Intensive Growth Strategies: Ansoff’s Product-Market Expansion Grid Posted by Adam on December 27, 2008, filed in: Marketing 2 (5 votes, average: 4.00 out of 5) Companies management looking for the new opportunities to increase their sales and profits. Ansoff’s has proposed a useful framework for detecting new intensive growth strategies called “product-market expansion grid”. Company first preference to check whether they can gain more market share with their current products in their current markets (Market penetration). Next it will find whether they can find new market for the current products ( Market Development).Then it consider their is a place to get share by introducing new products in the current market(Product Development). At last if all the strategies are not feasible in current company environment then produce new products for new market which needs lot of budget and efforts (Diversification). Ansoff’s Product-Market Expansion Grid Now we’ll discuss the four intensive growth strategies in detail. Market penetration strategy The first strategy company is looking to adapt for increasing their sales and profits. Marketing efforts of the company to offer their existing products in the current markets is called market penetration strategy. The best way to do is to attract competitors customer and looking for potential customer for the existing products. Market Penetration Figure The penetration that brands and products have can be recorded by companies such as ACNielsen and TNS who offer panel measurement services to calculate this and other consumer measures. In these cases penetration is given as a percentage of a country’s households who have bought that particular brand or product at l...
