marketing ppt_group 3.pptx
TRANSCRIPT
What is a market space? Blue Ocean?
• A space that facilitates bi-directional commerce, with a role to match buyers and sellers whose contexts have sufficient similarity
• Large number of product/service sellers trying to lure customers promote competition
• Cut throat head-to-head competition calls for alternative creative business strategy, including creating a new market space
What is Blue Ocean?
• Blue Oceans represent all the industries not in existence as of now• All unknown market space, untainted by competition• First mover advantage• Ample growth opportunitiesWider, deeper potential of market space that is not yet
exploredSource: Handout, Google
Value Curve……Action Framework
• A value curve, also called a strategic profile, is the graphic depiction of a company’s strategy
• It captures a company’s relative performance across the key competitive factors of an industry including price
• Useful tool for product managers and marketers in defining, comparing and positioning products and services
• Action framework to form value curves:• Eliminate• Reduce• Create• Raise
Source: Handout, Google
Across Substitute Industries
• Strategy adopted to compete not only with the intra-industry rivals, but also with the substitute manufacturers
• Air Asia, Naukri.com, etc.
Through this
strategy, Air Asia reduced
key decision
parameters including
price, stop over time, etc.
In addition, the
company adopted CREATE policy by
introducing new
features such as Xpress
Boarding, Web Check
in, Hotel Discounts,
etc.
Air Asia entered a new market space to lure low income group customers by offering them air transportation at a price close to that of road travel.
“Now Everyone can Fly”
Source: Handout, Google
Across Strategic Groups
• Certain companies (Starbucks, Lacoste, Ginger Hotels, etc.) successfully find new market spaces within the same industry, however, across different strategic groups
While the price is
competitive to other peers,
Starbucks has been
successful in building a
strong brand equity
Starbucks has focused
on increasing
its quality to set high
benchmark, while
offering better place,
variety and service to
its customers
Starbucks offer more variety of products, better customer service, ambient lounges and a better brand aspiration
Source: Handout, Google
Across Chain of Buyers
• New market spaces can also be formed by identifying and targeting a new chain of buyers with distinguished needs
• Nintendo, Novo Nordisk, Bloomberg etc.
Nintendo outsold its
competitors by bringing in new
features including
reduced graphic requirements,
family fun, portable, increased
motion control
The company eliminated complexity,
reduced price,
graphics and physics, and
created group fun to lure all age
groups rather than a
specific segment
Novo Nordisk changed its customers from influencers (prescribing doctors) to direct consumers by developing new insulin pens directly to be
used by household consumers
Source: Handout, Google
Across Complementary Products/Services
• Companies reconstruct market boundaries by analysing and offering complementary products/services which support their prime product and drive sales, creating a new market dimension altogether
• Planet M, automobile, leisure deals, movie theatres, etc.
PVR Cinemas created a new market space
where the consumers were
provided with better service, comfort and
complementary services which
allowed multiplexes to
turn into complete entertainment
centersSc
reen
Size
Soun
d
Show
s
Com
fort
Food
/Sna
cks
Park
ing
Discou
nts/Mer
chan
dise
Other Competitors PVR
Source: Handout, Google
Across Functional/Emotional Appeal to Buyers
• Market spaces can be innovated based on the functional and emotional appeals of consumers, causing attraction towards brands and their new products
• IPL, Body Shop, Aroma Therapy, etc.
IPL was one of the brand
innovations that aroused
emotional feel of
entertainment and loyalty
towards their home team,
causing to be a first-of-its-kind huge success
Several other brands aim to invoke feelings of social awareness (sustainable, society and environment friendly) to promote their products
and attract a completely new market space, e.g. ITC Classmate, Body Shop, etc.
Source: Handout, Google
Across Time
• With response to the changing times, technologies and market trends, many companies adopt and convert market opportunities into market spaces
• YouTube, iTunes, etc.
YouTube offered many
better features than normal web
hosting platforms,
such as ease-of-use, search integration,
social networking,
etc.
Internet boom allowed many companies to develop online porducts (YouTube, iTunes, Facebook, Ecommerce, etc.)
Source: Handout, Google