Accomplished entrepreneurs have always situated their success on development and implementation of effective strategies at every stage of their businesses. From idea conceptualization to execution, entrepreneurs need offering, go-to-market and business strategies. Offering and go-to-market strategies are formed at the tactical level of business while business strategy is developed and executed at a strategic level, where the business owner is expected to play crucial roles. Here are ways of developing intensive growth strategy path for your business.
This element of the path becomes vital when there is a need to increase the portion of people who consume or buy your products within a period. You can actually know the quota by measuring the sales as a percentage of total sales for one particular brand. To gain a substantial part of your market, it might be that you would need to re-strategize your pricing penetration model, increase promotion activities and attracting non-users to your products through a multiple of incentives. As a start-up, this element should be prioritized for effective sales growth. While developing this element, it would be sufficient to ruminate on questions such as:
• Are sales increasing as compared to last year? Two years ago? Three years ago?
• What is your sales growth trend and how does it compare to the sales growth trend in your industry?
• What is your market share (if known)? Is your market share increasing or decreasing? Can it be increased?
• Are there additional customers in your market that you are not reaching, and could you target them?
• How can you increase sales to current customers?
• How can you sell to more customers in your current market?
If your aim is to enter into untapped markets, effective market development is germane to the goal. It has four elements; new geographical markets; new product dimensions or packaging; new distribution channels; or the creation of a new market segment by means of different pricing. Having this element as part of intensive growth strategy path enhances your chances of selling your existing products into the new markets. To enter a new geographical market, factors such as choice of right market, business model and availability of efficient resource people are key in gaining 35% of the market at the initial stage of moving to the location. Entering untapped markets also demands rejuvenation of your products or services dimensions when it is necessary to move to the markets with the existing offerings. All the products should be repackaged to meet expectations of the targeted customers. Distribution and pricing are also mattered a lot. You should ensure selection of appropriate distribution channels and pricing methods for the new markets. Experience has shown that distribution and pricing mean that work in a geographical location might be dysfunctional in another due to different purchasing behavioural patterns of the customers.
Image Credit: Enterprations Limited
Like people, businesses are now operating in ‘the Internet of a thing’, where every business activity is pedestaled on technologies. Therefore, whether you are moving into the new market or remain in the present one, your intensive growth strategy should encompass current thinking on distribution channels. Businesses have advanced which calls for the jettison of conventional distribution channels of distributors, wholesalers, retailers, and consumers chain. Push and pull are the channels for today businesses. However, actors within the conventional distribution channels are not left out completely in the new channels, but they have been given more roles which stem from strategic goals. As a manufacturer, push channel is appropriate. It helps in sourcing distributors. For a service business, pull channel is more appropriate and effective in reaching non-consumable goods customers. Intel, maker of various computer products is using this channel. The company created ‘Intel Inside’ their brand ingredient programme by persuading manufacturers that their computers would have higher perceived value if they featured Intel in their own marketing, resulting in customers wanting to know if the PC they were buying included an Intel chip.