Intensification strategy

Types of intensification strategy

Following are types of intensification strategy

1. Market penetration Strategy
2. Product development strategy
3. Market development strategy
4. Diversification strategy

Igor Ansoff gave a framework as shown in figure which describes the intensification options available to a firm.

Market Penetration

• Increase market share Increase product usage Increase the frequency used Increase the quantity used
• Find new application for current users Product Development
• Add product features, product refinement Develop a new-generation product Develop new product for the same market

Market Development

• Expand geographically target new segments       
• Diversification involving new products and new markets
• Related / Unrelated

Market Penetration Strategy

1. Increase market share
2. Increase product usage
3. Increase the frequency used
4. Increase the quantity used
5. Find new application for current users

The firm directs its resources to the profitable growth of its existing product in the existing market.

Market penetration strategy can be followed through any or all of the following ways:

1. Attract and retain customers
2. More sales to existing customer
3. Attract non-users of the product

Market development strategy

Market Development: Expand geographically targeted new segments. It consists of adding different channels of distribution or by changing the content of advertising or the promotional media.

Diversification strategy

Diversification Strategy is Non related but this is just for Ansoff product matrix.

Product development strategy

Product Development: Add product features, product refinement, develop a new-generation product, develop new product for the same market.

Product development involves substantial modification of existing products or creation of new but related items that can be marketed to current customers through establish channels.