Marketing Strategy

Durgadevi Saraf Institute of Management Studies

C 07/C 08
Tuesday September 25, 2012 nitin mukadam

Discussion
How has technology changed the role of branding?

PLC & Marketing Mix

Introductory Stage Growth Stage Shake-out (competitive turbulence) stage Mature Stage Decline stage Limitations of PLC approach: market forces not recognized, consumer and competition 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

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 it is 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-driven competition Maintain technology leadership Maintain market share leadership Customer retention: Improve loyalty, simplify repeat purchase, increase switching 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 new customers? Flanking, Encirclement & Guerrilla attacks Attack & take over weaker competitors Frontal attack with superior value but beware of price wars Leapfrog strategy

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Discussion: Growth strategies in a vibrant and growing market are like a chess game every move gets a counter-move. Now, the role of analytics And the factor of customer-driven markets should you worry about competition or customers?
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