Assignment: "Product Market Expansion Grid"
Assignment: "Product Market Expansion Grid"
Assignment: "Product Market Expansion Grid"
The Product Market Expansion Grid is a business tool which is used to develop business growth
strategies by searching the relationship between new and existing products, new and
existing markets, and the risk associated with each possible relationship.
1. Market Penetration
2. Product Development
3. Market development
4. Diversification
Product
Aarong is a chain of Bangladeshi department stores specializing in Bengali ethnic wear and
handicrafts. It is owned by the non-profit development agency BRAC, and employs thousands of
rural artisans across the country. It currently operates twenty-one outlets in nine Bangladeshi
metropolitan cities.
Aarong Market Expansion Grid
Market Penetration: It is the strategy of introducing current product to its existing customer.
On that stage, existing customers are aware of current product but not making effort to purchase
that new product. So that, Aarong has taken some penetration strategy which is given below:
Product Development: This particular strategy is taken by company when company introduce
new product to its existing customer. This strategy is taken by company because customers don’t
buy the old product or they want something new in their product line. Aarong has also taken this
strategy for keep their brand equity high and unique. Aarong has added new product line to their
product mix. E.g. Taaga (female casual wear blending with traditional design) and maternity
wear.
Market Development: Through market development, company introduces its current products
to the new customer. This strategy is mainly taken for to capture undifferentiated customer and
for expand its market reach. Some of the market development strategy taken by Aarong is given
below: