Understanding the dynamics of not only sales but also the distribution network as well as the tastes and preferences of a given market is integral to the success of every business. Getting to know the exact distribution channels of a given product would help in keeping track of the company sales. Considering having acquired a new company and probably targeting to venture into a new market niche, it is essential for the company to adopt several strategies that would help effectively penetrate and become successful in that new market. Some of the strategies that would get adopted include market development strategies, penetration strategies as well as the value proposition.
Penetration Strategies
Price Adjustment
Price adjustments serve as one of the most sought out strategists regarding market penetration. It involves slightly reducing the prices of the goods with the primary aim of increasing the sales ( Baker, 2014). The lower prices attract more customers who in turn lead to more purchases of the commodity. By reducing the prices of the packaged ice and actively marketing it directly to the consumers, it will be so easy for them to make purchases considering the lower prices as compared to the company competitors that sell the same product to the consumers.
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Augmented Promotion
Conducting brand awareness through means such as advertising will make the target consumers aware of the benefits brought by the company products ( Boone & Kurtz, 2013) . Adopting a long-term campaign strategy of the producers by explaining the overall benefits that the customer stands to gain by making direct purchases from the company through the distribution agents will convince the customers to buy the products hence allowing for easy penetration of the product to the target market.
Development Strategy
When introducing the packaged ice to the new market which in this case is the consumers, it is essential first of all to understand the exact competitors that t the company will be facing. To effectively reach the consumers the company will development strategies such as distribution. The company will make the distribution outlets of the packaged Ice easily accessible to the general population. It will make the company a physical location known through advertisement platforms that it’s shall employ in the product penetration stage
Value Proposition
Creating value in a product that communicating it both internally and externally is of the essence to any organization since helps in driving the business towards achieving great heights ( Osterwalder, Pigneur, Bernarda & Smith, 2014) . Since the company is looking forward to investing in a new line of a market which involves dealing with consumers directly, the company will be geared towards offering full services such as free delivery to the clients who make a bulk purchase. They would also benefit from the discounts that they will receive upon purchase of packaged ice exceeding a certain limit. Purchases will be made directly from the verified company outlets at the company price unlike getting the product from contracted distributor outlets who may slightly increase the price. From this, the customer will benefit from substantial price margins since no broker will get involved in the distribution chain. To frequent clients, upon reaching a certain purchase , they will benefit from a membership card which will expose them to more benefits such as attending internal company growth and development meetings aiming at improving the overall company performance. They would later have the opportunity to serve as the company main distributors in the overseas markets.
References
Baker, M. J. (2014). Marketing strategy and management . Macmillan International Higher Education.
Boone, L. E., & Kurtz, D. L. (2013). Contemporary marketing . Cengage learning.
Osterwalder, A., Pigneur, Y., Bernarda, G., & Smith, A. (2014). Value proposition design: How to create products and services customers want . John Wiley & Sons.
