The paper "The Objectives of Penfolds" is a great example of micro and macroeconomic coursework. The product development will facilitate penetration into the new market by ensuring the standardization of the commodities. This occurs through maintaining high-quality standards throughout the production of all the products. Uniformity promotes confidence to customers in the new market that the products are similar to those offered in Australia. Quality is a strong selling point for any company hence standardization forms part of the major strategies of the business. Quality involves the production of commodities that meet the customers’ requirements.
The market in New Zealand differs from that in Australia and therefore the company requires making some adjustments to the product to make it suitable for New Zealand’ s’ market. Intensive research on the local tastes and preferences places the company in a favorable position in achieving customer satisfaction (Bhagwati 2000 p. 22). Other products exist in the target market and therefore the company has to differentiate its commodities to make them stand out from the rest. This ensures simple identification of the products due to their uniqueness.
Differentiation involves attractive packaging that relates to the target customers. Promotion activities such as the use of salespersons, billboards, adverts, and brochures among other marketing avenues will the awareness of the product in the new market. People only buy familiar products that they trust which starts with vigilant dissemination of information concerning the product. Product promotion informs the potential buyers of the existence of the product before its introduction. It then convinces them to purchase the product after its introduction. The customers, therefore, need information on which of their needs the product addresses hence the reason to purchase it (Bhagwati 2000 p. 37). Finance acquisition ventures will create an enabling environment for the expansion of the company’ s activities.
The current financiers require assurance of the continuous observation of the fulfillment of their interests. They require information on the amount of dilution of their control through the introduction of new investors.
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