Marketing Strategy and Competitive Positioning pdf ebook

Expand the market
Market expansion can be achieved by attracting new users to the product or service, iden-
tifying new uses for the product, or by developing new products and services to stimulate 
the market. New users can be found through geographical expansion of the company’s 
operations, both domestically and internationally. For example, Asda in the UK (now owned 
by Walmart, the large American multinational retailer), pursued new customers when it 
expanded operations to the south, from its Yorkshire home base. Conversely, Sainsbury’s 
attacked new markets in the north of England from its ‘traditional’ south-east stronghold. 
More recently, Aldi and Lidl have been very successful in moving into the UK from a Euro-
pean base. Alternatively, new segments with an existing or latent need for the product may 
Figure 2.10 
Strategic focus
Improve performance
Increase sales
Expand market
New uses
New users
Increase use
frequency
Win share
Acquire share
Create
alliances
New products
Increase share
Improve profitability
Increase margins
Increase price
Add value
Change product mix
Capital costs
Fixed costs
Variable costs
Reduce costs

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ESTABLISHING THE CORE STRATEGY
be identifiable. Repositioning Lucozade as a high-energy sports-type drink found a new 
segment for a product once sold exclusively to parents of sick children as a recuperative aid.
The spectacular growth of ‘no-frills’ airlines is founded not only on taking market share, 
but also on growing the market so that more people fly more often. Ryanair, in particular, 
with carefully chosen routes where it is the only flyer, has on occasion experienced fourfold 
traffic growth.
Many manufacturers of off-road vehicles have been incredibly successful in attract-
ing new users, who would have otherwise purchased cars. Through advertising that has 
extolled the adventurous credentials of such vehicles and the safety features of the higher 
driving position and robust design, despite many of them never being used for more than 
shopping trips or taking children to school, the market for 4×4s (or sport utility vehicles –
SUVs) has expanded hugely over the past decade. Companies such as Volvo, Jaguar, BMW 
and Porsche have all successfully developed and launched new products into the market, 
although latterly emissions concerns regarding diesel engines have slowed growth some-
what. Battery technology and lighter/leaner models seem to be the way forward for manu-
facturers, with significant investment in this direction already evident.
For some products it may be possible to identify new uses. Head & Shoulders shampoo 
is a good example of this. Originally it was positioned as an anti-dandruff/‘medicated’ 
product, but more recently the overall conditioning and ‘look’ of hair washed in Head & 
Shoulders has been featured more heavily. Celebrity endorsements have also been used 
to reposition the brand as being more youthful and vibrant in order to attract new users. 
Among household cleaners, Flash was originally marketed as a product for cleaning floors, 
but now is also promoted as an all-purpose product for general cleaning, and for baths and 
basins.