Ansoffs Matrix - Planning fo Growth Essay Example for Free

Ansoffs Matrix Planning fo Growth EssayThis well known grocery storeing calamus was first published in the Harvard Business Review (1957) in an article called Strategies for Diversification. It is used by marketers who have objectives for growth.Ansoffs matrix offers strategic choices to achieve the objectives. There argon four main categories for selection.Ansoffs Product/Market MatrixMarket PenetrationHere we market our existing overlaps to our existing customers. This means increasing our revenue by, for example, promoting the harvest-feast, dislodge the brand, and so on. However, the product is not altered and we do not seek any new customers.Market DevelopmentHere we market our existing product range in a new market. This means that the product remains the same, but it is marketed to a new audience. Exporting the product, or marketing it in a new region, are examples of market development.Product DevelopmentThis is a new product to be marketed to our existing customer s. Here we develop and innovate new product offerings to replace existing ones. Such products are then marketed to our existing customers. This often happens with the auto markets where existing models are updated or replaced and then marketed to existing customers.DiversificationThis is where we market completely new products to new customers. There are two types of diversification, namely related and unrelated diversification. Related diversification means that we remain in a market or industry with which we are familiar. For example, a soup manufacturer diversifies into cake manufacture (i.e. the food industry). Unrelated diversification is where we have no front industry nor market experience. For example a soup manufacturer invests in the rail business.Ansoffs matrix is one of the most well know frameworks for deciding upon strategies for growth.