The growth stage in the product life cycle is a golden age for a product. Not only does the fast-growing revenue bring a lot income to the company, but also the company becomes a pioneer in the market. When the product enters the growth stage of its life cycle, the most important mission is to build the brand preference and increase the market share for the product.
While the revenue grows rapidly in this stage, the number of competitors is also increasing at a high speed. To avoid being lost in this business war, the company should take a variety of marketing actions to hold its position in the growing market. One of the well known market share maintenance strategies is called market expansion. This strategy’s primary goal is to protect the company’s market share by expanding into many market segments and trying to seize new customers.
One example of successful market expansion is Uniqlo, it is the biggest clothing retailer in Japan, and now the company is trying to make itself the world’s largest fashion retailer. Uniqlo’s advantage comes from those customers who are interested in Japanese culture. Besides selling regular t-shirts, Uniqlo often cooperates with famous cartoonists and artists on new clothes designs that appeal to lots of comic fans who wants to purchase these kinds of limited edition products. Uniqlo also offers a line of business suits and formal shirts to satisfy the needs of office workers. Not only have the designs made Uniqlo different from other retailers, the company also tries to develop new material technologies, like Heattech, to response to the customers’ demands. According to the company’s website, in the 2010... [continues]
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(2011, 04). It’s All About Position! – What Market Expansion Strategy Can Do in a Growth Market. StudyMode.com. Retrieved 04, 2011, from http://www.studymode.com/essays/It-s-All-About-Position-What-680622.html
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"It’s All About Position! – What Market Expansion Strategy Can Do in a Growth Market." StudyMode.com. 04, 2011. Accessed 04, 2011. http://www.studymode.com/essays/It-s-All-About-Position-What-680622.html.