2. Introduction:
The main objective of the business is to generate
profit and avoid losses. In order to
achieve this, most entrepreneurs pay attention to enter
the market. This chapter focused on
understanding new and existing markets, goods
and/or services that would be of benefit to
new and existing entrepreneurs.
3. Introduction:
Certain questions will come to an entrepreneur’s mind
such as: (a) Have you found a potential market that you are
missing? (b) Can this potential market benefit from your new
goods and/or services? (c) Can you, or your staff, build a
business development plan, and assess its effectiveness? (d)
Will your attempts to enter this new market be worth your
business or organization's investment?
4. New Market Development
• It is the expanding potential of goods and/or services with
the aim of extending scope or tapping into another sector or
uncharted market. It starts with market research in which an
organization conducts a segmentation study and brief market
segments that are worth exploring.
• This is an opportunity to utilize a good or service to draw
potential consumers.
5. New Market Development
For instance, there were no milk tea shop
(DTI-registered or non-registered) in Palayan
City, Nueva Ecija since 2019. This is an untapped
market for milk tea industry. Hence, the
untapped market is not limited to launching of
new good or service (it could be an existing
one).
6. Two Types of Needs:
1. External Needs. Converge uses pure-fiber optic technology in the Philippines.
The technology has enhanced the Internet experience when browsing,
downloading, and playing by reducing Internet congestion and downtime. It
originated in Angeles, Pampanga and has now extended to Metro Manila, Luzon.
2. Internal Needs. Bounty Agro officially introduced Oven-baked Chicken Chooks-
to-Go in 2008, expecting the reduction from 30 per cent in 2007 to just 5 per
cent in 2010 of the importation price of dressed chicken. This may carry lower
prices countries, such as Thailand, into the Philippines to export their dressed
chicken. This revolutionary move was the winner in value added because it was
capable of tasty bounty chicken to customers at cheaper prices, although Bounty
Agro had greater profits as the producer.
7.
8. Ansoff, an early proponent in strategic management, created a
matrix that quantifies growth in market, and goods and
services. The Ansoff Matrix helped many corporations get a
clearer
view of the uncertainties involved in the development of their
firms.
1. Market Penetration. In order to achieve market share growth,
the concentration is on selling existing goods or services to
existing markets.
2. Market Development. The concentration is on finding new
markets or consumer segments for the existing goods or
services.
9. Ansoff, an early proponent in strategic management, created a
matrix that quantifies growth in market, and goods and
services. The Ansoff Matrix helped many corporations get a
clearer
view of the uncertainties involved in the development of their
firms.
3. Product Development (Ansoff Matrix perspective). The
concentration is on designing, and launching of new goods
or services for the existing markets.
4. Diversification. The concentration is on the designing and
launching of new goods or services to sell into new
markets.
10. Two Types of Diversification:
1.Related Diversification. There is overlap
between a company and a new
product or market.
2.Unrelated Diversification. The new product or
market is unrelated to the
core business.
11. Jollibee comes to London:
Asia’s biggest fast food chain to open first branch in the capital. A new
competitor to McDonald's Big Mac and KFC Bucket Meal, fried chicken and spaghetti, is
about to hit London's fast food market. Jollibee, the Philippines‘ largest home grown
fast-food restaurant, is opening its first UK store later this month in Earl's Court. The
chain, initiated in 1975 in Manila as an ice-cream parlor, is known for its fried chicken
and spaghetti signature meal. It is just the second branch of Jollibee in Europe, after a
launch at Milan in March, when large queues commence from the beginning of the
day. Jollibee Foods Corporation (JFC) has ambitions to become one of the top five fast
food restaurants in the country. It gets us closer to fulfilling this vision by launching
our first shop in the UK.‘ This signature chicken is said to have crispier exterior layer
because of which it is spicier. The opening is regarded for the Philippine community as
so culturally important that the Philippine ambassador is supposed to participate. The
company has a dedicated and massive following in the Philippines, one of the few
global markets in the world where one of the locally-owned fast food franchises is
bigger than McDonald's.
12. Product Development Process
It is a method of carrying out work at both a macro and micro
level [7], detailing what has to be accomplished and how it has
to be done. It is clear in its techniques for deciding what the
best output is and what procedures it needs and how to
ensure it is produced properly and efficiently. It acts as a
source of institutional information, so the lessons learnt from
each product or service can be further applied in the process
of creating the next product or service.
13. To demonstrate and have further understanding on
product development process, please refer
to Pharmaceutical Development Process:
Step 1. Research and Preclinical. The exploration of new drugs
and evaluating a potential cure to
guarantee it is appropriate for a person.
Step 2. Phase I – Clinical Trials. The medication is administered
to healthy volunteers to test its
safety.
Step 3. Phase II – Clinical Trials. Experimental medication is
tested on a chosen group of people
with a target disease to determine its efficacy and side effects.
14. To demonstrate and have further understanding on
product development process, please refer
to Pharmaceutical Development Process:
Step 4. Phase III – Clinical Trials. A research sample of approximately 1,000
patients, giving a statistically meaningful outcome, is used to validate the
findings of previous testing on protection, side-effects, and effectiveness.
Step 5. New Drug Application. The organization aims to obtain clearance from
the relevant authorities before releasing the product to the public.
Step 6. Launch and Production. The new medicine is being used. This process
also involves more clinical trials and data collection on the drug's performance.
15. • Each phase in creation is planned to achieve a specific purpose.
The essence of the work may in turn be somewhat different in
each step and is usually committed to solving a certain number of
problems, eliminating hidden information or isolating them,
taking important decisions and generating outcomes to be used
as feedback in later phases.
• The phase of growth also involves steps and simple Go/No-Go
decision points. Both points of judgment represent two objectives:
assessing the consistency of the work performed before the
process and revaluing the business case or benefit equation on
the basis of additional knowledge applied during the phase.
16. Summary:
1. New market development means to expand the potential of goods and/or services
by going outside of one's current market segment.
2. New product development means meeting of internal and external needs of
customers.
3. The Ansoff Matrix helped many companies find the uncertainties involved in the
growth of their businesses.
4. Market Penetration, Market Development, Product Development and Diversification
are four different marketing strategies derived from Ansoff Matrix.
5. Under Diversification strategy, there are two types: related and unrelated.
6. Product development process defines the work to be done at both a macro and
micro
stage.
