Ansoff product market matrix for chocolate industry

The Ansoff matrix helps us visualise the three possible solutions: sell the existing product to new markets, launch a new product to existing markets, or create something entirely new for a new market.

The campaign featured many TV commercials that was significantly different from the companys earlier commercial for the brand.

Market penetration is more likely to need a pricing and promotion strategy while market development may require a more fundamental branding strategy.

Concentric diversification, and b Vertical integration.

bcg matrix of cadbury

They believe no other product has same taste. Your role will differ depending on the approach that is being taken. This is advertising as image change, a brand refresh, rather than a rebranding. Another form of Cadbury diversification would be Cadburys moving from chocolate bars to chocolate cake.

Market penetration is about gaining market share without changing your basic product.

Ansoff product market matrix for chocolate industry

In they entered the MP3 player business. This is risky because again it has the potential to lose existing markets who either no longer identify with the product, or who think it has been withdrawn from sale. This is the Ansoff matrix. The strategic risk of pulling its well known brands under one umbrella paid off. Diversification Cadbury diversification is when they move into another market such as the energy drinks market A new breakfast cereal from Cadbury's would appear in diversification, as it would be a new product and a new market that Cadbury's are trying to exploit. What if we start aiming our existing product at new markets, for example young women? Cadburys emphasize on glass and half of the milk.

Diversification[ edit ] In diversification an organization tries to grow its market share by introducing new offerings in new markets. This was risky but the product appealed to existing Markets.

This is where you can use an approach like the Ansoff Matrix to think about the potential risks of each option, and to help you devise the most suitable plan for your situation.

Here, you focus on expanding sales of your existing product in your existing market: you know the product works, and the market holds few surprises for you.

ansoff matrix

The Ansoff Matrix management tool offers a solution to this question by assessing the level of risk — considering whether to seek growth through existing or new products in existing or new markets. This strategy of appealing to adults in India, who sought a rational justification for indulging in chocolate consumption, marked a significant departure from Cadburys earlier strategy.

Ansoff matrix nestle

This worked well for many and ice cream Snickers and Mars are still available today. Confectionery giant Cadbury recently announced a rival to the KitKat when it unveiled a new product called Dairy Milk Wafer. Each alternative poses differing levels of risk for an organization: Market penetration[ edit ] In market penetration strategy, the organization tries to grow using its existing offerings products and services in existing markets. Use different sales channels, such as online or direct sales, if you are currently selling through agents or intermediaries. As with many companies in Mad Men, this one is real. Even so, Coca-Cola would not be the power house it is today without knowing when to step out of its comfort zone — the Glaceau acquisition being a clear case in point. Introduce a loyalty scheme.
Rated 9/10 based on 88 review
Download
The Ansoff Matrix