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Developing Tyrrells Potato Chips - Essay Example

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This paper tells that Mr. Chase started this company not out of real entrepreneurial spirit. It was built more out of a necessity to counter the problem of low prices offered by supermarkets like Tesco to potato farmers in the country…
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Developing Tyrrells Potato Chips

For this purpose it may resort to more advertising, other promotions, offering discounts and better customer service. It can also try to compete by making its operations more efficient and thus bring down its costs. Alternatively, it can try to increase its economies of scale by more investment.
Sometimes existing market may become so saturated or uneconomical that companies may enter new markets with existing products. Such a strategy falls under the category of market development. The obvious example is the entry of multinational companies into new markets with existing products they were selling in the home country or other markets. This entry could help the company to transfer loyalties of customers to buy its own products. This is very effective if the product is a well-known brand in the world and is being made available for the first time or in large quantities.
If a new product is manufactured by a company and it tries to sell it in the same market it operates, then it is classified under product development. The company is confident that its new product will be attractive in the existing market itself. Companies try to market the new product to existing customers or even get new customers to buy them. The product could be completely new or can be used as accessories or add-ons to its existing products. “Sell new products or services in current markets. These strategies often try to sell other products to (regular) clients. These can be accessories, add-ons, or completely new products. Cross Selling. Often, existing communication channels are used.” (Product/Market Grid (Ansoff) 2008).
Product diversification is an instance where a company develops or acquires a new product and market in an entirely new place. There are four ways of diversification that can be used by a company. ... Read More
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