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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The company has since gone on to successfully launch other flavoured variants including lime, lemon and vanilla. Registration Forgot your password? To capitalize maret growth opportunities, marketers must carefully formulate appropriate expansion strategies.

If you wish to download it, please recommend it to your friends in any social system. You are commenting using your Twitter account. Introduce a loyalty scheme. And by moving two quadrants and targeting a new market with a new product, you increase your risk to yet another level. The Ansoff Matrix management tool offers 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.

Igor Ansoff’s Product-Market Expansion Grid

Email grir Address never made public. To find out more, including how to control cookies, see here: Managing the Risks of Business Growth. Product Development 0 Product development is a growth strategy that involves the introduction of new products into current markets. The product can also be targeted to another customer segment. Diversification may be defensive or offensive. It involves increasing market share within existing market segments.

Going into an unknown market with an unfamiliar product offering means lack of experience in the new skills and techniques required. We think you have liked this presentation. 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.


Coca-Cola generally avoids risky adventures into unknown territories and can instead utilise its brand strength to continue growing within the drinks industry. They will have many ideas about things they matket do, including developing new products, opening up new markets and exlansion channels, and launching new marketing campaigns. This too assists prodkct in the development of appropriate expansion strategies.

I will be reading the case study on Virgin after this. Horizontal integration refers grkd a strategy of selling ownership or. Marketing techniques used to achieve marketing penetration include increased advertising, identification of new uses for products, price reductions, use of incentives and so on. In order to make a worthwhile analysis it is also important to consider other factors, such as the condition of the market.

Coca-Cola: Ansoff Matrix | the Marketing Agenda

Use different sales channels, such as online or direct sales if you are currently selling through the trade. It also focuses on whether a market is new or existing. To make this website work, we log user madket and share it with processors.

The long term viability of hospitals, clinics, home health agencies and other healthcare entities largely depends on the successful identification and exploitation of growth opportunities. This is where they can use a strategic approach, such as the Ansoff Matrix, to screen their options, so that they can choose the ones that best suit their situations.

Within each strategy there is a differing level of risk. Launch price or other special offer promotions.

Chapter 8 — Producing and Marketing Goods and Services. Imitation with a Twist. That said, there is no one best strategy to select, with each offering different benefits to companies in various circumstances. 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.

Thirdly, the market development strategy entails finding a new group of buyers for an existing product. 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 jumped on board the growing health drink sector. Market Development Market development is a growth strategy that involves the introduction of current products into new markets. Target different groups of people, perhaps with different age groups, genders or demographic profiles from your normal customers.


As it represents a departure from an organization’s existing product and market involvement, it is the strategy of highest risk. Chapter 3 International Expansion Strategies. The matrix helps entrepreneurs with insights on how to grow their business through existing or new products or in existing or new markets. This site uses cookies. My presentations Profile Feedback Log out. Ansoff pointed out that a diversification strategy stands apart from the other three strategies.

For example, Coca-Cola has had little need to diversify relative to the Virgin brand which traditionally operates in uncertain markets such as the volatile airline industry, meaning diversification actually spreads risk.

Many prestige car manufacturers offer a range of merchandise targeted at car owners so that you can buy replica models, clothing and pens.

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. With this strategy, marketers focus their efforts on developing new goods and services that will be attractive to current customers.

An organization that already has a market for hrid products might try and follow a strategy of developing additional products, aimed at its current market.

They are Good article, Ansoff demonstrate very much clarified.