If you own a business, then there must be a point of time when you would think about taking it to the next level. Growth is the next phase of business. Those who have already done that will agree. Exploring new paths, working on innovative ideas, doing new things, all these things are a part of life, and the same is true for business as well.
Are you looking for expansion? means you are looking for growth strategies for your business activities. Marketing experts would recommend you a few possible growth strategies, adopting which you can give a boost to the company sales. The following are some of the common strategies you can try:
Marketing experts would recommend you a few possible growth strategies, adopting which you can give a boost to the company sales. The following are some of the common strategies you can try:
Market Penetration
Market Penetration can be defined as the state when the focus is on the existing products and services operating in the existing market. Suppose a product of yours is recognized and bought by the customers in a targeted market, but you want to boost up your sales by reaching to more customers by promoting your product in the same market. In a particular market, there might be some people who don’t know or are unaware of the products you offer. Hence, through penetrating that specific market in depth, you can spread your name and increase your reach to those customers as well. This might include adopting strategies like the – expansion of the distribution channels, decreasing the selling price of the product, improving the product and checking out your competitor’s customer and distribution base.
Market Expansion
This is also known as Market Development. Market Expansion relates to the spreading of your existing products to a new market. When you are convinced that product sales to the present set of customer and market have reached its maximum or have touched the point of saturation, you can think about expanding your customer base as well as the market base. Expanding the market relate to exploring new avenues. However, first, you have to be clear on the following factors: market you are presently operating in if any other market is open to your products or services, potential markets you can reach easily and the potential markets that offer great sales and growth opportunities. Using your knowledge, experience, goodwill, and contacts, you can easily plan to capture a potential new market.
Product Expansion
This is also known as Product Development, in is the option you go for when you wish to develop a new product for the already existing customers. Here, the current products can be modified, or an entirely new product can be created for your loyal customers. The factors which you need to keep in mind are- the competitive scenario, understanding of your clients’ requirements and nature of the market. These issues determine the success of your new product. Also, since customer needs are defined by the variables like- cost, quality and time; you can frame strategies to chalk out what works best for the new product. This strategy is very nicely used in industries dealing with fast paced technological developments. Every day we wake up to see the implementation of a new technical feature or up gradation in this sector. This is done just to improve and provide some newness to the current set of customer.
Diversification
Diversification is required when a company plans to cater to a new segment of the market with a new product altogether. Product diversification can be done in two ways: new products may be added to the existing ones and existing product line can be expanded with related products. Since it’s a new venture, it is similar to starting a new business from scratch. Because the company has no previous experience in this field, it becomes a little risky. Whether the new product would be successful in the new market is a doubtful issue. Hence, proper market research is recommended to see the possibilities before venturing. Diversification is different from the rest in the sense that it requires the company to acquire new skills, knowledge in product development and new insights into market behaviour. Along with these, the company requires acquiring new resources including technologies and facilities. However, it is only desirable when present customers are loyal to the current products, and the new product has a good quality that is well priced and promoted.
Acquisition
When the other, acquisition purchases one company takes place. Here, two companies join hands and go for a merger with each other’s consent. In this case, a company buys most or more than 50% ownership stake to gain control over the other company. This measure can be adopted to get a greater market share, reduce competitions, new product offering and reduction in costs. Also, it has many benefits like- existing workforce consisting of labour and management, a set of the loyal customer base, tangible and intangible assets and the brand name. In most cases, since the big businesses have enough resources to purchase a company, the acquisition is primarily considered as a big-business growth strategy. To venture into a foreign land, acquisitions and mergers are feasible and easiest options to enter the market.
So, if you think that your company has reached a certain level and now it’s time to grow it further, then adopting these growth strategies along with service such as Soniza consultants could really help grow your business for the better.
Please share your thoughts on this and let me know if this has helped you anyway.