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ment #: 2
Assignm Marketi
M ting D
Dr. Ayma
an Shaw
wky
Subjectt: Product
ct Market Expansion
E n Grid Exaamples Neestle - Uniilever
Student Name: Yasser
Y Elssaid Saad
d Abdel-Raahman
Student ID: 15225155
1 5
Class: Spring
S 20
016 Semester: 2 Quarrter: 1st Group: G - WeekE
Ends
Assignm
ment Due
e Date: 6 / 1 /201
17

Producct Market Expansion


n Grid forr Nestle

 Market
M Peneetration:

This
T is about raising thee market shaare by focusiing on the eexisting markket which caan be
acchieved by offering
o morre service/prroducts to thhe existing ccustomers or by findingg new
cu
ustomers in the existing markets.

 Market
M Deveelopment:

This
T strategy
y emphasizees on launch hing
th
he existing products fo or new marrket.
Market
M Seggmentation and maarket
reesearch helpps the organiization is to find
ouut new custoomer base.

 Product
P Dev
velopment:

This
T strategy
y is about developing
d new
prroducts for the existingg markets. This
T
in
nvolves findding strategiees to meet the
t demand of the custoomers by laaunching thee new
prroducts and break the co
ompetitor’s products.
p

 Diversificatio
D on:

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Yasser Elssaid Saad  
 
This is a strategy of launching new products in the new market. It is one of the risky
strategies where organization might face many uncertainties, however if the existing
activities are well planned, then diversification would be a successful strategy.

Unilever product expansion grid


 Market Penetration

Unilever had to change and develop their washing detergents in response to the local country
needs of clothing and spent about $292 million for the purpose of marketing to challenge its
competitor’s similar products. Moreover Lifebouy was for the people with low earning
especially labour (Bhaskaran, 2001). It was low profit margin product but however with
increased number of market share. Not just that, the packaging of the margarine was made
available in tubes and was also possible to buy spreadable margarine for an ease of easy spread.

 Market Development

Unilever acquired India and China resulted as key markets for the organisation where continuous
growth has been seen. It also aimed to price up the products and increases the profit targets
despite the hard competition in the market of India but mainly because of the quality of goods.
Unilever also earlier had expanded to most of Europe and main developing countries and
achieved maximum growth in North America. While on the other hand Europe scored 60% of
the profit during peak. Finally it also succeeded in formation of Germany market in the early
1990s with the existing products.

Product Development

Maintenance and development of consumer goods according to people needs have always been a
success for any business. Similarly Unilever launched PG tips tea which is still a top 1 of the top
selling product of Unilever in UK. It further introduced fish fingers and recyclable products
which were successful in US and UK. Moreover the major shift was in the extension of frozen

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Yasser Elsaid Saad  
 
foods and development of ice cream products
during 1950s. Persil and other power
detergents was developed as a key challenger
for the competitors.

 Diversification

Unilever launched a branded new shampoo


called sun silk into several markets which
later became the chief shampoo in 1950s in
about 18 countries. The very first ice cream
cornetto cone was launched similarly became
the best choice of many consumers around the globe. However the Europe market suffered low
growth where Unilever decided to improve the business strategy through innovation and thus
new products were launched in major developing nations.

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Yasser Elsaid Saad