Current products in new markets - Strategic Management

Product development is the name given to a growth strategy where a business aims to introduce new products into existing markets. This strategy may require the development of new competencies and requires the business to develop modified products which can appeal to existing markets. Ovaltine in the UK, in contrast to many other countries elsewhere in the world, is a product which has traditionally been associated with bedtime drinking. Much of the advertising of the previous years – if not decades – of both Ovaltine and its competitors had created the bedtime market. In 1970 a deliberate attempt was made, through the Cool-ova campaign, to create a new market – Ovaltine, drunk in cold instead of warm milk, as an anytime beverage. A good try that did not work. This is not an isolated example of action which might be taken to create new markets.


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