This slide includes Growth Strategies which includes Ansoff Product-Market Expansion Grid.

1. MADE BY : VIJAYANT KHURANA
BBA/4530/15
ARCHANA SANJAY
BBA/4532/15

2. Growth Strategies

3. CONTENTS
 Definition- Growth Strategy
 Ansoff’s Product Market Expansion Grid
 Market Penetration
 Market Development
 Product Development
 Diversification
 Case Studies: 1)McDonalds
2) Amul

4. Definition
GROWTH STRATEGY - An
organization substantially broadens the
scope of one or more of its business in
terms of their respective customer group,
customer functions and alternative
technologies to improve its overall
performance.

7. Market Penetration
 Increase sales through
effective marketing
strategies within the
current target market
1. To maintain or grow the
market share of the current
product range
2. Become the dominant player
in the growth markets
3. Drive out competitors
4. Increase the usage of a
company's products by its
current customers

8. Market Development
 Expand sales in new
markets through
expanding geographic
representation
 An organization's current
product can be changed
improved and marketed
to the existing market.
 The product can also be
targeted to anther
customer segment. Either
way, both strategies can
lead to additional
earnings for the business.

9. Product Development
 Increase sales through new
products/services
 An organization that
already has a market for its
products might try and
follow a strategy of
developing additional
products, aimed at it's
current market.
 Even if the new products
are need not be new to the
market, they remain new
to the business.

10. Diversification
 Diversification Strategy
is the development of
new products in the new
market. Diversification
strategy is adopted by
the company if the
current market is
saturated due to which
revenues and profits are
lower.

13. MISSION AND VISION
MISSION
Promote Diversity and Inclusion among our Employees,
Owner/Operator's and Suppliers who represent the
diverse populations McDonald's serves around the globe.
VISION
The McDonald's System leverages the unique talents,
strengths and assets of our diversity around the globe in
order to be our customers' favourite place and way to eat.

15. SEGMENTATION
 Geographically-segmented :Islandwide
 Tampines, Woodlands, Clementi, Orchard, NTU…
 McCafes – 22 outlets islandwide
 Demographic Segmentation
 Kids, Family, Students
 Psychographic Segmentation
 Convenience and Lifestyle
 Behavioral Segmentation
 Occasions, e.g. birthday parties

16. TARGET MARKET
 Kids - 3 to 7 years
 (Happy Meal (healthier choice) with free toys)
 Families - Weekend outings or meals
 (Drive-Thru, Takeaways, McDelivery, Happy Meal)
 Students - Primary, Secondary, JC, Poly, Uni (a place to
hang out or study)
 (Student Meals, outlets at SP, NYP, NUS and NTU, 24-Hour)
 Café goers - for quieter ambience, a place to relax or
read or even business entertainments
 (McCafe)
 Working Adults - seek convenience meals; “grab and go”
 (Drive-Thru, Takeaways, McDelivery, 24-Hour)

17. PRODUCT LINE

18. GRID MATRIX
EXISTING PRODUCTS NEW PRODUCTS
EXISTING
MARKET
Market Penetration
hamburgers, cheeseburgers,
chicken products,
French fries, breakfast items, soft
drinks,
milkshakes and desserts.
More recently, it has begun to offer
salads, wraps and fruit.
Product Development
Innovation in all products,
Introduction of new products (Brands)
NEW
MARKET
Market Development
Uruguay
Venezuela
Yemen
Diversification
Pret A Manger
Chipotle Mexican Grill

19. MARKET PENETRATION
 McDonald is one of the most
famous brands for providing
innovations but even in this
ever changing and innovative
era it keeps its products same
in the same market but this
happen for a very short span
of time (Even maximum a
month). The results of firm's
existing resources and
capabilities remain secure and
the firm increases market
share if competitors reach
capacity limits.

20. MARKET DEVELOPMENT
 McDonald’s Corporation has always
provided new and new innovations to
its customers. It always has provided
a handsome level of consumer
economic surplus to its customers.
McDonald’s always seeks innovation
from one market and provided these
innovations and new products to the
rest of the world. This strategy does
have a minimal level of risk which
almost always have provided good
results to the organization for
keeping the strength in its 47 million
customers averaged daily existing
customers.

21. PRODUCT DEVELOPMENT
 As we all know that McDonald's is a Global
organization and it has the franchisee FDI
system to reach the new global markets of
work in its international business. It has
more than 31,000 business outlets
(franchisees) in 119 countries round the
world and it always pursuit the additional
market segments on geographical basis. As
the firm is expanding into new markets; the
market development strategy typically has
more risk than a market penetration strategy
for McDonald’s but the developments of
new markets have been proven significantly
successful for McDonald’s core
competencies of its experience with a
specific market segment.

