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Diversification can occur either at the business unit level or at the corporate level. and merchandising resources used for the original product line. The first three strategies are usually pursued with the same technical. it is most likely to expand into a new segment of an industry that the business is already in. It seeks to increase profitability through greater sales volume obtained from new products and new markets. . Diversification is part of the four main growth strategies defined by the Product/Market Ansoff matrix:Ansoff pointed out that a diversification strategy stands apart from the other three strategies.Introduction of Product Diverficiation :Diversification is a form of corporate strategy for a company. At the business unit level. financial. At the corporate level. it is generally very interesting[clarification needed ] entering a promising business outside of the scope of the existing business unit.
alliance with a complementary company. There are three types of diversification: concentric. new techniques and new facilities. and conglomerate. horizontal.whereas diversification usually requires a company to acquire new skills. Generally. which means that the firm is able to leverage . acquisition of a firm. the final strategy involves a combination of these options. Concentric diversification This means that there is a technological similarity between the industries.licensing of new technologies. The different types of diversification strategies:The strategies of diversification can include internal development of new products or markets. and distributing or importing a product line manufactured by another firm. This combination is determined in function of available opportunities and consistency with the objectives and the resources of the company.
the addition of tomato ketchup and sauce to the existing "Maggi" brand processed items of Food Specialities Ltd. Horizontal diversificati The company adds new products or services that are often technologically or commercially unrelated to current products but that may appeal to current customers. In a competitive environment. The technology would be the same but the marketing effort would need to change. a company that manufactures industrial adhesives might decide to diversify into adhesives to be sold via retailers. For example.its technical know-how to gain some advantage. The company could seek new products that have technological or marketing synergies with existing product lines appealing to a new group of customers.This also helps the company to tap that part of the market which remains untapped. is an example of technological-related concentric diversification. and which presents an opportunity to earn profits. For instance. It also seems to increase its market share to launch a new product that helps the particular company to earn profit. this form of diversification is .
the new products are marketed to the same economic environment as the existing products. this strategy tends to increase the firm's dependence on certain market segments. For example. . Moreover. In other words. which may lead to rigidity and instability. a company that was making notebooks earlier may also enter the pen market with its new product.desirable if the present customers are loyal to the current products and if the new products have a good quality and are well promoted and priced.
the Vim brand is still innovating and using the magic of naturalingredients to create unbeatable results over a hundred years later.DIVERSIFICATION OF HINDUSTAN UNILEVER LIMITED HOME CARE PRODUCTS: Surf Excel was introduced in 1959. It is apioneer in the Indian detergent powder market. Key Facts Vim was the original hand dishwashing brand: so we invented the whole category! . It is a significant benefit. to answer theconstantly changing washing needs of the Indian homemaker. Today Surf Exceloffers outstanding stain removal ability on a wide range of stains. Surf Excel has constantly upgraded itself over the years. given the acute water scarcity in most of India.it reduces water consumptionand time taken for rinsing by 50%. VIM BAR Created in 1885. Surf Excel quick wash is powered with a pathbreaking technology.
Cif.The World¶s leading cream cleaner which gives you the power to deal withthe toughest dirt is now in India. is the leading hand dishwashing brand in twentycountries.Vim is sold in four continents. . but is now available as acomplete range of hand dishwashing ± including bars. and is available to more than 2 billion people around the world. . powders and liquids. and in Thailand. where King Rama Vasked Unilever to supply his household with soap). Vim began life as a soap (both in England.
It¶s a 500 million Euro Brand. Pond's. Dove. Lux. Cif is Sold in 51 countries around the globe.K ey Facts Cif is the number 1 cream cleaner in the World. including Axe.Launched first in the US in 1957.Russia. They help consumers to look good and feel good ± and in turn get more out of life. It is the number one cleaner in various countries including France. Rexona and Sunsilk. Germany. . is one of the leading brands of Unilever globally.are recognised and love by consumers across India. Personal care brands Our personal care brands.
body washes. skin care & hair styling products and extending to beauty services through the network of Lakme BeautySalons. face care and creams.Dove has its footprint in 80 countries worldwide with a range of superior productsfrom bar. It is complete beauty brand spanning colour cosmetics. It is the leading bar brand in UK. US and Canada Fastest growing hair category brand in India LAKME Lakme was the first major beauty brand in India and takes pride in being the experton Indian Beauty for over 50 years. . lotions.
