Part 2: Analysing The Acquisition of Kellanova Through the Ansoff Matrix

In this part, we will analyse this acquisition through a tool called Ansoff Matrix. Ansoff Matrix is a marketing planning model that helps a business determine its product and market growth strategy and it demonstrates the way the acquisition of Kellanova enhances Mars’ strategic position for growth across several aspects. It outlines four key strategies: market penetration, which focuses on increasing sales of current products in existing markets; market development, which involves introducing current products to new markets; product development, which is about creating new products for existing customers; and diversification, the most risky strategy, where a company enters completely new markets with new products. By evaluating growth options through these four lenses, the Ansoff Matrix allows companies to assess risk levels and choose the most suitable direction for expansion.

Regarding market penetration, the consolidation of the combined portfolio enables Mars to secure a larger share of shelf space and bargaining power with global retailers. The promotional synergies from cross-promotions (e.g. bundling Cheez-It with M&Ms) not only increase revenues, but they also provide significant leverage for Mars to maintain and expand its share in increasingly competitive snacking categories.  

Product development opportunities also bolster Mars’ strategic advantage. Access to new and developing products and innovations from Kellanova (e.g. RXBar in functional and high-protein snacking) will significantly extend the diversity of Mars’ product pipeline. This is strategically important as consumer habits regarding snacks are changing in favour of healthier snacks, and the acquisition accelerates Mars’ ability to compete in this segment rather than relying solely on internal R&D.  

There are also market development advantages that increases Mars’ ability to reach global markets. Kellanova’s established presence in 180 markets heightens the overall distribution strength and delivery footprint of Mars, especially in Asia. The overall density of the portfolio significantly mitigates Mars' reliance on mature Western markets. 

Finally, the acquisition supports meaningful diversification, giving Mars exposure to plant-based, grain-based, and nutrient-dense categories through brands such as Morningstar Farms. This is strategically significant because it reduces Mars’ reliance on confectionery, an area facing slower growth and increasing regulatory pressure, and positions the company within faster-growing wellness snacking. 

Overall, using Ansoff’s Matrix shows that the acquisition enhances Mars’ strategic position by reshaping its long-term competitive resilience in a changing global food industry.