• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Ansoff and Boston Matrix

Extracts from this document...


Ansoff matrix: New product development is an option in the Ansoff's product-market growth matrix, a instrument used by business to identify numerous options a business could adopt to increase its sales. Depending on the aims and objectives of the business, and strategy it wants to adopt, the Ansoff matrix will suggest one of four options which are shown below in a table I found on the search engine 'Google'. Market penetration - the safest option, based on selling more to existing customers. Market development - seeking new channels of distribution or selling in different geographical areas. Product development - selling new products into the existing market, with all the risks associated with a new product. Diversification - the area of highest risk, based on developing new products for new markets. Market penetration is one of the four growth strategies as defined by Ansoff. Market penetration occurs when a company enters/penetrates a market with current products. The best way to achieve this is by gaining competitors' customers. Other ways include attracting non-users of your product or convincing current clients to use more of your product/service. ...read more.


This is because I am currently in the early stages of developing my beer, meaning I am a new competitor entering an age old market. My competitors are at different stages in the Ansoff matrix, and like me they all had to start form the 'product Development'. For example, Coors is at the stage of market penetration with its product 'Coors light' because they are selling the existing product onto an already existing market and they want to sell to more people within the market. They created Coors light because a lot of their business would come from women who are increasingly worried about weight and image. Boston Matrix: Like Ansoff's matrix, the Boston Matrix is a well known tool for the marketing manager. This is simplistic in many ways and the matrix has some understandable limitations that will be considered later. Each cell has its own name as follows. Dogs These are products with a low share of a low growth market. These are the canine version of real turkeys. ...read more.


This stage is very risky for me and also for any business because it is make or break time for my product. Stars These are products that are in high growth markets with a relatively high share of that market. Stars tend to generate high amounts of income. Someday hopefully if my product is successful and generates more money than it takes to produce it I will be a star or perhaps even a cash cow. Cash Cows, Problem Children and Stars need to be kept in balance. The funds generated by your Cash Cows are used to turn problem children into Stars, which may eventually become Cash Cows. Some Problem Children will become Dogs, meaning you will need a larger contribution from the successful products to compensate for failed products. Cash Cows These are products with a high share of a slow growth market. Cash Cows generate more than is invested in them. If someday my product reaches cash cows I will be making more of a profit because they make more money than it costs to produce them, for me this will be better because I will be making more money and won't have to put in any extra time or energy. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Marketing & Research section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Marketing & Research essays

  1. For this assignment I have been asked to produce a new marketing strategy for ...

    The producer of a manufactured item or a service can sell to the customers in two very different ways, these are: ? Indirect sales- selling by indirect methods means using an intermediary (middle person) such as a retailing or agent.

  2. Business Studies Company Profile

    For example, BMW might offer their show rooms special display stands or point-of-sale adverts to encourage them to place BMW's products in a more favourable position within the showrooms like outside or raised up. Merchandising can be important when: consumers make decisions at the point-of-sale, for example enticing a customer

  1. Marketing Research

    in the questionnaire * Is the respondent embarrassed about certain questions * Does he require to think a lot to answer the question * Are there many open questions taking a lot of time * Are there any unnecessary questions * Should some questions need to be added The deficiencies in the questionnaire are ironed out in the pretest stage.

  2. Marketing Aims and Objectives - with examples from major companies.

    Businesses can also release products into the market at much wider varieties, giving customers more choice. E.g. different colours of the same product. A wider variety of products allows more chance of gaining a good reputation because customers will have a wide choice of products from the same producer to choose from and purchase.

  1. I am going to be writing about the concepts of marketing distinctiveness of the ...

    people might not consider smoking because of the labels that have been put on them. Acceptable language In a add they should use acceptable languages and on the products they are advertising they shouldn't use any unacceptable words or language or anything that is insulting.

  2. Business studies, product development

    Once you have perfected the 4 P's you will be getting the best out of your product. If you do the marketing incorrectly then you don't stand a chance to sell all of your products. Sometimes they put in an extra two P's these are known as Packaging and Product Life Cycle.

  1. Applied Business Studies

    with the same name as 'Theatre Store', so that would be an advantage. A likely name for my website would be TheatreStore.plc.uk Theatre Flintshire Again, there are no matching businesses that share the same name as 'Theatre Flintshire'. This would be a good name as I know there are no


    The growth in the steel sector in the early decades after Independence was mainly in the public sector units set up during this period. The situation has changed dramatically in the decade 1990-2000 with most of the growth originating in the private sector.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work