When companies want to expand their product lines or take successful ways to reach customers faster, where these strategies are implemented, which require a double and intense effort aimed at improving product performance and increasing competitiveness among companies. The companies also aim to expand the scope of their work in order to enter new markets, or develop their performance and methods of manufacturing their products, and for the aforementioned companies follow these intensive strategies that help in raising the efficiency of products and increasing their effectiveness by adding market value to these products and thus increasing the sales and revenues of the company These strategies also help in the rapid growth that will make the company a strong competitor in themarket.
o Marketing penetration strategy
It is a measure of the volume of sales where market penetration indicates the possibility of increasing the sales of the company’s product, and if the market penetration index is high, this indicates that the product has become established and that the company is a leader in the market. (reference ?)
o Recommendations
- Strong pricing is a very popular tactic. Penetration pricing can be used, which sets the price of the product lower than that of your competitors.
- Maintaining a reasonable level of profits to increase sales volume which will reduce manufacturing costs per unit of product.
- Marketing campaigns and distribution strategies. For example, the market may be saturated with an aggressive advertising campaign consisting of TV, radio and direct mail ads.
- Establishing a relatively low initial entry price on the products, often lower than the final market price, in order to attract the largest possible number of new customers.
- It must be noted that there is a flaw in this strategy, as it sets long-term pricing expectations for the product, and draws preconceptions for the brand and the company. This makes it difficult to ultimately raise prices.
o Market development strategy:
This strategy is known as identifying and analyzing the target market and developing the marketing mix to satisfy customers in that market Not correct! (reference ?)
Recommendations:
- The company must describe the target audience and identify who will buy the product .
- The company should define the product’s features in detail, describe the describe value and then present it in a marketing campaign.
- The company has to create a product pricing strategy
These are not relevent recommendations to this strategy
o Product development strategy
The process of developing products with new or different characteristics to provide new or additional benefits to customers. As the company continuously develops practices and strategies to better meet customer requirements and increase its market share through the regular development of new products (Reference ?)
o Recommendations
- The company has to develop existing products. The company’s specialists carefully study each stage of product development.
o Related diversification
The company has to develop its marketing skills in addition to developing the manufacturing skills for its products with continuous research and development of its products Where are the recommendations?
o Integrative growth strategies
An integrated growth strategy is defined as migrations and mergers that cost more than intensive growth and are practiced by mature companies with significant financial capabilities. There are two types, vertical and horizontal
o Horizontal integration :
Is the merger of two or more companies operating in the same line of business and their level of activity is the same. It results in reduced competition between firms in the market and is a tactic that most firms use to expand their size and achieve economies of scale due to the increased level of output. (Reference ?)
o Recommendations
The company must adopt an integrative growth strategy, such as purchasing other water plants, especially competitors, and mergers.
o Backward integration
It is the company entering into an alliance with a supplier through acquisition or merger, and this is done in order to achieve efficiency and save costs (Reference ?)
o Recommendations
adopt an integrative growth strategy such as wholesale distribution and buying successful retail stores This is forward
o Forward integration :
It is the acquisition of another company that used to perform certain functions that follow the functions of the acquiring company in the supply chain, such as the acquisition of a company specialized in distribution, or the company itself performing the functions that were previously performed by other partners.
o Recommendations
The company should adjust the benefits of a stable price, and it should also have easy access to the required resources quickly while controlling costs. This is backward
o Unrelated growth strategies
Growth strategy is the strategy under which management works to move forward and achieve enterprise growth, in the areas of manufacturing, marketing and financial resources (Reference ?)
o Recommendations
The company should allocate cash flow and its departments to reduce risks and not rely on one market and achieve vertical integration in the market . How? You should have given specific recommendations
REFERENCE
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