CA Intermediate · Financial Management and Strategic Management · Strategic Choices
A Pune-based packaged snack company sells only in Maharashtra. It decides to launch its existing range of snacks in Gujarat and Karnataka without changing any product. In Ansoff's product-market matrix, this is:
This is market development. The company sells its existing products in new markets, namely Gujarat and Karnataka. Ansoff's matrix classifies existing products with new markets as market development, whereas market penetration keeps the same market and diversification changes both product and market.
- AMarket penetration
- BMarket developmentCorrect
- CProduct development
- DDiversification
Explanation
The products are unchanged and the firm enters new geographic markets. This is market development in Ansoff's matrix. Market penetration would mean selling more of the same product in the same Maharashtra market.
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