Using the same product in the same market, however altering the looks or the style of the product to make is look new to encourage higher sales. E.g. Coca-Cola using different styles of coke and using different advertising campaigns to sell the same coke product.
Product development
When a new product is used in the same market. For example if coke sold juice, it would still be in the same drinks market however it would be a different product.
New market
Market development
Selling the same product to a new market. It has a higher risk because it is a different set of customers.
An example of this is Tesco’s expansion into petrol sales.
Diversification
A new product to be sold in a completely new market. This has a higher risk because it is a completely new idea and may not catch-up quickly which may lead to the company making a loss. A good example of the unrelated diversification is Richard Branson. He took advantage of the virgin brand and diversified into various fields such as entertainment, air and rail travel foods etc.
Ansoff’s Matrix
Main Definition: “The Ansoff Matrix is a strategic planning tool that provides a framework to help executives, senior managers and marketers devise strategies for future growth. It was created by Russian American, applied mathematician and business manager, Igor Ansoff” The Ansoff Growth matrix is a marketing planning tool that helps a business determine its product and market growth strategy
The Essay on Ansoff's Product Market Grid
The Ansoff product-market matrix helps to understand and assess marketing or business development strategy. Any business, or part of a business can choose which strategy to employ, or which mix of strategic options to use. This is one simple way of looking at strategic development options: Each of these strategic options holds different opportunities and downsides for different organizations, so ...
