Ansoff Matrix Essay

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We will now analyze the corporate-level strategy of Patanjali using the Ansoff Product and Market Growth Matrix. There are four components of Ansoff Matrix – market penetrations, market development, product development and diversification and we will discuss each of them in detail below.
a) Market Penetration: It focuses on expanding sales of the existing product in firms existing market. This can be achieved by a combination of pricing strategy , sales promotion and marketing and the objective of the firm is to be the dominant player in that market by driving out the competitors and increasing the loyal customer base. This would make it less risky and require less market research for the firm to expand as it can utilize its existing resources
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This strategy requires the firm to develop products appealing to existing markets and the business will have to develop new competencies. This strategy emphasis on research and development, market research on customer needs and innovative ideas. This usually happens if the firm has a huge customer base and the market for existing product is reaching saturation and thus market penetration strategy could not be applied. Patanjali in its part focused on quality, purity and affordability and the followers of Baba Ramdev formed its core set of customers. Patanjali started making amla (gooseberry) juice which happened accidently. A group of farmers don’t know what to do with excel gooseberries as the price was very low and there was not much demand. At that Patanjali introduced this new drink – ‘Amla Juice’ to the market which was an instant hit. The introduction of new product was little riskier as they didn’t knew how the product would be accepted by the customers, but after the drink became hit, they introduced various varieties of juices likes Aloe Vera Juice, Hing digestive golis and also personal care products like shikakai, sherbets and spices that Indians otherwise shopped at gramudyog outlets. They also plan to introduce other products from baby care to garments and from bio-fertilisers to healthy food, and also organic cotton
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