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Marketing Strategy

Durgadevi Saraf Institute of

Management Studies

C 07/C 08

Tuesday September 25, 2012

nitin mukadam

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Discussion

How has

technologychanged the role

of branding?

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PLC & Marketing Mix

Introductory Stage

Growth Stage

Shake-out (competitive turbulence) stage Mature Stage

Decline stage

Limitations of PLC approach: marketforces not recognized, consumer andcompetition behavior not predictable

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New Products what is new?

New to the world products

New company / marketer

New product lines (variants) Improvements / revisions

Re-positioning (Dettol soap, Cadburys)

Low-cost variants The Booz Matrix: US-centric

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Booz New Product Matrix

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Pioneer Strategy

First choice of segment / positioning

Define the rules of the game

Distribution set-up first-on-shelf Economies of scale and experience

High support of early adopters

Possible positive network effects Pre-empting scarce resources

But, pioneers risks - uncertainties

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Follower Strategies

Learning from pioneers mistakes

Product design and performance

Communication / positioning Marketing process

Technology jump

No category-building expenses Ready distribution processes

Ready talent pool

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Success factors

Resources to cross critical mass

Scale of operations

Product quality Range of offerings

Ability to sustain high promotion costs

Rapidly responsive to customers Now, ability to buy-out

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Penetration / Niche Strategies

Penetration

Rapidly hit large scale heavy promo

Count on economies of scale Niche

Focus on high-margin segments

Build aspirations Fund expansions

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Strategies for Growth Markets

Focus on gaining market share because itis easy to get more share

But, factors to keep in mind:

Positive network effects

Role of technology

Markets evolving competitive structure Propensity for fragmentation

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Strategies for Growth Markets

Take advantage of less price-drivencompetition

Maintain technology leadership

Maintain market share leadership

Customer retention: Improve loyalty,simplify repeat purchase, increaseswitching cost

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Other strategies for retention

Fortress or Position defense strategy

Continuously strengthen position

Develop flanker brands / strategies Confront competitor directly use muscle

Market expansions force competitor to

spread resources thin Strategic withdrawal

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Market Follower strategies

Take away customers or address newcustomers?

Flanking, Encirclement & Guerrilla attacks

Attack & take over weaker competitors

Frontal attack with superior value butbeware of price wars

Leapfrog strategy

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Discussion:

Growth strategies in a vibrant and growingmarket are like a chess game every movegets a counter-move.

Now, the role of analytics

And the factor of customer-driven marketsshould you worry about competition orcustomers?