02 Activity 1

The Coca-Cola Company

Ansoff Matrix

Existing New

Market Penetration Market Development

Existing

Product Development Diversification

New

Market Penetration

This strategy promotes existing products in existing markets or industries to increase market shares.
Coca-Cola penetrates their products through massive promotion and marketing of their flagship
product which is the Coca-Cola itself. With these, the company may sell more products to gain more
customers or look for new customers within the markets. Fortunately, the company able to utilize
well the sales of its product by associating Coca-Cola with various cultural and events such as
Christmas as an advert that helps them to boost their sales during the period. Aside from that, the
company also offers different bottle sizes to meet the preferences of its consumers that also lead to
the market share increase.

Product Development
This strategy promotes new products in existing markets. Coca-Cola aims to develop its product
through extensive research and innovation to meet the market demands, that is why they launch a
new variety of flavors for the costumers to choose from. One example is the launching of cherry
coke in 1985 and later on followed by Sprite, Fanta, Coke Zero, and many more variants of flavor.
With this product development strategy, it greatly helps the company to gain more sales globally.

Market Development

This strategy promotes on entering new markets with the existing products. Coca-Cola’s strategy is
to find new location or market to put up a new branch to offer and sell their existing products, and
that’s strategy is one of the reasons why Coca-Cola achieves its wide success. Aside from Diet Cola
that was mistakenly perceived as females drink, the company launches a new color and name to be
appeal as masculine to gain attention for males, and this is part of their market development
strategy, wherein they find new market to offer the product. Coca-Cola is now already operating in
more than 200 countries in the world, which makes them more powerful and stand-alone company
today.

Diversification

This strategy promotes new products in the new market. There are two types of diversification:
related and unrelated. To diversify its business in a related manner, Coca-Cola offers a non-
carbonated drinks which is the Vitamin water to enhance their consumers drinking experience with
the vitamins and electrolytes in different flavors of vitamin water. In unrelated diversification, Coca-
Cola expands their product offering from beverages to official merchandise such as clothes, pens,
and fridges. Through extensive research, Coca-Cola may also expand into other industries in order to
gain more sales and to promote its brand name.