Ansoff Matrix Final
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Transcript of Ansoff Matrix Final
Application of Ansoff Matrix on Food and Beverages Industry
Submittted by –Arjun SethAkhil Jain
Piyush MarwahPragya Pathak
Akshata Phadtare
IntroductionAnsoff Matrix represents the different options open to a marketing manager when considering new opportunities for sales growthTwo variables in Strategic marketing Decisions:
• The market in which the firm was going to operate• The product intended for sale
In terms of the market, managers had two options:• Remain in the existing market• Enter new onesIn terms of the product, the two options are:• selling existing products• developing new ones
Market Penetration:
• Companies often penetrate markets in one of these ways: – By attracting non-users of the products– By gaining competitors customers – By convincing current customers to use more
of the company's product• A cheaper strategy which includes relationship
marketing activities.
– Slide 3
Product Development• Another strategic option for an organization is to
develop new products. Product development occurs when a company develops new products to the same market.
• This strategy selected for one or more of the following: – Utilization of excess production capacity– Counter competitive entry– Maintaining the company's reputation as a
product innovator– Use of new technology– Protection of overall market share
• Often one such strategy moves the company into markets and towards customers that are currently not being served
Market development
• Attracting new customers for its existing products.
• This may include– Exploration of new segments of a market– New uses for the company's products and
services– New geographical areas in order to entice new
customers
Diversification
• Moving out from its existing products and markets to new areas
• Two types of diversifications – Related diversification– Unrelated diversification
• Diversification is a high-risk strategy • The risks of diversification can be minimized by
moving into related markets
Coca Cola – The Company
Standing in Business Environment
Corporate Level Strategy• Coca-Cola has long been committed to a
product development strategy.
• This allow Coca-Cola to penetrate existing markets with new products due to their high brand awareness.
• This strategy capitalizes on Coca-Cola’s favorable trademark reputation.
Coca-Cola – Application of Ansoff Matrix
Market penetration strategies
-Increase Market Share-Increase product usage- Increase frequency of use-Increase quantity of use
Product Development strategies
-Product Improvement-Product line extension- New product for same Market
Market Development Strategies
-Expand markets for existing product-Geographic expansion-Target new segments
Diversification Strategies-Vertical Integration-Forward Integration-Backward Integration
Current Products
New Products
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Coca-Cola – Application of Ansoff Matrix
Market penetration strategies
-Increase Market Share by increasing their distribution channels-Increase product usage by making it all occasions drinksE.g. Extensive Use of this strategy after launch of Diet Coke
Product Development strategies
-Product Improvement-Product line extension- New product for same Market
Market Development Strategies
-Expand markets for existing product-Geographic expansion-Target new segments
Diversification Strategies-Vertical Integration-Forward Integration-Backward Integration
Current Products
New Products
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Coca-Cola – Application of Ansoff Matrix
Market penetration strategies
-Increase Market Share-Increase product usage- Increase frequency of use-Increase quantity of use
Product Development strategies
-Product Improvement – Diet Coke-Product line extension – Fanta, Sprite- New product for same Market
Market Development Strategies
-Expand markets for existing product-Geographic expansion-Target new segments
Diversification Strategies-Vertical Integration-Forward Integration-Backward Integration
Current Products
New Products
Curr
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t M
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et
New
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Coca-Cola – Application of Ansoff Matrix
Market penetration strategies
-Increase Market Share-Increase product usage- Increase frequency of use-Increase quantity of use
Product Development strategies
-Product Improvement-Product line extension- New product for same Market
Market Development Strategies-Expand markets for existing product- Launch of Coca cola Vanilla in Great Britain-Geographic expansion – Expanding further in Asian Markets like India-Target new segments –Further targeting higher age groups
Diversification Strategies-Vertical Integration-Forward Integration-Backward Integration
Current Products
New Products
Curr
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t M
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et
New
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Coca-Cola – Application of Ansoff Matrix
Market penetration strategies
-Increase Market Share-Increase product usage- Increase frequency of use-Increase quantity of use
Product Development strategies
-Product Improvement-Product line extension- New product for same Market
Market Development Strategies
-Expand markets for existing product-Geographic expansion-Target new segments
Diversification Strategies
-Diversification in to ‘ready packaged liquid refreshments’.-e.g. Winnie the Pooh Roo Juice, Nestea, Powerade
Current Products
New Products
Curr
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