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

I will take Coca-Cola to explain it in Ansoff matrix:

A. Please refer the image

Existing Product and Existing Market: Market Penetration

E.g. Coca-Cola for Christmas

Existing Product and New market: Market Development

E.g. Diet coke

New Product and Existing Market: Product development

E.g. Cherry Coke launched in 1985

New product and New market: Product diversification

E.g. Coca-Cola merchandises like glasses, T-shirt and health drinks.

B. Explaining and discussing the product through all four stages:

1^st Stage (Existing Product and Existing Market: Market Penetration)

In this stage Coca-Cola used ‘promotion’ element of marketing mix and due to the incredible strength of Coca-Cola’s brand, the company has been able to utilize market penetration on an annual basis by creating an association between Coca-Cola and Christmas, and help boost sales of Coca-Cola during festive period to the already established customers of Coca-Cola.

2^nd Stage (Existing Product and New market: Market Development)

Here Coca-Cola found a new group of buyers for its existing product i.e. Diet Coke. The Diet Coke was launched more than 30 years ago and it was found that majority of women drank it due to being conscious about weight but then by giving the coke can a more masculine appeal, the community of men also started to drink it.

3^rd Stage (New Product and Existing Market: Product development)

Coke launched cherry coke as a new product to the existing customer base so as to meet their needs more closely and outperform competitors.

4^th Stage (New product and New market: Product diversification)

Coca-Cola launched products such as T-shirts, pens, glasses etc. which means product diversification and since these products can be used by a large number of people belonging to different age groups, income groups etc. the customer base also grows and hence the market also comprises of new customers belonging to varying demography, hence a new market.