what the gurus say
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Strategic Brand ManagementSeries
Slide Presentation 1
By Suhas Wadwalkar
What the Gurus Say!
Peter Drucker Philip Kotler
Igor AnsoffTheodore LevittTom Peters
Jagdish Sheth
C K Prahlad
The Gurus of StrategyKevin Keller
Albert Humphrey
The Father of Strategic Management
Igor Ansoff
DevelopedProduct-Market Growth Matrix
a tool he created to plot generic strategies for growing a business via existing or new
products, in existing or new markets.
Igor Ansoff
Ansoff’s Matrix
Consolidate current market position by focusing attention and Initiating marketing activities in the area of competitive advantage
The strategy choice
Igor Ansoff
Build on existing knowledge to explore new opportunities.
Invest in R & D, modifications, etc.
Example: Unilevers 3 in 1 dishwasher tablet to replace salt, detergent & rinse agents
The strategy choice
Igor Ansoff
Extend current products to new markets, new sales areas, segments, Uses.
Consider export or licensing.
Example : McDonalds spreading across the world
Igor Ansoff
The strategy choice
Horizontal diversification activities that are complimentary to the company’s existing activities.
Vertical diversification. Downward integration leading to precedingStage of production & upward to the succeeding stage of production
Conglomerate diversification where there is no relation to the current business activities.
The strategy choice
Igor Ansoff
Boston Consultancy Group
Created by Bruce Henderson
Used as an analytical tool in brand marketing, product management, strategic management
and portfolio analysis.
Growth Share Matrix
The BCG Matrix
Relative market share
Hig
h
LowM
arke
t Gro
wth
Rat
eHigh
Low
High growth / high share
The ‘stars’ generate good income although they consume heavy resources.
Need to be supported as they have the potential to become future ‘cash cows’.
Eg. Chronic segment
The BCG Matrix
The BCG Matrix
Low growth / High share
These are called ‘cash cows’ which generatemore revenues than they consume. Surplus revenues can be used to launch new products and support them .
Eg. Unienzyme
High growth / low share
The problem kids consume lots of energy but the return is meagre.Need to be supported since they hold promise of better future – Influenza vaccine
The BCG Matrix
The BCG Matrix
Low growth / low share
The dogs are products with low share and low market growth potential.They tend to become loss makers in future – Parenteral iron
The poet laureate of Marketing Academy
Known for the concept ‘Marketing Myopia’ & ‘Globalization’
He was the first guru to present his thoughts on PLC management from its birth till
retirement
Theodore Levitt
Time Scale
Theodore Levitt
Product life Cycle Stages & Management
Sale
s
Product life Cycle concept & Management
Introduction stage
The demand needs to be ‘created’Product needs to gain a foot hold in the market Sales are slow & creepy.Competition is limited
Theodore Levitt
Growth stage
Product acceptance gains groundSales start rising rapidlyCompetitors enter the marketProduct differentiation needs to be establishedMarketing efforts are stepped up
Product life Cycle concept & ManagementTheodore Levitt
Maturity stage
Peak volumes are reachedSales growth stagnatesMarket gets saturatedPrice competition intensifiesProfits are all time highCustomer services need to be stepped up
Product life Cycle concept & ManagementTheodore Levitt
Decline stage
Product gets irrelevant at the market placeSales start dippingProfits start decliningInnovation is required
Eg. New drug delivery systems
Need to look at possibilities of brand extension
Product life Cycle concept & ManagementTheodore Levitt
Multinational Marketing
M9M10
M7
M1
M11
M3
M2
M8M4
M5
M6
Theodore Levitt
Global Marketing
World as 1 market
Theodore Levitt
Globalization or Glocalization?
The glocalized brand
Mr Humph of Stanford Research Institute
Known for his contribution to ‘SWOT analysis’ & ‘Stake holders concept’
SWOT is technique used to evaluate internal & external factors involved in a project, venture
or product
Albert Humphrey
Threats
Internal
External
Albert Humphrey
What are we good at and are doing well
Product qualityProfitable marginsStrong sales forcePowerful marketingWide distributionBackward integration
Albert Humphrey
What are we not good at and are not doing well
Poor product qualityPoor marginsWeak sales forceSluggish marketingLimited distributionInadequate backward integration
Albert Humphrey
Favorable events & trends
Market growthEconomic boostPositive customer trendModerate competitionScope to expand
Albert Humphrey
ThreatsUnfavorable events & trends
Market saturationEconomic meltdownNegative customer responseStiff competitionGovernment obstaclesPoor raw material availability
Albert Humphrey
By Suhas Wadwalkar
Strategic Brand ManagementSeries
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