Intensive Strategies Notes and Exam Questions Business Studies Grade 12 Intensive strategies in business studies refer to approaches employed by companies to maximize their market penetration and gain a competitive edge. These strategies are crucial for businesses aiming to expand their market share and increase their presence in the industry.
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Intensive Strategies Business Studies Grade 12
Intensive strategies involve increasing the market share of the existing products or services in the existing market. There are three main types of intensive strategies:Â Market Penetration, Market Development, and Product Development
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(a)Â Market Penetration:Â This involves increasing market share by selling more products or services to existing customers or by attracting new customers.
Market Penetration Examples:
- Pick n Pay’s Smart Shopper loyalty program that offers discounts and rewards to encourage customers to shop more frequently and spend more.
- Woolworths’ Everyday Rewards program that offers personalized discounts and benefits to its customers based on their shopping behavior.
- Checkers’ aggressive pricing strategy that offers discounts on essential products to attract price-sensitive customers and increase foot traffic.
- Mr Price’s mobile app that allows customers to shop online, track their orders, and receive personalized promotions and discounts.
(b) Product Development:Â This involves introducing new products or services to the existing market.
Product Development Examples:
- Nando’s Peri-Peri sauces and marinades that were developed to complement its signature flame-grilled chicken.
- Castle Lite’s Lime variant, a new beer product aimed at the younger and trendier market.
- Vodacom’s m-pesa mobile money service that allows customers to make payments, send money, and buy airtime using their mobile phones.
- Pick n Pay’s Foodco range of ready-made meals and snacks that cater to busy and health-conscious customers.
(c) Market Development:Â This involves expanding the market by introducing existing products or services to new markets.
Market Development Examples:
- Woolworths’ expansion into other African markets such as Ghana and Kenya to tap into new customer segments and increase revenue streams.
- Shoprite’s entry into the Nigerian market by acquiring local supermarkets and introducing its own private label brands.
- Vodacom’s partnership with Safaricom in Kenya to launch a new mobile service, M-Pesa Africa, that offers cross-border mobile money transfers.
- Mr Price’s expansion into Australia and other international markets to increase its brand exposure and diversify its revenue streams.