JD Sports is a UK’s leading retail store of sports and leisure that was established in 1981. To expand business at an international level, the firms need to conduct market research to implement required changes for the betterment of sales and profit.Ansoff Matrix is further sub-divided into four stages that include market penetration, market development, product development, and diversification.
Market Penetration
The purpose of market penetration is to sell existing products into the current market by focusing on price and promotion of products. In simple words, market penetration deals with the production of new products into the current market to retain existing customers. The main purpose of this plan is to attain a competitive edge to divert the attention of the competitor’s customers. Market penetration can be executed through the production of better products and services such as improvement in service quality, reduction in price or production of the same product with additional characteristics. The method of market penetration helps companies in increasing consumer buying behavior.JD Sports is an international company with a Bing merchandises. Recently JD sports have gained a large market share by distributing its products to customers of different fields at a very low cost. Sometimes market penetration creates price war but most often it is considered as one of the most effective strategies to enhance the market share (JD Sports, 2018).
Market Development
Entering into a new market through bulk production of goods and services. For market development, firms are required to focus on customers of different markets with the same demands. The selling and production techniques may be different but chief engineering remains the same.JD Sports have extended a graduated table of markets by entering into new industries. There has been significant growth in the expansion of JD stores because it has acquired all sports, scots, and blacks. JD Sports have also acquired foreign brands like a sprinter from Spain, Chau sport from France and champion sports from Ireland. This acquisition has helped the company to improve its growth at an international level. Currently, JD sports have opened 900 outlets around the UK and Europe and its brand identity fro being stylish ranges and different products have expanded. A huge amount has been invested by the company on its e-commerce strategy to grab a large number of customers. Web designers are continuously struggling for the betterment of website functions and design (Chow, 2018).
Product Development
The process of introducing new products for existing customers is called product development. Based on the relationship between clients and merchants, companies supply the latest products to current customers.JD Sports have acquired the name of large trade brands like Black Leisure, Chau sports and a few others because Acquisition plays a significant role in the product development of JD sports. This method of product development helps the company to defeat strong market competitors (OCR, 2016).
Diversification
This stage is concerned with the expansion of business through the production of the latest goods and services in fresh markets. The diversification strategy is best to execute at the time of market saturation. JD Sports have introduced skull candy and free to grab the attention of clients who likes to listen to music while playing sports. Numerous kinds of McKenzie sunglasses and few other supplements are also being sold by JD sports. JD sports has acquired 100 years old rugby brand Kooga and Canterbury that is used by rugby teams of South Africa. JD Sports is one of the famous brands of sports in the UK. The company has expanded its sales growth through diversification strategy. Such as, the company promotes and provides product information to its customers via email. JD can promote new products of daily life through magazines and leaflets.JD sports has introduced. The company has increased its business’s Bing supply chain that may reduce the chances of new potential entrants in the market. Acquisition of new markets at an international level containing external factors like, trade cost, exchange rates are more favorable for the company because sales of street stores are less costly in European union as compared to Asia. In this manner, it has become easier for JD sports to grow its business across Europe at a very low cost. Therefore, diversification has played a significant role in the growth of the company’s market share (Chow, 2018).
References
Chow, L. (2018). Marketing Techniques For Jd Sports Marketing Essay.
JD Sports. (2018). Using market research to support decision making.
Oxford Cambrige and RSA. (2020). BUSINESS DECISIONS.