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INTRODUCTION TO STRATEGY: SESSION 1 of 6
Paul Dawson M1 : INSEEC MASTERS
BORDEAUX OCTOBER 2011
PAUL DAWSON• Cambridge University : BA, MA
• University of California – Berkeley : MA
• Stanford Business School : MBA
• Engagement Manager : McKinsey and Company, (Los Angeles)
• CEO: Camus International (London, Hong Kong, Tokyo)
• Strategy Adviser: (Europe, Asia, Middle East, South America)
Email : [email protected] Tel: o6 45 54 09 66
LEARNING GOALS
• UNDERSTAND BUSINESS STRATEGY
• STUDY INTERNATIONAL BUSINESS CASES
• LEARN PRACTICAL BUSINESS SKILLS
Don’t be
LATE!
DOORS CLOSE ON TIME….
MORE PRACTICAL SKILLS…
• THINKING ON YOUR FEET
• THE COLD CALL
• THE ELEVATOR PRESENTATION
THE ELEVATOR PRESENTATION....
CLASS DYNAMICS
• IT’S A BUSINESS MEETING
• PARTICIPATE, CONTRIBUTE and LEARN
• PRESENT YOURSELF WELL!
GRADE STRUCTURE
• EXAM = 10 POINTS
• GROUP PRESENTATION = 5 POINTS
• CLASS PARTICPATION = 5 POINTS
• PROFESSOR DISCRETION = 3 POINTS
• MISSED CLASS = - 2 POINTS
• LATE = -1 POINT
MEETING ETIQUETTE
• “I don’t know”………….. not acceptable
• Franglais ………………. acceptable
• Think on your feet
• THIS IS A BUSINESS MEETING
BOF!(Not accepted either!)
BUSINESS MEETING RULES
• CLOSE YOUR LAPTOP
• TURN OFF YOUR PHONE
• LISTEN AND EXPRESS YOURSELF
• DON’T WAIT TO BE ASKED!
GETTING READY FOR BUSINESS
• THINK ON YOUR FEET
• HAVE AN OPINION
• DON’T WAIT TO BE ASKED
……SO LET’S PRACTISE:
FIND YOUR VOICE!
‘MARKETER’S TOOLKIT’‘Ten Strategies You Need to Succeed’
Harvard Business School Press 2006
Amazon.com $17.00
TODAY’S SESSION:TRADITIONAL MARKETING
“OLDIES BUT GOODIES” tried and tested marketing tools you must
understand
CASE STUDY and PRACTICEdeveloping a marketing strategy for a new product
WARM UP EXERCISE VIDEO
WARM UP VIDEO
GROUP WARM UP EXERCISE
- DIVIDE INTO GROUPS OF FIVE
- ELECT A SPOKES-PERSON
- YOU ARE USA TALENT AGENCY MARKETERS
- HOLD A BRAINSTORM SESSION (10 MINUTES)
WHAT FRENCH PRODUCTS OR SERVICES COULD SUSAN BOYLE ENDORSE?
WHAT IS “STRATEGY”?
GOOGLE SEARCH : HOW MANY HITS?
WHAT IS “STRATEGY”?
GOOGLE SEARCH : HOW MANY HITS?
2,020,000,000
WHAT IS “GOD”?
GOOGLE SEARCH : HOW MANY HITS?
WHAT IS “GOD”?
GOOGLE SEARCH : HOW MANY HITS?
1,510,000,000
WHAT IS “SEX”?
GOOGLE SEARCH : HOW MANY HITS?
WHAT IS “SEX”?
GOOGLE SEARCH : HOW MANY HITS?
3,920,000,000
STRATEGY: more mysterious than GOD; less mysterious than SEX
• “GOD” - 1.5 BILLION HITS
• “STRATEGY” - 2.02 BILLION HITS
• “SEX” - 3.9 BILLION HITS
Google USA
WARM UP EXERCISE: THE MIND OF A STRATEGIST
• WHAT ARE THE THINGS THAT A STRATEGIST HAS TO THINK ABOUT IN A BIG MULTINATIONAL COMPANY ?
