Explain Ansoff ‘s growth strategy and its relevance in the new product launch.

Ansoff’s growth strategy is a good tool for product launch and entering in the market. Ansoff’s matrix
helps in the decision making, and helps the entrepreneurs and marketers to plan and design the
company’s growth. This model shows the four strategies which helps in the firm’s growth and also
analyzes the risk which is their at every stage. This model has helped many enterpreneurs and marketers
to get a better understanding of the risks associated with the business and its growth.

The four strategies of Ansoff’s matrix are:-

1. Market penetration- Market penetration basically focuses on the growing sales of the existing
products to an existing market. They generally uses past data for analyzing and making new
plans for the product. It is the least risky strategy as compared to rest of the strategies. The
company tries to move customers away from the competitors so they should make the products
more satisfying than the competitors like improving the quality, adding features etc.
2. Market Development- Market development focuses on the selling of the existing products to
new market. The market could be a foreign market or domestic market. Company should be
finding out the potential market and they should conduct the proper market research. And
accordingly different approaches should be done in different markets.
3. Product Development- In product development, for new items, businesses have a variety of
possibilities. A new product could, for starters, be a new variety of an existing product. Fresh
products are the outcome of new innovations that make use of existing core resources and
capabilities. The organisation designs it to meet today's market needs based on extensive
market research and previous experience.
4. Diversification- In diversification, new items are sold to new markets by the corporation. In
comparison to the other three techniques, the diversification strategy is the most aggressive and
risky. The first danger is the uncertainty around a new product's acceptability.
 Product Pruning
Product pruning is defined as the discontinuation of the product or eliminating the product from
the market due to less demand or insufficient financial returns of the product. There are two
approaches for discontinuing of the brands. First is the portfolio approach, in this approach only
those products are kept in the market which satisfy the certain parameters which are set by he
company. Factors behind the product pruning are:-
1. Obsolescence- Many goods have been discontinued in the past due to the technological
advancements in the markets. There can be changes in customer preferences, on the other
hand, could render a product obsolete.
2. Loss of Appeal- Companies may need to discontinue products that no longer appeal to
changing consumer trends. Some items may have certain long-term affinities that generate
money, manufacturers must assess if the benefits outweigh the cost of retaining the item in
their product mix.
3. Profitability- The absence of profit is one of the most common reasons for eliminating a
product. When sales decrease to such a low level that the return on sales does not satisfy
company goals, product developers may decide to remove the product.

Factors That Influence Product Adaptation

1. Quality and safety standards- The quality of the product is the main factor for adoption of the
product.
2. Supply and demand- The supply and demand of the product are the main factors for the
adoption of the product.
3. Climate and geography- Different regions are suitable for different products. So this is the one of
the main factor respondible for the adoption the factor.

1. We want to provide a range of products and services that adapts to changing consumer needs.
We try to develop goods that are beneficial to consumers as well as to public health and the
environment. It's a win-win situation. This informs our current decisions and moulds our
portfolio for the future, whether through product evolution, innovation, acquisition, or
collaboration.
2. They make decisions. We put our energy and resources where they can make the biggest
difference in people's and pets' lives, protect and enhance the environment, and create
considerable value for our shareholders and other stakeholders.

3. Our model of value creation

Our long-term wealth creation strategy is built on a balanced approach to resource-efficient top-
and bottom-line development, as well as increased capital efficiency. We add value by: *
Investing in continual innovation to fuel growth.
* Enhancing operational effectiveness.
*Using discipline and clear priorities to allocate our resources and money, including through
acquisitions and divestitures.