Download - Cpsp chapter 4 defining the business
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Defining the Business (B.2.1.)
Creating and Presenting Strategic Plans
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What are these products?
• Camera?
• Mobile telephone?
•Computer?
• Shampoo?
• Beer?
•Soft drink
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Need to break broad groups into units
Strategic Business Units
Industry Labels too Broad
What units?
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•Pinpoint strategic effort
•Performance measures
•Basis for resource allocation
Strategic Business Units
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Number available on-line October 2014: 954
Cheapest: Boots Essential Anti-Dandruff Shampoo: £0.62 per 100ml.
Dearest: La Science Anti-Hair Loss Serum: £29.99 per 100 ml.
Dearest = Cheapest x 48.3Why?
They are in different product-market segments
Shampoos are defined differently
Defining the Shampoo Business
Commod
ities a
nd Bran
ds
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Markets
Prod
uct
s
Mothers Young Women Children Babies Men Sports
Family x x x x xMild/Baby x x xDandruff x x x xDry scalp x x x x
Ethnic x x xBeauty x xBounce x xShine x x x
Colouring x xVolumising xShampoo & Conditioner x x
Frequent use x
Defining the Shampoo Business
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Markets
Prod
uct
sDefining the Shampoo Business
Mothers, Children &
Babies
Young Women Men Sports
Family, Mild/Baby, x x x x
Dandruff, Dry Scalp, Volumising x x x
Ethnic x x x
Beauty, Bounce, Shine, Colouring x x
Shampoo & Conditioner, Frequent use x x
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Segment marketsSegment products
Cluster back
Manageable product-market segments
Repeat
Maximum of 7 products
Defining Business Units Stage 1
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Stage 2: The generic characteristics of the units1. Well defined contiguous set of products or services
2. Relatively homogeneous group of customers
3. Distinct set of competitors
4. Pinpoint strategic marketing effort
5. Allocate resources and measure performance
Defining the Business: Stage 2
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1. Different marketing skills?: Separate
3. Different stages in the life cycle?: Separate
4. Different competitive positions?: Separate
2. Different basic technologies?: Separate
5. Different distribution channels?: Separate
Guidelines to combine or separate
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MBA Student Definition of Qantas Business
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MBA Student Definition of Ryanair
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M1 M2 M3 M4 M5 M6 NM1 SalesP1P2P3P4P5P6
NP1NP2
Sales
Markets/Customers
Prod
ucts
A product-market matrix for 201X and 201Z
Develop Your Product Market Matrix
NP1 = New Product 1, NM1 = New Market 1
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The End