Introduction to Market Development Strategies
A Market Development Strategy is a detailed and systematic plan for expanding the customer base, marking the entry into new market segments all with an end goal – achieving a dominating position. From small start-ups to renowned corporate enterprises, every organization implements market development strategies to scale-up their businesses. Here are some prolific examples of market development strategies that can trigger your business growth.
1. Geographic Expansion
One of the classic market development strategy examples involves geographic expansion. Many businesses expand their horizons by entering new territories, regions or countries. A household name, Starbucks has successfully used this strategy. Initially starting in the US, it gradually expanded and currently operates in more than 70 countries.
2. New User Acquisition
Acquisition of new users is another masterstroke of market development strategy. Google’s Android serves as a paradigm here. They aimed for mass adoption by releasing their platform as open-source, inviting phone manufacturers to use their software. This move contributed exponentially to Android’s current global dominance.
3. Rendering Premium Services
With introducing premium services, businesses can capture a different market segment. This is what LinkedIn did by offering paid subscription services, known as LinkedIn Premium. They served different verticals such as recruiters, job seekers, sales professionals, and others, ensuring increased use of the platform.
4. Joint Ventures and Strategic Alliances
In a highly competitive market, joint ventures or strategic alliances can work wonders. An iconic example is the collaboration between Nike and Apple. They launched the Nike+iPod sports kit – a device that communicates with the person’s iPod and provides real-time stats.
5. Product Rebranding and Repositioning
Another audacious market development strategy involves rebranding and repositioning of a product/service. The core example here is Old Spice. They rebranded and repositioned their products aiming at a younger demographic, which led to a dramatic increase in their sales.
6. Acquisition of a Competing Company
acquisition of a competitor’s company can also prove fruitful in developing a market. When Facebook purchased Instagram, they not only eliminated a potential competitor but also gained a new user base, significantly expanding their market scope.
7. Creating New Distribution Channels
The creation of new distribution channels can drastically improve a company’s visibility. Coca-Cola’s mass distribution strategy, where they made their beverages available everywhere, from big marts to local grocery stores, proved to be a great success, creating an unparalleled brand presence.
8. Brand Ambassadors and Endorsements
A brand ambassador’s power or celebrity endorsement can’t be underestimated. Nike often uses this technique by signing various famous athletes to expand their reach to the market and enhance their brand image.
9. Targeting Underserved Market Segments
Businesses finding and addressing the needs of underserved market segments can lead to an entirely new customer base. Dollar Shave Club mastered this technique. They entered the market by offering a subscription-based model, providing quality razors at a fraction of the price of high-end brands.
10. Digital Expansion and Online Marketing
Lastly, the most dynamic & responsive strategy in today’s digital age is online marketing and digital expansion. Amazon has masterfully handled this arena, creating a diversified online presence that caters to various market segments.
By delving into these real-world market development strategy examples, organizations can muster robust strategic plans, fostering business growth. The path to developing a successful market is riddled with intense competition and dynamic challenges. But with an effective market development strategy, businesses can effectively navigate and solidify their foothold. Each strategy bears its fruit, it all boils down to the specific needs, objectives and feasibility of the business.
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