Growth strategy
In the short term, what are the three most important areas you would
explore when considering potential growth strategies for our client Dunk?
Use the boxes below to add a short commentary about your selection. Once you've finished select 'find the answer'.
Answer: Growth strategy
If you got the right answer, you'll see a tick. So that you can build your knowledge read the commentary for each section. This will help you think like we do.
CorrectMarketing strategy Branded biscuits are a significant proportion of the market, yet the market leader spends proportionately less on marketing (relative to sales), which implies there's potential for improved marketing.
Promotions and pricing strategy Roughly 70% of all biscuits are sold on promotion and it is the most important sales driver in the market. Dunk is likely to serve a range of price points so pricing architecture will also be very important to sales growth.
Retailer management Dunk relies on its retail partners to sell its biscuits so having the right kinds of relationships with them is crucial to success. Improving retailer management can mean getting better space allocation on shelves. Dunk might also consider altering its retailer mix in order to target specific customer types or prices points.
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IncorrectNew product development within biscuits New products in growing categories e.g. healthy biscuits could boost sales. However, it can takes up to a year to bring a new biscuit to market.
New product development beyond biscuits This step is only likely if good penetration within biscuit categories is already achieved. However, Dunk may have synergies in product areas like cakes or cereals which it could explore in future.
International expansion This strategy would be risky and take longer to research and implement. Time would have to be spent building new retailer relationships given different chains in other countries. Also, British brands might not be popular with foreign markets and might require rebranding or different recipes.
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