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

How do firms penetrate an existing foodstuff?Cadburys have to improve their levels of securities industry penetration and alsomake more sales customers.Cadburys have meliorate their penetration which helps them to improvemarket share. It can increase in there market share which can createsignificant sales. Market penetration suggests a further penetrationof existing markets with existing products. This will involve astrategy of increasing market share within existing segments andmarkets. Market phylogeny is a strategy requires the producer to develop raw market segments for products. Product development is the process of researching market needs, creating products to meet the identified needs. Diversification means expiry into saucily 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 pursuance sourcesResearch and Development-This is where product development and market research workings together.Mindstorming-This is where it involves few people developing ideas from words and concepts.Suggestion box- Here Cadburys is working close to the customer and the sales forces understand their needs and requirements.Forced relationships-At times one or more products can be joined together to resile new product concepts.Competitors- Monitoring the actions of competitors may provide a rich source of new ideas.Screening of ideas-Once Cadburys ideas have been knuckle underd. It is important 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 any idea that makes it competitive. They are likely to indigence for the product and whether or not it could be manufactured economically.The two main errors Cadbury needs to avoid when screening ideas are They must not reject new ideas They must not develop poor ideas or Cadbury will loose moneyMarket depth psychologyOnce 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 high market share like Cadburys in a rapidlygrowing industry. Unless Cadburys chocolate stripes has not achieved thisposition through heavy discounting, it should be generating highprofits. For Cadbury to remain a star in a competitive environment itschocolate edible bean will continue to need heavy marketing expenditure.Cash cowCash cows have a high market share in a slow growing, but maturemarket. Cadbury could fall into this because there competitors do havehigher cost slightly. But Cadbury benefits from high economic ofscale. It can generate high profits which could be used to financeproblem children/question marks.Qu estion 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.DogThis 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.