This involves developing new products for existing markets by thinking about how new products can meet customer needs more closely and outperform competitors. Product Development: ( EXISTING Market, NEW Product)
#Igor ansoff theory full
Due to the incredible strength of Coca-Cola’s brand, the company has been able to utilise market penetration on an annual basis by creating an association between Coca-Cola and Christmas, such as through the infamous Coca-Cola Christmas advert, which has helped boost sales during the festive period.įor a full case study of a market penetration strategy, take a look at this article I recently wrote about its implementation at Heinz. This strategy involves an attempt to increase market share within existing industries, either by selling more product to established customers or by finding new customers within these markets – typically by adapting the ‘Promotion’ element of the Marketing Mix. Market Penetration: ( EXISTING Market, EXISTING Product)
To demonstrate the robustness and legitimacy of Ansoff’s Matrix, it has been applied to Coca-Cola, the most well-known trade name in the world and a company today operating in over 200 countries and a brand that has undertaken countless growth strategies in its 100+ year history. But how does a business decide upon the best strategy for growth? 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. The objective of every business is to grow, be it a start-up that’s just closed its first deal or an established market leader seeking to further increase profitability.
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