The document discusses Ansoff's Product-Market Expansion Grid, which outlines four strategies for business growth: market penetration, market development, product development, and diversification. It defines each strategy and provides examples. Market penetration involves selling more of existing products to existing customers. Market development means finding new markets for existing products. Product development is creating new products for existing markets. Diversification is the riskiest strategy, focusing on new products and new markets.

1. Ansoff's Product-Market Expansion Grid
Company first preference to check whether they can gain more market share with their current
products in their current markets (Market penetration). Next it will find whether they can find new
market for the current products ( Market Development).Then it consider their is a place to get share by
introducing new products in the current market(Product Development). At last if all the strategies are
not feasible in current company environment then produce new products for new market which needs
lot of budget and efforts (Diversification)
Market penetration strategy
The first strategy company is looking to adapt for increasing their sales and profits. Marketing
efforts of the company to offer their existing products in the current markets is called market
penetration strategy. The best way to do is to attract competitors customer and looking for
potential customer for the existing products.
The penetration that brands and products have can be recorded by companies such as ACNielsen
and TNS who offer panel measurement services to calculate this and other consumer measures.
In these cases penetration is given as a percentage of a country¶s households who have bought
that particular brand or product at least once within a defined period of time.

2. Market Penetration Figure
Examples of Market penetration strategy
Recognizing that software as a service can be a potent market penetration tool, Dell is
assembling a services portfolio that now includes e-mail disaster recovery, spam/virus filtering
and archiving via its MessageOne acquisition.
Southwest airline in the current market by offering flights for the small distance cities.
According to Peter Wilson of High Definition & Digital Cinema Ltd., in terms of market
penetration HD televisions were present in only 17.
percent of U.S. households last year, a number that will grow to 22 percent this year and will
exceed 55 percent in 2008.
Pakistan State Oil penetrate in Pakistan market from 40% to 65% in the duration of 4 years by
developing new retail outlets.
Market development Strategy
Developing a new market for the existing company product is called market development
strategy.This is the process of finding new market for the new customer to increase company

3. performance by increasing sales and profits. Companies can develop market on geographical
such as city,country,region,state etc and demographical such as age,sex,gender,class etc.
Market Development Figure
A marketing manager has to think about the following questions before implementing a market
development strategy: Is it profitable? Will it require the introduction of new or modified
products? Is the customer and channel well enough researched and understood? The marketing
manager uses these four groups to give more focus to the market segment decision: existing
customers, competitor customers, non-buying in current segments, new segments.
Market development strategy examples
Pakistan State Oil(PSO) developing new market by exporting oil to Afghanistan.
Chinese products developed new market for their product worldwide.
Product Development Strategy
Developing or modifying new products and offering to the existing market is called product
development strategy. This strategy takes time and money for developing a new product.
Marketing Manager must conduct a detailed survey to find out whether it is feasible to introduce
new product in the current market

4. Product Development Figure
Product development strategy examples
Google developed a new browser Chrome for the existing Internet user.
McDonalds is always within the fast-food industry, but frequently markets new burgers.
Diversification Strategy
Diversification Strategy is the development of new products in the new market. Diversification
strategy is adopted by the company if the current market is saturated due to which revenues and
profits are lower. At the corporate level, it is generally very risky and interesting strategy for
entering a promising business outside of the scope of the existing business unit.
Diversification Strategy Figure
Diversification strategy examples
Virgin Media moved from music producing to travels and mobile phones
Walt Disney moved from producing animated movies to theme parks and vacation properties

5. Canon diversified from a camera-making company into producing whole new range of office
equipment.