- Strategies and Programmes for offerings that are "new to the target customer"
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Define New ?
- New to the world Products (innovations)
- New Product Lines (New to Company and not Customer)
- Additions to existing product lines (Both Customer and/or Company)
- Improvements and/or Revisions of existing Products
- Repositioning
- Cost Reductions
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Objectivess
- Secure future volume and Profit Growth
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External Driven
- Defend Market Share and Position
- Establish foothold in new market
- Pre-empt market segment
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Internal Driven
- Maintain "Product Innovator" Position
- Exploit Technology Advances
- Capitalise on Distribution Advantages
- Provide a cash generator
- Use excess off-season capacity
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Market Entry Strategies
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Pioneer
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Advantages
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First Choice of Market Segments and Positions
- Largest Market Segment / Product attribute alignment
- Brand becomes standard of reference (Hoover/Coke/Cutex)
- Followers difficult to differentiate related to market attractiveness
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Pioneer Defines the Rules of the Game
- Set Standards for Followers (eg.)
- Price
- Quality
- PRomotional Appeal
- Distribution
- Warranties
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Distribution Advantages
- Options in the design of the distribution Channel
- Distributors reluctant to carry multiple brands
- Consumer goods are harder to defend
- Quickly Expanding Product Line
- Retailers reduce SKUs in category in Favour of turnover and cost
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Economies of Scale
- Initial Volume Gain & Experience facilitate rate of price reduction
- Pricing strategy can reduce follower attractiveness
- High margins used in Marketing strategy to reduce follower attractiveness
- Influence on Consumer Choice criteria and Attitudes
- Possibility of pre-empting scarce resources
- Possibility of positive network effects
- Follower