SUBMITTED BY:DEVANSHU SHARMA(417)SAKASH AGARWAL(419)SUDHIR PADHAN(421)

HARSHA VARDHAN(429)T HARI KUMAR(449)

CONTENTS

1. INTRODUCTION2. STRATAGIC MODELS3. 360 DEGREE MARKETING

STRATAGY.4. UNDERSTANDING THE KEYS TO

MARKET YOUR STARTUP BUSINESS.

5. A REVIEW OF MARKETING STRATEGIES WORK BY DIFFERENT PHARMACEUTICAL COMPANIES

6. TYPES OF MARKETING LEADER STRATEGIES WITH EXAMPLES.

7. CONCLUSION.

INTRODUCTION

Marketing strategy is defined by David Aaker as a process that can allow an organization to concentrate its resources on the optimal opportunities with the goals of increasing sales and achieving a sustainable competitive advantage.[1] Marketing strategy includes all basic and long-term activities in the field of marketing that deal with the analysis of the strategic initial situation of a company and the formulation, evaluation and selection of market-oriented strategies and therefore contribute to the goals of the company and its marketing objectives

Strategic models

Marketing participants often employ strategic models and tools to analyze marketing decisions. When beginning a strategic analysis, the 3Cs can be employed to get a broad understanding of the strategic environment. An Ansoff Matrix is also often used to convey an organization's strategic positioning of their marketing mix. The 4Ps can then be utilized to form a marketing plan to pursue a defined strategy. Marketing Mix Modeling is often used to simulate different strategic flexing go the 4Ps. Customer lifetime value models can help simulate long term effects of changing the 4Ps, e.g.; visualize the multi-year impact on acquisition, churn rate, and profitability of changes to pricing. However, 4Ps have been expanded to 7 or 8Ps to address the different nature of services.

There are many companies especially those in the Consumer Package Goods (CPG) market that adopt the theory of running their business centered around Consumer, Shopper & Retailer needs. Their Marketing departments spend quality time looking for "Growth Opportunities" in their categories by identifying relevant insights (both mindsets and behaviors) on their target Consumers, Shoppers and retail partners. These Growth Opportunities emerge from changes in market trends, segment dynamics changing and also internal brand or operational business challenges.The Marketing team can then prioritize these Growth Opportunities and begin to develop strategies to exploit the opportunities that could include new or adapted products, services as well as changes to the 7Ps.

UNDERSTANDING THE KEYS TO MARKET YOUR STARTUP BUSINESS

Understand how to market your small business

Develop key marketing skills

Expand/grow your customer base

Strategically create a successful marketing plan

Learn new ways to market your business

Create your brand

6 LOW COST MARKETING STRATEGIES FOR A START UP

1. Word Of Mouth

2. Referrals

3. Social Media

4. Marketing Partners

5. Website

6. Public Relations

Marketing Strategy for Start-Up Businesses or New Product Launch

Every business owner should develop a written guideline that sets forth the business's marketing strategy. If a company has to take an action that is off-strategy, it may indicate a temporary emergency action prompted by competition or other factors beyond normal management control. Or it may indicate the need to change or revise the company's marketing strategy.

A good marketing strategy provides specific goals and can include:

• a description of the key target buyer/end user

• competitive market segments the company will compete in

• distribution channels

• the unique positioning of the company and its products versus the competition

• the reasons why it is unique or compelling to buyers

• price strategy versus competition

• marketing spending strategy with advertising and promotion

• possible research and development

• market research expenditure strategies.

An overall company marketing strategy should also:

• define the business

• position the business as a leader, challenger, follower, or niche player in the category

• define the brand or business personality or image that is desired in the minds of buyers and end users

• define life cycle influences, if applicable

Marketing strategy checklist:

• define what your company is

• identify the products or services that your company provides

• identify your target buyers/end users

• establish the marketing category (e.g., fast food purveyor, high-end audio equipment sales, etc.)

• determine whether your company will be a market category leader, follower, challenger, or niche player

• describe the unique characteristics of your products or services that distinguish them from the competition.

