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

The Ansoff Matrix.

Extracts from this document...

Introduction

The Ansoff Matrix [image001.jpg] [image002.jpg] [1][image003.jpg] [2][image004.jpg] [image005.jpg] [3][image006.jpg] [4][image007.jpg] Existing Markets/Existing Products - Market Penetration Market Penetration strategy means the continuation of an existing strategy. It may be appropriate in the short-term when the market is static or when the business is waiting to see how situations develop. However, in the long term such tactics are unlikely to be realistic or beneficial. They may reflect a lack of strategic awareness on the part of the management team. Market penetration involves gaining market share as opposed to maintaining it. When the overall market is growing, penetration may be relatively easy to achieve, because the absolute volume of sales of all firms in the market is growing and some firms may not be able to satisfy demand. ...read more.

Middle

Vertical integration refers to the development of activities, which involve the preceding or succeeding stages in the organisation's production process. Backward or upstream vertical integration takes place when the organisation engages in an activity related to the proceeding stage in its production process. Forward or downstream vertical integration takes place when the organisation engages in an activity related to a succeeding stage its production process. Conglomerate diversification refers to the situation where at face value the new activity of the organisation seems to bear little or no relation to it's existing products or markets. The advantages of diversification include: * Cost savings due to the effects of synergy (where the combined effect exceeds the sum of the individual effects) * Spreading of risk * Control of supplies (mainly related to vertical integration) ...read more.

Conclusion

Cadburys Product Development would be their new product such as Boost, Mye and Snow flake, which Cadburys have done to widen their product range. Cadburys Market Development is when they put their chocolate bars into different markets such as seasonal good such as Easter eggs for example a dairy milk Easter egg. Cadburys Diversification is when they move in to another market such as the drinks market as Cadburys Schweppes, which do lemonade and tonic water. Another form of Cadburys Diversification would be Cadburys moving from chocolate bars to chocolate cake and biscuits. Evaluation of the Ansoff Matrix This model is very simplistic as only shows areas which products can go into or what they can do it has nothing about business finance or other external factors and its not always the same for all market. But this model is useful if you use it with the Boston matrix and the PLC. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Marketing 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 University Degree Marketing essays

  1. Free essay

    Alaska is more than just snow and grizzlies

    This is one way for consumers to reduce their carbon footprint, and to reduce travel. This option is particularly attractive for business as they can reduce travel by the use of online and video conferences. Natural Environment: Australia is one of the world's top green and natural destinations (Tourism Australia Website).

  2. ABC Cheese Ansoff model

    In ABC Cheese Factory case, the existing product is the Tilba cheese and existing market referring to the market inside NSW area. In order to compete with their competitor and acquired more market share, ABC Cheese can use the marketing mix (4Ps).

  1. Discussing the marketing of Cadburys Dairy Milk Bar.

    However, this may not always be possible because the shop itself decides where they put products. * Accompanied shopping - A researcher accompanies a shopper on a shopping trip and records there behaviour etc. This method of research is time consuming and very expensive.

  2. promotional objectives- Cadbury's

    Cadbury have their own plan through objectives in making sales also to create healthy and sustainable where people can enjoy their products like confectionary and beverages. The company is also part of the 'Cadbury Family' that includes the beverages called Cadbury Schweppes that are two brand names that have come

  1. The Main Advantages and Disadvantages of Vertical Integration.

    has its own supplies of raw materials or distribution outlets it doesn't have to rely on outsiders for help in the supplies or distribution for a product. The company will only have to pay for the cost price of these, for example, raw materials need mining and distributors need petrol, lorries etc.

  2. What is the Boston Consulting Group Growth-Share Matrix and how is it used?

    beverage, beauty & healthcare products launched every year, only 40% will be around 5 years later." (cited in Kotler, 2001, pg.500) If a new product is developed and not marketed properly, or is merely so advanced in the eyes of the consumer that they do not believe it will work,

  1. Evaluation Matrix Paper

    It shows the difference in requirements and strategies needed when selling to the global business community. It also shows the considerations needed to create a separate business entity and to market and sell the product to outside customers. This aspect of the plan is useful for understanding how the product

  2. Cadburys has many famous chocolate products which it has a variety of advertising campaigns ...

    pepper and 7 up which they acquired. In 1990 Cadbury merged with Trebor Basset adding to their extensive range of sweets to Cadbury's chocolate products. Trebor Basset was a leading competitor in the confectionery market and had already acquired brands like Maynard's which Cadbury also acquired. In 2005 Cadbury quickly took over Green and Blacks, a company claiming it produces the first organic chocolate.

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