This document discusses market penetration, market development, and product development as intensification strategies. It provides examples of companies like Nike, McDonald's, Starbucks, Tasty Baking Company, Disney, Coca-Cola, and Pepsi pursuing these strategies. Market penetration involves gaining additional share in existing markets using current products. Market development takes existing products to new markets. Product development creates new products for existing markets.
2. Prepared By
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Manu Melwin Joy
Assistant Professor
Ilahia School of Management Studies
Kerala, India.
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com
5. Market penetration
• Market penetration
involves trying to gain
additional share of a
firm’s existing
markets using existing
products. Often firms
will rely on advertising
to attract new
customers with
existing markets.
6. Examples of Market penetration
• Nike features famous
athletes in print and
television ads
designed to take
market share within
the athletic shoes
business from Adidas
and other rivals.
7. Examples of Market penetration
• McDonald’s has pursued
market penetration in recent
years by using Latino themes
within some of its
advertising. The firm also
maintains a Spanish-
language website at
http://www.meencanta.com
; the website’s name is the
Spanish translation of
McDonald’s slogan “I’m
lovin’ it.” McDonald’s hopes
to gain more Latino
customers through initiatives
such as this website.
8. Market Development
• Market development
involves taking existing
products and trying to
sell them within new
markets.
9. Examples of Market Development
• One way to reach a new market is
to enter a new retail channel.
Starbucks has stepped beyond
selling coffee beans only in its
stores and now sells beans in
grocery stores. This enables
Starbucks to reach consumers that
do not visit its coffeehouses.
10. Examples of Market Development
• Entering new geographic areas is another
way to pursue market development.
Philadelphia-based Tasty Baking Company
has sold its Tastykake snack cakes since
1914 within Pennsylvania and adjoining
states. Now it is extensively distributing
Tastykake’s products within the
southeastern United States. Displaced
Pennsylvanians in the south rejoiced.
12. Examples of Product Development
• In the 1940s, for example,
Disney expanded its
offerings within the film
business by going beyond
cartoons and creating movie
featuring real actors.
13. Examples of Product Development
• Coca-Cola and Pepsi regularly
introduce new varieties—
such as Coke Zero and Pepsi
Cherry Vanilla—in an attempt
to take market share from
each other and from their
smaller rivals.
