The 4 areas of the Growth Matrix

Market penetration  – current products and current markets
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Product development strategy – new products and current markets
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Market development strategy – current products and new markets
.
Diversification – new products and new markets


For Kellogs
Market penetration for Kelloggs is aimed at existing customers or other customers that buy rival products, similar to Kelloggs. By promoting their market to their existing customers with extra value, the relationship between the company and the customers will be a great way of engaging the customers to stay,


Product Development
Kelloggs develop and improve their existing products, for example less sugar in a specific cereal. This means the relationship between existing customers and the company can increase if it satisfies the customers needs or wants.


Market Development

Kelloggs products range from children cereals to adult cereals. For Kelloggs, market development can find a new target audience and pitch a new product to them. This can bring in more customers and a higher profit after each year.

Diversification

Cereal bars and snacks were a new range of products for Kelloggs. For example, 'Nutri Grain Bars' were created as a healthy 'on the go' snack which is healthy and a third of the recommended whole grain amount each day. By creating a new product to a different audience, the more customer relationships Kelloggs can build. In more depth, if Kelloggs were to, for example, make a clothing brand, this is a completely diverse strategy. This engages completely different customers that appreciate fashion.