Growth Strategy

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Growth strategy is a marketing tool created by Igor Ansoff; to consider ways to grow the business via existing and/or new products, in existing and/or new markets—one of strategic tools to manage the product.

Ansoff Matrix

Market Penetration

Here the companies market existing products to existing customers. This means increasing the revenue by, for example: promoting the product, repositioning the brand, and so on. However, the product is not altered and the companies do not seek any new customers.

Product Development

This is a new product to be marketed to our existing customers. Here we develop and innovate new product offerings to replace existing ones. But it not always like that, it could be modification of the products by, for example: new packaging, bigger shape from the old ones and so on. This particular strategy carry innovation for the product in order to ensure customers not bore with the product and avoiding market saturation.

Market Development

Here the companies market existing product range in a new market. This means that the product remains the same, but it is marketed to a new audience. Exporting the product, or marketing it in a new region.

Diversification

This is where the companies market completely new products to new customers. There are two types of diversification, namely related and unrelated diversification. Related diversification means that the companies remain in a market or industry with which are familiar. For example, a bread producer diversifies into noodle manufacture (i.e. the food industry). Unrelated diversification is where we have no previous industry or market experience. For example a Bread producer invests in Health Care business, property business.