B.5: Prepare a growth strategy for Baby Dreams.

For Baby Dreams to recover from the slow sale they are experiencing at the moment,
Nora can consider to implement market development strategy:

Market Development

Baby Dreams has started the business since 2009. Judging from their monthly sales
figures, although it is on the low side, they have considerable numbers of customers.
However, their customer base is not enough to generate sizeable revenue for Baby
Dreams.

One strategy they could employ is to expand their customer base using the strategies
below:

1. Identify new segment of customer

1a. Expand customer base to include middle to high-income customers

Baby Dreams current segment focusing on price sensitive low to middle income,
government servant residing in Taman Cempaka, Johor Baharu. Nora may
overlook the middle to high-income parents who prefers to buy standards, quality
and sophisticated baby products and apparel for their children. By expanding their
customer base, Baby Dreams can improve their monthly sales as they may have
saturated the low to middle-income segment. By attracting middle to high-income
segment of customer, Baby Dreams can increase their customer count. With
 higher purchasing power of the new segment, total RM transaction per customer
will increase leading to higher monthly revenue for Baby Dream.

1b. Appoint third party company to setup and run online platform for Baby
Dreams

Relying to existing customers may not be enough anymore for Baby dreams to
survive. By venturing into e-commerce, they could tap on wider range of
customers with minimal cost, as they dont need to setup another physical shop to
expand. Baby Dreams can also expand their market segment and opening up their
market access to include online shoppers as their customers. They could also
consult MDEC for advices, technical know-how and relevant trainings on setting
up e-commerce platform for SMEs.

2. Capture new market: expecting parents and young parents

To be able to sustain for a long run, a company should be able to attract and retain
customers from different age segment. One way in capturing new customers
prospects is by engaging and working together with nearby hospitals, by offering
freebies to selected new parents and actively participate in events or fairs
organised by the hospitals as a way to increase the exposure of public to Baby
Dreams and what they offers. Baby Dreams may be able to execute the vouchers
strategy more effectively if vouchers were given to expecting parents in order to
attract them to visit Baby Dreams shop for their next purchase.

Baby Dreams could also work together with nearby childcare centres and
kindergartens by exploring the possibility to access and engage the childcare
centres and kindergartens customers to promote their products. Baby Dreams
could also establish Business-to-Business (B2B) channel by providing products
for these segment of business as childcare centres and kindergartens