22. DIVERSIFICATION
 Diversification is not the best of
the idea for the company because
it can’t afford to make new
products in the new markets. It’s
actually not possible with the
franchisee system that McDonald’s
adopts. Keeping aside from
Franchisee system McDonald has
also proved success in this strategy
by owning a majority stake
in Chipotle Mexican Grill & Pert A
Manger and acquiring Donatos
Pizza. McDonald’s adopted both
product and market development
strategies which was outside the
core competencies of the firm.

24. MISSION AND VISION
MISSION
To satisfy the nutritional requirements of its customers.
VISION
To provide more and more satisfaction to the farmers,
employees and the distributors.

26. Product Line

27. Market Penetration Strategy
• Amul is set to build up 10,000 `Amul Parlours' across the
country during the year. These stores will sell the entire
product range of Amul products, in addition to the existing
retail network for ice cream, milk and other products.
• It is trying to get more and more customers through a more
intensive distribution. It is opening more stores at
Highways, Railway stations, Airports, Bus stations, Schools,
Colleges, and Industrial Canteens etc.
• It is trying to find place in various retail outlets, the latest
story being Amul trying to acquire a shelf in the yet to
come Wal-Mart.
• Opening small Amul-exclusive stores in each and every
neighborhood to reach to the very near of the consumer.

28. Market Development Strategy
• Amul is now shifting its focus from urban to rural markets and
smaller towns. In 2005 Amul added 900 new stores all across
small towns to increase its reach.
• Amul is capturing the market of diabetic and health conscious
people through sugar free ice-cream, which is a variation of an
existing product.
• Amul will expand its fresh milk markets to Kanpur and Lucknow
and other smaller towns this year, thereby increasing its market
base for the existing products.
• Amul is also increasing its market base for milk through a new
version – the Amul Tazaa. Tazaa is the long-life version of milk
which has a longer shelf life as compared to normal fresh milk.
This product is highly picking up in the domestic and export
market.

29. Product Development Strategy
• Amul-Cool (milk based cool drink) and Amul-Kool café – these
are the products aimed at the youth of the country with
synonymous marketing campaigns.
• It is coming up with a chain of pizza corners. This chain would
consist of around 2000 stores all over India.
• Stamina – the instant energy whey based sport drink has been
launched to provide its customers with a totally new product.
• Amul has recently launched a new variation of ice-cream, the
sundae swirl to its existing base of ice-cream customers.
• Amul-Masti, the packaged buttermilk is aimed to be another non-
carbonated cool drink in the Amul Cool range which is not only
aimed at the youth but also at the more mature chunk of the
society.

30. Diversification Strategy
 Diversification is a very important part for any
business organization. For the further growth
opportunities of a company diversification is required.
When a new product is launched into the new market
diversification holds good and provides more growth
opportunities in the future. Diversification is a high-
risk strategy as it involves taking a step into a territory
where the parameters are unknown to the company.
Amul has identified the need to increase its
presence in newer markets and thus have come up
with many new such strategies for increasing its
presence in the entire market.

31. GRID MATRIX
EXISTING PRODUCT NEW PRODUCT
EXISTING MARKET
MARKET
PENETRATION
FRESH MILK,GHEE ,MILK
POWDERS , ICE CREAM
MARKET DEVELOPMENT
FAT FREE DESSERT
SOUPS
COOKING CHOCHLATES
LASSI,DIABETIC
PRODUCTS,HEALTHY
PRODUCTS
NEW MARKET
PRODUCT
DEVELOPMENT
SOUTH EAST ASIA &
MIDDLE EAST WITH
PRODUCTS LIKE
SRIKHAND , PANEER &
BUTTER
DIVERSIFICATION
SOUTH EAST ASIA &
MIDDLE EAST WITH
PRODUCTS LIKE
STERILIZED PANEER ,
COW GHEE ,
CONFECTIONERY ITEMS

32. ADVANTAGES…
 It forces market planners and management to think
about the expected risks of moving in a certain
direction
 It lays out possible strategies for growth
 Discipline: it focuses the business
 Sets out aims and objectives
 Presentable to stakeholders
 Assessment of alternatives- shows opportunity cost
 Creates a risk aware culture
 Indicates level of risk and relevant risk

33. DISADVANTAGES…
 Fails to show that market development and
diversification strategies require a change to every day
running of the business
 Only a theoretical model
 Does not take into account the activities of external
competitors
 Paralysis by analysis
 Plans too optimistic e.g. transferrable skills
 Accurate predictions are difficult- unforeseen events
 Conflicting objectives of stakeholders