May 2010 This month Nestlé launched Special. We launched the Nestlé Cocoa Plan which will supply 38 million high quality.Its bond with beauty and fashion is manifested through the Lakme Fashion Week. sourcing and consumption across our coffee supply chain. It was the first time we saw social media being used in a substantial way to challenge us and ask questions. disease-resistant plantlets to farmers helping them rejuvenate their farms and increase productivity.we took steps to both strengthen our position and to explain it more clearly.T. Lakme has a foot print of over 1200 assisted sales outlets. We also awarded the first Nestlé Prize in Creating Shared Value to IDE Cambodia for its Farm Business Advisors programme and we . March 2010 We faced a challenge from Greenpeace who wanted to be reassured about our commitment to sustainable Palm Oil.which is now the largest fashion event of its kind in the country. but on the issue at its heart – palm oil . which is the largest spanof outlets with ³Beauty Advisors´ in the country anuary 2010 We sold our remaining Alcon shares to Novartis and also acquired Kraft Foods’ frozen pizza business. We didn’t get the handling of our response to the campaign itself quite right in social media. The Nescafé Plan was also launched – investing CHF 500 million to address responsible farming.
November 2011 We became the first food company to partner with the Fair Labor Association. alongside human rights and supply chain criteria. to solve them. September 2010 We announced the creation of Nestlé Health Science and the Nestlé Institute of Health Sciences. as we announced a partnership in April with Chinese food company Yinlu. innovative ventures aimed at the prevention and eventually treatment of chronic medical conditions with science-based personalised nutrition solutions. July 2011 We announced a partnership with Hsu Fu Chi. April 2011 China was at the forefront. This is the London Stock Exchanges’s responsible investment index and the only index that evaluates companies on their responsible marketing of breast-milk substitutes. a manufacturer of ready-to-drink peanut milk and canned rice porridge. where we find problems. This partnership will help us investigate if children are working in cocoa farms that supply our factories and.announced our partnership with the Forest Trust to work to combat deforestation. March 2011 We became the first infant formula manufacturer to be included in the FTSE4Good Index. January 2011 We voluntarily submitted our policies and procedures to the FTSE4Good Policy Committee for independent review. a confectionery and snacks manufacturer. .
two Polish tea brands. coffee curing. among them Tata Tea.under the brand names Tata Salt. roasted and grounded coffees. iodised salt. Tea Tata Global Beverages has several major brands in the Indian market. the third-largest tea company in South Africa. Tata Salt Lite. Kanan Devan. instant coffees and coffee vending. Chakra Gold. Tata Cafe and Tata Kaapi. in the country. Tata Global Beverages also has an interest in Joekels Tea Packers. In the US. Food additives Table salt is sold in four varieties . Agni and Gemini. which manufactures instant tea extracts. Mysore Gold. and the China-based Zhejiang Tea Export and Import Company. I-Shakti Powder Salt and I-Shakti Crystal Salt. Its Indian brands include Mr Bean. The group sells specialty teas under the brands of Tetley. and the third-largest coffee brand by volume. Eight O'Clock Coffee is the best-selling whole-bean coffee. with coffee plantations. Vitax and Flosana. Grand (Russia) and Jemca (the Czech Republic). .pure salt. Tetley. Good Earth (USA). crystalline salt and vacuum evaporated salt .TATA COMPANY Coffee Tata Global Beverages is present across the complete value chain. Water Tata Global Beverages produces and markets the Himalayan brand of bottled mineral water through the Mount Everest Mineral Water Company. Coorg Pure.
with a global network of cable and satellite connectivity and a range of voice. JOHNSON AND JOHNSON Baby Care With a legacy of over 100 years. From premium products like Johnson’s® Baby Top-To-Toe® Wash.Tata Salt also offers flavoured variants under the brand name Tata Salt Flavoritz.the first ever liquid bath product for babies. Telecommunications Tata Communications is one of the world's leading telecom solutions providers. . driving the trends and developments in the baby space. our offerings cover an entire range. Johnson’s® Baby aspires to touch every baby in India with brands operating in the widest consumer spectrum. data and enterprise solutions. Johnson’s® Baby is a market leader in its category. Johnson’s® Baby Skincare Wipes to low cost outlay packs of soaps and powders that are more accessible to consumers at the bottom of the pyramid.
