Evaluation of Growth Strategies Essay examples

1825 Words Oct 3rd, 2011 8 Pages
UNIVERSITY OF SOUTH AFRICA DEPARTMENT OF MARKETING AND RETAIL MANAGEMENT POSTGRADUATE DIPLOMA IN MARKETING MANAGEMENT

STRATEGIC MARKETING MANAGEMENT (STB400V/2010) ASSIGNMENT 02

“Evaluation of the Possible Growth Strategies that Amarula could follow in order to achieve a double-digit growth in volumes in the next three years”

Presented by

Mr. B. Banyishayi Student No: 35124857

July 2010

2 1. INTRODUCTION
In this assignment I will evaluate the possible growth strategies that Amarula could follow in order to achieve a double-digit growth in volumes in the new three years.

Amarula was initially launched as a clear liqueur in October 1983. However, its appeal was limited and in 1989, the decision was made to extend the
…show more content…
One way for an organization to do this is to expand geographically. A second option is to find new market segments by analyzing the current segmentation variables used, and perhaps even analyzing how the completion segments its (Du Plessis et al. 2006:269). Geographical expansion for Amarula can be attempted by targeting new countries where Amarula cream is not yet marketed. Alternatively, geographical expansion can occur within a country. It’s even possible for Amarula to develop a new market for Amarula cream by adjusting the product’s packaging or expanding the product’s distribution channels.

2.4 Growth through Integration Growth can also be generated through integration, which is the combination of various levels of a distribution system so that they work together under the control or ownership of one organization. The various independent levels now work together as one independent system (Du Plessis et al. 2006:270). In forward vertical integration Amarula could move downstream with respect to product flow, such as a creation of Amarula cream retail outlets. Backward vertical integration could occurs when Amarula moves upstream towards its suppliers or raw-material sources. For instance, Amarula should invest in developing its own marula tree farms to ensure the availability of a specific quality and type of marula. Another form of integration is horizontal integration. For instance, Amarula could take over its

Related Documents