Most of the business sectors are occupied by recognized companies-leaders who have taken over the relevant part of the market. The list of such companies includes General Motors for the production of cars, IBM (computers), McDonalds (catering), Xerox (photocopiers), Gillette (razor blades). The market leader has to think all the time how to expand sales markets, how to find new customers and how to increase the frequency of use of their products.
Instructions
Step 1
New users
The main goal of any company is to attract a new segment of users who have absolutely no information about a new product, about its characteristics, quality and absolutely does not want to buy it. For example, Johnson & Johnson has made great strides in educating a new class of baby shampoo users. At first, their shampoo was aimed exclusively at the children's category, but after the birth rate began to fall, the company began to suffer losses. Marketers noticed that adults often use this shampoo, so it was decided to develop advertising aimed at an adult consumer. Thus, Johnson & Johnson baby shampoo has become the main brand on the market among shampoos.
Step 2
New product uses
A great way out of a market expansion situation is to increase the number of uses for the same product, as Du Point did for nylon. It was first used to make women's stockings, parachutes, and later it was used for ladies' blouses, men's shirts, upholstery of carpets and car tires. Often, consumers themselves found new uses for the product, such as petroleum jelly, at first only used to lubricate mechanisms, and then began to be used as a hair styling agent and as a skin cream.
Step 3
Increasing the frequency of product use
The third rule for expanding markets is to ensure that product use increases, for example, if a cereal company advertises them not only as breakfast food, but also for lunch and dinner, their sales will increase instantly. For example, Procter & Gamble convinced shoppers that shampoo would be more effective when applied at twice the magnification at a time.
