Year 12 IB Extended Essays 2018

2 Methodology

2.1 Tools 2.1.1 Ansoff Matrix

The Ansoff Matrix is a planning tool to evaluate the growth potential in terms of market and product. It

takes into account whether a product and/or market is new or existing. This will allow for analysis on

how both Red Bull and Dare took advantage of growth potential and the methods they implemented.

2.1.2 Boston Consulting Group (BCG) Matrix

The BCG Matrix is a tool used to analyse a product based on their market share compared to market

growth. It will allow the company to analyse whether their product is profitable and if there is potential

for the product to grow its market share. This will be implemented to show both products market

growth and why it was possible.

2.1.3 Segmentation

Segmentation allows companies to align their products with the right consumers. Focusing on markets

where they are more likely to find consumers wanting to buy their product. Segmentation is used to

adapt marketing strategies, so they are focused towards a target market. Understanding Red Bull and

Dares segmentation, allows for an understanding of their target market and therefore how they have

used this information to customize their marketing strategy to be the most effective.

Demographic segmentation is when markets are isolated using characteristics such as age, gender and

religion. While red bull and dare’s products serve a similar purpose the demographic market they

advertise to is quite different.

Psychographic segmentation is dividing your market based upon consumer personality traits, values,

attitudes, interests, and lifestyles. Segmentation will allow you to better develop and market your

products because there will be a more precise match between the product and each segment's needs and

wants.

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