LISTERINE® is a market leader* in the mouthwash category. Oral & Wound Care Our Oral & Wound care segment sports power brands like BAND-AID®. Stayfree® offers multiple variants at varied price points that cater to consumer needs spreading across different consumer needs. LISTERINE® and Savlon®. Carefree® and O. Savlon® Antiseptic Liquid and Soap are common household names in this space. BAND-AID® is one of our leading products in this space and has become a generic name in the wound care space. A strong market player. Stayfree® drives market trends and developments in the sanitary health category. ® Tampons.B.Women’s Health India has the largest Women’s Health business in Asia Pacific and the 3rd largest napkin market for Johnson & Johnson globally. . Women’s Health Division in India markets the popular brands Stayfree®.
. NESTLE COMPANY Nescafé The world’s most trusted and enjoyed coffee . In India OTC franchise is present in various segments with strong brands.rich in natural goodness. OTC is the largest contributor to the Consumer business of Johnson & Johnson.OTC Globally. flavour and convenience.
Pure Life is the world’s most popular bottled water brand. providing an excellent source of vitamin C with no added sugars or artificial flavours. Now present in more than 20 countries. Juicy Juice products combine the wholesome goodness of real fruit and a delicious taste that will make your child smile with every glass.DRINK Since 1977. WATER PRODUCT Pure Life was launched in 1998 to help meet the global need for a safe drinking water with a pleasant taste at an affordable price.Maggi Quick and easy solutions .like bouillons. soups and seasonings. An easy way to ensure your kids get refreshed and have one of their daily recommended servings of fruits and vegetables . to help chefs and professional kitchens bring out the flavour and nutrition of fresh food ingredients. the Juicy Juice brand has endeavoured to help parents raise happy. healthy kids by providing them with a wide variety of nutritious juice options. All Nestlé Juicy Juiceproducts are made from real fruit juice. .
Parle Product of Diversification:Parle Agro is an Indian private limited company founded in 1929. Limca. Sprite . It owns the brands including Frooti. The brand was strong in South India. Kit Kat is a favourite chocolate treat thanks to light wafers and delicious chocolate. At the time of sale. LMN. Several Parle soda brands including Citra Thums Up. Gold Spot and Maaza were sold to Coca Cola in 1993 for a reported $40 million.Kit Kat Delighting consumers all over the world. the Parle brands together had a 60% market share in the industry. Citra was phased out by 2000 to make way for Coke's international brand. Hippo and Bailley. Appy.
led by Ramesh Chauhan All three companies continue to use the family . Melody. It was owned by the Chauhan family of Vile Parle.History:Parle Products was founded in 1929 in British India. The Parle brand became well known in India following the success of products such as the Parle-G biscuits and Thums Up soft drink. Alisha and Nadia (owner of the brands such as Frooti and Appy) Parle Bisleri. Sharad and Anup Chauhan (owner of the brands Parle-G. Poppins. The original Parle company was split into three separate companies owned by the different factions of the original Chauhan family: Parle Products. Monaco and KrackJack) Parle Agro. led by Prakash Chauhan and his daughters Schauna. Mango Bite. Mumbai. led by Vijay.
Parle Agro Parle Agro commenced operations in 1984. snacks Parle Agro also diversified into production of . Frooti. and later diversified into bottled water (1993). plastic packaging (1996) and confectionary (2007). Parle Agro brands:Parle Agro Pvt. sparkling drinks Water – packaged drinking water Foods – confectionery.trademark name "Parle". the first product rolled out of Parle Agro in 1985. It started with beverages. juice. Ltd operates under three major business verticals: Beverages – fruit drinks. nectars. became the largest selling mango drink in India.
edible oil. .PET preforms (semi-finished bottles) in 1996. Its customers include companies in the beverages. confectionery and pharmaceutical segments.
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