ACCA Strategic Professional · Strategic Business Leader · Strategic choices
Marlow Foods, a UK biscuit manufacturer, plans to increase sales of its existing biscuit range to its existing supermarket customers by running loyalty promotions and increasing shelf presence. Which Ansoff strategy does this represent?
This is market penetration, because the company is selling its existing biscuits to its existing supermarket customers and trying to increase volume through promotions and shelf presence. No new product or new market is involved, so it is the lowest-risk Ansoff quadrant.
- AMarket penetrationCorrect
- BProduct development
- CMarket development
- DDiversification
Explanation
Selling existing products into existing markets to raise share or usage is market penetration. Product development would require new products, market development new markets, and diversification both new products and new markets.
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