CA Intermediate · Financial Management and Strategic Management · Strategic Choices
Anand Foods, a packaged snack maker, plans to sell its existing snack range to a new customer segment in rural markets, without changing the products. Using Ansoff's product-market growth matrix, this is:
This is market development under Ansoff's matrix. Anand Foods sells existing products to a new market, rural customers. Penetration would focus on existing customers, product development would launch new products, and diversification would change both product and market.
- AMarket penetration
- BProduct development
- CMarket developmentCorrect
- DDiversification
Explanation
The products are unchanged but sold in a new market segment, which is market development. Market penetration would sell more of the existing product in the existing market. Product development needs new products for existing markets, and diversification needs both new.
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