Ansoff Matrix

Name: Suehyun Kim

 Background Information
• First published in the Harvard Business in
1957.

• Ansoff matrix is a marketing planning tool

which usually helps a business in determining
its product and market growth.
Insert picture of Matrix
 Market Penetration
Definition: The company tries to grow using its existing products in existing
markets.
They can do this by selling more to established customers.

Real life examples (Research)

Nike features famous athletes in print and television ads designed to take
market share within the athletic shoes business from Adidas and other
rivals.

Level of risk? Low risk.

Penetration requires huge expense on advertising and personal selling. To
lead the competition in an established market, promotions and pricing
strategy is needed to attract more customers.
 Market Development
Definition: extending existing products to new
markets. (Expanding geographically, new
distribution channel, new product packaging,
different pricing policies)
Real life examples (Research):

Level of risk? Riskier than the market penetration

strategy.
 Product Development
Definition: a business develops a new product to sell to
existing market.
Companies develop new products closely associated with
the brand.

Real life examples (Research): Coca cola increased the

range of products offered by the company – Diet coke.

Level of risk? Riskier than market penetration

& product development.
 Diversification
Definition: Business markets new products to
new market/customers.

Real life examples (Research):

1988, PowerAde was made by The Coca-Cola
Company.

Level of risk? Very high.

 Evaluation
Advantages Disadvantages
• Focused Approach • Only a theoretical model
It forces market planners and
management to think about By simplifying far too many
the expected risks of moving in complicated things, the Ansoff
a certain direction. Matrix becomes almost
unrealistic.