Question

Q1: (250-300 words)

Apply Ansoff Matrix options to any product of your choice by:

A . Using the matrix (actual diagram)
B . Explaining and discussing the product through all four stages

Answer 1

Ansoff matrix suggest that the marketing strategy has the following four growth strategy

market penetration

market development

product development

diversification

The matrix is developed considering the existing product and market and new product and market classification as below:

existing product new product Existing market market penetration product development New market market development diversification

let us take the example of an automobile like car or a SUV and use the growth strategy to be adopted as per the market and product strategy or choice:

market penetration: For existing market and product the strategy would be to further penetrate the market through extensive distribution setup. Like setting up new dealership in an uncovered area.

market development: if there is no change in product and venturing in to the new market then we need to develop the market for the product like promotional effort for the product.

product development: for existing market and new product we need to develop the product as per the market under consideration. Like an SUV designed as per US customers choice and preferences.

Diversification: if the market and product both are new then the diversification of the product portfolio will be the right growth strategy like selling different models of car under various price range.