Matrix Analysis: Ansoff Matrix

Ansoff Matrix
The main objective of each industry is to raise, be it a start-up that has just cracked its first deal or an established and renowned market leader who is seeking for more profitability. But how does a company can decide the top approach for development? The Ansoff Matrix management tool offers a answer to this query by evaluating the level of threat – considering whether to look for growth through existing or new products in current or new markets.
To demonstrate the robustness of Ansoff’sMatrix, it is applied to Coca-Cola company which has acknowledged countless growth strategies in its 100+ years of past history.
 Market Penetration: (EXISTING Market, EXISTING Product)
In this strategy, the company attempts to increase the

One of its example was the launching of Cherry coke in 1985- Coca-Cola’s first extension beyond its original recipe – and a strategy driven by small-scale rivals who had recognized a lucrative chance to add cherry-flavored syrup to Coke and resale it. The company then has launched other flavored variations comprising lime and vanilla.
 Market Development: (NEW Market, EXISTING Product)
Thirdly, the market expansion strategy involves finding a new group of buyers or consumers for the present product. The Coke Zero launching in 2005 was a classic example of this – its idea was similar to Diet Coke; having the good flavor of Coca-Cola but with zero sugar and less calories
 Related Diversification: (NEW Market, NEW Product)
This strategy includes the manufacturing of a new group of products that pairs the current portfolio, in order to enter a new but associated market. Coca-Cola spent $4.1 billion to obtain Glaceau in 2007. With weakening in sales of Coca-Cola, the brand lag behind the drinks market so has switched towards growing health drink

The launch of such products will enable the company to capitalize the opportunities available due to young demographic profile and rising disposable income, urbanization in India.
This also allows the company to gain competitive advantage. Differentiating products can help to generate some sense of uniqueness in the products which generates a sense of value to the possible customers. Differentiation can be done through special and fascinating packaging, good branding, and maximum advertising. Here in Coca cola ‘s case, a market section with high earning who are basically urban areas, the products can be differentiated with the products which can be sell to low income earners who hails from rural areas.
For the people living in urban areas, productivity can be increased through special, fancy and trendy packaging of cans and bottles which are disposable since it is very common for urban people to purchase take-away food items. And they can make small size packing or returnable packing for people living in rural area so that charging price will become low for the same