The market leader strategy

There are three strategy of marketing leader, are as following 

1. Expending the total market.
2. Defending market share
3. Expending marketing share

Expending the total market.

• New Users

E.g.: perfume :--> non-users (mkt-penetration start)

--> Men (new market start)

--> Other countries (geo-expan strat)

E.g.: J&J Baby shampoo: birthrate declining

--> ads target adults --> leading brand

• New uses

OJ: “not for breakfast anymore”

Du Pont nylon: parachute-->pantyhose-->blouses & shirts --> auto tires -->seat belts -->

carpeting

 carpet/pet deodorant

--> Bath tub relaxant --> tooth paste -->

• More usage:

Michelin: want French to drive more --> rate restaurants (best in south --Provence &

Riviera) --> publish guidebooks with maps and sights along the way

DEFEND MARKET SHARE

• decide where to defend

• Continuous innovation along Mktg Mix

Position defense:

- Purely defensive not enough

--> must take offensive counter-measure

e.g.: Coke --> multi segments of cola mkt

--> enter wine market--> acquire fruit drink companies

--> Desalination equipment--> Plastics

EXPANDING MARKET SHARE

PIMS (Profit impact on mkt strategy) reports higher profits with higher mkt share

Argument: Profitability goes with high MS

E.g.: MB high P because it a high MS holder in its served mkt (luxury segment)

E.g.: 1 share point gain:

Coffee: > $80M

Soft drinks: $ 150M

CAUTION: gaining MS not necessarily gain P

- depends on strategy for gaining increased MS-- cost of buying higher MS < revenues generated