CA Intermediate · Financial Management and Strategic Management · Strategic Choices
Kaveri Foods, a packaged snack company, sells its existing namkeen range only in southern India. It now plans to sell the same products in northern and western states through new distributors. According to the Ansoff matrix, which strategy is this?
This is market development. Kaveri Foods keeps its existing namkeen products but takes them to new geographic markets in northern and western India. Market penetration would mean selling more in the current southern market, and product development would require new products.
- AMarket penetration
- BMarket developmentCorrect
- CProduct development
- DDiversification
Explanation
The product is unchanged while the firm enters new geographic markets. In the Ansoff matrix, existing products in new markets is market development. Market penetration would target more sales in the existing southern market.
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