• define whether your pricing will be above, below, or at parity with your competitors and establish whether you will lead, follow, or ignore changes in competitors' pricing

• identify the distribution channels through which your products/services will be made available to the target market/end users

• describe how advertising and promotions will convey the unique characteristics of your products or services

• describe any research and development activities or market research plans that are unique to your business

• describe the image or personality of your company and its products or services

The financial projections contained in our business plan are based on the assumptions contained in our marketing plan. It is the marketing plan that

details when expenditures will be made, what level of sales will be achieved, and how and when advertising and promotional expenditures will

be made.

Here are the major elements of a marketing plan:

The situation analysis describes the total marketing environment in which the company competes and the status of company products and distribution channels.

The opportunity and issue analysis analyzes the major external opportunities and threats to the company and the internal strengths

and weaknesses of the company, along with a discussion of key issues facing the company.

External opportunities and threats to the company should be described with possible programs to capitalize on the opportunities, and possible solutions to potential threats to the company.

Internal strengths and weaknesses of the company should be described in a competitive context.

Key issues addresses decisions to be made by the company, based upon the analysis of these external opportunities and threats and internal company strengths and weaknesses, and helps to determine objectives, strategies, and tactics.

The goals and objectives section outlines major company goals and the marketing and financial objectives.

All objectives should be carefully quantified, where possible, especially in terms of an achievable time or date. Objectives should be reasonable and attainable.

Major company goals could include both short- and long-term goals. For example:

Company definition (e.g., "to be a manufacturer of 100 percent all-natural snack food products")

Market definition (e.g., "to attain leadership in dollar market share and volume for the healthy, all-natural snacks segment of the salty snacks category")

Technology (e.g., "to become known in the industry as the leading developer of new vegetable protein products")

The sales and marketing plan outlines each specific marketing event or action plan to increase sales. For example, it may contain a summary of quarterly promotion and advertising plans, with spending, timing, and share or shipment goals for each program. Sales and marketing plans should be

a logical outgrowth of short- and long-term company objectives and your marketing strategy. In the business plan, the sales and marketing plans provide an outline of each marketing event for the year, covering the following information:

• description of each event vehicle (e.g., media, promotion, trade, sales)

• timing of each event

• event goals and objectives (e.g., volume, share gains)

• cost of each event

A REVIEW OF MARKETING STRATEGIES WORK BY DIFFERENT PHARMACEUTICAL COMPANIES

The pharmaceutical industry is the world’s largest industry due to worldwide revenues of approximately US$2.8 trillion. Pharma industry has seen major changes in the recent years that place new demands on payers, providers and manufacturers. Customers now demand the same choice and convenience from pharma industry that they find in other segment. Indian Pharmaceutical Industry is poised for high consistent growth over the next few years, driven by a multitude of factors. Top Indian Companies like Ranbaxy, DRL, CIPLA and Dabur have already established their presence. The pharmaceutical industry is a knowledge driven industry and is heavily dependent on Research and Development for new products and growth. However, basic research (discovering new molecules) is a time consuming and expensive process and is thus, dominated by large global multinationals. Indian companies have only recently entered the area. The Indian pharmaceutical industry came into existence in 1901, when Bengal Chemical & Pharmaceutical Company started its maiden operation in Calcutta. The next few decades saw the pharmaceutical industry moving through several phases, largely in accordance with government policies. Commencing with repackaging and preparation of formulations from imported bulk drugs, the Indian industry has moved on to become a net foreign exchange earner, and has been able to underline its presence in

the global phar exchange earner, and has been able to underline its presence in the global pharmaceutical arena as one of the top 35 drug producers worldwide. Currently, there are more than 2,400 registered pharmaceutical producers in India.

