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Product or Market Matrix
The Product / Market Matrix
Product/ Market Matrix Existing Market New Market
New Product Line Product Development Diversification
Existing Product Line Market Penetration Market Development
It is also known as Ansoff's Model
It shows various ways in which company grow
If Dove which was originally a brand cater to female , who sold soap and started selling shower gel , shampoo etc which is existing market product development
A set of consumer right now not purchasing and not aware of your market . TATA steel was not for consumer but TATA Salt is for consumer . Diversification
Discount or marketing to attract more people is Market Penetration
If I am a watch company making for men but now for women , this is Market development.
Example -
1. A wholesaler plans to double their retail sales team and sell more to existing customer - Market Penetration .
2. A shoe manufacturer is considering developing other products that may be of interest to their existing retail customers (such as stock , belts , shoe polish , hats , caps etc)- Product development
3.A specialist health food firm (that now only sells directly to end consumers ) is looking to introduce a new product range in order to gain access to chemist shops - Diversification
4.Kmart stores are planning to use more frequent discounts to attract more new customers and to sell more products to their existing customers.- Market penetration
5.Mc Donald's are planning to further broaden their product range to appeal to a wider market-
6.A successful accounting firm is just about to open their first International office - Market development
7. A local plumber is thinking about buying a hardware store that is currently for sale - Product development
8. A large scale real estate chain has just set up internet site that helps people , who are buying / selling property , to find qualified service providers in their are ( such as lawyers , accountants , movers , cleaners and so on) - Product development
9. A small winery ( who just makes and sells wine is considering opening up a small restaurant on their property) - Diversification
10. A local Chinese restaurant has expanded it menu to include Vietnamese - product development
11. A major law firm has doubled the number of seminars and conference - Market penetration
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