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ansoff-matrix3

The document discusses various marketing strategies for Dunkin Donut in the Indian market, including market penetration, product development, market development, and diversification. It emphasizes the importance of optimizing existing markets before exploring new ones and highlights the risks associated with diversification. The Ansoff Matrix is introduced as a tool for managers to analyze risk and make informed decisions based on the company's size and product range.

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13 views

ansoff-matrix3

The document discusses various marketing strategies for Dunkin Donut in the Indian market, including market penetration, product development, market development, and diversification. It emphasizes the importance of optimizing existing markets before exploring new ones and highlights the risks associated with diversification. The Ansoff Matrix is introduced as a tool for managers to analyze risk and make informed decisions based on the company's size and product range.

Uploaded by

fdkhalid16
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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Business Studies 2010

EXISTING PRODUCT
NEW
EXISTING MARKET PENETRATION PRODUCT DEVELOPMENT
 Dunkin Donut can utilize the marketing  This strategy is where the Dunkin Donut can
MARKET

penetration strategy after entering India make the existing marketing optimized by
market by strategy opening outlets and drive introducing new products on the menu of the
thru service in Delhi, Kolkata, Lucknow, brand that suits the local culture and eating
Mumbai, Indore etc. It will be beneficial for habits of the Indian market while ensuring no
the Dunkin Donut to attract large number of quality is compromised and price
young populations of India (Ota et al., 2019). competitive is maintained (Ota et al., 2019).

MARKET DEVELOPMENT DIVERSIFICATION


NEW  Dunkin Donut does not need to enter new  This strategy is most risk currently for
market as existing markets should be Dunkin Donut as the brand has already failed
properly explored and optimized before in the market of India and venturing into
entering new markets with the existing something new completely may amplify the
products (Ota et al., 2019). losses of the company (Ota et al., 2019).

The two main variables in a strategic marketing decision:


 The market in which the firm was going to operate.
 The product intended for sale.

Product development
 Sell new products in existing markets i.e. soft drinks
 Low risk
 Low cost
 Established companies can use this strategy because they already
have an existing market
 May require a complete marketing mix strategy

Market Penetration
 Sell more products (existing) in existing markets
 Could be use to move stock
 Low risk/cost
 Marketing mix strategy especially price
 Used frequently if competition exists (substitute goods)
 Attempting to sell a product for a different occasion

Market Development
 Achieve high sales/higher market share of existing products in new
markets
 Medium risk

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Business Studies 2010

 Marketing strategy i.e. promotion


 New segments/maybe overseas markets
 Example = Lucozade – originally used for health/flu now a sports drink

Diversification
 Selling new products in new markets
 Highly expensive
 Time consuming
 Can help to spread risk
 Proctor/gamble
 May have little expertise
 Example = Virgin changing to an airline/train

Ansoff Matrix Key Points

1. Allows managers to analyse the degree of risk


2. Managers can then apply decision making techniques to assess
costs/potential benefits
3. Particular strategy could depend on the size of the business, the
number of products produced, rang and mix
4. A final decision should also reflect additional research both internal
and external, primary and secondary data and an assessment of the
current position

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