Flashcards
Ansoff Matrix Strategy
Cards in this deck (19)
- 1What is the Ansoff Matrix?It is a strategy that helps a business to decide their product and market growth
- 2The Matrix suggests that a business attempts to grow depend on whether it markets new or existing products in new or existing marketsThe framework enables growth opportunities to be identified. It helps to consider the implications of growing the business
- 3Each growth opportunity draws on both internal and external influences, investigations and analysis that are then worked into alternative strategiesA SWOT analysis should be conducted before the Ansoff Matrix. Once identified the AM can be used to investigate the implications of the orgs current strategy, and those suggested by the SWOT
- 4Note, the usefulness of both models is dependant on accuracy of market intelThe Matrix does not present you with a final decision as to whether or not to develop new products or to enter new markets
- 5But it does provide you with an outline or alternative methods by which the brand can achieve their mission or growth targets...
- 6The output from the AM is a series of suggested growth strategies that serve to set the direction for the business and provide marketing strategies to achieve themEach output carries a certain amount of risk and involved differing levels of investment
- 7Market penetration Low riskThis option allows orgs to retain or increase their product market share, dominate growth in a specific market, drive out competition and increase customer usage
- 8Vaseline was at risk of becoming a commodity in the US. In order to grow the brand needed to remind existing customers of its core attributes while educating a younger marketThe problem was in the tag line - further research led to the brand finding out that the jelly is a key part of first aid kits, also commonly used in refugee camps for minor skin conditions
- 9As a result the Vaseline Healing Project was launched. It outperformed and achieved all objectives in its first year, and marketing resources were invested behind itAfter the projects success the marketing and advertising was finally approved
- 10Market development Moderate riskThis option explores new geographical markets, new distribution channels and new market segments created by different pricing. It also allows for new product dimensions or packaging
- 11Brita The company was concerned with slowing growth but realised that they could enter the adjacent bottled water market by positioning itself as an environmentally friendly alternativeThey met a social need of waste reduction and pushed into a new market.
The brand has now re positioned itself as a water brand, which helped to secure a strong competitive position - 12Brita3 years after entering this adjacent market revenues had increased by 47%
- 13Product development Medium riskThis option requires in depth research and development, assessment of customer needs, and a clear plan for brand extension
- 14Many fashion orgs have launched their own cosmetic ranges, including boohoo, missguided, pull + bear, and skinny dip, along with AsosThis allows these brands to tap into a popular and growing market whilst giving them the opportunities to refine and strengthen their brand
- 15Asos, their next big focus is beauty. They asked themselves what were their customers telling them, what were they doing or what were they not doingThey have recently launched a beauty range but wanted to go big on presenting it differently, make it beautiful and inspiring as an extension of the fashion experience
- 16Asos continuedThey also plan to add value by displaying makeup tutorials and an augmented reality option that shows consumers how the products will look on their skin using their smartphone camera
- 17Diversification High riskThis option requires an honest assessment of risks, a clear expectation of potential gain, the right balance of risk vs. rewards, and access to capital or willingness to invest
- 18Burberry have recently adopted a new business strategy, see-now-buy-now (2016)The new strategy looks at giving customer an instant fix (catwalk to customer) rather than asking customers to buy products that they saw 6 months ago.
They believe that it is their responsibility to respond to customer needs - 19Burberry continuedThey also feel that talking about seasons is no longer relevant within the fashion industry, due to climate change and fast fashion trends. So their fashion catwalk shows at Fashion Week(s) will now be known as 'September and February' instead of conforming to traditional seasons
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- Flashcards on Ansoff Matrix Strategy, created by Hannah Ryan on 05/12/2017.
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- Hannah Ryan
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