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A Few Examples of Ansoff Matrix

Here I give four examples of the commonly taught penetration, product development, market development, and diversification strategies.

Penetration:
When marketers try to sell the existing product to the existing customers, they engage in penetration strategy. It can be achieved in multiple ways. For example, by changing pricing, by adding minor features (new and improved!), changing the packaging (shampoo sachets), or highlighting alternative uses. In this commercial, we get to how Cadbury India is pushing for chocolates to be used as small gifts instead of more traditional sweets used during Diwali festival.


Product Development:
McDonald's introduced salads in their outlets in order to retain its existing customers, many of whom were becoming more health conscious.Salads are exactly opposite of what McDonald's is known for! However, regulatory pressures, changing consumer behavior, and negative media coverage forced them to introduce more healthy choices on the menu.


Market Development:
Introducing an existing product in different markets is perhaps one of the most used strategies to extract full benefit of a successful product. A very common example is entering different geographical areas nationally and internationally. I think that Apple's introduction of iPod Touch falls into the same category. iPod Touch was a replica of iPhone except that it couldn't make calls. Considering that iPhone couldn't make calls either (remember AT&T issues?), iPod Touch was basically another iPhone without the contract with AT&T. However, it just opened up a tremendous market for Apple. In the following ad you will see that it could have been an iPhone ad as well.


Diversification:
When marketers introduce a totally new product to a completely new market, they engage in diversification. I think that iPod was perhaps one of the most successful diversification ever. With its launch Apple targeted a very large customer group, very different from its traditional smaller cult-like following. Apple also entered into the music business that was completely new for the company. Steve Jobs and his team put a tremendous effort in creating contracts with music labels and artists. Just to give you an idea, The Beatles came to iTunes only in November 2010!


Here is a bonus video of Steve Jobs releasing the first iPod. His presentation clearly lays down what differentiates iPod from other music players. Interestingly, there is no mention of iTunes here. In my opinion Apple's agreements with music labels gave them their unique positioning rather than the iPod hardware or iTunes.

Comments

  1. Thank you! It's so precise and clear I can understand everything by reading it once! Once again, thank you for uploading! :D

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  2. Thank you for your post ! So nice to learn in easy way :)

    ReplyDelete
  3. Thanks for the comments guys, I am glad you find this post useful!

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  4. simple and easy to understand with great example to refer...thanks!

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  5. Thank you so much Ashwin. this will help me in my tommorow Marketting exam.It is very easy to understand. any one can understand easily by reading it once. Thank you so much for this post...

    ReplyDelete
  6. Thank you so much .. its really a good way to understand

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  7. beautifully done. Congrats and keep doing this kind of wonderful work.

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    if done by professionals ensure to promote your website in an effective manner. This will not only raise up your business but will also provide huge profits.

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  9. that was simple and precise. helps you build clear concepts.

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  10. Thanks for uploading, learnt it so fast. You made it very easy to understand. Thanks a lot

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  11. thnqq..for this it is easily understandable

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