STRATEGISTS think about ALL ASPECTS of change……
• PRODUCT• CUSTOMER• COMPETITION• DISTRIBUTION• SALES • MARKETING• FINANCE• COSTS• MARGINS• HUMAN RESOURCES• RAW MATERIALS• PRODUCTION• LOGISTICS
• METEOROLGY• CLIMATE CHANGE• GEOGRAPHY• ECOLOGY• SOCIOLOGY• DEMOGRAPHICS• ECONOMICS• POLITICS• LEGAL• REGULATORY• TRENDS• VALUES
GOAL: MAXIMIZE PROFITS AND BRAND EQUITY (and…….?)
STRATEGY IS…..
“ A long term set of actions designed to achieve a particular goal”.
Source: American Business Intelligence
K
38AMAZON.FR (NOT AVAILABLE)
AMAZON. UK GBP 38
MOLLARD?
PETER DOYLE: 5 MARKETING TASKS
1. IDENTIFY TARGET CUSTOMERS/MARKETS
2. RESEARCH CUSTOMER NEEDS
3. DEVELOP UNIQUE PRODUCT
4. DETERMINE MARKETING MIX
5. MONITOR, MEASURE AND ADJUST
Source: “Marketing Management and Strategy”
DOYLE AND DAWSON:7 MARKETING TASKS
1. BRAINSTORM NEW PRODUCT CONCEPT
2. UNDERSTAND COMPETITIVE ENVIRONMENT
3. IDENTIFY TARGET CUSTOMERS/MARKETS
4. RESEARCH CUSTOMER NEEDS
5. DEVELOP UNIQUE PRODUCT
6. DETERMINE MARKETING MIX
7. MONITOR, MEASURE AND ADJUST
Paul Dawson /Peter Doyle
COMPETITIVE ANALYSIS
MICHAEL PORTER’S 5 FORCES
• THREAT OF NEW ENTRANTS
• THREAT OF SUBSTITUTES
• BARGAINING POWER OF BUYERS
• BARGAINING POWER OF SUPPLIERS
• INTENSITY OF COMPETITIVE RIVALRY
5 FORCES IN ACTION
• YOU ARE STRATEGIC MANAGERS AT RUINART CHAMPAGNE
• YOU ARE CONSIDERING OPENING A FACILITY IN CALIFORNIA…..
• WHAT WOULD PORTER SAY?
SWOT ANALYSIS
SWOT ANALYSIS IN ACTION...
• YOU ARE STRATEGIC MANAGERS AT A GREY GOOSE VODKA
• YOU ARE CONSIDERING LAUNCHING A RUM PRODUCT
• WHAT WILL YOUR SWOT LOOK LIKE?
SWOT ANALYSIS IN ACTION...
• YOU ARE STRATEGIC MANAGERS AT RENAULT’s INTERNATIONAL CAR DIVISION
• YOU ARE CONSIDERING BUILDING A NEW FACTORY IN INDIA…..
• WHAT WILL OUR SWOT LOOK LIKE?
THE 4 P’s
MARKETING MIX: 4 P’s
• HOW should I describe my product?
• HOW MUCH am I going to sell it for ?
• WHERE am I going to sell my product?
• HOW am I going to tell people about my product?
4 P’S IN ACTION
YOU ARE MANUFACTURERS OF “HEALTHY” FRUIT-BASED SWEETS FOR CHILDREN….
What’s aUSP?
USP = UNIQUE SELLING PROPOSITION
• WHAT MAKES MY PRODUCT UNIQUE?
• WHY IS MY PRODUCT DIFFERENT FROM THE COMPETITION?
• HOW IS MY PRODUCT / BRAND DIFFERENTIATED ?
BRAND MANAGEMENT STRATEGY
• Analyze your market • Know your brand• Understand your customer• Organize, prioritize and allocate resources
Nothing revolutionary: classic brand management
FRQUENTLY OVER- USED MARKETING TOOLS
• Porter 5 forces
• SWOT Analysis
• 4 P’s
• USE THEM TO DEVELOP YOUR “SO WHAT”
See next page
AFRICA: WORLD’S 3RD FASTEST GROWING REGION
WORKING POPULATION CHANGES OVER TIME
GIVE ME THE “SO WHAT”
THE “SO WHAT”
TELL ME WHAT IT SAYS….
