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Principles of Marketing (MGT301) Spring, 2020
Assignment No.1
Due Date: July 28, 2020
Total Marks: 10
Weightage: 06
Topic: Product/Market Expansion Grid

Learning Objective:
The core objective of this activity is to familiarize students with the concept of Product/Market
Expansion Grid.
Learning Outcomes:
This activity will widen student’s vision, and make them capable enough to understand how
renowned brands formulate appropriate strategies during critical situations in order to sustain their business operations meanwhile gaining customer attention.

The Case:
The COVID-19 has extensively impacted almost every industry across the globe and has brought great economic fluctuations for every business sector. However, the sectors that were greatly affected and had extremely hard hit are the ones that come in the category of non-essential spending. Having said this, branded clothing industry and branded footwear are two market giants that fall in the category of non-essential spending, have seen major downfall over the past few months. Specifically talking about Pakistani market, due to the lockdown imposed by government these industries had suffered a lot and seen the toughest time.

What has been experienced by the designer made clothing industry worldwide, in the last few months, is just the beginning of a ripple effect. The COVID-19 pandemic has alter the market dynamics. It is observed that online shopping has replaced in-store shopping. During this pandemic, majority of the renowned Pakistani clothing brands have heavily started marketing their products through digital mediums such as Facebook and Instagram. Because of the ban imposed by government due to pandemic Gul Ahmed, Khaadi, Saphire, Sana Safinaz, Nishat Linen and Alkaram are some of the top notch clothing brands that have momentously took the benefit of digital media to carry forward their business operations. Though their clientele and target market is the same but the medium of being connected to them is changed. Previously they were using their physical outlets for product sale now they have acquired digital mediums to target their customers and product sale. Not only has this, but these renowned brands are offering lucrative sales offers to catch the attention of target customers. It has never been observed that the renowned brands are offering sales for such a prolonged period. Since, it is uncertain to predict the betterment in economic condition of the country, this is the reason why majority of the business operations
are going online.

After reading the above case, which of the below product/market expansion grid strategy the clothing industry is following during this pandemic and what benefits they could achieve through it? Support your discussion with logical arguments.

1. Market Penetration
2. Product Development.
3. Market Development.
4. Diversification.
*Note: You are required to select only one strategy and mention at least 3 benefits to support your answer. The definitions of strategies are not required.

Marking Scheme:
The total marks of this assignment are 10; the identification of correct strategy carries 4 marks, and each correctly written benefit carries 2 marks. Avoid irrelevant text/material while answering the question.

24 hours extra / grace period after the due date is usually available to overcome uploading
difficulties. This extra time should only be used to meet the emergencies and above mentioned due dates should always be treated as final to avoid any inconvenience.

Important Instructions:
 Students are advised to study the whole text carefully.
 Try not to include any irrelevant material in the solution.
 Try to come up with precise and original answers.
 Assignments reaching after the due date would not be considered.

Other Important Instructions:

 Make sure to upload the solution file before the due date on VULMS.
 Any submission made via email after the due date will not be accepted.


 Use the font style “Times New Roman” or “Arial” and font size “12”.
 It is advised to compose your document in MS-Word format.
 You may also compose your assignment in Open Office format.
 Use black and blue font colors only.

Note related to load shedding: Please be proactive

Dear students,
As you know that semester activities have started and the load shedding problem is also prevailing in our country. Keeping in view the fact, you all are advised to post your activities as early as possible without waiting for the due date. For your convenience; activity schedule has already been uploaded on VULMS for the current semester, therefore no excuse will be entertained after due date of assignments, quizzes or GDBs.



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Replies to This Discussion

I think the Market penetration strategy is adopted in the given scenerio

1). Market Penetration—making more sales to present customers without changing products in any way. Market penetration means trying to increase sales of a firm’s present products in its present markets probably through a more aggressive marketing mix. The firm may try to strengthen its relationship with customers to increase their rate of use or repeat purchases, or try to attract competitors’ customers or current nonusers. New promotion appeals alone may not be effective. A firm may need to add a home page on the Internet to make it easier and faster for customers to place an order. Or, it may need to add more stores in present areas for greater convenience.


1 Companies use market-penetration pricing. They set a low initial price in order to penetrate the market quickly and deeply—to attract a large number of buyers quickly and win a large market share.

2 The high sales volume results in falling costs, allowing the company to cut its price even further.

3 The firm may try to strengthen its relationship with customers to increase their rate of use purchases, or try to attract competitors’ or repeat customers or current nonusers.

Another Benefit

4 It may create goodwill among the first customers that purchase the product due to the aggressive pricing. This may create customer referrals.


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