strategic marketing - vivek birla

8/9/2019 Strategic Marketing - Vivek Birla

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Strategic Marketing: -

Vivek Birla


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Objectives:

Competitive Forces & IdentifyingCompetitors

Designing Competitive Strategies

Trends in Company Organization

Marketing Organization


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Five Forces Determining Segment Structural Attractiveness

Competitive Forces

Threat of:Threat of:

1.1. intense segmentintense segment

rivalryrivalry2.2. new entrantsnew entrants

3.3. substitute productssubstitute products

4.4. buyers growingbuyers growing

bargaining powerbargaining power5.5. suppliers growingsuppliers growing

bargainingbargaining

powerpower


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Identifying Competitors

Industry Concept of Competition:

Number of Sellers and Degree of Differentiation

Entry, Mobility, Exit Barriers

Cost Structure

Degree of Vertical Integration

Degree of Globalization Market Concept of Competition

Objectives

Strengths and Weaknesses (Share of Market, Mind, Heart)

Reaction Patterns


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Hypothetical MarketStructure



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Market Leader strategies

Expanding the total Market

- New users

- New uses

- More usage

Expanding Market share


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THE BCG GROWTH-SHARE MATRIX

It is aportfolio planning modelwhich is based on the

observation that a companys business units can be

classified in to four categories:

Stars

Question marks

Cash cows

Dogs

It is based on the combination of market growth and

market share relative to the next best competitor.


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Defending Market share

Defense Strategies Position Defense (building superiorbrand

power: J&J Baby Oil)

Flank Defense( Protection of Weak Front:

Rasna launched Orchy for export market tocheck TANG-Kraft Food)

Preemptive Defense (attackbefore theenemy starts: LG with DTH TV in ruralMarket)

Counteroffensive Defense (Respond with acounter attack: HLL in washing powder)


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Contd..

Mobile Defense( go to new territories)

Market broadening ( Shifting focus to genericneed: Cadbury forays in dessert additivemarket with Choco Sauce product)

Principle of the objective( Cleary defined achievableobjective)

Principle of mass( attack on enemy weakness)

Market diversification

Contraction Defense

Planned contraction

(Strategic withdrawal: HLL Strategy onPower Branding)


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Market challenger strategies

Defining the strategic objective and opponents:

- It can attack the market leaders;

- It can attack firms of its own size that are not

doing the job and are underfinanced

- It can attack small, local and regional firms

Choosing a general attack strategy:

- Frontal Attack(Coke & Pepsi)

- Flank Attack( Private Insurance)

- Encirclement attack(Private Airlines)

- Bypass Attack( Kwality Walls)- Guerrilla Attack(Cigarette Cos)


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Choosing a Specific Attack

Strategy

Price-discount

Lower price goods

Prestige goods

Product proliferation

Product innovation

Improved services

Distribution innovation

Manufacturing cost reduction

Intensive advertising promotion


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Market-Follower Strategies:

Innovative imitation(Product imitation)

Product innovation

Four Broad Strategies:

Counterfeiter

Cloner

Imitator

Adapter


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Market Nicher Strategies:

High margin versus high

volume

Nicher Specialist Roles

End-user specialist

Value-added reseller

Vertical-level specialist

Customer-size specialist

Specific-customer specialist

Geographic specialist

Product or product-line specialist

ProductProduct--featurefeature

specialistspecialist

JobJob--shopshop


QualityQuality--priceprice


Service specialistService specialist

ChannelChannelspecialistspecialist


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Trends in Company Organization

Main responses of companies to a changing environment

Reengineering

Outsourcing

Benchmarking Supplier partnering

Customer partnering

Merging

Globalizing

Flattening

Focusing

Empowering


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Product- or Brand-Management Organization Product and brand managers have these tasks:

Develop a long-range and competitive strategyfor the product

Preparing an annual marketing plan and salesforecast

Working with advertising and merchandising

agencies to develop copy, programs, andcampaigns

Stimulating support of the product among thesales force and distributors

Gathering continuous intelligence on theproducts performance, customer and dealer

attitudes, and new problems and opportunities Initiating product improvements to meet

changing market needs


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The Product

Managers

Interactions


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What steps can a CEO take to create a market and customer

focused company?1. Convince senior management of the need

2. Appoint a senior marketing officer anda marketing task force

3. Get outside help and guidance

4. Change the companys reward measurement and system

5. Hire strong marketing talent6. Develop strong in-house marketing training programs

7. Install a modern marketing planning system

8. Establish an annual marketingexcellence recognition program

9. Shift from a department focus to a

process-outcome focus10. Empower the employees


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Thank You

Vivek Birla

strategic marketing - vivek birla

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