developing marketing strategies revised

8/6/2019 Developing Marketing Strategies Revised

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DEVELOPING MARKETINGSTRATEGIES


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Summary of discussion

Strategy Set of choices company make about whereand how to compete in a market

Its a plan to gain competitive advantage or edge overrivals

Its about performing set of activities in a differentmanner that creates unique value to the company andthe customer

Review of the case SWA, IKEA and Dell How these companies have created unique value to its

customers by doing things differently


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Key lessons

There should be proper alignment of functional

activities with corporate or business level strategy.

Functional activities should support corporate

strategy.

How functional activities are perfectly aligned to

achieve low cost in the case of SWA Point to Point,Single fleet, No frills, Rapid turnaround time, WOM,

Crew performing varied tasks, Ticketless entry etc


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Direct from Dell

Michel Dell redefined how computers were sold by eliminatingmiddle men and directly dealing with customers using internet.

Dell sought to differentiate itself through its core business mantra of

being direct with customers.

But how far this business strategy is sustainable?

Cant this strategy be easily imitated by competitors?

Bottom line Companies have to constantly rethink or reassess theirstrategy in the light of changing environmental situations.

They should constantly look out for new opportunities and capitalizeon them if it deems fit to their business objectives and strengths


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Strategy as Transformation


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The importance of strategic innovation

Strategic innovation refers to this process of

reinventing strategies.

In other words, strategic innovation represents the

following types of creative departures from

historical industry practices


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Strategic innovations

Innovations in the design of the end-to-end valuechain architecture (e.g., Dell Computer)

Innovations in the conceptualization ofdelivere

d

customer value (e.g., IBMs shift from selling hardwareand software products to selling complete solutions)

Innovations in the identification of potential

customers (e.g., Canons pioneering focus on thedevelopment of photocopiers targeted at smallbusinesses and home offices rather than largecorporations).


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Reverse innovation


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Challenge the assumption: Products that addressdeveloping countries needs cannot be sold in

developed nations


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Sources ofenvironmental opportunity:

Unmet or changing customer needs

Unsatisfied buyer groups

New means or technology for delivering

value to prospective buyers

Converting Environmental

Opportunities into

Organizational Opportunities


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An Indian Innovation Keeping Senior Citizens Safe

India has a whopping 60 million senior citizens, even

though it's a young country overall. (That 60 million

represents only 5% of the population.)

Providing those seniors with good health care is a

growing problem.


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Challenges

Health care infrastructure inadequate especially in

rural areas

Change in family structure From joint to nuclear

family leaving less time for youngsters to take care

of elders


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MUNOTH COMMUNICATIONS


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The company came up with a unique mobile phone, costing lessthan US $50.

In case of an emergency, the customer can simply press the redSOS button on the mobile phone to raise an alarm.

The phone automatically sends out text messages to 10 pre-configured numbers, including that of the ambulance service, the

blood group agency, and the insurance company.

Further, the GPS system in the phone helps responders to tracethe location of the patient.


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After buying the phone, the user can register the mobile phone onthe web and store all of his or her medical records.

Based on the patient's medical condition, the company sends out

pre-programmed reminders about taking medication andmaintaining dietary restrictions; this service is free of cost for oneyear.

After the first year, the user is charged just US $0.67 per month forthese services.

Currently the company offers this service only to diabetes patients,but will soon extend it to cardiac patients.


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LEVELS OF STRATEGY


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Levels of Strategy


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Corporate Strategy

Deciding on the companys objectives and goals,

including the determination of which and how many

lines of business to engage in.

Acquiring the resources needed to attain those

objectives.

Allocating resources among the different businesses

so that the objectives are achieved.


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The Strategic Management ProcessThe Strategic Management Process


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Assessing growth opportunity


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Ansoffs Product-Market Grid

Current products New products

Current Mkts

New Mkts

Mkt penetration

strategy

Mkt development

strategy

Product development

strategy

Diversification

Strategy


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Ansoffs Product-Market Grid - ITC

FMCG - ITCs Personal care

products Shampoo, Soaps,

Fragrance, Fairness cream under

different brand names

Apparels Wills Classic, Club lifeand Signature

Current products New products

Current Mkts

New Mkts

Apparels category Wills

Sport

Selling more of existingproducts

Wills life style stores in

various cities

Selling same product to new

users or in geography

ITCs Diversification in tovarious businesses like

FMCG, Retail, Agri-biz,

Hotels, Paperboards and

Packaging


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Balanced Scorecard

Balanced Scorecard is a strategic planning and

management system used:

To align business activities to the vision and strategy

of the organization

To improve internal and external communications

To monitor organization performance againststrategic goals.


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Balanced scorecard

developing marketing strategies revised

Documents