A brand growth strategy is a plan or idea that will help promote the market share of the particular product or service. A market strategy is designed by marketing companies in Chennai according to the resources of the company and the current conditions it is operating in. Namely, the industry, market conditions, finances and the target market. 

The strategy is usually based around a long time period of a few years as recommended by most top branding companies. The Ansoff Matrix is a framework for the 4 strategies of brand growth. The various strategies are-:

Market Development in Brand Growth:

Market development is different to market penetration as it refers to the entry into new markets that already have established products in the market as studied by PR agencies . A new market can be a new geographical location that has not been exploited by the product before or a new demographic of people that has not been targeted before.  

A perfect example for this strategy is Uber. Uber was founded in the year 2009 in San Francisco. In the 12 years since then, Uber has introduced various new services such as ride sharing and luxury upgrades. They expanded their market geographically and demographically. Now, in 2021 the company is operational in nearly 10,000 cities. It has now become a titan of the transportation industry.

Diversification in Brand Growth:

The Diversification strategy is one of the most dangerous strategies on the Ansoff Matrix. The strategy involves creating new products or services to enter new markets and aid in the growth of the brand. This strategy has the highest risk of failure. 

Most brand strategy companies believe that there is no guarantee of success but the high risk brings a high reward. Apple is a perfect example for this strategy. In 2010, Apple introduced the iPad and created a new market for a tablet along with smartphones and laptops. They created an entire new segment and are still dominating it with no proper competitors. Apple’s strategy has clearly worked as it was the world’s first trillion dollar company in 2018. They became the first company to be valued at 2 trillion dollars in 2020. The company’s been going from strength to strength due to their diverse portfolio.

Market Penetration in Brand Growth:

Market penetration is the strategy that involves direct marketing, to create awareness among customers for offerings. One of the most common methods of market penetration is reducing the price of a service or product. Most giants in markets use this strategy and one of their major tactics as analysed by digital marketing companies is acquisition of smaller competitors. 

A key example of market penetration is Adidas’s acquisition of Reebok. Adidas acquired Reebok in 2006 for 3.8 billion dollars. In the 15 years since, Reebok has lost all sponsorships in the NFL and NBA. On the other side, Adidas has gained significant sponsorships in football and various other sports.  Adidas has also acquired the most lucrative kit sponsor deal in the history of sports with Manchester United that amounts to 750 million dollars over a period of 10 years. Adidas represents sporting icons like Lionel Messi, Kevin Garnett and even Ranveer Singh.

Product Development in Brand Growth:

Product Development is another strategy on the Ansoff Matrix. The strategy was to bring in new products in the markets where we have a considerable share. This strategy can be as simple as creating a new flavour of icecream or a new shopping line as the sandwich shop on the road starts selling ice cream as well. It involves making an existing product better or creating a new product entirely to satisfy the needs of the market. 

An appropriate example for this strategy is Amazon. Amazon expanded from being an online bookstore to now being the biggest online seller of goods in the world, recently overtaking Alibaba. The brand is based on simplicity and the logo also has subliminal messaging with the A of Amazon pointing towards the Z, showing that the brand sells everything from A-Z. Amazon’s product is literally everything and it has taken them a long time to achieve this perfect product.

Brand growth is by no means simple and we hope this article gave you an insight into this complicated strategy. To create a strategy for your brand as well, contact Birth Marque, the best branding agency in Chennai.