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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Brand new products may also be created in an attempt to leverage the company’s brand name.
Ansoff’s Product-Market Expansion Grid Matrix Diagram |authorSTREAM
This strategy assumes that existing markets are fully exploited or that new markets can be developed concurrently with existing markets. Within each strategy there is a differing level of risk. For a full case study of a market penetration strategy, take a look at this article I recently wrote ansofv its implementation at Heinz.
I like the way of clarifying it.
Market Penetration Market rxpansion is a growth strategy that seeks to increase the use of current product offerings by current customers. Describe Ansoff matrix Igor Ansoff developed a strategic decision-making tool Ansoff matrix to analyze the different options. Thirdly, the market development strategy entails finding a new group of buyers for an existing product. Imitation with a Twist.
Local market expansion Phase Increase your sales force activities.
Use different sales channels, such as online or direct sales if you are currently selling through the trade. Ansoff pointed out that a diversification strategy stands apart from the other three strategies. By continuing to use this website, you agree to their use.
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. Market Development Market development is a growth strategy that involves the introduction of current products into new markets.
It assumes that an innovation will be accepted by expanion organization’s existing customer group. Therefore, the company puts itself in a great uncertainty. That said, Coca-Cola offers official merchandise from pens and glasses to fridges, therefore exploiting its strong brand advocacy through this strategy.
Target different groups of people, perhaps with different age groups, genders or demographic profiles from your normal customers. Current products may, for example, be placed in different geographic markets or directed toward new demographic segments to stimulate demand and increase growth.
Marketing is the Marketing Mix. We think you have liked this presentation.
That said, there is no one best strategy to select, with each offering different benefits to companies in various circumstances.
Igor Ansoff’s Product-Market Expansion Grid
Market penetration is considered a low risk method to grow the business. Each time one moves into a new quadrant horizontally or vertically downwards risk is increased. This involves developing new products for existing markets by thinking about how new products can meet customer needs frid closely and outperform competitors.
Good article, Ansoff model well explained. Introduce a loyalty scheme.
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. Product Development 0 Product development is a growth strategy that involves the introduction of new products into current markets.
He is trying to sell more of the same things yrid different people. Launch price or other special offer promotions.