Ansoff’s Product Market Matrix
These are products with a high share of a slow growth market. Cash Cows generate more and more than is invested in them. One example of this is Coca-Cola classic, this is because the product has been out for a long time and is still selling well and is one of their best selling products after all the years its been out. Dogs- These are products with a low market share and a low growth market. They do not generate cash for the company they tend to absorb it.
One example Cherry Coke because it has been out for a long time and it is now being taken of the shelves because it is not selling anymore. Ansoff’s Product/Market Matrix The Ansoff matrix is analysing the current future state of the business and identifying the strengths and weaknesses of the business environment and identifying the strengths and weaknesses of the business. The Ansoff matrix is a simple planning tool that can help with strategy development. The Ansoff matrix recognises that in order to grow a business has to consider both its markets and products.
The combination of existing and new products and markets provides different marketing opportunities. Market Penetration The Coca-Cola Company lies in this position at the market penetration because they concentrate their activities on those areas where they have established a competitive advantage and focus their attention on maintaining their market share. Product Development New product development can be risky and expensive and it requires insight to make a decision about whether to go ahead with it or not.
Coca-Cola must try and identify where there is a place in the market and try and fill it. Product life cycle 1. Introduction: Product introduced, promoted and advertised. Sales slowly pick up. 2. Growth: Products well accepted in the market. Sales and profits rise rapidly. 3. Maturity: Potential sales have been achieved and there is a slow down in any further growth. Profits begin to decline due to increase costs to fight 4. Decline: Increasing competition on results in falling sales, this leads to crop in profits.
Product will eventually be withdrawn from the market. The product I have chosen is Coca-Cola, therefore To prolong the lifecycle, a brand or a product, an organisation needs to readjust the ingredients of the marketing mix, (this is what I plan to do). Periodic injections of new ideas are needed for product improvements, line extensions or improved promotions. Coca cola will also promote heavily by advertising everywhere, including televisions, magazines, billboards, and etc.