Examples of growth strategies



Growth strategy


Unilever introduced Sunsilk shampoo in US. Was sold in Europe, Latin America and Asia.

Market development

Product not modified; expansion to US increased market potential.

Coca-Cola launched Diet Coke Sweetened with Splenda

Product development

New product; still in soft drink market (or even diet soft drink market), hence no increase in market potential.

Hasbro (toy company) launched baby care products under Playskool brand.

Product diversification

New product line; market potential increasing from toys to toys + baby care.

JC Penney, after repositioning of the brand to make it more fashionable, erected a "pop-up" store in Times Square.

Market penetration

Product modification already complete; no change in market potential.

Target added more additional designer collections in addition to current designer collections such as Isaac Mizrahi.

Market penetration

By the "special case of retailing," there is no change in the product; no change in market potential. Market is still mid-level department stores.

Gap introduced Forth & Towne brand aimed at women over 35.

Product diversification

New product; market potential increases since no brand of Gap (Gap, Old Navy, Banana Republic) was specifically targeted toward women over 35.

Nintendo launched DS hand-held game device.

Product development

New product; no change in market potential since Nintendo already sold Game Boy and thus had hand-held game devices as a target market.

Campbell developed advertising campaign for its soups.

Market penetration

No product modification; no change in soup market potential.1

Frito-Lay removed trans fats from its salty snack products.

Product development

Products were modified without introducing new brands; no change in market potential. Still salty snack foods market and even those non-buyers who didn't buy for health reasons, say concern over trans fat, were in Frito-Lay's target market. Indeed, this was a way to reach those non-buyers.

1The Wall Street Journal reported that "Campbell has to figure out how to get more people to eat soup, or get people to eat more soup." The former can be accomplished by either increasing the frequency of soup purchase or amount of soup per purchase occasion, or both; the latter can be done by selling to non-buyers, say with a slogan "Soup is good food." Note that these non-buyers were, by definition, already in the soup market and thus not an increase in market potential. (See Market penetration section.)

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