Bringing an innovative product to market: Assure® A Corus case study
Page 4: Ansoff matrix
Ansoff's Matrix highlights four possible growth strategies for a business.
Market penetration occurs when a firm tries to sell more of its existing products in its existing markets, perhaps through greater promotional efforts.
Market development occurs when a firm tries to sell its existing products in a new market e.g. a new segment or country.
New product development occurs when a firm offers a new product to its existing customers.
Diversification occurs when a firm develops new products for new markets.
The original product range by Corus Colors focused on Controlled Environment Surfaces (CES). Attempts to boost sales of these products would be an example of a market penetration strategy.
Assure is a new technology being developed for existing customers of Corus in the food market. It is therefore an example of new product development.
Having gained a foothold as a supplier of Assure to the food market, Corus is now looking for opportunities to target new sectors e.g. hospitals. This is an example of market development with an element of diversification too.
The healthcare market is particularly attractive for Assure because:
hospitals, clinics etc. need help with sustaining sterile environments
UK governments are committed to increasing healthcare funding, and so hospitals, surgeries, clinics etc have greater spending power.
Another possible market for Assure is the domestic appliances sector, where it can be used on surfaces such as the insides of microwaves, fridges and washing machines.
Corus | Bringing an innovative product to market: Assure®