Product development strategy
When it comes to the new product development strategy, Ansoff matrix could be applied and evaluated.
Existing product
New product
Market penetration
Product development
Current doings:
Current doings:
1. Developing wide range of product lines.
1. Bomber and mountain jacket. (2014)
2. Seasonal or festive promotion
2. Online Exclusive (notebook; flask; playing card;
Pros:
shoes)
Existing market
1. Expanding more customer- based.
Pros:
2. Increasing sales quickly
1. Giving customer more choice of style for daily life.
Cons:
2. Increasing online sales
1. easily confusing customers because of multi-options
Cons:
2. Too often price reductions may lead to loss of
1. Risks to be refused.
customer loyalty. Recommendations
2. Undermining brand reputation if product style or function are not suit for brand identity.
1. Clear segmentation of different lines in features.
Recommendations:
2. Every single line has clear target demographic
1. Launching sub-lines for cheaper prices.
3. Temporary sales for VIP member.
2. Developing new products based on male‘s life style,
4. Launch pop- up stores.
such as sport activity or 3C technology.
Market development
Diversification
New market
Current doings:
Current doings:
1. Expanding business rapidly in several countries.
Launching man’s grooming stores.
2. Global Edition collection for the luxurious
Pros:
customer segment. Pros:
1. Quickly recognized by customer because of existing brand name.
1. Complete product ranges provide for customers in new
market.
2. Increase market share. 3. Increasing the corporate total turnovers rapidly.
2. Appealing customers from highest class of society.
Cons:
Cons:
1. Eroding brand name if new businesses are failed
1.
Failure by culture differences or market saturation.
2. High completion by numerous luxury brands
because of offering lower products or services. 2. The company resources will be reduced because it is shared within too many brands.
Recommendations
3. Lack of expertise to manage new business
1. Expand in emerging market-MINT
4. Reduced innovation if companies diversify too
2. Creating new brand name for luxury market. 3. Enhancing product promotion for mature market, especially suits and shoes.
widely, this can lessen their focus. Recommendations: Coffee shop (agnesb); Furniture(RL);Sport (H&M); Hotel (Bulgari)
Ted Baker Brand Report 2014 88