• Factors influencing which markets to compete in and which products to offer
  • Strategic direction to include the Ansoff matrix and value of:
  • market penetration
  • market development
  • new product development
  • diversification

A marketing planning model that helps a business determine its product and market strategy

Market penetration

  • Aim: to increase market share

  • By selling more existing products to the same target customers

  • Get existing customers to buy more

  • *A growth strategy where a business aims to sell existing products into existing markets.

Evaluating market penetration

  • Business focuses on markets and products it knows well
  • Can exploit insights on what customers want
  • Unlikely to need significant new market research
  • But will strategy allow the business to achieve its growth objectives


Matrix for Coca-Cola

Market Penetration

  • Coca-Cola Share Size 1.5l bottle
    • This is identical to an existing product except in terms of volume, therefore they are simply trying to extend their market dominance with this product.

Market Development

  • Coca-Cola Vanilla
    • The product had already been developed and sold in America, but was being introduced into a new location

Product Development

  • Diet Coke
    • There is already a demand for colas, and there were changing customer demands so Coke updated their existing product to provide additional consumer choice.
  • Powerade
    • The energy drinks market existed prior to powerade, but by entering a new product into the market Coca Cola could compete for additional market share.
  • Fanta Icy Lemon
    • Coke listened to consumer feedback and developed a new product to be more competitive in an existing drinks market


  • Winnie the Pooh Roo Juice
    • A new product, but it is just juice with a special brand. It is competing with other children’s juices in a market that Coca-Cola hasn’t entered before.
  1. A business like Coca-Cola benefits from using Ansoff’s Matrix because it allows them to ensure that they are growing their business into different markets whilst also retaining dominance of their existing markets. This process means that they can reduce their dependence on a single market or product by extending their product portfolio.