THEN TELL ME WHAT IT MEANS !
SUMMARY
• STRATEGY TOOLS ARE GOOD….
• BUT
• DON’T JUST REPEAT THE FRAMEWORK
• YOUR BOSS WANTS YOUR “SO WHAT”
7 BASIC MARKETING TASKS
1. BRAINSTORM NEW PRODUCT CONCEPT
2. UNDERSTAND COMPETITIVE ENVIRONMENT
3. IDENTIFY TARGET CUSTOMERS/MARKETS
4. RESEARCH CUSTOMER NEEDS
5. DEVELOP UNIQUE PRODUCT
6. DETERMINE MARKETING MIX
7. MONITOR, MEASURE AND ADJUST
Paul Dawson /Peter Doyle
KNOW YOUR CUSTOMER
• DEMOGRAPHICS: WHO/ WHERE?
• AGE
• GENDER
• INCOME
• LIKES/DISLIKES
SOCIO ECONOMIC CLASSIFICATIONS
A Upper Middle Class
B Lower Middle Class
C Working Class
D Lower Class
SOCIO-ECONONOMIC STRUCTURE - USA
LIMITATIONS OF CLASSIFICATION
• MOBILITY
• BLURRED BOUNDARIES
• DUAL INCOMES
• INTERNATIONAL COMPARISONS
CUSTOMER SEGMENTATION• GEOGRAPHIC• DEMOGRAPHIC
age gender family sizemarital status sexual orientationincome occupation educationsocio-economic status
• PSYCHOGRAPHICpersonality lifestyle hobbies values attitudes
• BEHAVIORALperceived benefits end use
GENERATIONS
• BABY BOOMERS 1946 - 1965
• GENERATION “X” 1960 - 1975
• GENERATION “Y” 1980 -(MILLENIALS)
GENERATIONS IN THE USA TODAY
Generation Population Spending Power
BOOMERS 78 MILLION $2.1 TRILLION
GENERATION “X” 41 MILLION $ 125 BILLION
MILLENIALS 73 MILLION $ 73 BILLION
Yankelovich, US Census
THE MILLENNIAL MIND
Technology drivenReject “old” Marketing
Experiment
Make their own rules
Share
Social Networking
Explore
7 BASIC MARKETING TASKS
1. BRAINSTORM NEW PRODUCT CONCEPT
2. UNDERSTAND COMPETITIVE ENVIRONMENT
3. IDENTIFY TARGET CUSTOMERS/MARKETS
4. RESEARCH CUSTOMER NEEDS
5. DEVELOP UNIQUE PRODUCT
6. DETERMINE MARKETING MIX
7. MONITOR, MEASURE AND ADJUST
Paul Dawson /Peter Doyle
MARKET RESEARCH
• FORMAL QUANTITATIVE SURVEY
• FOCUS GROUPS
• INDIVIDUAL INTERVIEWS
• INFORMAL DISCUSSIONS
7 BASIC MARKETING TASKS
1. BRAINSTORM NEW PRODUCT CONCEPT
2. UNDERSTAND COMPETITIVE ENVIRONMENT
3. IDENTIFY TARGET CUSTOMERS/MARKETS
4. RESEARCH CUSTOMER NEEDS
5. DEVELOP UNIQUE PRODUCT
6. DETERMINE MARKETING MIX
7. MONITOR, MEASURE AND ADJUST
Paul Dawson /Peter Doyle
BRAND MANAGEMENT STRATEGY
• Analyze your market • Know your brand• Understand your customer• Organize, prioritize and allocate resources
Nothing revolutionary: classic brand management
RED BULL CASE STUDY
YOU ARE RED BULL STRATEGISTS:
• YOU ARE STRATEGISTS for RED BULL ENERGY DRINKS • RED BULL NEEDS TO GROW• BUT ENERGY DRINKS MARKET SATURATED• YOUR CHALLENGE: TO KICK START A NEW GROWTH
SPURT FOR RED BULL:– IDENTIFY A BRAND EXTENSION– AVOID CANNIBALIZATION– BUILD ON BRAND PLATFORM
• GROW MARKET SHARE AND PROFITS
RED BULL CASE STUDY
AGGRESSIVE PROMOTIONAL ACTIVITY
SIMPLE BUT EFFECTIVE COMMUNICATION
“RED BULL GIVES YOU WINGS”
GIVES YOU WINGS….
