Presentati on on

“Strategies Of Market Development Vs Diversification”

Introduction• Diversification is a strategy that takes the

organization into both new markets and products or services

• A market development strategy targets non-buying customers in currently targeted segments. It also targets new customers in new segments

Methods

Strategy Development

• INTERNAL DEVELOPMENT

• MERGERS AND ACQUISITIONS

• STRATEGIC ALLIANCES

Diversification(Types)

• Related Diversification• Vertical integration• Backward Integration• Forward integration• Horizontal integration• Unrelated Diversification

Ansoff Matrix

Market Penetration

Product Development

Market Development Diversification

Existing New

Existing

New

Mar

kets

Products/Services

Example (India-Product-related Diversification)M

ARKE

TIN

G S

TRAT

EGY 1. Customer Satisfaction

2. Relationship with customer & retention3. Focus on competitors activity4. Global thinking and local marketing planning5. Promotional Strategies

Example (Global- Tata Group- Unrelated Diversification)

MAR

KETI

NG

STR

ATEG

Y 1. A space of its own

2. Home advantage-Low Cost Project3. A world to win-Enter in new segmentation4. Promotional Strategies5.Pricing strategies

Don’t find customers for your products, find products for your customers• C - CREATE• C - COMMUNICATE•D - DELIVER•V - VALUE•T - TARGET MARKET•P - PROFIT

For successful implementation of marketing strategy the company has to focus on Mind share, Heart share, spirit share.

Some examples: Coca cola entering various markets, Neon entered the men segment, Volkswagen initiated changes in beetle, Evian entered the health sections of Grocery store in bottled water.

CONCLUSION

DIVERSIFICATIONDiversification is protection against ignorance. It makes little sense , if you know what you are

doing.

Is Diversification good or bad?

1. Focus on your core competencies.2. Diversified companies, unified customer strategy.3. Companies should adopt a strong culture fit.4. Offsetting risks.

Dangers of market development

• Understand the new customer baseExamples: Ebay failed in Japan , Wal mart initially failed in Japan because they were selling goods for a lesser price, But Japanese think that the quality is also bad

References• Exploring Corporate strategy, Gerry johnson,kevan Scholes,Richerd• www1.unisg.ch/www/edis.nsf/SysLkpByIdentifier/3987/.../dis3987.pdf• http://rumercooper.wordpress.com/boa-college/the-media-sector/horizontal-v

ertical-integration-and-diversification/• http://bizdharma.com/blog/what-is-vertical-and-horizontal-integration/• http://www.tata.in/company/articles/inside.aspx?artid=0IeM8buLA1U=• http://www.slideshare.net/AkshayAggarwal4/tata-strategy#btnNext• www.britannia.co.in• www.en.wikipedia.org/market_strategy• www.aabri.com/NC2011Manuscripts/NC11060.pdf• garj.org/garjmbs/pdf/2012/mar/Oyedijo.pdf• www.jeffersonassoc.com/mktdiversificationstrategy.htm• http

://www1.unisg.ch/www/edis.nsf/SysLkpByIdentifier/3987/$FILE/dis3987.pdf • www.emeraldinsight.com/0265-1335.htm• http://www.business-standard.com/article/companies/britannia-to-diversify-fo

od-range-105072101057_1.html