Ansoff Matrix Final

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Application of Ansoff Matrix on Food and Beverages Industry Submittted by – Arjun Seth Akhil Jain Piyush Marwah Pragya Pathak Akshata Phadtare

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Ans off Matrix

Transcript of Ansoff Matrix Final

Page 1: Ansoff Matrix Final

Application of Ansoff Matrix on Food and Beverages Industry

Submittted by –Arjun SethAkhil Jain

Piyush MarwahPragya Pathak

Akshata Phadtare

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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

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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

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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

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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

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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

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Coca Cola – The Company

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Standing in Business Environment

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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.

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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-Vertical Integration-Forward Integration-Backward Integration

Current 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

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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

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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

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Thank You