1

3.3 Swot- analyse

•SWOT-analysis/matrix
•Think of strengths and weaknesses of your business. Combine those with the opportunities and threats of the previous exercise.
• Write down possible solutions

Opportunities Threats

Strengths Possible strategies

Weaknesses

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 3.4 Commercial Plan

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 Strategic Planning

SWOT analysis

Define the strategic options

Make a choice between the different options

Start planning and define the goals

Formulate - Formulate actions and processes to be taken to attain these goals

Implement - Implementation of the agreed upon processes

Control - Monitor and get feedback from implemented processes to fully control the
operation

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 Define Your Business

 Vision Statement

 Mission Statement & Objectives

 Strategy

 Segmenting – Positioning - Targeting

Action program (Commercial, organisational, financial plan)

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 Strategies of value

Treacy en Wiersema
– 3 possible strategies of value
• product leadership
• operational excellence
financial / convenience
• customer intimacy

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 Strategies of value

4 rules to obey:

1. Develop one of the dimensions of values and excel in it

2. Keep min. levels of the other dimensions of value
3. Be a market leader by improving the value year by year
4. Build an operational model, dedicated to offer one value
dimension

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 Strategies of value

Product Leadership

– Excelling in this dimension means innovation at all the

time, in order to develop the best product or service
– The best product through innovation
– High price/quality

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 Strategies of value

Operational excellence

–The best price with the most convenience

–Lowest cost compared to your competitor
–Very low processing costs
–Limited offer

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 Strategies of value

Customer intimacy

– Good relationship with the customer

– You have to get to know your customer on a personal level
– Do not only offer goods, they offer a solution for their
customer.
– Expensive approach for the company
– Good strategy in tourism industry f.e. bed and breakfast,
tour operations, guide service

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 Objectives

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 Segmentation / Positioning

Segmentation
Define your customer target group

Positioning
positioning is how your target market defines you in
relation to your competitors.

•Based on the criteria why people buy the products/services

•Try to develop a clear and unique position

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 Targeting

Definition

Direct the action variables towards the defined

target group(s)

Product
Price
Place
Promotion

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14
 Marketing mix

A. Product
B. Price
C. Place
D. Promotion

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 Marketing Mix : 4 P’s

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 A. Product

Marketing mix decisions

– Functionality
– Appearance
– Quality
– Packaging
– Brand
– Warranty
– Service/support
–…
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 Product:Core levels

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 A. Product

3 levels of a product:
– Core: the benefit of product use
• F.e.: the core product of a car can be: transportation on
a convenience or fast way
– Actual product: the physical product, you can use it
• F.e.: the actual vehicle
– Augmented product: the non-physical part of the product,
the added value
• F.e.: the customer service offered by the car’s

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 Product Life Cycle

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 Product: Product Life Cycle

Introduction
– Product promotion  creating awareness
– Skimming price strategy/penetration strategy
– Few distribution channels

Growth
– Products become more profitable
– Competitors are attracted
– High advertising costs  building brand
– Stabilising market share

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 Product: Product Life Cycle

Maturity
– Sales grow at a decreasing rate and stabilise
– Product differentiation
– Price competition
– Market saturation
– Widespread promotion

Decline
– Downturn in the market
– More innovative products are introduced
– Intense price-cutting
– Profits can be improved by reducing marketing spend and
cost cutting

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 Butler Tourism Lifecycle

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 B. Price

Marketing mix decisions

– List price
– Discounts
– Allowances
– Financing
– Leasing options
–…

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 Pricing: the demand curve

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 Price strategies: reasons

 Survive
 Max. turnover in short term
 Largest market share
 Highest quality product
 Deter competitors
 Cover R&D costs
 Stabilize the market
 …

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 Price strategies

Penetration pricing: a low price is set to increase sales

and market share
Skimming pricing: an initial high price, slowly lowered
to make the product available to a wider market
Competition pricing: Setting a price in comparison with
competitors
Product Line Pricing: Pricing different products within
the same product range at different price points.

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 Price strategies

Bundle Pricing: a group of products bundled at a reduced price

Psychological pricing: the psychology of price and the

positioning of price within the market place is considered
– F.e.: $99 instead of $100

Premium pricing: a set price to reflect exclusiveness

Optional pricing: optional extras are sold along with the product
to maximise its turnover

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 Price-fixing

Costs-oriented:
Product Costs Price
 Value Customers

Value-oriented
Customers Value Price
 Costs Product

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 C. Distribution

Marketing mix decisions

– Channel members
– Channel motivation
– Market coverage
– Locations
– Logistics
– Service levels
–…
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 C. Place

Distribution

3 levels:
– Macro-level
– Meso-level
– Micro-level

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 Macro-level

The length and breadth of the distribution channel

– Direct delivery
– Indirect delivery

Number of intermediairs
– Desintermediation

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 Macro-level

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 Meso-level

Distribution criteria
– Market share
– Turnover share
– Market reach

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 Micro-level

 Relationship management
 The importance and role of each retailer
 Facings and shelving of the brand
 Goals, strategy and desires
 Strengths, weaknesses and expected strategy

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 D. Promotion

Marketing mix decisions

– Advertising
– Personal selling
– Public relations
– Media
– Sales Promotions
– Trade fairs and exhibitions
– Sponsorship
– Point of sale
– Word of mouth

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 D. Promotion: communication

Phases of willingness of purchasing

– Brand awareness
– Brand knowledge
– Brand recognition
– Preference
– Conviction
– Purchase
 Brand loyalty

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 Additional P’s

Physical evidence
– Packaging
– Internet/web pages
– Paperwork such as invoices, tickets and dispatch
notes
– Brochures.
– Uniforms
– Business cards
–…

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 Additional P’s

People: employees
– Training
– Personal selling
– Customer service

Process
– The implementation of strategy and tactics

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40
 3.6 Organisation plan

 Determine the staff you will need to start your

business
 Organize your staff to run the business efficiently
 Determine the equipment and space you will need
 Define legal structure for your company

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 The staff

The most important people involved in a small

business are:
– The owner
– The business partner
– The business staff
– The owner’s family
– Business advisers

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 Organize your staff

Business functions
– Human resources
– Sales and Marketing
– Research and Development
– Production/operations
– Customer Service
– Finance and accounts
– Administration and IT

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 Organization Charts, example:

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 Organisation Charts, example:

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 Organisation Charts, example:

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 Organisation Charts, example:

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 Organisation Charts, example:

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 Equipment and space

Decide which tools you will need in your business

– The type of technology to be used
– The machines and equipment
– The space needed for the shop, workshop and other
rooms
– The business staff to be employed
– The production input
– Any adaptations required to premise or equipment for the
entrepreneur or employees with disability-related needs

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