Igor Ansoff created the Product / Market diagram in as a method to classify options for business expansion. The simplisity of this model is. Learn how to apply Ansoff’s Matrix to understand the risk of different strategic Sometimes called the Product/Market Expansion Grid, the Matrix (see figure 1. The Product Market Expansion Grid, also called the Ansoff Matrix, is a tool used to develop business growth strategies by examining the.

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Healthcare marketers must strive to proactively monitor their surroundings to, among other things, detect growth opportunities that can be exploited. That said, there is no one best strategy to select, with each offering different benefits to companies in various circumstances. Chapter 7 Strategic Management. Products tend to create or stimulate new markets; new markets promote product innovation.

Ansoff pointed out that a diversification strategy brid apart expnsion the other three strategies. Diversification Diversification is a growth strategy that involves the introduction of new products into new markets. Introduce a loyalty scheme. To make this website work, we log user data and share it with processors. Going into an unknown market with an unfamiliar product offering means lack of experience in the new skills and techniques required.

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Igor Ansoff’s Product-Market Expansion Grid

For a full case study of a market penetration strategy, take a look at this article I recently wrote about its implementation at Heinz. This site uses cookies. Published by Julius Austin Modified about 1 year ago. I will be reading the case study on Virgin after this. Competition levels and amount of resources available need also to be taken into account. We think you have liked this presentation. Current products may, for example, be placed in different geographic markets or directed toward new demographic segments to stimulate demand and increase growth.

The launch of Coke Zero in was a classic example of this — its concept being identical to Diet Coke; the great taste of Coca-Cola but with zero sugar and low calories. They will have many ideas about things they could do, including developing new products, opening up new markets and new channels, and launching new marketing campaigns.


That said, Coca-Cola offers official merchandise from pens and glasses to fridges, therefore exploiting its strong brand advocacy through this strategy.

They are Good article, Ansoff demonstrate very much clarified. F Ansoff matrix – business-and-management-aiss. Thirdly, the market development strategy entails finding a new group of buyers for an existing product.

Coca-Cola: Ansoff Matrix | the Marketing Agenda

My presentations Grd Feedback Log out. By continuing to use this website, you agree to their use. He is trying to sell more of the same things to different people. An organization that already has a market for its products might try and follow a strategy of developing additional products, aimed at its current market. Target different groups of mmarket, perhaps with different age groups, genders or demographic profiles from your normal customers.

Describe Ansoff matrix Igor Ansoff developed a strategic decision-making tool Ansoff matrix to analyze the different options. You are commenting using your Twitter account. Defensive reasons may be spreading the risk of market contraction, or being forced to diversify when current product or current market orientation seems to provide no further opportunities for growth.

But how does a business decide upon the best strategy for growth? This too assists marketers in the development of appropriate expansion strategies.

The matrix helps entrepreneurs with insights on how pproduct grow their business through existing or new products or in existing or new markets. When companies have no previous industry nor market experience this strategy is called unrelated diversification.

Therefore, a firm should choose this option only when the current expansiion or current market orientation does not offer further opportunities for growth. This strategy assumes that existing markets are fully exploited or that new markets can be developed concurrently with existing markets. It also focuses on whether a market is new or existing.


Offensive reasons may be conquering new positions, taking opportunities that promise greater profitability than expansion opportunities, or using retained cash that exceeds total grd needs. With a year-on-year decline in sales of carbonated soft drinks like Coca-Cola, the brand anticipates the drinks market may be heading less-sugary future — so has rxpansion on board the growing health drink sector.

Feedback Privacy Policy Feedback. You are commenting using your WordPress. About project SlidePlayer Terms of Service. However, you expose yourself to a whole new level of risk by either moving into a new market with an existing product, or developing a new product for an existing market.

Buy a competitor company particularly in mature markets. Increase your sales force activities. The company has since gone on to successfully launch other flavoured variants including lime, lemon and vanilla.

An organization’s current product can be changed improved and marketed to expsnsion existing market. The Ansoff Matrix management tool expansin a solution to this question by assessing the level of risk — considering whether to seek growth through existing or new products in existing or new markets. Market penetration is considered a low risk method to grow the business.

Fill in your details below or click an icon to log in: Diversification may be defensive or offensive. Management may expect great economic value growth, profitability or first and foremost great coherence and complementary to their current activities exploitation of know-how, more efficient use of available resources and capacities.

Notify me of new comments via email. The product can also be targeted to another customer segment. Coca-Cola generally avoids risky adventures into unknown territories and can instead utilise grd brand strength to continue growing within the drinks industry.

International development phases Phase 1: