Business Unit 3 P1

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Ansoff Matrix The Ansoff matrix is a marketing planning tool that helps a business determine its product and market growth strategy, so that they can become a better company. Ansoff's product/market growth matrix says that a business needs to grow depending on whether the market they are going to explore is new or if they are going to use existing products in new or existing markets. Market penetration This is a strategy that makes a business focus on selling their existing products into existing markets, and what they are trying to achieve with this is to maintain or increase their market share of their current product. Normally this can be achieved by simply putting together a competitive pricing strategy, advertising or sales promotion. This will make the company stand out from their competitors. It’s important that the company secures the dominance of the market’s growth. They could also reorganize a more established market by keeping a competitive distance between themselves and their competitors, but this would need to be a much more aggressive promotion campaign, supported by a pricing strategy designed to make the market unattractive for competitors. They can increase the usage of their product by existing customers by bringing in loyalty schemes. Handmade Co Burger Handmade Burger Co will focus more on the product that they know well, this will involve all the different types of burgers; they will have more in depth information on their customers’ needs. Handmade Burger Co will have to make an investment into a new market research so that they can find out about their competitors and the customers’ needs. If Handmade Burger Co wants to penetrate their market they will have a better chance by putting together a package of competitive pricing, advertising and sales promotion. This will make them better than their competitors and attract

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