Question

Focusing on the company Nestles Trinidad and Tobago, Market penetration, market development and Product development are strategies that were implemented within the past 3 – 5 years.

1. Interpret, discuss and evaluate these strategies in depth.

2. From your perspective, identify three (3) key benefits that the organization has gained from the implementation of the strategies.

Answer 1

1. Market penetration: -The market penetration strategy focuses on increasing the market share by selling existing products or services in the existing market. Market penetration requires the strong implementation of price, improvement, and distribution to increase market share.

Nestle market penetration- Nestle is one of the largest manufacturers in the world. Market penetration involves stimulating the sale of existing products in the current market. This often involves small product adjustments. Therefore, this strategy minimizes the risk of outstanding payments.

Measure the sales of an existing product or service against the total target market for that product or service.

2. Market development: -This strategy is used when stocks target a new market with existing products. Identify and develop new market segments for existing products. Market development strategies are aimed at non-buyers in the currently targeted segment. It also targets new customers in new sections. Another way to expand sales is by using new products.

For nonprofit businesses, you need to focus on cost-effective management and take leadership action at all levels to drive faster development. This approach allows you to find value proposition for your buyers and shareholders to invest in resources to redefine product innovation and build a business.

3. Product Development: -Nestlé products include baby food, medical food, mineral water, breakfast cereal, coffee and tea, sugar, dairy products, ice cream, frozen food, pet food, and proper nutrition. Nestle provides products to customers through supplier and market transportation. Therefore, the product is widely available to the customer. Product development strategy is the process of testing from concept to bringing new innovations to consumers through distribution.

2. Organizations can benefit from the following strategies:

1. Efficiency is improved by improving profit margins due to forceful prices. Efficiency is needed to stay profitable.

2. Increase new customers, increase profits and increase business. Successful implementation of the strategy can give some organizations a competitive advantage.

3. Brands and businesses can help maintain the customer base and relevance. Prepare the business for competitive reactions or changing market conditions.

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