Asnoff`s Strategies for Diversification
Asnoff was a mathematician with an expert insight into business management.
Asnoff developed a method for measuring the profit potential of alternative product-market strategies. We called it Asnoff`s product market expansion gird.

Asnoff`s product market expansion gird:
Marketing planning tool which usually aids a business in determining its product and market growth. determined by focusing on whether the products are new or existing and whether the market is new or existing. Alternatives marketing strategies
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Existing products to existing market
New products to existing market
Existing products to new market
New products to new market

1-Market penetration
This strategy focus on selling your current product range to your existing market in order to increase your market share.
In this strategy we focus on promotional activities and pricing offers to increase customers demand.
Also royalty programs will help in increasing usage of our current customers to the product.
Or by Driving out competitors by buying small companies or Making competition more difficult to them by pricing strategies .
Example : -Airways royalty programs (Mile program) ,

2-Product development
Product development strategy including developing a new product , modifying the current products or brand extension.
This strategy require continues R&D investments.
Also the company must make market research and focus groups to know more about current customers needs and buying habits.
Different approaches for product development
Brand Extension
Using customer loyalty to the brand to develop new products with same brand.
Example :Dettol extend the brand to many other products.
Panadol also use Panadol name to develop more than 10 products.
Using company image to develop different product to the same customer segment
Pharmaceutical co. develop new products