Based on the results of the matrix, recommend strategies for the firm. Specify the particular business unit (i.e., distribution department, marketing division, etc.) targeted by the recommended strategies. For example, should Coca-Cola Co. engage in a riskier unrelated diversification (manufacturing) to expand its market share? Or should it simply do nothing and focus on maintaining its loyal customers (marketing)? Perhaps, the company may shut down some of its operations or discontinue its products (management) to focus on profitable ones
- Ansoff Matrix
- Market penetration-
Coca-Cola co. Increase market share by selling more goods or by acquiring new consumers usually by applying 'Promotion' part of the Marketing Mix is a strategy for market penetration in current sectors. Coke has been able to use its amazing brand strength to penetrate the market year after year by developing an association between Coca-Cola and Christmas, such as the classic Coca-Cola Christmas advert, which helped boost sales throughout the holiday season.
- Product Development
This involves thinking about how new products can better satisfy client demands and outperform competitors in existing markets. Coca-first Cola's foray outside its original recipe came with Cherry Coke, which was introduced in 1985, and was the result of competitive pressure from small-scale producers who saw a lucrative potential in adding cherry-flavored syrup to Coca-Cola and then reselling it. There have now been successful launches of various flavors such as lime, lemon, and vanilla by the brand.
- Market Development -
The Coca-cola Co. market development plan includes acquiring new customers for an established product. Coca-Cola Zero, which went on sale in 2005, is a good example of this. It had the same taste and appearance as Diet Coke, but had zero sugar and less calories. More women than any other soft drink brand drink Diet Coke on a daily basis, while young men avoided it because it was perceived as a woman's drink when it was first introduced more than 30 years ago. Coke Zero's sleek black container and diametrically opposed advertising efforts have helped it gain a ‘masculine' following.
- Diversification
By diversifying, a company can enter a new but closely connected market by manufacturing a new category of goods that complements the present portfolio. Coca-Cola paid Glace au $4.1 billion in 2007, including the health drink brand Vitamin water, to acquire the company. Coca-Cola, whose sales of carbonated soft drinks have been declining year over year, believes the beverages market is headed in a less sweet direction and has thus jumped on board the rapidly expanding health drink industry.
Based on the results of the matrix, recommend strategies for the firm. Specify the particular business
unit (i.e., distribution department, marketing division, etc.) targeted by the recommended strategies.
For example, should Coca-Cola Co. engage in a riskier unrelated diversification (manufacturing) to
expand its market share? Or should it simply do nothing and focus on maintaining its loyal customers
(marketing)? Perhaps, the company may shut down some of its operations or discontinue its products
(management) to focus on profitable ones
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