultation to companies looking to capture new markets or enhance their presence in the existing markets. 9 that it will raise a fund of three trillion won in order to assist in Korean enterprises’ business in the Chinese market. The idea is to expand the concept of their domestic market to cover that of China while the Korean government shifts the focus of its industrial policy from Made in Korea toward Made by Korea. In this context, the Korean government is planning to increase the amount of the fund depending on future conditions.
At the same time the cannibalization of revenues from basic services by OTT players is happening: only in 2011 the voice revenues reached almost the same level as non-voice revenues.
The vast amount of all types of messengers, chats, social networks and VoIP services are presented in the developing countries, where such services are daily necessity as for subscribers in order to cut the costs.
First is partnership and including some particular OTT services in the general operators' packages; secondly development and launch of their own similar services and thirdly the common work of Joyn industrial assosiation GSMA in terms of work under new standard RCS. In USA SPR is 64%, traffic share in the operators’ revenue structure is close to 50%. The key trend of European cellular market was the increasing gap between increase of traffic and operators’ revenues together with decrease from voice transfer and SMS services due to the SPR growth and use of OTT services by smartphones owners.
At the same time smartphones market is expanding because of price reduction for the devices (up to $153), active cooperation with vendors, combined offers and development of retail sales with less expensive devices.
Taking into consideration the experience of developing countries, it is possible to state that the users of smartphones with a low SPR in developing countries (10-20% while in developed countries is 50-70%) are trying to cut their costs for connection and use OTT services. This is the first strategy most organizations will consider because it carries the lowest amount of risk. Substantial growth in market share and dominance in this sector was achieved by ensuring cell phone companies' promotions met the needs of this younger group. This decision is likely to be based on how your organization is going to approach this growth market. Another good example is the rapid growth of the supermarket chains, which have taken market share from small high street grocers who are unable to compete on price and product range.


A good example of this would be cell phones: models are now upgraded every six to 12 months with the addition of new features and capabilities. In simple words, it is a marketing strategy used to sell the existing products to the existing markets. The spending habits of the people have changed and now the new aspiring middle class growing in these countries has experienced the standard of living in developed countries and tries to emulate that life style. Two-thirds of the amount is to be borne by the Korea Development Bank and the rest by the Korea Investment Corporation. At the same time OTT services market is less fragmented in developed countries, it gives an opportunity to operators to sign agreements with companies for services that are mostly in demand. In this view US operators start to develop LTE networks and as a result to transfer the current subscribers on the shared plans in addition to the packages that include unlimited voice services, SMS and data traffic. In the capital and big cities this rate is much higher in comparison with an average level of OTT services. Penetration rate varies by regions, operators’ offers, gender situation, economic development of country etc. More recently there has been the introduction of loyalty campaigns, where the supermarkets compete for market share through customer loyalty programs. The fund is to be invested in the M&A of domestic Chinese firms, establishment of local production and distribution networks, etc. This actions stimulate the connection of new devices and increase the consuming traffic and operators’ revenues. But all these trends do not affect Russian operators yet, because of roaming and interconnect voice revenues in Russia increased in 2012 for 4,4% versus 2,3% in 2011, and SMS revenues increased for 1,5%. The framework to understand these failures has to be developed and each element attributed to the failure has to be tackled independently and effectively.Toyota failed to crack the executive sedan segment due to its positioning its cars in the same price bracket as the Mercedes C-class, which has much higher brand equity. In the first case operators are getting new source of income due to the small commission for transferring funds from subscriber’s account to OTT service account.
The largest revenue share from traffic transfer in the revenue structure is very interesting because the smartphones penetration rate in Japan networks is still low.
On the other hand this strategy helps to be competitive with OTT services and avoid drastic decrease in revenues from traditional operators’ services due to the availability of unlimited offers for voice and SMS services.
Because of this process most global operators feel much better in comparison with local operators that provide services only for developed markets. The same happened to its flagship SUV Toyota Land cruiser, which ran into direct competition from Land Rover Discovery and Mercedes GL500.
In 2012 the average SPR was 18% while smartphones generated 92% of mobile traffic (Source: Cisco). In the second scenario even without tariffs on traffic, operators receive additional income due to the growth of traffic as the number of users and clicks-through limited free services are expanding.
Second way is an attempt to keep the current subscribers on the developed markets by launching new and more appealing tariffs. Similarly when Nestle Milo tried to penetrate the matured market of health drinks in India, its initial strategy was to undercut its rivals on price and offer innovative schemes and prizes catering to school kids. For example, it could be packages of services for users of smartphones (voice, SMS, traffic) that also include package of fixed services (wired broadband access, IPTV, fixed telephony). After the withdrawal of the promotional scheme the sales rapidly declined due to the association of Milo as a cheap brand.



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