Ansoff’s product-market growth matrix is a framework that focus on increasing sales more than decreasing costs. It is very popular in business field.

Pick a product of your choice (not from the textbook) and use the Ansoff product-market growth matrix to design strategies for market penetration, product development, market development, and diversification for the said product.

Answer:

The Ansoff's Growth Matrix helps the company to device it product and marketing growth strategies. The matrix provides various growth strategies that set the future direction for the firm.

Market penetration

The company focus on penetrating on the existing market with the current product portfolio. The company focus on customer needs, their competitor and invest heavily in new market research. The company increase market share by devising pricing strategies, sales promotion, loyalty schemes etc.

Market development

The company focus their existing product in newer market. The company focus on different pricing strategies, product packaging strategies, distribution channel development as per the requirement of new market.

Product development

The company focus on product development strategies and differentiate their product offering through new innovative modified product in the existing market. Extensive customer oriented research and focus on research and development are the major company strategies.

Diversification

The company takes risk by diversifying their products with introduction of newer product or brand in new market.

Ansoff's growth matrix for Audi

Audi is a major luxury automobile brand from Germany. Audi design, manufacture and market their luxury sedan, hatchbacks in different market globally. The company is known for their design, features and advanced use of technology in their products.

Market penetration

Audi sells their existing product through use of social media, press release and referral marketing in the existing market. Company focus on increasing the product quality, innovativeness and niche luxury factor hinders entry of new competitors. Brand reputation are increased by participating and sponsoring various sport events and grows the market share.

Market development

Audi focus on promoting the existing product in new geographical market directly or indirectly by appointing authorized dealers. The company enters into strategic alliance with the local marketer in different market. Higher taxes for luxury vehicles in some market causes price spike in already premium product causing difficulty in expanding in some countries.

Product development

Audi has a strong research and development and is known for its creative design, innovation and advanced technology in their product. The company regularly launches newer updates in their existing models with more creative and most demanded features. The product development team know the pulse of the existing market.

Diversification

This is a risky strategy and Audi need to attempt the strategy after extensive feasibility studies. The company can diversify horizontally by entering into related industries like electric and heavy vehicles. The company can diversify vertically by opening their product showroom and manufacturing spare parts. Audi is a strong brand so it can follow such diversification strategies to cash its brand image.