Coca Cola is a globally renowned brand in beverage industry and is currently functional in more than 200

countries. Rated once as one of the most valuable company after Google and Apple, Coca Cola has
considered and commenced numerous growth and expansion strategies in its 133 years of journey so
far. The Ansoff Matrix is applied in following steps on Coca Cola here in this report to demonstrate its
effectiveness and acceptability. The Ansoff Matrix is one of the framework that is used to measure the
degree of risk with regards to a particular product whether to pursue growth and expansion via
prevailing product or by introducing a new product in the established or fresh and different market.

Market Penetration

This methodology includes an effort to expand and increase share of the industry inside existing
businesses, either by offering more item to set up consumers or by finding new consumers inside these
business sectors by specifically engaging “Promotion” of the product. With a global marketing budget of
$ 4 billion, Coca Cola showcases a very robust presence in beverage industry and is promoting its
products by different marketing mix. Coca Cola is a prime sponsor of NASCAR, American Idol and sport
events like Olympics which has aided in boosting global sales of Coca Cola.

Product Development

This strategy includes developing fresh product line for already established markets by considering
demands and satisfaction of the consumers and by developing a product that is profitable and which can
possible beat the competitive products in the same sector of the business. Coca Cola, for instance,
introduced Cherry flavoured Coke in 1985 for the first time and was one of the first extension of the
Coca Cola product line other than the traditional Coke flavor. Since then, Coca Cola has successfully
experimented by introducing many flavours like Vanilla, Black Cherry and Lime, etc. This product
development has again boosted Coca Cola’s consumer base.

Market Development

The market development strategy necessitates discovering or development of a new group of

consumers for the same line of product. Coca Cola launched “Coke Zero” in 2005 as a more refined and
highlighted product in the line of its zero sugar and low calorie range with Diet Coke. This product was
also widely accepted by the male consumers as Diet Coke was predominantly considered as one of the
popular aerated beverages amongst female consumers. With right branding, product placement and
designing, Coke Zero was able to develop its market in the zero sugar category where Diet Coke was
already a famous and established name.

Related Diversification

Coca Cola has showcased diversification at various fronts by manufacturing various products of new
group in order to complement the existing line of products so that the related market can be captured
effectively. For this strategy, Coca Cola has acquired various brands like Glaceau, renowned coffee chain
Costa and Minute Made juice company. These acquisitions have diversified Coca Cola’s portfolio in the
related industry.

Unrelated Diversification

This strategy involves diversification of Coca Cola into new segment of business which is entirely
different from key business of Coca Cola company. As a result of implementing this strategy, Coca Cola
once diversified into buying Columbia pictures in 1982 which was later sold to Sony. Also through its
strong brand image Coca Cola has diversified into selling a lot of different merchandise like clothing,
refrigerators, glassware, etc.