Application of Ansoff Matrix on Food and Beverages Industry

Submittted by Arjun Seth Akhil Jain Piyush Marwah Pragya Pathak Akshata Phadtare

Introduction
Ansoff Matrix represents the different options open to a marketing manager when considering new opportunities for sales growth Two variables in Strategic marketing Decisions: The market in which the firm was going to operate The product intended for sale

In terms of the market, managers had two options: Remain in the existing market Enter new ones In terms of the product, the two options are: selling existing products developing new ones

Market Penetration:
Companies often penetrate markets in one of these ways: By attracting non-users of the products By gaining competitors customers By convincing current customers to use more of the company's product A cheaper strategy which includes relationship marketing activities.

Slide 3

Product Development
Another strategic option for an organization is to develop new products. Product development occurs when a company develops new products to the same market. This strategy selected for one or more of the following: Utilization of excess production capacity Counter competitive entry Maintaining the company's reputation as a product innovator Use of new technology Protection of overall market share Often one such strategy moves the company into markets and towards customers that are currently not being served

Market development
Attracting new customers for its existing products. This may include Exploration of new segments of a market New uses for the company's products and services New geographical areas in order to entice new customers

Diversification
Moving out from its existing products and markets to new areas Two types of diversifications Related diversification Unrelated diversification Diversification is a high-risk strategy The risks of diversification can be minimized by moving into related markets

Coca Cola The Company

Standing in Business Environment

Corporate Level Strategy

Coca-Cola has long been committed to a product development strategy. This allow Coca-Cola to penetrate existing markets with new products due to their high brand awareness. This strategy capitalizes on Coca-Colas favorable trademark reputation.

Coca-Cola Application of Ansoff Matrix

Current Products
Current Market

New Products

Market penetration strategies

-Increase Market Share -Increase product usage - Increase frequency of use -Increase quantity of use

Product Development strategies

-Product Improvement -Product line extension - New product for same Market

New Market

Market Development Strategies

-Expand markets for existing product -Geographic expansion -Target new segments

Diversification Strategies
-Vertical Integration -Forward Integration -Backward Integration

Coca-Cola Application of Ansoff Matrix

Current Products Current Market

New Products

Market penetration strategies

Product Development strategies -Product Improvement -Product line extension

-Increase Market Share by increasing their distribution channels -Increase product usage by making it all occasions drinks E.g. Extensive Use of this strategy after launch of Diet Coke

- New product for same Market

New Market

Market Development Strategies -Expand markets for existing product -Geographic expansion -Target new segments

Diversification Strategies -Vertical Integration -Forward Integration -Backward Integration

Coca-Cola Application of Ansoff Matrix

Current Products Current Market New Products
Market penetration strategies -Increase Market Share -Increase product usage - Increase frequency of use -Increase quantity of use

Product Development strategies -Product Improvement Diet Coke -Product line extension Fanta, Sprite

- New product for same Market

New Market

Market Development Strategies -Expand markets for existing product -Geographic expansion -Target new segments

Diversification Strategies -Vertical Integration -Forward Integration -Backward Integration

Coca-Cola Application of Ansoff Matrix

Current Products Current Market
Market penetration strategies -Increase Market Share -Increase product usage - Increase frequency of use -Increase quantity of use

New Products
Product Development strategies -Product Improvement -Product line extension - New product for same Market

Market Development Strategies

New Market

-Expand markets for existing product- Launch of Coca cola Vanilla in Great Britain -Geographic expansion Expanding further in Asian Markets like India -Target new segments Further targeting higher age groups
Diversification Strategies -Vertical Integration -Forward Integration -Backward Integration

Coca-Cola Application of Ansoff Matrix

Current Products Current Market New Products
Product Development strategies Market penetration strategies -Increase Market Share -Increase product usage - Increase frequency of use -Increase quantity of use -Product Improvement -Product line extension - New product for same Market

Diversification Strategies New Market -Diversification in to ready packaged liquid refreshments. -e.g. Winnie the Pooh Roo Juice, Nestea, Powerade

Market Development Strategies -Expand markets for existing product -Geographic expansion -Target new segments

Thank You