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
Curr
en
t M
ark
et
New
M
ark
et
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
en
t M
ark
et
New
M
ark
et
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
en
t M
ark
et
New
M
ark
et
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
en
t M
ark
et
New
M
ark
et
Thank You