Today, competition among new businesses is fierce. Although most people start businesses not with the goal of making money in mind, in order to become a sustainable entity the company needs to turn a profit. This means that the person or people starting up the business need to have very clear strategies in place for the brand growth of their organisation.
There are four ways to strategise for brand growth. These are the following:
- Increase the share which you hold in the markets that you are strong in,
- Develop new products and services for those markets,
- Extend your reach by discovering new markets for your current brands, and
- Develop new products which cater to new markets.
The brand growth strategy matrix is a straightforward way for visually which represents the options a business can use in order to enhance its market growth. The matrix looks at two dimensions:
- Products, as well as
This strategy considers if they are new or existing and results in four separate growth strategies:
- Market penetration (current market and product),
- Market development (new market and current product),
- Product development (new product and current market), and
- Diversification (new product as well as new market).
The market penetration strategy is the most cautious growth strategy however it is also the most challenge. It is conservative as it relies on a current market in addition to current customers. This means that there is a slight risk of failure however it is also challenge to achieve growth through this strategy as you must depend on a limited market without having anything innovative to offer. In order to attain greater market penetration, a company will be required to sell more to the current base of customers.