Market Expansion via Product Diversification Training on Expansion Strategies September 13, 2011 RBAP Bldg, Intramuros
What Should We Do? MF Growth Strategy 2011 – 2014 Introduce new loan products to existing clients? Exploit new distribution channels? Form strategic alliance with other institutions & cos.? Introduce new loan products to new markets segments? Growth Objectives Move upmarket to target bigger customers? Expand branch network to new region? 1. What’s my strategic growth objective? 2. How do I assess competing opportunities? STRATEGIZING – OPTIONS! OPTIONS!
9 Ways to Build Demand: Mix and Match Source: Philip Kotler, International Marketing Guru & Professor, Kellog School of Mgmt, Northwestern University, Illinois P R O D U C T S Existing Modified New MA R K E T Existing Sell more of existing products to our existing types of customers (Market Penetration) Modify current products and sell more of them to our existing customers (Product Modification) Design new products that will appeal to existing customers (New Product Dev.) Geographical Enter and sell our products in other geographic areas (Geographic expansion) Offer and sell modified products to new geographical markets Design new products for prospects in new geographic areas New Sell our existing products to new types of customers (Segment Invasion) Offer and sell modified products to new types of customers Design new products to sell to new customers (Diversification)
BSP recognizes loans for housing to low income groups as microfinance but with loan amount and term that may extend beyond P150k and 12 months, respectively. Micro Agri Loan Small loans up to P150k Short term: up to 12 months