CA Intermediate · Financial Management and Strategic Management · Strategic Choices
Sahyadri Foods Ltd sells packaged snacks in Maharashtra and Gujarat. Without changing its existing snack range, it now launches the same products in Tamil Nadu and Karnataka through new distributors. In the Ansoff product-market framework, this is best described as:
This is market development. The company is taking its existing snack products into new geographic markets, namely Tamil Nadu and Karnataka. Penetration stays in current markets, product development changes the product, and diversification changes both, so none of those fits this situation.
- AMarket penetration
- BProduct development
- CMarket developmentCorrect
- DRelated diversification
Explanation
The firm sells existing products in new markets (new states), which is market development. Market penetration would mean selling more of the same product in the same markets. Product development needs new products, and diversification needs both new products and new markets.
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