GIVES YOU WINGS….?
“OWNS” EXTREME SPORTS CATEGORY
LONDON EXTREME AIR RACE
EXTREME AIR RACE : LONDON
LONDON
ISTANBUL
BUDAPEST
NEW YORK
RIO
LAGUNA SECA BIKE RACE
RED BULL EXTREME MOTOR BIKE
RED BULL ‘EXTREME JET RACING’
RED BULL EXTREME SKI JUMP
RED BULL EXTREME SKI
RED BULL EXTREME MARATHON
RED BULL TOBOGGAN
RED BULL EXTREME CLIFF DIVEACAPULCO
RED BULL EXTREME DIRT BIKE
EXTREMEE CLIFF DIVE - HONG KONG
RED BULL EXTREME SURF - HAWAII
RED BULL EXTREME HELI SURF SKI
RED BULL ROCKET MAN
THE RED BULL GIRLS
MORE RED BULL GIRLS…
AVOID CROWDED ENERGY DRINK SECTOR…
CLASS EXERCISE
• NEW PRODUCT CONCEPT NEEDED• CROWDED CATEGORY• HIGHLY COMPETITIVE• MARKET SATURATION REACHED• NEED TO GROW MARKET SHARE• NEED TO AVOID CANNIBALIZATION
BRAINSTORM AND DEVELOP NEW PRODUCT CONCEPTGROUP WORK + CLASS PRESENTATION
REBRANDING A CLASSIC FRENCH ICON
M1 MARKETING 2011
ICON
ICON
ICON
ICON
ICON
LILLET
ICONIC
TRADITIONAL
TRENDY
SEXY
COCKTAIL CULTURE
LILLET CASE STUDY
• LILLET: bought by Pernod Ricard January 2008• 2007 Sales Euros 3.8 million• 2007 Volumes 750,000 bottles per year• Located Podensac, Bordeaux• 7 employees
LILLET (Continued)
• 85% wine and 15% fruit liqueur• Liqueur made from: - Spanish sweet oranges - Tahitian bitter oranges - Moroccan green oranges - Peruvian Quinina - Aged in oak barrels
LILLET (continued)
• Brazilian monk invented recipe in Louis XVI era• Company founded by Lillet brothers in 1872• Duchess Of Windsor brand champion in 1950’s (Travelled with Lillet in her luggage)• James Bond Secret Agent 007 favourite drink:
Casino Royale, Quantum of Solace
LILLET: THE ‘VESPER’ MARTINI
Pour over 5 ice cubes: • 3 measures Gin• 1 measure Vodka• Half measure Lillet• One large lemon zest
“Shaken, not stirred” ( A movie classic)
HOMEWORK BRIEFING : REPOSITIONING LILLET
YOUR BOSS WANTS TO TEST A LILLET RELAUNCH IN BORDEAUX HOW CAN YOU REPOSITION THIS BRAND FOR MILLENNIALS?DO SOME MARKET RESEARCH!
HOW TO RELAUNCH THIS OLD BRAND FOR A NEW GENERATION?
DIVIDE INTO GROUPS OF 4-6 PEOPLE
YOUR PRESENTATION SHOULD INCLUDE….
• MARKET RESEARCH RESULTS• NEW BRAND POSITIONING• IDEAS FOR ADVERISING AND PROMOTION• NEW PACKAGING?
BE AS CREATIVE AS YOU WANT!
BRING GROUP PRESENTATION ON USB KEY AND A PAPER COPY TO NEXT CLASS.
BE READY TO PRESENT!
HISTORY4 P’s
SWOTPORTER
(PS: I LIKE MUSIC AND VIDEO AND COLOURFUL IMAGES!)