Competitive Marketing Strategies

Team 7
Aarti Srinivasan Aashina Neha Rathore Sanjana Reddy Gargi Banerjee

The Hyundai Story

In this presentation we shall see the following:

How do marketers identify primary competitors? How should we analyze competitors strategies, objectives, strengths and weaknesses? How can market leaders expand the total market and defend market share? How should market challengers attack market leaders? How can market followers or niche players compete effectively?

Creating Competitive Advantage

Competitor Analysis

Competitive Strategies

Competitor Analysis

Assessing Competitors

Assessing Competitors

Assessing CompetitorsReaction Patterns

The laid back competitor The selective competitor The tiger competitor The stochastic competitor

Selecting Competitors to Attack and Avoid

Strong or weak competitors? Close or distant competitors? Good or bad competitors? Is it worth fighting? Are you strong enough to fight? How strong is your defence? Do you have any choice but to fight?

Attack and Defense Strategies

Attack and Defense Strategies

Designing a Competitive Intelligence System

Identifies competitive information and the best sources of this information Continually collects information Checks information for validity and reliability Interprets information Organizes information Sends key information to relevant decision makers Responds to inquiries about competitors

Approaches to Marketing Strategies

Entrepreneurial marketing

Formulated marketing

Intrepreneurial marketing

Basic Competitive Strategies

Competitive Positions

Market Strategies

Market Leader Strategies

EXPAND TOTAL DEMAND BY: New users New uses More usage of its products

PROTECT MARKET SHARE BY: Fixing or preventing weaknesses that provide opportunities to competitors Maintain consistent prices that provide value Keep strong customer relationships Continuous innovation

Market Leader Strategies

EXPAND MARKET SHARE BY: Increasing profitability with increasing market share in served markets Producing high-quality products Creating good service experiences Building close relationships

Market Challenger Strategies

Challenge the leader with an aggressive bid for more market share Frontal Attack Indirect Attack

Play along with competitors and not rock the boat

Market Follower Strategies

COUNTERFEITER : they duplicate the leaders product and packages and sells it on the black market or through disreputable dealers. ( which is illegal) CLONER: they emulate the leaders products ,name, and packaging with slight variations e.g. the IBM PC clones IMITATOR: imitator copies some things from the leader but maintains differentiation in terms of packaging,advertising,pricing or location the leader doesnt mind the imitator as long as the imitator doesnt attack the leader aggressively e.g. car manufacturers imitate the style of one another ADAPTOR: the adaptor takes the leaders products and adapts or improves them.

Market Nicher Strategies

Ideal market niche is big enough to be profitable with high growth potential and has little interest from competitors Key to market niching is specialization Market Customer Product Marketing mix

Dells Competitive Advantage

PRODUCTS: Desktops, servers, notebooks, netbooks, printers, televisions, scanners, storage COMPETITORS: HP, LENOVO, HCL, SONY, ACER, TOSHIBA

SWOT Analysis
STRENGTHS WEAKNESS

OPPORTUNITIES

THREATS

Dells Competitive Advantage

Balancing Customer and Competitor Orientations

Companies need to continuously adapt strategies to changes in the competitive environment Competitor-centered company Customer-centered company Market-centered company

Balancing Customer and Competitor Orientations

Summary
1. To prepare an effective marketing strategy, a company must study competitors as well as actual and potential customers. Marketers need to identify competitors strategies, objectives, strengths, and weaknesses. 2. A companys closest competitors are those seeking to satisfy the same customers and needs and making similar offers. A company should also pay attention to latent competitors, who may offer new or other ways to satisfy the same needs. A company should identify competitors by using both industry-and market-based analyses. 3. A market leader has the largest market share in the relevant product market.to remain dominant, the leader looks for ways to expand total market demand, attempts to protect its current market share, and perhaps tries to increase its market share. 4. A market challenger attacks the market leader and other competitors in an aggressive bid for more market share.

Summary
5. A market follower is a runner-up firm willing to maintain its market share and not rock the boat. A follower can play the role of counterfeiter, cloner, imitator , or adapter. 6. A market nicher serves small segments not being served by larger firms. The key to nichemanship is specialization. Nichers develop offerings to fully meet a certain group of customers needs, commanding a premium price in the process. 7. As important as a competitive orientation is in todays global markets, companies should not overdo the emphasis on competitors. They should maintain a good balance of consumer and competitor monitoring.

Making Competition Irrelevant

Tata NanoFinding Uncontested Market Space