New geographical markets, new distribution channels, new product packaging, and different pricing policies. That way it may attract a different customer base.
In Market Penetration, the risk involved in its marketing strategies is usually the least since the products are already familiar to the consumers and so is the established market. The other method is via new distribution channels. I think that iPod was perhaps one of the most successful diversification ever.
In Different pricing policies, the business could change its prices so as to attract a different customer base or so create a new market segment. However, it just opened up a tremendous market for Apple.
Research has shown that the toothbrush head influences the amount of toothpaste that one will use. A very common example is entering different geographical areas nationally and internationally. The model was invented by H.
Another way in which market penetration can be increased is by coming up with various initiatives that will encourage increased usage of the product.
In the following ad you will see that it could have been an iPhone ad as well. For example, by changing pricing, by adding minor features new and improved! His presentation clearly lays down what differentiates iPod from other music players.
It would also mean setting up other branches of the business in other areas that the business had not ventured yet. In New Product packaging, it means repacking the product in another method or dimension.
One can diversify from a food industry to a mechanical industry for instance. There are two types of diversification. Make sure that you do not fall victim to procrastination caused by excessive planning. He took advantage of the virgin brand and diversified into various fields such as entertainment, air and rail travel foods etc.
In unrelated diversification, there are usually no previous industry relations or market experiences. By modifying the product one would probably change its outlook or presentation, increase the products performance or quality. NEW Market, NEW Product This involves the production of a new category of goods that complements the existing portfolio, in order to penetrate a new but related market.
Analysis Paralysis Some schools of thought believe that the use of strategic management tools such as the Ansoff Matrix can result in an overuse of analysis.Ansoff Matrix In Sum The Ansoff Matrix is a great framework to structure the options a company has in order to grow.
Market Penetration is the least risky of all four and most common in day-to-day business. The Ansoff Matrix also known as the Ansoff product and market growth matrix is a marketing planning tool which usually aids a business in determining its product and market growth.
This is usually determined by focusing on whether the products are new or existing and whether the market is new or existing. A Few Examples of Ansoff Matrix September 27, Here I give four examples of the commonly taught penetration, product development, market development, and diversification strategies.
Hi I think this is great- very good practical example of the application of the Ansoff matrix (product-expansion grid). Cheers, Ross. Ansoff’s product/market growth matrix suggests that a business’ attempts to grow depend on whether it markets new or existing products in new or existing markets.
The output from the Ansoff product/market matrix is a series of suggested growth strategies which set the direction for the business. Browse ansoff matrix templates and examples you can make with SmartDraw.Download