You are the newly hired consultant for Big Foot Consulting and have been assigned to the New Balance account.
New Balance wants some new thinking about where and how to profitably grow. Use the product/market expansion grid to give New Balance some new strategy ideas. Explain what each quadrant represents and give a suggested strategy to New Balance for each quadrant. As the new Big Foot Consulting firm’s consultant, I have some advice from the product & market expansion grid to profitably grow the New Balance account. Market Penetration:
Explanation: Market Penetration focuses on the current market and the current product. It increases share, increases usage, and adds new applications by taking customers from other competitors. New Balance shouldn’t change what it does; just execute things better and tactfully. New Balance doesn’t need to change its focus, but should run an ad campaign that gives users new reasons to use its products. Suggested Strategies: Some ideas for New Balance’s ad campaigns could include billboards, newspaper coupons, and email coupons.
New Balance could also throw in some free trials, promotional events (similar to CollegeFest), sales campaigns, booths at outdoor competitions & athletic events, and TV commercial themes (like the cavemen or gecko for Geico). New Balance could also get involved with sponsorships for things relative to New Balance products such as professional teams, athletes, club teams, and schools teams (New Balance…The Official Shoe of ________ ). The company could also try a “New Balance Triathlon or Marathon,” as a company sponsored event that offers products as rewards. Product Development:
Explanation: Product Development means that New Balance has an existing market and they know what their brand represents. New Balance should build on that by offering customers a new flavor or product. Suggested Strategies: New Balance should match up with its competitors such as Nike with their Nike+ campaign, which has all the iPod attachments. New Balance could also do specialized shoes like Nike Sparq does for training shoes. Professional athletes could also do a string of shoes or associate themselves with New Balance’s products. Another idea would be customizable shoe choices for different foot types or personal style preferences.
Adjustable or elastic heel straps for when people jam their shoes on quickly would be a unique idea for New Balance too. Market Development: Explanation: New Balance has an existing market and can expand by showing that the same product will work in another market through geographic expansion or alternate uses. Suggested Strategies: New Balance could expand into other countries with its products to increase revenue. The company could also start developing soccer cleats, football cleats, dress shoes, formal shoes, and other products with new market potential.
Diversification: Explanation: New Balance shouldn’t do the same things as in the past, but should use the cash flow from its core business to move into a less cyclical business. It could be a related diversification, forward or backward integrating, and even something completely unrelated that let’s New Balance move into a new realm. Suggested Strategies: New Balance could start producing socks, jackets, tents, outdoors gear, training facilities, workout gyms, water bottles, backpacks, and other general sporting gear.
Cite this Big Foot Consulting
Big Foot Consulting. (2016, Nov 25). Retrieved from https://graduateway.com/big-foot-consulting/