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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Competition levels and amount of resources available need also to be taken into account. Going into an unknown market with an unfamiliar product offering means lack of experience in the new skills and techniques required. Chapter 3 International Expansion Strategies. Diversification may be defensive or offensive. As it represents a departure from an organization’s existing product and market involvement, it is the strategy of highest risk.

I like the way of clarifying it.

About project SlidePlayer Terms of Service. Coca-Cola generally avoids risky adventures into unknown territories and can instead utilise its brand strength to continue growing within the drinks industry. Imitation with a Twist. Thirdly, the market development strategy entails finding a new group of buyers for an existing product. You are commenting using your Facebook account.

Even so, Coca-Cola would not be the power house it is today without knowing when to step out of its comfort zone — the Glaceau acquisition being a clear case in point.

Notify me of new comments via email. 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. They are Good article, Ansoff demonstrate very much clarified. When companies have no previous industry nor market experience expaansion strategy is called unrelated wnsoff.


And by moving two quadrants and targeting a new market with a new product, you increase your risk to yet another level.

Igor Ansoff’s Product-Market Expansion Grid

Therefore, the company puts itself in a great uncertainty. This site uses cookies.

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. 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.

NEW Market, NEW Product This involves the production of a new category of goods that complements the existing portfolio, in order to penetrate a new but related market.

Coca-Cola: Ansoff Matrix | the Marketing Agenda

Local market expansion Phase 3: Even if the ahsoff products are need not be new to the market, they remain new to the business. Entrepreneurs can penetrate the market by finding new customers for your product or by getting current customers to use more of their products.

Use different sales channels, such as online or direct sales if you are currently selling through the trade.

Chapter 7 Strategic Management. In order to make a worthwhile analysis it is also important to consider other factors, such as the condition of the market.


Igor Ansoff’s Product-Market Expansion Grid

Introduce a loyalty scheme. Hi I think this is great- very good practical example of the application of the Ansoff matrix product-expansion grid.

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. He is trying to sell more of the same things to different people. An organization’s current product can be changed improved and marketed to the existing market. I like the manner of explaining it. Brand new products may also be created in an attempt to leverage the company’s brand name.

This too assists marketers in the development of appropriate expansion strategies. Target different groups of people, perhaps with different age groups, genders or demographic profiles from your normal customers. This strategy assumes that existing markets are fully exploited ansof that new markets can be developed concurrently with existing markets.

To make this website work, we log user data and share it with processors. Develop related products or services for example, a domestic plumbing company might add a tiling service — after all, if customers who want a new kitchen plumbed expanion are quite likely to need tiling as well! To use this website, you must agree to our Privacy Policyincluding cookie policy.