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Category Archives: Ansoff
Strong, pink, strange…
The German discount supermarket Lidl has been selling a limited edition drill in the UK, in PINK. I’m trying to get my mind round this most basic kind of segmentation, men versus women. OK, they’ve worked out there’s a new kind of emancipated DIY enthusiast out there – women. So it could be potential new business by stretching the target … Continue reading
Diversification attempts
Two examples of German companies trying to diversify, one successfully, one not. Both went into related but still new markets, with new products. So according to the Ansoff Matrix this was diversification. The not-so-successful example comes from Meggle. To most Germans, this is a butter brand. A couple of years ago they moved into another dairy market but one that … Continue reading
More Steiff stuff
Ulrike has once again pointed out a good example to me, this time of a product development strategy straight out of the Ansoff matrix. I’ve noticed the traditional German cuddly toy maker trying to do something about the dwindling birth rates in Germany before, most obviously by targetting older buyers in the media (who’ll buy gifts for kids), and more … Continue reading
The toilet paper I’ve always been waiting for
SCA – who recently bought German megabrand Tempo from international consumer products mammoth Procter & Gamble – seem to think I spend my whole day thinking about toilet paper. No, on Assael’s model for understanding buying behaviour this is bottom right box: habitual purchase. We go to the supermarket, think for a fraction of a second and buy the same … Continue reading
Cutting into new markets at Porsche
Porsche’s joint venture talks broke down with Volkswagen some time ago, so now it seems they’re looking for new ways to make money. According to the Handelsblatt article sent to me by Philip, we can expect to find 150 Porsche Design outlets in countries ranging from Dubai to Delhi by 2014. Now, if splashing out on a Porsche and roaring … Continue reading
Moving bears forward
When the size of your target group keeps shrinking, you need to find new ways to grow the business – or improve profits. Steiff, cult German producer of teddy bears, knows how important this is, in a country where birth rates don’t look like they’ll ever return to the high levels of the 1960s. So what is it doing to … Continue reading
Market development or product development?
The thing about the Ansoff matrix is the boxes are clearly defined, but sometimes it’s tricky working out whether a company is developing the market, the product, or both. Take Lego. One of its constant struggles is to get girls to buy more lego. Lego is intrinsically more about construction and pursuits typically considered more “male”. So by introducing girly … Continue reading
Same product, same market
In the top left-hand corner of the Ansoff matrix you are encouraged to achieve business growth by sticking with the same products and sticking with the same market or customer. Easier said than done. But loyalty promotions and below-the-line activity that encourage customers to use more are one way of doing this. Here’s a good example. Ocean Spray, advertising in … Continue reading
A beer for your baby?
This example of what falls into the Ansoff matrix strategy of “market development” shocks me as a Brit. Erdinger Weissbier (a wheat-based Bavarian brew) has been gradually stretching out across different segments to appeal to more than the beer-swilling pot-bellied traditional drinker from home. So it has positioned a low-alcohol variety to car drivers. An alcohol-free variety to sportsmen (er, … Continue reading
Virgin territory
If you take the Ansoff matrix at face value – and follow the “safer” Z sequence, you would never jump straight to a diversification strategy. Does Richard Branson care? Hardly. He’d probably point to a Harvard study that found that there is no correlation between companies with a strategy and business success. If anything, companies with a fixed strategy can’t … Continue reading
Chocolate chaos
Nestlé does it again. In the late 80s they bought the traditional York-based English chocolate company Rowntree Mackintosh. One of their biggest assets: KitKat. So over time it was inevitable that the Nestlé owners would roll out their “Nestle on the front of all packaging” strategy in this core market. All these years later, they’ve realised the value of the … Continue reading
