Ansoff’s Product/Market Matrix
Present Products New Products
Market Penetration
• Aim of the strategy:
- To maintain or increase share of the current market with current products
- To secure dominance of a growth market or restructure a mature market by driving out competition
• Market penetration involves an increase in sales of existing products to existing markets- selling more of the same to the same people. (strategy-Ansoff’s Matrix)
Product development
• This is the development of new products for the existing market
• New products come in the form of:
- New products to replace current products to replace current
- New innovative product
- Product improvement
- Product line extensions
- New products to complement existing products
- Products at a different quality level to existing products (strategy-Ansoff’s Matrix)
Present Markets
Market development
• Market development is used when.....
- Untapped markets are beckoning
- The firm has excess capacity
- There are attractive channels to access new market
• Market development involves moderate risk - there is a lack of familiarity with customers but at least the product is familiar. (strategy-Ansoff’s Matrix) Diversification (new product and new markets)
• New products sold to new markets
• New products for new customers
Diversification can be sub-divided into related and unrelated. (strategy-Ansoff’s Matrix)
New Markets
In terms of the Ansoff’s Matrix our service for Virgin Atlantic would fit in the product development section.
strategy-Ansoff’s Matrix, Tutor2u [online]. Available from: < https://campus.glos.ac ...