Pharmaceutical Company Business Strategies

What’s the secret behind successes? For one, the company operates in niche formulations (chronic) segments such as psychiatry, cardiovascular, gastroenterology and neurology. While most of the top Indian companies have focused on antibiotics and anti–invectives(acute), Sun Pharma focused on therapeutic areas such as depression, hypertension and cancer. The company has introduced the entire range of products and has gained leadership position in each of these areas. Being a specialty company insulates Sun Pharma from the industry growth. The first quarter results for FY02 explain this to some extent. While the industry was affected to a large extent by a slowdown in the domestic formulations market, Sun Pharma logged a growth of 26% in revenues. Over the years Sun has also used the strategy of acquisitions and mergers to grow quickly. It acquired Knoll Pharma’s bulk drug facility, Gujarat Lyka Organics, 51.5% in M. J. Pharma, merged TamilNadu Dadha Pharma & Milmet Labs and acquired Natco’s brands. Post Merger with TamilNadu Dadha Pharma the company gained presence in gynecology and oncology segments.

The bases of marketing strategies can be best described in these two models in both

acute and chronic segments:

(i) Super Core Model involving the search for, and distribution of a small number of drugs from Chronic Threapy Area that achieve substantial global sales. The success of this model depends on achieving large returns from a small number of drugs in order to pay for the high cost of the drug discovery and development

process for a large number of patients. Total revenues are highly dependant on sales from a small number of drugs. This model incorporates highly specialized approach in all the manner.

(ii) Core Model in which a larger number of drugs from Acute Threapy Area are marketed to big diversified markets. The advantage of this model is that its success is notdependant on sales of a small number of drugs. Here presenting a large number of product and taking the advantage of opportunity cost is one of the important strategy. Other strategy includes daily reminders to cross the perceptual filter and get the brand.

TYPES OF MARKETING STRATEGIESMARKET LEADER STRATEGIES WITH

EXAMPLES…1. Expand total market2. Defend market share3. Expand market share

A. MARKET LEADER STRATEGIES

1. EXPAND TOTAL MARKET

• New Users

E.g.: perfume:--> non-users (mkt-penetration strat)

--> men (new market strat)--> other countries (geo-expan strat)

E.g.: J&J Baby shampoo: birthrate declining--> ads target adults --> leading brand

• New uses

Cereals: as snacks --> increase frequency of useOJ: “not for breakfast anymore”Du Pont nylon: parachute-->pantyhose-->blouses & shirts --> auto tires -->seat belts -->carpeting

Arm & Hammer: baking--> fridge deodorant --> quell kitchen grease --> carpet/pet deodorant--> bath tub relaxant --> toothpaste --> ????

• More usage:

Michelin: want French to drive more --> rate restaurants (best in south --Provence &Riviera) --> publish guidebooks with maps and sights along the way

2. DEFEND MARKET SHARE

• decide where to defend• continuous innovation along Mktg Mix

Position defense:

- purely defensive not enough--> must take offensive counter-measure

Eg: Coke --> multi segments of cola mkt

--> enter wine market--> acquire fruit drink companies--> desalination equipment--> plastics

Flanking defense:

- guarding territory not enough- create outposts/flanks:--> protect weak front--> invasion base for counter-attack

Eg: Hyvee: supermkt still dominant yet facing challenges from other retailersflanking strategy:

strengthening via superstore concept -->

• traditional foods - meat/canned/packaged• non-traditional --> ethnic foods, wines• prepared foods --> restaurant, take out, salad bar, bakery• non-food retailing --> clothings, garden store, video rental, dry cleaning, photo developer,• services: catering, party planning

Classic flanking failures: lack of commitment

Half-hearted design: GM: Vega and Ford: Pintoflanking failed --> VW, Toyota, Nissan

Preemptive defense:

• attack BEFORE enemy starts offenseEg: Microsoft: “Vapor-ware”• guerrilla action: Seiko with 2300 watch models• sends market signals but does nothing(3 Kingdoms: empty city strategy)-- hears of competitor’s plan to build new factory--> “leaks info” of planned price cut and new factory plansFailure to respond to strong attacks: fatalHeinz did not respond to Hunt’s attack--> Hunt now established rival brand

Counter-offensive defense:

- when attacked most mkt leaders will respond with counterattack- cannot be passive in the face of continued attack- price cut,- promo blitz,- product improvement,- sales-territory invasionoptions:

• “wait and see”

