Daniel Menard Reveals The Top 4 Growth Strategies
Daniel Menard is a seasoned leader in Carignan, Quebec. As a senior executive with decades of management experience, Daniel Menard wants to share the four critical growth strategies that help succeed in forming a profitable company. Certain development plans are more effective than others.
The Top Growth Strategies In Business
A growth strategy will strengthen the value of any company. Although most small businesses see the need for expansion, they do not have the tools to employ time-tested methods. By providing structure and support, Daniel Menard has seen a variety of businesses flourish.
Market Penetration
Market penetration is one method that is commonly used to help small businesses grow. This strategy involves marketing existing products. According to Daniel Menard, this is done by increasing market shares.
Market share is the percent of total sales that a company has generated. This is an important metric for defining the size of a company in relation to its competitors. A typical market share metric is conducted within the first quarter or year.
Investors are particularly interested in monitoring market share. A growing business indicates its market share will be producing revenues at a faster rate than its competitors. Profitability is likely to improve for these companies and can gain the attention of future investors.
High market penetration has significant benefits to any business. A company with high market penetration means the business is an industry leader, and products or services are now widely recognized. With increased visibility in the market, the business has brand equity that is valuable on a large scale.
An example of market penetration would be if a luxury sock company expanded into the child wear department. The product is the same, but it now has a larger audience by expanding into an existing market. Strategies for market penetration can include altered marketing styles, identifying customer needs, and updating an already existing product.
Market Development
The market development growth strategy identifies new marketing segments. By finding new customers, new products are not necessary. Using existing products can cut down on design costs and further manufacturing methods.
Before using this strategy, Daniel Menard recommends considering the individual business. A company must first be analyzed for its profitability, creative flexibility, and customer knowledge.
Market development and market penetration may seem similar at first — the difference between the two lies within the target audiences. Market penetration targets new customers in the same market. Market development sells into new markets.
This strategy can use free trials to let potential customers in other marketing segments try the existing products and services. Marketing the same product with new benefits can also expand across audiences. The geographic expansion involves increasing the marketing campaign and strategy to physically different locations.
Product Development
Product development allows new businesses by bringing new products into the market. These products can be completely rebuilt or modified depending on the company. To develop a new product, the same audience is usually used.
A product development strategy uses market research to grow a business. With existing data available on various customer bases, idea development has direction. Idea development includes brainstorming for new products as well as modifications.
The prototype is a drafted version of the potential new product. This will be used to research how an audience reacts to it. If the product functions successfully, an analysis can be conducted before product creation.
Popular product development strategies include changing product ideas, modifying existing products, packaged deals, and creating brand new products. This type of strategy will help turn an idea into profit to gain recognition. Understanding the strengths and weaknesses of a product will also help generate revenue in the future.
Product Diversification
Paying attention to new business trends is important for the overall health of the company. By monitoring the competition, businesses can remain relevant. Product diversification can potentially expand the existing market for a product by adding new components.
Product diversification is often used to increase the profitability of a product line, but it can also help develop new technology and expand the overall market. Trends can come from societal changes that also have unexpected benefits. For instance, “Going green” is a current trend that capitalizes on new markets useful for the environment.
A diverse portfolio can prevent an unexpected downturn. If an industry no longer becomes relevant, a different product can offset a business’s financial risk. Since industry-related challenges will happen at some point, it is best to be prepared by managing a risk mitigation plan.
Diversification builds brand recognition across different market segments. With new products that can be advertised to separate audiences, brand awareness significantly increases. Visibility is crucial to recognize a company, and consumers that easily identify a company’s brand are more likely to purchase from a familiar business. Brand strength can greatly increase profits as well as retaining customers.
Methods of diversifying products can include repackaging. Repackaging does not necessarily mean physically changing the appearance of the product. It can incorporate the way a product is used. Expanding marketing across audiences can be done with new products or existing ones.
Resizing products, renaming products, and repricing products are all valid ways to diversify a business. By using product diversification to grow a company, the brand will reach varying demographics.
Planning and Patience
Growing a business will take patience and planning. By using one of the four major growth strategies, a business can appeal to major investors and a diverse customer base. Regardless of the industry, improvement can help both consumers and business leaders.
