How do firms penetrate an existing market? Essay -- Business and Manag

How do firms penetrate an quick securities industry?Cadburys devote to improve their levels of securities industry perceptivity and alsomake more sales customers.Cadburys have improved their penetration which helps them to improve commercialise deal. It can growth in in that location market role which can create evidential sales. commercialize penetration suggests a further penetrationof existing markets with existing overlaps. This will involve astrategy of increasing market share within existing segments andmarkets. Market development is a strategy requires the producer to develop raw market segments for produces. Product development is the litigate of researching market needs, creating merchandises to meet the identified needs. Diversification means going into new market with entirely new products. Market penetration is increasing the % of sales in present markets by taking sales from competitors.To improve their market penetration there are six district stages inthe development process for new products are- IdeasAll Cadbury products start from ideas. These ideas may come from the by-line sourcesResearch and Development-This is where product development and market research working(a) together.Mindstorming-This is where it involves few people developing ideas from words and concepts.Suggestion box- present Cadburys is working close to the customer and the sales forces understand their needs and requirements. labored relationships-At times one or more products can be joined together to form new product concepts.Competitors- Monitoring the actions of competitors may let a rich source of new ideas.Screening of ideas-Once Cadburys ideas have been generated. It is eventful to screen for the ideas likely to be successful. Considerations may include how well the product fits in with others in the product range the unique element of all idea that makes it competitive. They are likely to demand for the product and whether or non it could be manufactured economically.The two main errors Cadbury needs to avoid when display ideas are They must not reject new ideas They must not develop poor ideas or Cadbury will loose moneyMarket analysisOnce Cadburys ideas have been screened market analysis begins. Itinvolves analysis of the product market potential. This he... ...ment consultants in the USA. StarsThese are products with a risque market share like Cadburys in a rapidlygrowing industry. Unless Cadburys hot chocolate metre has not achieved thisposition through heavy discounting, it should be generating highprofits. For Cadbury to last out a star in a competitive environment itschocolate bean will continue to need heavy marketing expenditure. funds cowCash cows have a high market share in a slow growing, but maturemarket. Cadbury could accrue into this because there competitors do havehigher cost slightly. But Cadbury benefits from high economic ofscale. It can generate high profits which could be utilize to fina nce task children/question marks.Question Marks and problem childrenThis product has a low market share in a rapidly growing market. Thebusiness has to decide whether to with draw the product or to supportit with heavy marketing, which could be difficult if it is notgenerating funds elsewhere. crossThis product has a low market share in markets where there is littleor no growth.At this stage a product is at the end of its life cycle. The productis best if it is dropped out of its portfolio.