-- take time to understand motives -- ST vs LT-- identify areas of weakness of competitor

• strong response:

-- detailed all-out offensiveEg: BMW & Mercedes vs Lexus & Infinity--> action when MS erosion was serious

• price cuts• low end defense --> new models for under $45K segment

Mobile defense:

- more than aggressively defend-- stretches domain over new territoriesStrategies: Mercedes sees stagnant luxury mkt

Mkt broadening: broaden generic defn

-- MB takes on SUV with own all-wheel drive-- MB takes on new microcar segment-- JV with Swatch in MB/Swatch carCAUTION: Mktg Myopia --> Mktg Hyperopia

Mkt diversification:

Reynolds: from cigarettes --> beer, liquor, soft drinks, frozen foodsMB: shifts more resources into aeronautics, auto design equipment CAD/CAM,

Contraction defense:

- strategic withdrawal-- give up weak territories-- concentrates strength at pivotal positionsEg: Ford retires T-birds and ProbeFocuses on Contour & Taurus

3. EXPANDING MARKET SHARE

PIMS (Profit impact on mkt strategy) reports higher profits with higher mkt shareArgument: Profitability goes with high MSEg: MB high P because it a high MS holder in its served mkt (luxury segment)Eg: 1 share point gain:Coffee: > $80MSoft drinks: $ 150M

CAUTION: gaining MS not necessarily gain P

- depends on strategy for gaining increased MS-- cost of buying higher MS < revenues generated

3 critical considerations:

a. provoking antitrust action or anti-dumping chargeb. economic cost -- beyond optimal MS,i.e. inverted “U” curve

WHY: legal costs, fight off competitors losing MS, PR problems, legal problems

c. wrong marketing-mix strategy

Recent case: UPS strike reveals vulnerability

- buyers want multiple vendors- unattractive mkt segmentsstrategy: selectively decrease MS in weaker areas

Conditions when MS and P go together:

a. Unit costs fall with increased MS- real gains in economies of scale --

cost/experience curves,Intel: significant improvements in both product and process innovations, and large capitalinvestment in new plants

b. Target Premium segment:- premium price covers cost of offering higher quality- MB/BMW strategy

B. MARKET CHALLENGER STRATEGIES

Targets of attack: conditions for success

1. Mkt leader not in tune with mkt: vulnerable-- dissatisfied customers-- technology shiftedIntel & Microsoft Vs IBM

2. firm its own size -- underfinanced, not doing job

3. small and regional firms -- underfinanced

Attack strategies:

1. Frontal attack:

• “head-on” attack: condition : the principleof force

3:1 advantageattacker matches opponent along all parts of MM

Cases: Shampoo/conditioner mkt 1977

SCJohnson’s entry in shampoo mkt with Agree:

• raided Colgate & others for exper executives• $14M promo blitz; 30M sample bottles of conditioner too• Results: 1978-MS=15%; 1979-MS=20%• 1978: $30M assault of shampoo mkt --> 6% MS

Helene Curtis’ low-price strategy when @ 1% MSstrat: imitate high priced brands but sell at half price• Sauve: launched in 1973 with aggressive pricing• Result: 1976: 16% MS; > P&G’s H&S; J&J’s BS

2. Flank attack

• “concentration against weakness”• attack strong side --> tie up defender’s troops• real attack: side or rear --> catch off guard• spot uncovered mkt needs not served by leaders• identify shifts in mkt segments --> quick entry, develop segment into strong segmentsCase: Autos in 70s:Japanese & Germans saw Detroit’s vulnerability in small, fuel efficient car segmentCase: Beer industry 1970sMiller “discovered” light beer segment: aggressively pursued new marketMS: from 7th --> 2nd in 5 years

3. Encirclement attack

• capture a wide slice of territory via blitzkreig• grand offensive in many fronts• enemy mustprotect front, rear, sides• lessons from 1991 Gulf War operational tactics?• attacker offers everything leader offers & more

Case: Seiko’s global strategy

• 2300 models worldwide & 400 for US mkt• attributes attacked:-- fashion, features, user pref, price

