Win Win Strategies in Indian Market

SUBMITTED TO: SUBMITTED BY:DR . GD THAKAR LAV VERMA

1. Introduction 2. Impact of Technology 3. Impact of Hyper Competition4. Win Win Strategies in Indian Market5. Innovation6. Branding 7. Customer relationship management 8. Partner relationship management9. Mergers and Acquisitions10. Conclusion11. References

OUTLINE

Why we need this Strategies?

- The world is changing and so marketing is!

We have 2 major reasons:1. Impact of Technology.2. Impact of Hyper Competition.

INTRODUCTION

With the advancement of Internet and mobile Technology, the world has become a market place.

Consumer is really like a king now. Information is at fingertips of the consumers. He can search information on internet, can make comparisions, can go through expert as well as customer reviews and then can make a choice to buy a product.

It has a great impact on the markets and businesses. Either it creates a business opportunity or it ruins a business.

Ex: In the MP3 player category, it created an opportunity and Apple took the lead through iPods but it also ruined the business for Sony Discman and Walkman.

Impact of Technology [1]

With globalization, the world has moved from being competitive to hyper competitive now.

Now a company cannot sit on its past laurels to be successful in market. It needs to be proactive in understanding the changes needs of the consumer and moves by its competitors.

Ex: The car market in India is also becoming a hypercompetitive market with more than 15 leading car manufacturer present in the segment with more than 500 variants of cars.

Maruti Suzuki , with more than 50% market share in cars itself has 13 models and over 150 varients of cars ranging from peoples car Maruti 800 to stylish hatchback Ritz, SX4sedan etc.

Impact of Hyper Competition[1]

1. Innovation2. Branding 3. Customer relationship management 4. Partner relationship management5. Mergers and Acquisitions.

Win Win Strategies in Indian Market[2]

Innovation has now become the single most fundamental differentiator and the key to keep the competition away, as to survive and grow in the business space.

Ex: Apple’s ipods, iphones and ipads, Nintendo Video games, Microsoft Windows, and the list is endless.

In India we have Tata Nano, Good knight, PVR Multiplex, Mahindra Scorpio etc.

1. Innovation

Example:

Innovation @ Tata group The objective is to consistently deliver

breakthrough products and services and Tata sees innovation as the means to achieve this.

Initiative taken by Tata:1. Tata group Innovation forum (TGIF)

2. Innovation Workshops3. Tata Innovation Day

Innovation cont..[3]

Helps the companies to stay ahead in the business than their competition.

Help the customer to differentiate between the different products

Customers are also loyal to brand.

“most of the time, customers are willing to pay 10% to 20% more for a brand, in some time it go up to 30 to 40%” [4]

2. Branding[4]

Ex: Recently, Vodafone’s Adv. Campaign With the character Zoozoo has been So popular with the masses and helps Vodafone to occupy the top of the mind recall value for the brand Vodafone.

Thus a brand needs to be regularly fortified through the

1. Real differences – innovation2. Psychological differences-

image building exercises.

Branding cont..[5]

The 3rd win win strategy is to develop a loyal customer base through CRM.

Every customer has a lifetime value attached to it, which in marketing term called Customer Life Time Value (CLV).

3. Customer relationship management [6]

EX: You are using a mobile service by being a prepaid or postpaid customer and spend say Rs 500 every month.

If you stay with the same network for the 10 years, your value of the company for the company Like Airtel or Idea or Reliance or vodafone or Tata is = Rs. 60,000 /-

(Rs. 500 * 12 month *10 years)

WHY COMPANY CANNOT AFFORD TO LOOSE A CUSTOMER?

Data Mining and Web Mining.Ex: If you are having a ICICI Bank Account, you have special privilege offers from bank for new services like Home Loans, Car Loans, Credit Cards, Personal Loans and Others.

Aim: Relationship with the customer can not only be maintained, but it will make them loyal of offering new services.

What companies are doing?[7]

PRM with channel partners like distributors, dealers, retailers, suppliers, consultants, financial institutions, adv. agency and other organisation.

This channel partners can help in reducing the cost and improving the quality of the product or service delivery.

4. Partner relationship management

Ex: Tata NanoThe cheapest car in the world shares innovations in its components and supplies from the leading suppliers in the world like-Texpin for clutch bearings, -Bosch for oxygen sensor, starter, alternator, brake system. -Delphi for Instrument cluster etc.

Partner relationship management[8]

Through Merger and Acquisitions, a company can expand their markets and their product portfolio.

Bharti Airtel has done the largest ever telecom

takeover by an Indian firm, by buying Kuwait –based Zain Telecom’s African business for $10.7 billion (about Rs. 48,000 crore)

Godrej has been expanding its presence in Africa with the acquisition of south African - hair colour company Rapidol (2006)- personal care company Tura in Nigeria (2010)- hair care company Darling group (2011)

5. Mergers and Acquisitions [8]

The world is changing and so is marketing. Every business, every company needs to change itself to be relevent with throw with the times.

To sustain and grow in the market, a company needs to follow these strategies. This strategies can help a company to give more value to the customers and thus enabling to sustain and grow its market share in the current business as well as future businesses.

Fulfilling Innovation objective to consistently deliver breakthrough products and services.

Conclusion

1. Kyle LaMalfa, Allegiance Best Practices Manager & Loyalty Expert, Allegiance, ‘Retaining Customers in Tough Economic Times’.

2. prof. Vijay Prakash Anand ‘Marketing Management’ 3. Innovation sources:

http://www.tata.co.in/innovation,(accessed : feb 23,2015)4. Branding sources: http://www.marketreseach.com/brandrecall (accessed : feb 26,2015)5. http:// www.marketreseach.com/brandrecall (accessed : feb 26,2015)6. http:// searchcrm.techtarget.com/definition/crm (accessed : feb 23,2015)7. Vijay Prakash Anand, Praveen kumar, ‘Data mining as a tool for

building and managing Better Customer Relationship’,20088. Prof. Vijay Prakash Anand ‘Marketing Management’

References

THANK YOU !