With Market penetration, the most important point is the reaction of customers and the most attractive thing to them is advertising and promotion, so when TH True Milk implements the market penetration, they have to spend much money on 2 kinds of problem above. It leads to decrease the profit of company. After they have done the job (build up the image and brand), they will easily to take more loyal customers and fulfill their small strategic, like: buy 2 get 1 free or discounting days and so on. It seems to be possible with TH True Milk to penetrate that kind of potential market.
In term of market development, it may be the riskiest for TH True Milk when they want to fulfill this strategy. First of all, money is a big problem. To invest in a new market, the company needs a large capital and even their financial is not enough. There are many challenges for TH True Milk, for examples: They must pay interest rates (if they borrow money from bank), they must build up a new image, a new brand for new segmentation even it existed some strong brand name from other dairy companies, they must adapt to new environment if they implement market development in different areas, etc. Therefore, before penetrating into market development strategy, TH True Milk must think and consider carefully about all the circumstances, the demand and adaptability of customers. In the contrast, if its success, the market share and benefit will increase significantly, so the acceptability for this strategy is not high.
At Product development, the customers will have many choices to choose suitable product, not only inside TH True Milk but also from other companies. It does not waste a lot of money as Market development, but TH True Milk needs to care about other difficulties, like the demand, tastes or trend of customers to do stand out from competitors. The acceptability for this strategy is normal.
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