What Growth Strategy Does The New Product Represent

Introduction:

Growth strategy of an organisation is associated with extending its market footprint in the international market through extending its business and brand. Through conducting proper strategic planning firm can promote its brand extension and business growth. This study will use Ansoff matrix, in terms of analysing the strategic planning of Innocent Drink, the UK based juice and smoothie manufacturer, in terms of extending its brand through launching new product cereal bar. This study will use Ansoff matrix for analysing the usefulness of strategic planning conducted by Innocent Drink for promoting the new product.

• Ansoff Matrix is developed by Igor Ansoff
• It is important tool in conducting proper strategic planning (Dawes, 2018)
• It assists firms in identifying firm’s growth using intensification and diversification strategy

Based on this tool there are four different strategies for brand extension of a firm such as:

• Market penetration strategy
• Market development strategy
• Product development strategy
• Diversification

Market penetration strategy:

This process involves attaining market growth through improving the quality and productivity exiting products in into existing market (Gurcaylilar-Yenidogan and Aksoy, 2018). For market penetration, Innocent Drink has developed the following strategies:

• Innocent Drink is going to build up its own stores to enhance the sale of smoothies and juices in the domestic market
• It is going to enhance its customer base by selling its existing products through supermarkets that are near the colleges, bus station, industrial canteens, highways and railway stations
• Innocent Drink is going to improve the taste and quality of its smoothie and juices to grab new customers

Market development strategy:

This is the process through which marketers explore new market with existing products (Yin, 2016). Here Innocent Drink is going to explore the unknown market across the world to introduce its existing juices and smoothies. The strategies are as follows:

• Innocent Drink is going to sells its products into the supermarkets and malls in urban areas of developed countries such as Australia, European countries and America
• Innocent Drink also intend to capture the market for health conscious and diabetic people by offering them the Sugar free juices and heath drinks
• This company also aims to capture the huge food market in India to offer wide ranges of smoothies, health drinks and juices

Product development strategy:

This strategy is for developing new products in the existing market (Soltani-Fesaghandis and Pooya, 2018). Innocent Drink is going to launch it new food item, Cereal bar in the existing market. The strategies that it is going to follow are as follows:This strategy is for developing new products in the existing market (Soltani-Fesaghandis and Pooya, 2018). Innocent Drink is going to launch it new food item, Cereal bar in the existing market. The strategies that it is going to follow are as follows:

• Through conducting marketing campaign in the UK for promoting cereal bars
• Through coming up with new stalls for cereal bars in supermarket and malls
• By offering extra discount and free offers for this product to attract customers in the UK market

Diversification strategy:

Innocent Drink is going to follow three diversification strategy such as

• Horizontal Diversification Strategy
• Concentric Diversification StrategyConcentric Diversification Strategy
• Conglomerate Diversification Strategy (Alengo, et al. 2019)

Horizontal diversification strategy:

• Here Innocent Drink develop its new products with using new technologies for existing customers.
• Innocent Drink develop their online websites and official webpage through interacting with customer
• It is going to launch its online stores, in which customer can order its new products such as cereal bars
• Innocent drink has also developed its online review process for interacting with customers for attaining their review

Conglomerate diversification strategy:

• Through using this strategy, Innocent drink develops new product (cereal bar) in newer market
• It is going to conduct offline as well as online promotional campaign for cereal bar
• It is going to provide trial offer to its customer for hav Ansoff Grid

Concentric diversification strategy:

• Here Innocent drink is going to sell new products through using old technology
• Innocent drink is going to offer cereal bars at the supermarket and mall in eth UK at minimum price
• It has identified the segment of diabetic and heath conscious people to sale heathy cereal bars

Conclusion:

• Ansoff matrix assist marketers to analyse its market strategies developed for promoting old and new products
• Marketers needs to develop diversification strategies for dealing with new market
• Marketers also needs to consider the quality of its products and service to implement the strategic planning in proper manner

Reference list:

• Alengo, V.O., Okello, B. And Malenya, A., 2019. Influence of product diversification on the operational performance of commercial banks in Kakamega County, Kenya. The Strategic Journal of Business & Change Management, 6(2), pp.2342-2353.
• Dawes, J., 2018. The Ansoff Matrix: A Legendary Tool, But with Two Logical Problems. But with Two Logical Problems (February 27, 2018).
• Gurcaylilar-Yenidogan, T. And Aksoy, S., 2018. Applying Ansoff’S Growth Strategy Matrix To Innovation Classification. International Journal of Innovation Management, 22(04), p.1850039.
• Soltani-Fesaghandis, G. And Pooya, A., 2018. Design of an artificial intelligence system for predicting success of new product development and selecting proper market-product strategy in the food industry. International Food and Agribusiness Management Review, 21(1030-2019-593), pp.847-864.
• Yin, N., 2016. Application of AHP-Ansoff matrix analysis in business diversification: The case of Evergrande Group. In MATEC Web of Conferences (Vol. 44, p. 01006). EDP Sciences.