VARIOUS PLAYERS IN A MARKET

• ROLE OF A FIRM IN A TARGET MARKET

• MARKET LEADER
• MARKET CHALLENGER
• MARKET FOLLOWER
• MARKET NICHERS

• E.g. toothpaste industry

• MARKET LEADER : COLGATE 50%
• MARKET CHALLENGER : HUL 28% ( Close up 17%,
Pepsodent 11% )
• MARKET FOLLOWER : DABUR 10% (red toothpaste,
meswak, babool )
http://
www.dnaindia.com/money/report_procter-and-gamble-could-stir-u
p-oral-care-segment-with-its-toothpaste-brand-crest_1364974
COMPETITIVE STRATEGIES

• MARKET LEADERS
• Expanding the total market
• New customers e.g. Mc Donalds : geographical expansion strategy
• More usage e.g. Dairy milk : “ meetha hai khana aaj pehli tareekh
hai”

• Defending market strategy

• Position defense e.g. nescafe (gold range, expresso, premium range,
specialities like cuppuccino )
e.g. Mercedes was using a position defense strategy until Toyota
launched a frontal attack with its Lexus.
• Flank defense e.g. Brittania ( 50-50, time pass, little hearts)
• Peemptive defense e.g.
• Counter offensive defense e.g. Toyota launched the Lexus to respond
to Mercedes attack
• Mobile defense e.g. ITC Ltd. Cigarette, processed food, garments
CONTD..
• Contraction defense e.g. P & G withdrew “super soaker” from
detergents
e.g. India’s TATA Group sold its soaps and detergents business units to
Unilever in 1993
• Expanding market share

• MARKET CHALLENGER STRATEGIES

• Defining the strategic objective and opponents
• Attack market leader
• Attack firms of its own size that are not doing the job and are
underfinanced
• Attack small local and regional firms
• Choosing a general attack strategy
• Frontal attack
• Flank attack
 Contd..
• Encirclement attack
• Bypass attack e.g. Pepsi use a bypass attack strategy against Coke in
China by locating its bottling plants in the interior provinces
• Guerilla warfare
• Choosing a specific attack strategy
• MARKET FOLLOWER STRATEGIES
• Counterfeiter
• Cloner e.g. the IBM PC clones
• Imitator e.g.Product innovation—Sony Product-imitation--Panasonic
• Adapter

• MARKET NICHER STRATEGIES

• Create niches
• Expand niche
• Protect niche
e.g. Nike constantly created new niches--cycling, walking, hiking etc
 MOBILE HANDSET INDUSTRY

• KEY PLAYERS OF THE INDUSTRY ( 2004- 05)

• Market leader : NOKIA 55.15%
• Market challenger : LG 11.72%
• Third : Samsung 10.5%
• Market follower : Motorola
8.57%, Sony Ericsson etc.

Mobile Handsets: GSM

( 84% market share)
 MOBILE HANDSET INDUSTRY
Mobile Handsets: CDMA (16% Market share)

http://www.coai.com/docs/COAI%20News%20flash-
%20Indian%20Mobile%20Handset%20Market.pdf
 MOBILE HANDSET INDUSTRY
• KEY PLAYERS OF THE INDUSTRY ( 2009-10)
• Market leader nokia 54.1%
• Market challenger samsung 9.7%
• LG 6.4%
• other new brands 12.3%
• Local players 17.5 ( micromax, spice, karbonn mobiles, videocon,
Lava)
http://
www.fonearena.com/blog/14770/nokia-india-has-54-1-percent-market-
share-over-100-million-phones-sold-in-2009-in-india.html

• KEY PLAYERS OF THE INDUSTRY ( current : 2010 Q3 )

• Market leader (NOKIA with 31.5 % market share in q3 of 2010 )
Chinese g’five 10.3%
• Samsung 8.2%
• Market nicher
http
://www.medianama.com/2011/01/223-the-india-mobile-handset-reports