Intensive Strategies
Author:,
Prof. Hafiz M.Bilal
Prof. Anser Javed
(Department of Banking &
Finance)
Intensive Strategies
 Those three strategies are sometimes referred
to as intensive strategies because they require
intensive efforts if a firm’s competitive position
with existing products is to improve.
 The aim of intensive strategies is to broaden
the market share and to increase the profit by
making the existing products more effective and
by introducing new and various sets of products
in order to increase the market share too.
 The strategies require intensive efforts if a
firm’s competitive position with existing
products is to improve.
Types Of Intensive
Strategies
Intensive
Strategies
Market
Penetration
Market
Development
Product
Development
Diversification
Old Product New Product
Old
Market
Penetration Product
Development
New
Market
Market
Development
Conglomerate
Strategies
Market Penetration
strategy...
 “Deals with enhancing the share of market by
effective and innovative strategies in order to
make the present product more effective and
attractive.”
• A market-penetration strategy seeks to increase
market share for present products or services in
present markets through greater marketing efforts.
• Market penetration includes increasing the
number of salespersons, advertising expenditures,
and publicity efforts or offering extensive sales
promotion items.
Five guidelines for when market
penetration is especially effective:
 When current markets are not saturated.
 When usage rate of current customers could be
increased.
 When market shares of major competitors have
been declining while total industry sales have
been increasing.
 When the correlation between dollar sales and
dollar marketing expenditures historically has
been high.
 When increased economies of scale provide
major advantages.
GlaxoSmithKline (GSK) To Penetrate
More In India And Nigeria;
 Raised its stake in its Nigerian and Indian
consumer healthcare units as part of boss sir
Andrew withy's attempt to shift it away from
"white pills in western markets".
 Is to almost double its stake in its Nigerian
division, whose products include sensodyne
toothpaste, panadol painkiller, and drinks
horlicks and lucozade, to 80 per cent in a 15.4bn
naira (£60.5m) deal.
 A similar deal in India sees its stake in
GlaxoSmithKline consumer healthcare rise to 75
per cent from 43.2 per cent
Market Penetration
 For the following brands Unilever’s strategy is
Market Penetration..
 Clear All Shampoo
 Badami
 Vim
 Walls.
 Surf excel
 Dirt is good (Daag to achay hotay hain).
 Lifebuoy
◦ Hand Washing Campaign
Market Development
strategy...
 “Deals with adding products in different
geographic areas.”
• Developing a new market for the existing company
product is called market development strategy. This
is the process of finding new market for the new
customer to increase company performance by
increasing sales and profits. Companies can develop
market on geographical such as
city,country,region,state etc and demographical such
as age, sex, gender, class etc.
example
• Pakistan State Oil(PSO) developing new market by
exporting oil to Afghanistan.
Chinese products developed new market for their
product worldwide.
Six guidelines for when market
development may be an effective
strategy
 When new channels of distribution are
available that are reliable, inexpensive, and
of good quality.
 When an organization is very successful at
what it does plus capital and HR plus has
excess production capacity.
 When an organization’s basic industry rapidly
is becoming global in scope.
Examples of market
development
 Pakistan State Oil(PSO) developing new market
by exporting oil to Afghanistan.
 Chinese products developed new market for
their product worldwide.
Market Development:
 For the following brands unilever’s strategy
would be Market Development.
 Vaseline
This is an old product but now they are working
on its market development.
 Sunsilk
In order to further develop sunsilk’s market
they have come up with an innovative idea that is
by exploiting the religious Semitism of Muslim
women. They have launched a new product to
address the HIjabi Women.
Product development
 Product development is a strategy that seeks
increased sales by improving or modifying
present products or services.
 Product development usually entails large
research and development expenditures.
 The best thing about this strategy is you’ve
already established yourself in your current
markets and you know what your customers
want. You have the distribution channels, and
you know how to reach them.
“Deals with increasing the sales as well as revenues by
enhancing the quality of existing products.”
“The quality of existing products can be easily
enhanced by adding different flavors in it.”
Guidelines for product development to
be an effective strategy;
 When an organization competes in an
industry that is characterized by rapid
technological development
 When major competitors offer better-
quality products at comparable prices.
 When an organization competes in a high-
growth industry.
 . When an organization has especially strong
research and development capabilities.
product development
examples;
 Apple’s focus on new product development.
iMacs, iPods, iPhones, and iPads are great
examples of Apple’s ability to bring new
products to the market over the past decade
Product Development:
 Domex
It is a new product in the market and its is
launched against HARPIC of Reckitt Benckiser.
