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Practical Application: Choosing Strategic Alternatives in Marketing

Instructor: Mary Matthiesen-Jones

Mary has worked around the world for over 30 years in international business, advertising, and market research. She has a Master's degree in International Management and has taught University undergraduate and graduate level courses .

The lesson How to Identify Strategic Alternatives in Marketing covers four methods that companies can use to increase sales and profits. Let's review how to apply your understanding of these options and learn the questions to ask when selecting one.

Scenario

MaxiGlam executives have been reviewing the company's shampoo business. They currently sell a limited range of mid-priced shampoos and conditioners for women in North America. MaxiGlam produces its products in Mexico due to lower costs. The products are available in chain beauty salons and beauty supply companies that sell to the public. Sales are declining although the hair care market overall is growing. The MaxiGlam staff has completed a SWOT analysis (strengths, weakness, opportunities, and threats). They summarized their key conclusions.

Strengths Weaknesses Opportunities Threats
Brand name recognition Limited line Other products, e.g., hair spray Product cloning in Asia
Quality Distribution Ethnic markets Low-priced products
Salon-recommended Limited budget Men's grooming products Increasing production costs in Mexico

They want to expand the business. MaxiGlam has a range of different approaches to consider to increase sales.

  • Market penetration - increase share among existing customers
  • Market development - attract new customers to existing products
  • Product development - develop new products for current markets
  • Diversification - create new products for new markets

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