Intensive Growth Strategies: Ansoffs Product-Market Expansion GridPosted byAdamon December 27, 2008, filed in:Marketing2(5votes, average:4.00out of 5)Companies management looking for the new opportunities to increase their sales and profits. Ansoffs has proposed a useful framework for detecting new intensive growth strategies called “product-market expansion grid”.Company first preference to check whether they can gain more market share with their current products in their current markets (Market penetration). Next it will find whether they can find new market for the current products ( Market Development).Then it consider their is a place to get share by introducing new products in the current market(Product Development). At last if all the strategies are not feasible in current company environment then produce new products for new market which needs lot of budget and efforts (Diversification).Ansoffs Product-Market Expansion GridNow well discuss the four intensive growth strategies in detail.Market penetration strategyThe first strategy company is looking to adapt for increasing their sales and profits. Marketing efforts of the company to offer their existing products in the current markets is called market penetration strategy. The best way to dois to attract competitors customer and looking for potential customer for the existing products.Market Penetration FigureThe penetration that brands and products have can be recorded by companies such as ACNielsen and TNS who offer panel measurement services to calculate this and other consumer measures. In these cases penetration is given as a percentage of a countrys households who have bought that particular brand or product at least once within a defined period of time.Examples of Market penetration strategyRecognizing that software as a service can be a potent market penetration tool,Dellis assembling a services portfolio that now includes e-mail disaster recovery, spam/virus filtering and archiving via its MessageOne acquisition.Southwest airlinein the current market by offering flights for the small distance cities.According to Peter Wilson of High Definition & Digital Cinema Ltd., in terms of market penetrationHD televisionswere present in only 17percent of U.S. households last year, a number that will grow to 22 percent this year and will exceed 55 percent in 2008.Pakistan State Oilpenetrate in Pakistan market from 40% to 65% in the duration of 4 years by developing new retail outlets.Market development StrategyDeveloping a new market for the existing company product is called market development strategy.This is the process of finding new market for the newcustomerto increase company performance by increasing sales and profits. Companies can develop market on geographical such as city,country,region,state etc and demographical such as age,sex,gender,class etc.Market Development FigureA marketing manager has to think about the following questions before implementing a market development strategy: Is it profitable? Will it require the introduction of new or modified products? Is the customer and channel well enough researched and understood? The marketing manager uses these four groups to give more focus to the market segment decision: existing customers, competitor customers, non-buying in current segments, new segments.Market development strategy examplesPakistan State Oil(PSO) developing new market by exporting oil to Afghanistan.Chinese products developed new market for their product worldwide.Product Development StrategyDeveloping or modifying new products and offering to the existing market is called product development strategy. This strategy takes time and money for developing a new product. Marketing Manager must conduct a detailed survey to find out whether it is feasible to introduce new product in the current market.Product Development FigureProduct development strategy examplesGoogledeveloped a new browserChromefor the existing Internet user.McDonaldsis always within the fast-food industry, but frequently marketsnew burgers.Diversification StrategyDiversification Strategy is the development of new products in the new market. Diversification strategy is adopted by the company if the current market is saturated due to which revenues and profits are lower. At the corporate level, it is generally very risky and interesting strategy for entering a promising business outside of the scope of the existing business unit.Diversification Strategy Figure什麼是安索夫矩陣策略管理之父安索夫博士於1975年提出安索夫矩陣。以產品和市場作為兩大基本面向，區別出四種產品市場組合和相對應的營銷策略，是應用最廣泛的營銷分析工具之一。安索夫矩陣是以2 X 2的矩陣代表企業企圖使收入或獲利成長的四種選擇，其主要的邏輯是企業可以選擇四種不同的成長性策略來達成增加收入的目標。如圖所示：什么是安索夫矩阵策略管理之父安索夫博士于1975年提出安索夫矩阵。以产品和市场作为两大基本面向，区别出四种产品市场组合和相对应的营销策略，是应用最广泛的营销分析工具之一。安索夫矩阵是以2 X 2的矩阵代表企业企图使收入或获利成长的四种选择，其主要的逻辑是企业可以选择四种不同的成长性策略来达成增加收入的目标。如图所示：咨询工具安索夫矩阵案例面试分析工具/框架ADL矩阵安迪格鲁夫的六力分析模型波士顿矩阵标杆