Growing Sales Revenue Using Ansoff Matrix

Growing Sales Revenue Using Ansoff Matrix
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Growing Sales Revenue Using Ansoff Matrix
Introduction
In today’s competitive business environment, companies are always looking for ways to grow their sales. Ansoff matrix is one of the tools that business organizations can utilize to grow sales. The four strategies under the tool that can be used to grow sales include market penetration, market development, product development, and diversification. The Coca-Cola Company is one organization that can make use of the tool to boost its sales revenue. The US-based beverage company is one of the largest and most popular companies in the world. Through the application of the concepts and strategies under the Ansoff Matrix tool, the brand can grow its sales revenue and increase its size and popularity even further. This paper uses the tool to make recommendations that can help the brand grow its sales revenue.
Coca-Cola Background
The Coca-Cola Company began operations in 1886 when Dr. John Pemberton served its first drink in Atlanta, Georgia (The Coca-Cola Company, n.d.). The company grew gradually to become arguably the most successful beverage business organization. The acquisition of Minute Maid in 1960 was a significant step by the company to increase the line of beverage products it offers to customers. While the brand is based in America, its operations are distributed in more than 200 countries around the world (The Coca-Cola Company, n.d.). The company embraces diversity and as a result, it has over 700,000 employees that help it achieve its goals. Given its size, it is deducible that the company grew significantly to become what it is today. Nevertheless, through Ansoff Matrix strategies, the company can grow further its sales revenue.
Ansoff Matrix Strategies
The Ansoff Matrix was developed by Harry Igor Ansoff in his 1957 article published in Harvard Business Review (Proctor, 2008). The matrix is based on two strategic components: markets and products. The sections below examine how the tool can help the Coca-Cola Company improve its sales revenue.
Market Penetration
This strategy seeks to improve the sales of a firm’s current products in its existing markets (Proctor, 2008). In this case, the nominal outlays of marketing expenditure can be used by an organization to convince more first-time users of the brand to make purchases. An organization can also seek to increase the usage of its existing products. The intent, in this sense, would be for customers to buy more volume of the company’s existing products. According to Proctor (2008), market penetration can also be achieved through the promotion of new applications for the company’s current brand consumers. It is important to note that seeking to improve the market share of a company through market penetration exerts huge pressure on marketing resources and can thus have an unwelcome impact on profitability. However, if the market penetration strategy results in economies of scale, the marketing expenditure can easily be offset.
One of the ways through which the Coca-Cola Company can grow its sales revenue through market penetration strategy is through promotion and advertising to entice custome...