The Ansoff Matrix is a tool that can help you build a sales growth strategy and identify opportunities to increase revenue.
The matrix was originally developed as a device for businesses to think about revenue diversification. Since then, it has been used as a quick and easy way to build a sales strategy while considering the risks of growth.
The matrix breaks down the drivers of sales growth into these categories:
- New markets (accounts)
- Existing markets (accounts)
- New products
- Existing products
The matrix then combines these four categories and assigns a relative amount of risk to each approach.
For example, building a sales strategy to focus on improving market penetration with existing customers and products is low risk. Whereas, diversifying into new products in a new market comes with a higher risk.
How can you use the Ansoff Matrix to Grow Sales? Use it to ask strategic questions:
- How can we sell more of our current products to our existing customer base?
- Could we do better with e-commerce options? Can we improve our marketing (social media, traditional media, events, etc.)?
- How could we enter new markets with current products (or add new accounts)?
- Are there opportunities to acquire brand/territory rights or purchase another distribution business?
- How could we develop existing products or services?
- In other words, could we market the products differently, could we provide more sales training, could we hire a specialized sales person?
- How could we move into new markets with new products (or services)?
- For example, could you sell non-alcohol products to non-licensed accounts (a new market)?
The Ansoff Matrix is a simple and easy way to think about sales growth strategy and find new ways to increase revenue.
Use the matrix to brainstorm ideas and ask difficult (but profitable) questions.
Yours in Sales Growth,
Kary
P.S. Take advantage of the Spring Special and save 33% off the Beer Business Finance Subscription. Use Discount Code SPRINGCLEAN at checkout. Your subscription includes access to the library of online courses, back issues of the Beer Wholesaler Financial Newsletter, webinars, podcasts, tools and resources to help you drive sales and profits in your beer business.
