How do firms penetrate an existing market? Essay -- Business and Manag

How do firms penetrate an existing securities industry?Cadburys extradite to improve their levels of grocery keenness and alsomake more sales clients.Cadburys harbour improved their keenness which helps them to improvemarket sh atomic number 18. It can increase in there market share which can createsignificant sales. marketplace penetration suggests a further penetrationof existing markets with existing harvest-homes. This will involve astrategy of increasing market share within existing segments andmarkets. merchandise development is a strategy requires the producer to develop raw market segments for products. Product development is the process of researching market needs, creating products to meet the identified needs. diversification means going into novel market with entirely new products. Market penetration is increasing the % of sales in present markets by victorious sales from competitors.To improve their market penetration there are half a dozen district sta ges inthe development process for new products are- Ideas only Cadbury products start from ideas. These ideas may come from thefol embarrasseding root systemsResearch and Development-This is where product development and market research working together.Mindstorming-This is where it involves few people underdeveloped ideas from words and concepts.Suggestion box- Here Cadburys is working close to the customer and the sales forces understand their needs and requirements.Forced relationships-At times one or more products can be joined together to form new product concepts.Competitors- Monitoring the actions of competitors may provide a rich source of new ideas.Screening of ideas-Once Cadburys ideas have been stickd. It is important to screen for the ideas in all likelihood to be successful. Considerations may include how well the product fits in with others in the product range the unique element of any idea that makes it competitive. They are likely to demand for the product an d whether or not it could be manufactured economically.The two main errors Cadbury needs to avoid when screening ideas are They must not reject new ideas They must not develop poor ideas or Cadbury will loose moneyMarket analysisOnce Cadburys ideas have been screened market analysis begins. Itinvolves analysis of the product market potential. This he... ...ment consultants in the USA. StarsThese are products with a high market share like Cadburys in a rapidlygrowing industry. Unless Cadburys chocolate bar has not achieved thisposition with heavy discounting, it should be generating highprofits. For Cadbury to remain a star in a competitive environment itschocolate bean will progress to need heavy marketing expenditure.Cash cowCash kine have a high market share in a sdepression growing, but maturemarket. Cadbury could fall into this because there competitors do havehigher cost slightly. But Cadbury benefits from high economic ofscale. It can generate high profits which could be used to financeproblem children/ enquiry marks.Question Marks and problem childrenThis product has a low market share in a rapidly growing market. The work has to decide whether to with draw the product or to supportit with heavy marketing, which could be difficult if it is notgenerating funds elsewhere.DogThis product has a low market share in markets where there is littleor no growth.At this stage a product is at the end of its liveliness cycle. The productis best if it is dropped out of its portfolio.