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Ansoff Matrix: Growth Strategies Explained

The Ansoff Matrix is a marketing planning tool that helps businesses determine product and market growth strategies. It outlines four categories: market penetration, market development, product development, and diversification. Market penetration focuses on selling existing products to existing markets. Market development sells existing products to new markets. Product development introduces new products to existing markets. Diversification markets new products in new markets and carries the highest risk. The document provides examples of each category and concludes that a company expanding into luggage and fragrance in new markets would fall under diversification.

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181 views4 pages

Ansoff Matrix: Growth Strategies Explained

The Ansoff Matrix is a marketing planning tool that helps businesses determine product and market growth strategies. It outlines four categories: market penetration, market development, product development, and diversification. Market penetration focuses on selling existing products to existing markets. Market development sells existing products to new markets. Product development introduces new products to existing markets. Diversification markets new products in new markets and carries the highest risk. The document provides examples of each category and concludes that a company expanding into luggage and fragrance in new markets would fall under diversification.

Uploaded by

sony.ae
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
  • Ansoff Matrix Overview
  • Market Penetration
  • Market Development
  • Product Development
  • Diversification
  • Application to Supergroup

Ansoff Matrix

What is it?

It is a marketing planning tool that helps a business determine its product and
market growth strategy

Market Penetration

Market Penetration - a growth strategy where the business focuses on selling


existing products into existing markets

-Focuses on markets and products it knows well

-Likely to have good information on competitors and on customers needs

-Doesnt require much investment in new market research


Market penetration seeks to achieve these main objectives:

Maintain/Increase the market share of current products


Competitive pricing strategies, advertising, sales promotion
Secure dominance of growth markets
Restructure a mature market by driving out competitors
Aggressive promotional campaign
Pricing strategy designed to make the market unattractive for competitors
Increase usage by existing customers
Introducing loyalty schemes

Market Development

Market Development - a growth strategy where the business seeks to sell its existing
products into new markets

-It is a more risky strategy than market penetration because of the targeting of new
markets

Ways to approach market development:

New geographical markets


Exporting the product to a new country
New product dimensions/packaging
New distribution channels
Moving from selling via retail to selling using e-commerce
Different pricing policies
To attract different customers
Create new market segments
Product Development

Product Development - a growth strategy where a business aims to introduce new


products into existing markets

-Requires the business to develop modified products which can appeal to existing
markets

-It is suitable for a business where the product needs to be differentiated in order to
remain competitive

Product development places the marketing emphasis on:

Research and development and innovation


Detailed insights into customers needs
Being first to market

Diversification

Diversification a growth strategy where a business markets new products in new


markets

-More risky strategy because the business is moving into markets in which it has
little/no experience

-Must have a clear idea about what it expects to gain from the strategy and the risks
it involves

Application to Supergroup

Likely to be under DIVERSIFICATION

New Products
Luggage, fragrance

New Markets
French markets

Ansoff Matrix What is it? It is a marketing planning tool that helps a business determine its product and market growth
Market penetration seeks to achieve these main objectives:  Maintain/Increase the market share of current products  Comp
Product Development Product Development - a growth strategy where a business aims to introduce new products into existing m

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