UNIT 3 - MARKETING
Graph below shows Ansoff’s Matrix strategies.
Market penetration (existing product on existing market).
Market penetration uses existing products on an existing market. This strategy tries to achieve growth of sales through encouraging brand loyalty, encouraging more purchases, taking customers from rivals and converting non-users to users. An example of this strategy is Tesco. They try encourage brand loyalty through introducing loyalty cards. In addition, they open new stores and change existing stores.
Market penetration can also use other strategic options such as:
Consolidation - Company focuses activity …show more content…
The strategy which they use is Market Development and Market Penetration. The company focuses on opening new stores in the UK. At the moment they have 500 stores and this number is growing. They increase sales also through taking sales from competitors especially M&S in the UK market. The Company tries to attract new segments and using new channels of distribution. Next go with their product overseas and they sell their products online. They currently trade online in 71 countries. Next try to attract new segments through introducing new product and a different range of prices. As they use market penetration, they offer customers sales in the end and in mid-season. Promotion is also very important to Next. Recently they used a supermodel Hilary Rose to advertise their new line collection. Through effective promotion they try to encourage more purchases. Next’s branding is about design of exclusive clothes for people at all ages. Next use a successful brand name to launch a new collection clothes or home product to their …show more content…
The product I have chosen is an iPod created by Apple. IPod was launched 23th of October in 2001 and it was revolution in the digital market. It was a big campaign to promote iPod and it was very successful. Probably a big innovation, great design and good advertising were all factors contributing to the success of iPod.
The first poster which apple created featured a girl in a bikini who was listening music from her iPod. Then Apple created a few similar posters with people on brightly-coloured backgrounds who were dancing and singing as they hold their iPods with the distinctive white ear phones tucked in their ears. Picture below how the one of the adverts looked.
Advertising was very successful and in a short time people could see it nearly everywhere. People loved this poster because of the colours which made bus stations or walls alive. This advert is associated with happiness and freedom. The Man on the poster looks really content and that’s why advert made people smile when they were looking at