1. Ansoff Matrix
Maxwell Marchand

2. Function
Ansoff Matrix developed by Igor Ansoff, a Russian American mathematician and business manager
Made as a framework for identifying corporate growth opportunities
Four generic growth strategies:
-Market Penetration
-Market Development
-Product Development
-Diversification

3. New Products developed for existing market
Growth Strategies
New Products developed for existing market
Increase sales to the existing market
Penetrate more deeply into existing market
Existing products
sold to new markets
New products sold
in different markets

4. Marketing Penetration
Aim
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
Risks
Low risk
Profits
Low rewards
Includes
Involves an increase in sales of existing products to existing markets
Selling more of the same thing to the same people
Problems
Difficult to achieve growth through market penetration if market is saturated.
In a stagnant market, increase in sales is only possible by grabbing market share from rivals- Hence competition will be intense
Marketing Penetration is achieved by:
-Increased usage by existing customers
-Attracting customers away from rivals
-Gain Marketing share at expense of rivals
-Encourage increase of frequency of use
-Devise and encourage new applications
-Encourage non buyers to buy
Examples of Market Penetration:
Starbucks coffee starting out was small, marking to people who wanted coffee in a local area.

5. Product Development Product Development is achieved by:
Aim
Risks
Moderate
Profits
●Bringing existing products to new markets
Includes
Selling the same product to different people, entering new markets or segments with existing products, Gaining new products, new segments, new markets, and entering overseas markets
Problems
● Moderate risk, Costly
Product Development is achieved by:
-New products to replace current products
-New innovative products
-Product improvements
-Product line improvements
-Product line extensions
-Products at different quality level to existing products
Examples of Product Development:
A company extending their branding to another product. Example: Arm & Hammer extending to include sale of toothpaste

6. Marketing Diversification
Aim
Risks
High> because of dealing with two unknowns
Profits
High range of profitability
●New products sold to new markets
●New products for new consumers
Includes
Selling new products to new markets
Problems
● Very Risky
Marketing Development is achieved by:
-New products to new markets.
-New products for new customers
Examples of Market Development:
McDonalds starting McCafe.

7. Market Development Market Development is achieved by:
Aim
Risks
Moderate>Lack of familiarity with customers
Profits
Medium range of profitability
●Same product to different people
●Entering existing markets with
Includes
Entering existing markets
Problems
● Moderate Risk
Market Development is achieved by:
-Same product to different people
-Entering new markets or segments with
existing products
-Gaining new customers, new segments, new markets
-Entering oversea markets
Examples of Market Development:
Expanding their market to undeveloped (in terms of the business and marketing) areas and parts of the world- example: Coca Cola expanding their reach to Russia.

8. Advantages & Disadvantages
Advantages of the Ansoff Matrix:
- Increasing the brand loyalty, this will encourage customers to buy their brand instead of some other. Well known brands use this strategy, such as; Kellogg's corn flakes. - Encourages customers to buy the product more regularly. - The brand may bring out different size quantities of the product, which will encourage customers to buy more of the product.
Disadvantages of the Ansoff Matrix:
-is highly simplistic and does not factor in the external environment,