PEST analysis is very important where an organization can analyze its external environment before beginning the marketing process. Other than that, ANSOFF MATRIX analysis should be done from time to time as it can help to feed all aspects of planning.
The Ansoff Growth matrix is a tool that helps businesses decides their product and market growth strategy. Ansoff’s product/market growth matrix suggests that a business’ attempts to grow depend on whether it markets new or existing products in new or existing markets. The output from the Ansoff product/market matrix is a series of suggested growth strategies that set the direction for the business strategy
Market penetration
Market penetration is the name given to a growth strategy where the business focuses on selling existing products into existing markets. Based on my research at Pfizer, here the companies try maintaining and increasing the market share of current products – this can be achieved by a combination of competitive pricing strategies, advertising, sales promotion and perhaps more resources dedicated to personal selling. Pfizer the company that introduces their pharmaceuticals drugs to the entire world including Malaysian market.
In Malaysia, Pfizer always looking abroad on how to compete with the other company that providing same line of pharmaceutical and health products in Malaysia. With emergence of many type of company in Malaysia has brought the Pfizer to the new area of maintaining their market with new strategy.
Pfizer has restructured a mature market by driving out competitors; this would require a much more aggressive promotional campaign, supported by a pricing strategy designed to make the market unattractive for competitors. Increase usage by existing customers – for example by introducing loyalty schemes A market penetration marketing strategy is very much about “business as usual”. The Pfizer is focusing on markets and products it knows well. It is likely to have good information on competitors and on customer needs. It is unlikely, therefore, that this strategy will require much investment in new market research.
Market development
Market development is the name given to a growth strategy where the business seeks to sell its existing products into new markets. There are many possible ways of approaching this strategy, including:
- New geographical markets; for example exporting the product to a new country
- New product dimensions or packaging: for example
- New distribution channels
- Different pricing policies to attract different customers or create new market segments
Product development
Product development is the name given to a growth strategy where a business aims to introduce new products into existing markets. This strategy may require the development of new competencies and requires the business to develop modified products which can appeal to existing markets. “We have a leading portfolio of products and medicines that support wellness and prevention, as well as treatment and cures for diseases across a broad range of therapeutic areas; and we have an industry-leading pipeline of promising new products that have the potential to challenge some of the most feared diseases of our time, like Alzheimer’s disease and cancer.”
Regarding on my previous research on Pfizer, here I can define that Pfizer are using the products development by creating the product and brought that into the existing market. To prove those developments it has been evidence by the purely statement from Pfizer it self where they stated commit to bring into being products and medicines to the existing market penetration which the medicine cure the disease such as Alzhemier and the other cancer disease.
The new products and medicines will be produce by specifically product research and research from development in order to maintain the quality control of the products besides it can be located into the market efficiently. As a result, Pfizer Inc has their own research and development pipelines that can be seen in the statement below. “New medicines are developed through a series of controlled trials which assess the safety and efficacy of each new medicine by applying high scientific standards. An experimental medicine is first tested in the laboratory and in animal studies. After this preclinical testing, the medicine can advance to clinical testing”
Referring to the statement above, I can assume that, Pfizer is commit to look up on the quality control and they take action to conduct test and make sure the product that they’ll have produce been safe used by the market. It also been proven by the qualified organization. Based on consultingcase101.com, Pfizer Inc will be proved to doing some products development by stated, Pfizer aimed to introduce new medicines for cancer patients since the company only produce one product on the market for cancer treatment which called Crizotinib. Therefore, these declarations show so as to Pfizer Inc is currently conducting product development as their enlargement approach for the company.
Diversification
Diversification is the name given to the growth strategy where a business markets new products in new markets. This strategy is divided into two classes that is related and also unrelated diversification. It is when a business adds or expands its existing product lines or markets. For example, a phone company that adds or expands its wireless products and services by purchasing another wireless company is engaging in related diversification. With a related diversification strategy you have the advantage of understanding the business and of knowing what the industry opportunities and threats are; yet a number of related acquisitions fail to provide the benefits or returns originally predicted.
The unrelated diversification it is when a business adds new, or unrelated, product lines or markets. For example, the same phone company might decide to go into the television business or into the radio business. This is unrelated diversification: there is no direct fit with the existing business.
In Pfizer, they are more to the related diversification strategies, whereas their specialty only in pharmaceutical and also biologics and not in the other fields. All the entire their products are basically based on medicine and pharmaceutical drugs. They never used to do other business to be the substitution to the pharmacies thing.
