Market Penetration Strategy: The Ansoff Matrix

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The Ansoff Matrix was designed by Igor Ansoff. It is a growth based matrix with can increase market share and sales. The Ansoff Matrix classifies strategies whether they are new or existing markets or new or existing products. It includes 4 quadrants which are the Market penetration, Product development, Market development, and Diversification.
The Market Penetration Strategy is aiming to achieve more sales in the existing market. There is no modification of the product but the organisation is seeking to increase revenue by either repositioning its products or promoting. Increasing usage and frequency by existing customers and encourage non-users to buy. This strategy is used when there is potential growth and when increases in volume leads …show more content…

This strategy involves Product Innovation, Product Augmentation and Product Line Extension. These consist of replacing old products, creating new products, improving a product, or complement an existing product and extending the product line. When adopting this strategy you may consider the volume needed for profitability, market size, cannibalization and the resources to deliver and create the new product. Doing this will give you a distinctive competitive advantage in the market and also satisfies the customer. For Doyle’s, they could implement a Delicacy into the seafood platters such as the Puffer Fish. This dish is may attract new customers as the community hear about the delicacy, they may want to try it. You must have a licensed chef in order to produce this dish. Doing this will avoid cannibalization as it is a food you will not eat every time you visit Doyle but will increase customers and …show more content…

This strategy will potentially gain new markets, new customers and new segments. The Market Development Strategy is used when an organisation has excess capacity. It involves using different distribution outlets and changing the advertising. This also determines the firms’ ability to adapt to new markets to evaluate their success. This strategy consists of four forms, Exporting, Licensing, Joint Venture and Direct Investment. Doyle’s could use the Joint Venture strategy, teaming up with a nearby grocery store or supermarket so they can get discounts on resources they need to prepare the food at their restaurant. Doyle’s may gain access to new geographic markets and knowledge they offer. Doing this will also increase their advertising to a larger audience which enables Doyle’s to reach more customer with their

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