Categories: Marketing

Intensive Growth Strategies: Ansoff’s Product-Market Expansion Grid

The Ansoff’s model is one of the best tool which companies to develop market and product expansion strategies.Ansoff’s  model is based upon four type of strategies namely market penetration strategy, market development strategy, product development strategy and diversification strategy. The strategy is also dependent on company objectives include increasing sales, increasing profit, enter into new market, develop new product and enter into new business.

Ansoff’s Product-Market Expansion Grid

Now we’ll discuss the four intensive growth strategies in detail.

Market penetration strategy

The first strategy company is looking to adapt for increasing there sales and profits. Marketing efforts of the company to offer their existing products in the current markets is called market penetration strategy. The best way to do this to attract competitors customer and looking for potential customer for the existing products.

Market Penetration Figure

The penetration that brands and products have can be recorded by companies such as ACNielsen and TNS who offer panel measurement services to calculate this and other consumer measures. In these cases penetration is given as a percentage of a country’s households who have bought that particular brand or product at least once within a defined period of time.[sky]

Examples of Market penetration strategy

Recognizing that software as a service can be a potent market penetration tool, Dell is assembling a services portfolio that now includes e-mail disaster recovery, spam/virus filtering and archiving via its MessageOne acquisition.

Southwest airline in the current market by offering flights for the small distance cities.

According to Peter Wilson of High Definition & Digital Cinema Ltd., in terms of market penetration HD televisions were present in only 17
percent of U.S. households last year, a number that will grow to 22 percent this year and will exceed 55 percent in 2008.

Pakistan State Oil penetrate in Pakistan market from 40% to 65% in the duration of 4 years by developing new retail outlets.

Market development Strategy

Developing a new market for the existing company product is called market development strategy.This is the process of finding new market for the new customer to increase company performance by increasing sales and profits. Companies can develop market on geographical such as city,country,region,state etc and demographical such as age,sex,gender,class etc.

Market Development Figure

A marketing manager has to think about the following questions before implementing a market development strategy: Is it profitable? Will it require the introduction of new or modified products? Is the customer and channel well enough researched and understood? The marketing manager uses these four groups to give more focus to the market segment decision: existing customers, competitor customers, non-buying in current segments, new segments.

Page: 1 2

kasi

View Comments

  • You mention truth point on that stuff. For me you described it in a professional way. Hope you will go further this way, with your brilliant ability of posting

  • Thanks for the interesting article on Ansoff’s Product-Market Expansion Grid. I would rate this article 10 on 10 because of simple language, appropriate examples and beautiful presentation.

  • Thx for the helpful article. I'm in Rwanda & preparing for my exam. This grid was so difficult for me to understand but now i understand.

Recent Posts

Porter’s Five Forces of Microsoft

Microsoft Corporation also known as MS is one of the biggest multinational technology-based company in…

2 years ago

Porter’s 5 Forces Analysis of Fast Food Industry

The article is based upon in-depth analysis of Fast Food Industry of Australian Region with…

2 years ago

Apple Inc. – Porter’s Five(5) Forces Analysis

The paper presents detailed overview about the Apple Inc. analysis on the parameters set by…

2 years ago

Marketing Plan – Thomson Holiday Group

The purpose of this research paper is to develop a marketing plan for the Thomson…

2 years ago

Case Study – Jerk Stars Ltd- Sales and Marketing Human Resources Dilemma

1. As applicable to other department managers, a human resources manager invigilates the departments and…

2 years ago

KFC Jamaica – Operation and Services Flow

The purpose of the present article is to formulate a work allocation flow chart of…

2 years ago