The Ansoff Matrix, created by Igor Ansoff in 1957, outlines four growth strategies: market penetration, market development, product development, and diversification. Examples from Coca-Cola illustrate these strategies, such as launching Diet Coke for market penetration and the vanilla-flavored drink for market development. Each strategy is designed to leverage existing or new products in current or new markets to drive sales.

1. Ansoff Matrix
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2. Ansoff Matrix
o Ansoff Matrix or “Product/Market
Opportunity Matrix” is a matrix that
focused on present and new products and
markets, which has 4 combinations.
o Named after its inventor, the father of
strategic management, Igor Ansoff, and
first published in 1957 in Harvard business
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3. Ansoff Matrix
Market
Developme
nt Strategy
Diversificati
on Strategy
Market
Penetration
Strategy
Product
Developme
nt Strategy
Present NewPresentNew
MarketProduct

4. Market Penetration Strategy
o Market Penetration Strategy is when we
sell an present product to our present
market.
o Competition could be in pricing, promotion,
or distribution.

5. Market Penetration Strategy
o Example :
Coca-cola helps people to fight
obesity in the US, and diet
coke constantly offer people
dietary cola.
Since being introduced in 1982 as a result of a growing
trend towards dieting and healthier living, Diet Coke
has been a highly successful product for the Coca Cola
company, selling millions of units per year. Throughout
this time, Coca Cola has constantly adapted aspects of
the marketing mix for Diet Coke in order to continually
match customer trends and fashions.

6. Market Development Strategy
o Market Development Strategy is a strategy
where we sell our present product and sell
them in new markets and gain new range
of customers to get more sales.

7. Market Development Strategy
o Example :
Coca-Cola expands its Vanilla
flavored version in UK market after
succeeded in the US.
After having a successful launch in America, Coca
Cola decided to launch it’s new Vanilla flavored version
in Great Britain. Prior to doing so, Coca Cola carried
out taste tests and developed the graphical ‘look’ of the
Diet Coke brand. When they did this, they took great
care to incorporate aspects of the Coca Cola brand, but
still differentiating it so consumers would see it as an

8. Product Development Strategy
o Product Development Strategy is a
Strategy where we develop new product(s)
and selling them in our present market.

9. Product Development Strategy
o Example :
Coca-Cola created new product
such as fanta and sell the to
their present market to increase
sales.
The development of a new flavor sparkling drink by Coca
Cola was as a direct result of listening to consumers who
called the company’s Careline telephone service. The
business conducted taste tests prior to the 2001 launch.

10. Diversification Strategy
o Diversification Strategy is the strategy
where we Develop a new product and
target them in a new market.

11. Diversification Strategy
o Example :
Coca-cola create 1.5 liter bottle to
target households that only
contained 1-2 people.
Desk research showed Coca Cola that a growing
number of households contained 1-2 people, which led
them to believe that a smaller version of the 2 litre
family sized bottle would sell well to these groups. In
launching this product (simply sell existing brands
such as Coca Cola, Diet Coke etc), Coke did need to
alter the product itself, merely different aspects of the