 Fair Menz
A new product to address specifically men in
terms of fairness
Unilever Pakistan Intensive
Strategies
Intensive strategy

Intensive strategy

  • 1.
  • 2.
    Author:, Prof. Hafiz M.Bilal Prof.Anser Javed (Department of Banking & Finance)
  • 3.
    Intensive Strategies  Thosethree strategies are sometimes referred to as intensive strategies because they require intensive efforts if a firm’s competitive position with existing products is to improve.  The aim of intensive strategies is to broaden the market share and to increase the profit by making the existing products more effective and by introducing new and various sets of products in order to increase the market share too.  The strategies require intensive efforts if a firm’s competitive position with existing products is to improve.
  • 4.
  • 5.
    Old Product NewProduct Old Market Penetration Product Development New Market Market Development Conglomerate Strategies
  • 6.
    Market Penetration strategy...  “Dealswith enhancing the share of market by effective and innovative strategies in order to make the present product more effective and attractive.”
  • 7.
    • A market-penetrationstrategy seeks to increase market share for present products or services in present markets through greater marketing efforts. • Market penetration includes increasing the number of salespersons, advertising expenditures, and publicity efforts or offering extensive sales promotion items.
  • 8.
    Five guidelines forwhen market penetration is especially effective:  When current markets are not saturated.  When usage rate of current customers could be increased.  When market shares of major competitors have been declining while total industry sales have been increasing.  When the correlation between dollar sales and dollar marketing expenditures historically has been high.  When increased economies of scale provide major advantages.
  • 9.
    GlaxoSmithKline (GSK) ToPenetrate More In India And Nigeria;  Raised its stake in its Nigerian and Indian consumer healthcare units as part of boss sir Andrew withy's attempt to shift it away from "white pills in western markets".  Is to almost double its stake in its Nigerian division, whose products include sensodyne toothpaste, panadol painkiller, and drinks horlicks and lucozade, to 80 per cent in a 15.4bn naira (£60.5m) deal.  A similar deal in India sees its stake in GlaxoSmithKline consumer healthcare rise to 75 per cent from 43.2 per cent
  • 10.
    Market Penetration  Forthe following brands Unilever’s strategy is Market Penetration..  Clear All Shampoo  Badami  Vim  Walls.  Surf excel  Dirt is good (Daag to achay hotay hain).  Lifebuoy ◦ Hand Washing Campaign
  • 11.
    Market Development strategy...  “Dealswith adding products in different geographic areas.”
  • 12.
    • Developing anew market for the existing company product is called market development strategy. This is the process of finding new market for the new customer to increase company performance by increasing sales and profits. Companies can develop market on geographical such as city,country,region,state etc and demographical such as age, sex, gender, class etc. example • Pakistan State Oil(PSO) developing new market by exporting oil to Afghanistan. Chinese products developed new market for their product worldwide.
  • 13.
    Six guidelines forwhen market development may be an effective strategy  When new channels of distribution are available that are reliable, inexpensive, and of good quality.  When an organization is very successful at what it does plus capital and HR plus has excess production capacity.  When an organization’s basic industry rapidly is becoming global in scope.
  • 14.
    Examples of market development Pakistan State Oil(PSO) developing new market by exporting oil to Afghanistan.  Chinese products developed new market for their product worldwide.
  • 15.
    Market Development:  Forthe following brands unilever’s strategy would be Market Development.  Vaseline This is an old product but now they are working on its market development.  Sunsilk In order to further develop sunsilk’s market they have come up with an innovative idea that is by exploiting the religious Semitism of Muslim women. They have launched a new product to address the HIjabi Women.
  • 16.
    Product development  Productdevelopment is a strategy that seeks increased sales by improving or modifying present products or services.  Product development usually entails large research and development expenditures.  The best thing about this strategy is you’ve already established yourself in your current markets and you know what your customers want. You have the distribution channels, and you know how to reach them.
  • 17.
    “Deals with increasingthe sales as well as revenues by enhancing the quality of existing products.” “The quality of existing products can be easily enhanced by adding different flavors in it.”
  • 18.
    Guidelines for productdevelopment to be an effective strategy;  When an organization competes in an industry that is characterized by rapid technological development  When major competitors offer better- quality products at comparable prices.  When an organization competes in a high- growth industry.  . When an organization has especially strong research and development capabilities.
  • 19.
    product development examples;  Apple’sfocus on new product development. iMacs, iPods, iPhones, and iPads are great examples of Apple’s ability to bring new products to the market over the past decade
  • 20.
    Product Development:  Domex Itis a new product in the market and its is launched against HARPIC of Reckitt Benckiser.  Fair Menz A new product to address specifically men in terms of fairness
  • 21.