Intensive Growth Strategies: Ansoff’s Product-Market Expansion Grid www.soopertutorials.com

Agenda Introduction Market penetration strategy Market development Strategy Product Development Strategy Diversification Strategy

Introduction Companies management looking for the new opportunities to increase their sales and profits. Ansoff’s has proposed a useful framework for www.soopertutorials.com

Market penetration strategy The first strategy company is looking to adapt for increasing their sales and profits. Marketing efforts of the company to offer their existing products in the current markets is called market penetration strategy. The best way to do is to attract competitors customer and looking for potential customer for the existing products.

Examples of Market penetration strategy Recognizing that software as a service can be a potent market penetration tool, Dell is assembling a services portfolio that now includes e-mail disaster recovery, spam/virus filtering and archiving via its MessageOne acquisition. Source - www.soopertutorials.com

Market development Strategy Developing a new market for the existing company product is called market development strategy. This is the process of finding new market for the new customer to increase company performance by increasing sales and profits. Companies can develop market on geographical such as city,country,region,state etc and demographical such as age,sex,gender,class etc.

Market development strategy examples Pakistan State Oil (PSO) developing new market by exporting oil to Afghanistan. Chinese products developed new market for their product worldwide. www.soopertutorials.com

Product Development Strategy Developing or modifying new products and offering to the existing market is called product development strategy

Product development strategy examples Google developed a new browser Chrome for the existing Internet user. McDonalds is always within the fast-food industry, but frequently markets new burgers. www.soopertutorials.com

Diversification Strategy Diversification Strategy is the development of new products in the new market. Diversification strategy is adopted by the company if the current market is saturated due to which revenues and profits are lower.

Diversification strategy examples Virgin Media moved from music producing to travels and mobile phones Walt Disney moved from producing animated movies to theme parks and vacation properties Canon diversified from a camera-making company into producing whole new range of office equipment. www.soopertutorials.com

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