Case: failed attack

• Hunt’s (16% MS) assault on Heinz’s 26% MS• 2 new flavors: pizza and hickory• goals: Change taste pref & take shelf space• tactics: priced at 70% of Heinz; raised adv budget; heavy trade discounts

• Result: Heinz counter-attacked

-- cons taste pref unchanged --> no switching-- very costly for Hunt to sustain-- Heinz got stronger --> 40% MS

4. Bypass attack

• indirect assault• avoid enemny; attack easier markets

3 alternative bypass attack strategies:

a. diversify into unrelated productsb. new geographical marketsc. leapfrog into new technologiesCase: Colgate Vs P&G: futile head-on• expand into non-P&G mkts: via acquisition-- textiles, hospital products, cosmetics, sporting goods

5. Guerrilla attack

• harassing & demoralizing opponent• excellent for small companies

Some Attack Strategies Available to Challengers

1. Price discounts: Fuji vs Kodak2. Cheaper goods strategy:average/low quality at much lower price3. Prestige goods strategy:4. Product proliferation

Hunt: several flavors, several bottle sizes,Cold cereal mkt

5. Product innovation strategy:6. Improved services strategy7. Distribution innovation: Timex thru mass-merch8. Manufacturing cost reduction strategy9. Intensive advertising strategy

CONCLUSION

360˚ Marketing Strategy

Marketing strategy is a heart of business strategy and plays a crucial role in growth

of any company. Marketing strategy determines what should be offered to whom,

how to present them, at what price and how to reach and attract them more

effectively to achieve overall marketing goals. Deciding such go-to-market

strategies that fits best with overall business strategy always remain a

challenge for marketers. IKON help those marketers by evaluating, fine-tuning

and developing result oriented marketing strategies that meet customer needs

better than competitors and develop long-term profitable relationships with those

customers.We develop 360° Marketing Strategy for our clients which includes,

Segmentation Strategy – “Identify your potential customers” Market Targeting Strategy - “Choose most profitable customers to target” Positioning Strategy - “Build unique image in the mind of customers” Product Strategy - “Create value to satisfy needs of customers” Pricing Strategy - “Set a profitable price that customers can afford” Integrated Marketing Communication Strategy–“Communicate Customer Value and create brand equity” Distribution Strategy - “Reach customers effectively to deliver value” Branding Strategy - “Build a strong Brand” Sales Strategy - “Convert prospects into profitable customers” Digital Marketing Strategy - “Attract and win online customers” Customer Service Strategy – “Serve your customers better” Product Launch Strategy - “Get introduced the way it creates buzz in market ” Marketing Organization - “Select right people for right tasks” Financial Plan - “Set revenue goals and ensure profitability” Implementation Schedule - “What activities to be done by whom and when”

While developing marketing strategies we mainly focus on customer’s current and eme

rging needs and client’s capabilities to satisfy those needs. Analyzing client's current si

tuation both in internal & external environment to understand client’s current capabilitie

s, readiness to build required capabilities and identify opportunities available in market,

IKON’s marketing strategy consultant build innovative and result oriented go-to-market strategies.

Implementation Support

We do not keep our clients in middle of the way but also help them to reach at the dest

ination by providing strategy implementation support. Our experts work with client at ea

ch stage of strategy implementation to produce expected results and achieve growth objectives.

Our Implementation support services includes,

Supervising and monitoring implementation process Advising Marketing Director/Head for implementing marketing strategy in effective way Solving the problems arises during each stage of marketing strategy implementation process Briefing creative strategy to advertising agencies Decision support in selecting concepts and designs of promotional and marketing collaterals Analyzing sales and implementation process periodically Midterm review of recommended marketing strategy Participating in selection of key sales and marketing executives Identify need of training program for senior and junior level sales and marketing executives Thought leadership to key decision makers

Over the past 10 years, We have been involved in numerous marketing strategy engagements ac

ross wide variety of industries and geographies. This involvement has provided us with unique ins

ights into market’s current and emerging needs and how it can be satisfied better than competitors

by creating, communicating and delivering value..