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The document discusses Ansoff's Matrix and strategies for market penetration, product development, market development, and diversification. It provides McDonald's as an example and discusses how they have used various Ansoff strategies like new products, new markets, and diversification through McCafe and McTreat. Later, the document covers topics like brand architecture, brand boundaries, brand extensions, advantages and disadvantages of extensions, and examples of extensions that went wrong.
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- 1. ABM SESSION 16 Best ideas come as a joke. Make your thinking as funny as possible – David Ogilvy
- 2. Growth opportunity – Ansoff Matrix Market penetration strategies • Increase market share • Increase product usage • Increase frequency of use • Increase quantity used • New applications/promotion Product development strategies • Product improvements • Product-line extensions • New products/brands for same market Market development strategies • Expand markets for existing products • Geographic expansion • Target new segments Diversification strategies • Vertical/Horizontal diversification • Concentric diversification • Conglomerate diversification Current products New products CurrentmarketsNewmarkets
- 3. McDonald – Ansoff Matrix Market penetration strategies • Increase market share by: • Opening new outlets • Longer store opening hours Product development strategies • Creating breakfast special menu – McMuffic; • Special dessert options McFlurry Market development strategies • Expand markets • Venturing into newer countries – currently present in 119 countries • Adding more combo meals – targeting lunch eating consumers Diversification strategies • McCafe – Gourmet coffee shop • McTreat – Ice cream dessert shop Current products New products CurrentmarketsNewmarkets
- 4. • Concentric Diversification - developing product where there is technological similarity e.g. adhesive for furniture and adhesive used by builders for construction • Horizontal Diversification – developing product where there is no technological similarity but may appeal to the same set of customers E.g. Maggie noodles and Maggie Soup • Vertical Diversification – backward or forward integration e.g. Coke getting into manufacture of Corn Syrup • Conglomerate Diversification - new products that have no technological or commercial relation with current products, equipment, distribution channels, but which may appeal to new groups of customers. E.g.Tata Group Diversification
- 5. Brand Architecture • Brand Architecture : Structure of brands with in an organization. It is the way in which the brands with in a company’s portfolio are related to and differentiated from one another. It is the organization’s approach of managing its brand portfolio. • Monolithic Architecture = Single brand name • Dominant Architecture = lead brand with subordinate IDs , also called as the Sun and Planet model • Logo Linked Architecture = multiple brands = share same/similar symbols • Discrete Architecture = each brand is different
- 6. Brand Architecture ~~~ Brand Boundary Brand Boundaries : Range of products/services the brand can be stretched into – narrow versus broad When will brand boundary be broad ? Broad boundary – one with a very abstract positioning which can support multiple product setting Broad boundary – brand’s meaning has transferable points of difference Narrow boundary – brand’s meaning, image and positioning is very closely linked with a specific category – transferability poor
- 7. Broad Example:Virgin “Fulfilling customers unmet needs” Started with music record Store Brand conveys : a sense of youth, quality, Innovation, adventure and fun Branson’s personal appeal – adventurous - risk taker - fun - Narrow Examples ?
- 8. Brand Extension • Brand extension is a new product introduced under an existing brand name • Line extensions: New product introductions within existing categories using the same brand name – also referred to as variants • Adds a different variety, a different form or size to the brand • Category extensions: New product introductions outside existing categories using the same parent brand name
- 9. Advantage extension - facilitate new product acceptance Improve Brand Image Reduce Risk Perceived by Customers Increase the Probability of Gaining Distribution andTrial Increase Efficiency of Promotional Expenditures Reduce Costs of Introductory and Follow-Up Marketing Programs Avoid Cost of Developing a New Brand Allow for Packaging and Labeling Efficiencies Permit Consumer Variety-Seeking
- 10. Disadvantages of Brand Extensions Can Confuse or FrustrateConsumers Can Encounter Retailer Resistance Can Fail and Hurt Parent Brand Image Can Succeed but Cannibalize Sales of Parent Brand Can Succeed but Diminish Identification with Any One Category Can Succeed but Hurt the Image of the Parent Brand Can Dilute Brand Identity Can Cause the Company to Forgo the Chance to Develop a New Brand
- 11. Extensions gone horribly wrong – line extension traps?
- 12. • PondsToothpaste • Nirma Namak • NirmaToothpaste • DonaldTrumpVodka • Colgate ready to eat – Kitchen Entrees • Frito lays lemonade • Harley Davidson cake decoration kit • Cosmopolitan yoghurt • Guinness world record book • Michelin guides, review and ratings