Application of Ansoff

Matrix on Non -Alcoholic

Beverages Industry
Submitted by
Arjun Seth
Akhil Jain
Piyush Marwah
Pragya Pathak
Akshata Phadtare

Ansoff Matrix
Ansoff Matrix represents the different options open to a
firm when considering new opportunities for sales growth.
Two variables in strategic marketing decisions:
The market in which the firm was going to operate.
The product intended for sale.
In terms of the market, managers has two options:
Remain in the existing market
Enter new ones
In terms of the product, the two options are:
selling existing products
developing new ones

Market Penetration

With this approach, The company is trying to sell more of the

same products to the same people. Here the company might:
Advertise, to encourage more people within the existing market
to choose its product, or to use more of it
Introduce a loyalty scheme
Launch price or other special offer promotions
Increase its sales force activities, or
Buy a competitor company (particularly in mature markets)

Slide 3

Product Development
Here, the company develops new products for the same
market. Here the company might:
Extend its product by producing different variants, or packaging
existing products it in new ways.
Develop related products or services.
In a service industry, increase in customer service levels, or
quality.

Market development
The company targeting to attract new customers for its existing
products by :
Target different geographical markets at home or abroad
Use different sales channels, such as online or direct sales if it is
currently selling through the trade
Target different groups of people, perhaps different age groups,
genders or demographic profiles from its normal customers.

Diversification

Moving out from its existing products and markets to new

areas new products.
Two types of diversifications
Related diversification
Unrelated diversification
Diversification is a high-risk strategy
The risks of diversification can be minimized by moving into
related markets

Beverage Industry

Beverage Industry
Overview

The size of the Indian beverage industry is around $ 6.1 billion.

The Indian beverage industry faces over supply in segments like

coffee and tea.

The total soft drink (carbonated beverages and juices) market is

estimated at 284 million crates a year.

The market is highly seasonal in nature with consumption varying

from 25 million crates per month during peak season to 15 million
during offseason.

The market is predominantly urban with 25 per cent contribution

from rural areas

Beverage Industry Trends

In 1993, the consumption of aerated beverages in India was just 3

servings, per person, per annum. Beverage consumption has
steadily increased over the last 2 decades as more families are
spending on non-food items indicating a clear shift in food
preferences.

As per the Indian Beverage Association (IBA) the beverage segment

has been growing at a CAGR of 12-13 per cent since 2009.
In 2013, industry estimates cite that Indians have a per capita
consumption has increased to around 14 servings.

Global average around 94 servings per annum, hence scope of

expansion is huge in India

The country's beverage industry is expected to continue to grow in

double digits in 2013 and ahead.

Indian market is mainly a duopoly and is characterised by intense

competition between Coca-Cola and Pepsi

Independent small grocers remains the strongest retail channel

Market share

Coca Cola The

Company

Standing in Business Environment

Corporate

Level Strategy

Coca-Cola has long been committed to a

product development strategy.
This allow Coca-Cola to penetrate existing
markets with new products due to their high
brand awareness.
This strategy capitalizes on
favorable trademark reputation.

Coca-Colas

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Coca-Cola Application of
Ansoff Matrix
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Coca-Cola Application of
Ansoff Matrix

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Current
Products

New
Market

Current Market

Coca-Cola Application of
Ansoff Matrix
New Products

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Products

New
Market

Current Market

Coca-Cola Application of
Ansoff Matrix
New Products

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Products

New
Market

Current Market

Coca-Cola Application of
Ansoff Matrix

New Products

Thank You