Running Head: ANSSOFF MATRIX ANALYSIS OF ADNAMS COMPANY 1

Anssoff Matrix Analysis of Adnams Company

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ANSSOFF MATRIX ANALYSIS OF ADNAMS COMPANY
Adnams is a brewery company found in Southwold in England. It produces pasteurized

and cask ale beers. The company also has other businesses like hotels, pubs, and property

ownership. This paper will focus on the analysis of the company using Ansoff matrix. It is a

management model developed by Igor Ansoff, an economist in 1957.It can be used in

determining the growth strategy of an organization. It gives a direction of what a company

should focus on. According to the model, Adnams can use four strategies to affect its panning,

marketing, and growth. These strategies may include; market penetration, diversification, market

development, and product development. The matrix gives the difference in bringing existing

products into action or developing new products. This matrix may help Adnams company to

either focus on new customers or focus on the exist ng customers.

Market Penetration Strategy

This strategy aims at getting more from an existing product. The company will try to

focus on selling current products in the current market. It can be done by preventing customers

from being snatched by the customers and as well snatching those customers who have already

been taken by the competitors.it can also be done by the company selling more of its products to

its current customers. By persuading existing customers to buy the company’s product, it may

sell more products to its existing customers. This upselling may also be known as market

deepening. If Adnams company opt for this strategy, it means the company should focus on

marketing and sales. The company will be forced to snatch a piece of market from other

breweries with the help of advertising and seller efforts.

Adnams company focuses on relying on small markets around the UK. The market is

already saturated in the UK as it has many brewery companies. However, the company focuses
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ANSSOFF MATRIX ANALYSIS OF ADNAMS COMPANY
on differentiation as a strategy of competing with the other brewery companies. The company

has focused on culture as its brand, which is known and can be seen in the company’s slogan

when it's marketing itself, which is beer from the coast, meaning local beer from the coast. The

focus of niche markets by the company can be evidenced by Norfolk show, Suffolk show, and

other festivals. The company has also formed partnerships aiming at creating a new market. Its

collaboration with Ipswich town can show this increases brand awareness and develops a

customer base.

The company has utilized an internet marketing tool where it has a twitter account used

to connect the local market and the broader market. This has created a more significant

awareness of the company’s products and the brand name. It’s essential for increasing the

purchase of their products by the consumers hence helping in competitiveness. The company has

been involved in various advertisements for their products. The company treats its employees in

the right way, which cuts off competition from other breweries. This makes the employees have

pride and a sense of belonging hence reducing their absenteeism and increases productivity.

Product Development

For a company to use this strategy, it means the company will develop new products into

the existing market. The new products can be sold by a cross-selling method, which means

offering other new products to the current customer. This strategy can also aim at developing

extra services to the existing customers. Product development ensures that exiting customers do

not need to move to their competitors. Innovation is, therefore, important in product

development. Adnams company has produced new products, and these vary cashflows and profit
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ANSSOFF MATRIX ANALYSIS OF ADNAMS COMPANY
margins. However, to sustain their long-run profits, they must continue introducing new products

in the market.

Market Development

This strategy aims at appealing to other customers with the existing services and

products. This can be done by considering the price of the product. The company has been

involved in updating the current assets. Adnams company has focused on modernizing and

updating exiting assets. Upgrading the company has made it become one of the eco-efficient and

ethical brewery companies in the UK. This has helped in creating a positive image and customer

base. Branding of the company is ecofriendly, where it uses eco-friendly bottles. Also, the

ingredients used in beer production are unique and ethical; hence, they are challenging to imitate.

The company has focused on low costs, which enhance high profitability. This is achieved by

updating the brewery and keeping it environmentally friendly for their main beer product, which

cuts the cost. This also increases the quality of the product.

Diversification Strategy

This strategy is risky in the Ansoff matrix. It aims at developing new products for new

customers in the market. It is seen as unsafe because the inventor company must wait and see if

the new product will have demand in the market. If the product conquers the market, competitors

may develop your product and conquer the market. The advantage of this is a company may take

an immediate lead over the competitors. Also, a company must explain the product before it sells

it, comparing that it’s easier to sell a product that consumers are aware of it.

The company has diversified into retail and hotels, which have created useful

implications. The creation of hotels has helped in cementing the company’s brand name and
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ANSSOFF MATRIX ANALYSIS OF ADNAMS COMPANY
enhancing local connections. Forward integration was a poor decision as the shareholders

admitted it was not the right time to expand the company’s portfolio. The shareholders also

experienced discontent about the dilution of their holdings. Fortunately, by 2012, the retail

outlets of the company increased the company’s turnover, and this increased market share in the

local market. With time, retail outlets have improved the company’s portfolio hence improving

customer base composed of women and increased sales. Retail outlets sold diversified products

like bottled water, peanuts, cordials, mixers, spirits, and classic cookware. These products

accounted for female customers who were new in the market.

In conclusion, Adnams company has considered having a national market and expanding

overseas. However, it is not advisable to go through the international market and set a separate

brewery. This is due to the reason that the company has established itself as a local brand, and

therefore penetrating the global market may negatively dilute the brand. Fortunately, if the

opportunities overseas could be reached by marketing the company’s products by world-wide-

web, it could be an advantage of increasing its sales. The analysis has highlighted the four

strategies discussed above. However, these strategies have proved the success of the company

and have developed mature markets for the company.

References
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ANSSOFF MATRIX ANALYSIS OF ADNAMS COMPANY
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