Market Extension Strategy
This article covers meaning & overview of Market Extension Strategy from marketing perspective.
Market extension strategy is the strategy that is related on how to make a product or service sustain in the market. Generally such kind of strategies take place in the maturity phase of the product life cycle to prevent the product from entering the decline phase. There are various kinds of extension strategies being adopted by the marketers, like repackaging, rebranding, discounting, market expansion etc.
A few important ones are mentioned below:
• Re packaging: It is the easiest way to retain a product in market. Re packaging is done to give a new and fresh look to the product. The package is done to change the perception of the consumers. For example, a product which was popular among our parents and grandparents can go for new package of the product so as to connect with the new young generation who are more potential customers to them now. The reason why they do not come with a product all together is due to a strong brand already built.
• Re branding: Rebranding is much more than repackaging. It includes changing the name, package, and logo. The complete look and feel as well as the brand name is changed and is relaunched as a new product although content of the product is same as previous one or slightly changed. It is generally done to reach a new different audience all together.
• Discounting: Changing the prices of product is another strategy. Giving discounts on products to attract the discount lovers or easy switchers can increase the sales of the product and help retain in market for a long period. Discounts are generally targeted to increase a customer base so that customers who previously aspired for the product but could not afford that will switch to this product now.
• Expanding to a new market: It is a costly affair and involves high risk. Since the motive is to tap the untapped market, new promotions and other strategies are also to be taken care of which is a costly affair. But sometimes, it works well and helps to earn more profits.
Hence, this concludes the definition of Market Extension Strategy along with its overview.
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