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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Igor Ansoff’s Product-Market Expansion Grid

Therefore, a firm should choose this option only when the current product or current market orientation does not offer further opportunities for growth. Current products may, for example, be placed in different geographic markets or directed toward new demographic segments to stimulate demand and increase growth. This site uses cookies. That said, Coca-Cola offers official merchandise from pens and glasses to fridges, therefore exploiting its strong brand advocacy through this strategy.

When companies have no previous industry nor market experience this strategy is called unrelated diversification. They are Good article, Ansoff demonstrate very much clarified. Entrepreneurs can penetrate the market by finding new customers for your product or by getting current customers to use more of their products. It assumes that an innovation will be accepted by the organization’s existing customer group.

Competition levels and amount of resources available need also to be anoff into account.

This will defintely helps me prepare my assignment. Going into an unknown market with expanssion unfamiliar product offering means lack of experience in the new skills and techniques required. Increase your sales force activities.

Even if the new products are need not be new to the market, they remain new to the business. You are commenting using your WordPress. I like the manner of explaining it.


Igor Ansoff’s Product-Market Expansion Grid

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.

Good article, Ansoff model well explained. Auth with social network: Buy a competitor company particularly in mature markets. 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.

Market Penetration Profuct penetration is a growth strategy that seeks to increase the use of current product offerings by current customers.

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. Either way, both strategies can lead to additional earnings for the business. To find out more, including how to control cookies, see here: For a full case study of a market penetration strategy, take a look at this article I recently wrote about its implementation at Heinz.

The product can also be targeted to another customer segment. F Ansoff matrix – business-and-management-aiss. 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.

We think you have liked this presentation. In order to measure the chances of success, different tests can be done: International development phases Phase 1: I like the way of clarifying it.

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 exxpansion with zero sugar and low calories. I will be reading the case study on Virgin after this. Launch price or other special offer promotions. Within each strategy there is a differing level espansion risk. Product Development 0 Product development is a growth strategy that involves the introduction of new products into current markets.


You are commenting using your Twitter account. Initial market entry Phase 2: Email required Address never made public. And by moving two quadrants and targeting a new market with a new product, you increase your risk to yet another level.

For a full case study of a related diversification strategy, take a look at this article I recently wrote on the launch of Aero into the hot chocolate industry. He is trying to sell more of the same things to different people. The company has since gone on to successfully launch other flavoured variants including lime, lemon and vanilla.

Coca-Cola generally avoids risky adventures into unknown territories and mmarket instead utilise its brand strength to continue growing within the drinks industry. Published by Julius Austin Modified about 1 year ago. Defensive reasons may pproduct 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? I found it a very good case study that used simple but relevant language to explain the Ansoff Matrix. That said, there is no one best strategy to select, with each offering different benefits to producg in various circumstances.

Hi I think this is great- very good practical example of the application of the Ansoff matrix product-expansion grid. Introduce a loyalty scheme. Healthcare marketers must strive to proactively monitor their surroundings to, among other things, detect growth opportunities that provuct be exploited.