Ansoff

Ansoff Matrix The Ansoff matrix helps managers

devise product and market growth strategies

Businesses must establish if they want to market their current product in a new market, or in an existing one. Or, do they want to market a new product in a new market or an existing one

Ansoff MatrixBusinesses

focus on selling existing

products in existing

markets. Try to attract new

customers, or entice existing customers to

buy more often.

RISK: Low

Businesses market an

existing product to a new market

segment. Businesses may sell product in a new location, or may renew the

product by updating/changing packaging.

RISK: Medium

Businesses focus on selling new products

in existing markets. This strategy uses

product extension and new product

development.RISK:

Medium

Businesses market a new product in a new market.

Allows a business to spread its

risks, so that if one product

fails, they can fall back on

another.RISK: High

TASK:

Complete Worksheet: Ansoff Matrix

Glue this into your book before you complete the work!

Answers (1.7.8):

a) Market penetration (Cadbury’s trying to capture a larger share of the market)

b) Product development (new products by Nissan in an existing market for luxury cars)