In this report I will be describing how McDonalds and Tesco use marketing techniques to market there products. Marketing is the action or business of promoting and selling products or services, including market research and advertising, this is where a company advertises a product or service. The Ansoff matrix is a planning tool that combines a businesses marketing strategy with the firms planned direction and shows four different growth strategy’s in a table split into four different sections; market penetration, product development, market development and product/market diversification.
McDonald’s will use a number of marketing techniques throughout their company in order for them to meet their objectives. One marketing technique they will use is diversification; Diversification is a corporate strategy to enter into a new market or industry which the business is not currently in, whilst also creating a new product for that new market (1). This is most risky section of the Ansoff's matrix, as the business has no experience in the new market and does not know if the product is going to be successful. McDonalds have used this strategy recently as they have introduced a new smoothie range into their stores. This is targeting the people who would like a healthy option as a pose to drinking something like a milkshake or a soda which both don’t appeal to people wanting to have a healthy drink with their meals. Another example of diversification within McDonalds is the new McCafé range this is to try and take some of the market share of companies like costa coffee and Starbucks and persuades people to drink warm drinks at McDonalds.
Market penetration is a marketing technique that covers products that are existence and that are also present in an existing market. Also there can be further coverage of the products without necessarily changing the product. This is made