The document discusses different strategies for business growth and expansion. It classifies growth opportunities into three categories: intensification, extension, and diversification. Intensification focuses on strengthening existing markets. Extension involves logical growth into new areas like geographic locations or product lines while leveraging existing customers and relationships. Diversification represents converting into new sectors or targeting new customer groups to create value in wholly new areas. Various implications and examples are provided for each category and growth lever.

1. Group :2

3. Optimizing Business Expansion of Business Redefining the Business Leads to Superior Customer Value Proposition Economic Advantage

4. It is the retailers’s responsibility to determine & understand these reasons or needs and ensure that the formats focus on addressing them Buyer purchases for their reasons, not those of a retailer The selling Process that begins only when we earn buyer trust Fortune Institute of International Business

5. Extension Relationship Intensification Diversification Retailing Principles Fortune Institute of International Business

6. The retail growth opportunities can be classified on the basis of their desired outcome:: Growth Strategy Objectives Growth Levers

7. Focuses on the existing business Includes Spectrum of : Intensification of the current scope of the business Logical Extension Strategic diversification

8. Represents the horizontal axis of the matrix & pertaining to the market opportunities with respect to : Geography/Location Product/Service offered Target customer Format/Channel

9. INTENSIFICATION Strengthens position in existing markets by increasing market positioning. IMPLICATIONS : Enables the retailer to explore opportunities Fills gaps in existing markets Ex: Walmart

10. Geographic Extension Expand more with similar market characteristics to reach more customers in target segment. IMPLICATIONS : Retailers facing saturation in major metro markets enter into small & urban markets. Ex: Vishal Mart

11. Geographic Diversification Expand into new locations with different market characteristics to reach new customers IMPLICATIONS : Opening stores in alternative locations like airports, entertainment venues allows increased shopping frequency amongst the existing customers. Ex : Loreal, Revlon

12. INTENSIFICATION Optimize existing offer to better serve existing customers IMPLICATIONS : Growth can be achieved by capturing the unsatisfied desires in the consumer market place. Ex: Ambience of Lowe’s stores to appeal the females customers

13. Product/Service Extension Expand existing offers to leverage relationships with existing customers & attract new customers. IMPLICATIONS : Enhances the physical product offer that the retailers seek to create solution-driven concept. Ex: EDLP in WALMART

14. Product/Service Diversification Convert into other sector to create value for new & existing customers in a wholly new area. IMPLICATIONS: Offering new services outside their core competency . Ex: Virgin Atlantic, Reliance.

15. Customer Intensfication Build & Maintain customer loyalty & Satisfaction IMPLICATIONS : “ Best Customers” who spend freely Ex: Marketing & Loyalty Programs.

16. Customer Extension Discover areas of uncovered potential to sell more to existing customers Customer Diversification Target new customer Groups in addition to the existing loyal customers.

17. Format Intensification Enhance the shopping experience of existing customers with updated formats. IMPLICATIONS : While the scarcity in the stores leads to quality investing rather than quantity.

18. Format Extension Target customers in shopping situations & satisfy different shopping needs of same customers Format Diversification Embrace creative use of available consumer touchpoints