• Expanding the Total Market
• Expanding the Total Market
The leading firm normally gains the most when the total market expands. If people take more pictures, then as the market leader, Kodak stands to gain the most. If Kodak can persuade more people to take pictures, or to take pictures on more occasions, or to take more pictures on each occasion, it will benefit greatly.
Generally, the market leader should look for new users, new uses and more usage of its products.
NEW USERS. Every product class can attract buyers who are still unaware of the product, or who are resisting it because of its price or its lack of certain features. A seller can usually find new users in many places. For example, L'Orfial might find new fragrance users in its current markets by convincing women who do nor use expensive fragrance to try it. Or it might find users in new demo
graphic segments; for instance, men's fragrances are currently a small but fast growing market. Or it might expand into new geographic segments, perhaps by selling its fragrances to the new wealthy in eastern Europe.
Johnson's Baby Shampoo provides a classic example of developing new users. When the baby boom had passed and the birth rate slowed down, the company grew concerned about future sales growth, J & J's marketers noticed that other
522 • Chapter 12 Creating Competitive Advantages
Figure 12.4
Market leader strategies
family members sometimes used the baby shampoo for their own hair. Management developed an advertising campaign aimed at adults. In a short time, Johnson's Baby Shampoo became a leading brand in the total shampoo market.
NEW USES. The marketer can expand markets by discovering and promoting new uses for the product. DuPont's nylon is an example of newuse expansion. Every time nylon became a mature product, some new use appeared. Nylon was first used as a fibre for parachutes; then for women's stockings; later as a leading material in shirts and blouses; and still later in vehicle tyres, upholstery and earpetirig. Another example of newuse expansion is Arm & Hammer baking soda.
Its sales had flattened after 125 years. Then the company discovered that consumers were using baking soda as a refrigerator deodorizer. It launched a heavy advertising and publicity campaign focusing on this use and persiuided consumers to place an open box of baking soda in their refrigerators and to replace it every few months.
MORE USAGE. A third market expansion strategy is to persuade people to use the product more often or to use more per occasion. Campbell encoxirages people
to consume more of its soup by running ads using it as an ingredient in recipes in women's magazines. P & G advises users that its Head & Shoulders shampoo is more effective with two applications instead of one per hair wash.
The Michelin Tyre Company found a creative way to increase usage per occasion. It wanted French car owners to drive more miles per year, resulting in more tyre replacement. Michelin began rating French restaurants on a threestar system and publishing them in its Red Guides. It reported that many of the best restaur ants were in the south of France, leading many Parisians to take weekend drives south. Michelin also publishes its Green Guide containing maps and graded sights to encourage additional travel.
Parts
» Book Principles Of Marketin Pleased
» I'hrce considerations underlying the
» The Information Technology Boom
» • False Wants and Too Much Materialism
» There is good reason to search a 2.4
» Levi's Strategic Marketing and Planning
» Analysing the Current Easiness Portfolio
» Conflict Between Departments
» Marketing Strategies for Competitive Advantage
» Principal actors in the company's
» • Persistence of Cultural Values
» McDonald's; Breaking into the South African Market
» Analysis of International Market Opportunity Deciding Whether or Not to Go Abroad
» Understanding the Global Environment
» Procter & Gamble: Going Global in Cosmetics
» Sheba: The Pet's St Valentines Day Pedro Quclhas Brito, Universidade do Porto, Portugal
» Individual Differences in Innovativcncss
» Influence of Product Characteristics on Rate of Adoption
» Selling Business Jets: The Ultimate Executive Toy
» • Systems Buying and Selling
» • Strong Influences on Government Buyers
» TABI.EI GOVERNMENT CODES OF PRACTICE IN VARIOUS COUNTRIES
» Qantas: Taking Off in Tomorrow's Market
» • Defining the Problem and Research Objectives
» CLOSEDEND QUESTIONS NAME DESCRIPTION
» Estimating Total Market Demand
» Estimating Actual Sales and Market Shares
» TimeSeries Analysis technology.
» Segmenting International Markets
» • Selecting Market, Segments
» 2 VOLUME BRAND SHARES (%) BRAND SHARE CoffeeMate total: 55.5
» 7 CONSUMPTION BY HOUSEHOLD SIZE (PER PERSON/WEEK)
» Preview Case Gastrol: Liquid Engineering
» Determine the Competitors'Positions One way of defining competitors is to look at
» Communicating and Delivering the Chosen Position
» The Need for Customer Retention
» The Ultimate Test: Customer Profitability
» 1 POTENTIAL PRODUCT FIELDS FOR AN EXPANSION OP THE UNCLE BEN'S BRAND
» 2 VARIETIES OF UNCLE BEN'S FEINSCHMECKER SAUCE
» Federal Express: Losing a Packet in Europe
» Close or Distant Competitors
» • Expanding the Total Market
» • The Customer Service Department
» What Governs NewProduct Success?
» Lufthansa: Listening lo Customers
» Managing Productivity CU _ C7 ^ •
» Mattel: Getting it Right is No Child's Play
» Internal Factors Affecting Pricing Decisions
» • BreakEven Analysis and Target Profit Pricing
» 1 CAR OWNERSHIP ACROSS THE EUROPEAN UNION
» Mobile Phones: Even More Mobile Customers
» Stena Sealink versus Le Shuttle, Eurostar and the Rest
» Preview Case British Home Stores
» • Selecting the Message Source
» Setting the Total Promotion Budget
» Factors in Setting the Promotion Mix
» Integrated Marketing Communications
» Setting the Advertising Budget
» • Selecting Advertising Media
» Standardization or Differentiation
» Media Planning, Buying and Costs
» IBM Restructures the Sales Force
» • Other Sales Force Strategy and Structure Issues
» 5 per cent sales elite apart from the rest is 'an astounding 60 per cent [are] just there for the
» Britcraft Jetprop: Whose Sale is it Anyhow? 1
» 1 COMMERCIAL SUCCESS OF THE JETPROP AIRCRAFT, 1992 NUMBER OF CONTINENT
» 1 PANEUROPEAN CONSUMER GROUPS
» Analyzing Customer Service Needs
» Defining the Channel Objectives and Constraints
» Identifying Major Alternatives
» Designing International Distribution Channels
» Evaluating and Controlling Channel Members
» • Building Channel Partnerships
» The Growth of Direct Marketing
» Customer Databases arid Direct Marketing
» DirectResponse Television Marketing
» Online Marketing and Electronic Commerce
» Germany, the UK and other countries in Europe 1997 to SI.64 billion or 7.5 per cent of global
» • Creating an Electronic Storefront
» • Participating in Forums, Newsgroups and IVcb Communities
» • The Promise and Challenges of Online Marketing
» Roberto Alvarez del Blanco and Jeff Rapaport*
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