Ansoff Matrix developed by Igor Ansoff, a Russian American mathematician and business managerMade as a framework for identifying corporate growth opportunitiesFour generic growth strategies:-Market Penetration-Market Development-Product Development-Diversification
Increase sales to the existing marketPenetrate more deeply into existing market
New Products developed for existing market
Existing productssold to new markets
New products soldin different markets
Marketing Penetration is achieved by:-Increased usage by existing customers-Attracting customers away from rivals-Gain Marketing share at expense of rivals-Encourage increase of frequency of use-Devise and encourage new applications-Encourage non buyers to buy
Examples of Market Penetration:Starbucks coffee starting out was small, marking to people who wanted coffee in a local area.
●Bringing existing products to new markets
●Moderate risk, Costly
Product Development is achieved by:-New products to replace current products-New innovative products-Product improvements-Product line improvements-Product line extensions-Products at different quality level to existing products
Examples of Product Development:A company extending their branding to another product. Example: Arm & Hammer extending to include sale of toothpaste
●New products sold to new markets●New products for new consumers
Marketing Development is achieved by:-New products to new markets.-New products for new customers
Examples of Market Development:McDonalds startingMcCafe.
Market Development is achieved by:-Same product to different people-Entering new markets or segments withexisting products-Gaining new customers, new segments, new markets-Entering oversea markets
Examples of Market Development:Expanding their market to undeveloped (in terms of the business and marketing) areas and parts of the world- example: Coca Cola expanding their reach to Russia.
●Same product to different people●Entering existing markets with
Advantages & Disadvantages
Disadvantages of theAnsoffMatrix:-ishighly simplistic and does not factor in the external environment,
Advantages of theAnsoffMatrix:- Increasing the brand loyalty, this will encourage customers to buy their brand instead of some other. Well known brands use this strategy, such as; Kellogg's corn flakes.- Encourages customers to buy the product more regularly.- The brand may bring out different size quantities of the product, which will encourage customers to buy more of the product.