Marketing Strategy

Read:
Chapter 2, p63-65
Chapter 3, p90-92
Chapter 18, p552-553, 560-570
Introduction to
Marketing
Marketing Strategy
Company Analysis
Competitive Situation Analysis
Developing Competitive Strategies
Conducting a SWOT Analysis
MICRO
marketing environment









Customers
Company
Competitors
MACRO
marketing environment









Economic
Technological
Political and legal
Socio-Cultural
Forces that Shape the Marketing Environment
Natural
Demographic
VISION
To be internationally recognised as the leading retailer of luxury goods
and services.
MISSION
To indulge our customer with an exceptional shopping experience, by
offering quality products and services through our people and
business partners.
OUR
VALUES
Customer first
We make it happen
We are progressive
We partner for success
PEOPLE
We invest in comprehensive staff training
programmes
We instill a culture of excellence and customer-
centric philosophy
We are committed to developing our multi-
cultural talents
Our people are passionate and committed to
delivering value everyday
Purpose
How
Who
Competitive Advantage
An advantage over competitors gained by
offering consumers greater value than
competitors do.
What is the source of that advantage?
Is it easily replicated?

Financial strength
Production flexibility
Channel relationships
Distribution dominance
Patents
Technical capability
Loyal customer base
(ADNOC)
(Fisher and Paykel)
(Toyota)
(Coca-Cola)
(GlaxoSmithKline)
(Boeing)
(Apple Macs)
Company Analysis - Company Resources

Direct competitors produce or sell a
product that is identical or highly
similar within the same market

Indirect competitors offer substitute
products that fulfil the same need
Identify Direct and Indirect
Competitors
Purpose
To predict future competitive moves
To identify areas of competitive vulnerability
To predict competitors reactions to your strategy

Framework for competitor analysis:



Competitor Analysis
Companys Current or
Planned Strategy
Competitor 1s
Strengths and
Weaknesses
Competitor 2s
Strengths and
Weaknesses

Target Market
Product
Place
Promotion
Price
Competitive Barriers
Likely Response
Proctor and Gamble: Disposable diaper market in Japan

Slide 8
The Industry

Jockeying for
Pos i tion among
cu r rent compet i tors

Bargaining
power of
customers


Bargaining
power of
suppliers
Threat of
substitute
products
Threat of
New
Entrants
Industry Analysis - Porters 5 Forces
The Industry




Bargaining
power of
cu s to m ers
Bargaining
power of
suppliers
Threat of
su b stitute
products
Threat of
New
Entrants
Consumer Products Industry Analysis
Weak buyer
power of end
user
Strong buyer
power of
retailers
Some costs in
switching
supplier
Large volume
important to the
supplier
Strong
Limited
The Industry




Bargaining
power of
cu s to m ers
Bargaining
power of
suppliers
Threat of
su b stitute
products
Threat of
New
Entrants
Consumer Products Industry Analysis
Known brand
provides some
advantage
Large capital
investment
needed
Chance of small
producer superior
product but retail
barriers
Store-brand
private labels
L
o
w

M
e
d
i
u
m


Cost Leadership
= become low cost
producer in industry

Differentiation
= be unique along some
dimensions that are
valued by buyers

Cost Focus
= become low cost
producer in a segment
or group of segments

Differentiation Focus
= be unique in a
segment or group of
segments
Broad
Target
Lower Cost
Differentiation
Narrow
Target
Basic Competitive Strategies
Market Leader


Market Challenger

Market Follower

Market Nicher
Expanding the total demand
Protecting market share
Expanding market share

Full Frontal Attack
Indirect Attack

Follow closely
Follow at a distance

Target by special user, place,
quality-price or service.
Multiple niching
Competitive
Positions
Associated
Strategies
Internal









Strengths
Weaknesses
External









Opportunities
Threats
Strategic Planning SWOT Analysis
Simple Rules for Successful SWOT Analysis
Be realistic.
Be comprehensive (use print/web resources, such as
www.businessballs.com/swotanalysisfreetemplate.htm)
Be specific.
Prioritise the issues you identify.
Have the courage to dream. Where could you go in the
future? Brainstorm.
Compare your practice with that of your competition.
What do you do better? What do you do worse?
Keep it short and simple.
Recognise that SWOT is subjective. To minimise this
issue: All team members prepare a SWOT and compare
results.
Source: adapted from http://www.frycomm.com
SWOT Analysis Tips for Audit Assignment
Marketers should assess the company mission and
resources and understand competitive advantage
A direct competitor is a company marketing the same
product an indirect competitor markets to the same
need
Competitor analysis requires analysis of own company
and competitors 4Ps, competitive barriers and likely
responses to each others actions
Industry analysis requires analysis of 5 forces within
the industry (ie supplier power, customer power,
rivalry, new entrants and substitutes)
Basic competitive strategies are based on whether you
target broadly or narrowly and whether you focus on
cost or differentiation
The competitive position you hold within the market
should determine the strategies you take.
How to conduct a SWOT






What did we learn today?
Slide 17
Assign own brand, 2 direct and 1 indirect competitors:

1. Identify the competitive advantage of the brand.
2. Using the framework for competitor analysis
identify the target market, product, price,
promotion, place and competitive barriers faced
by the brand.
3. Of the four basic competitive strategies identify
the one the brand uses.
4. Identify the competitive position and possible
associated strategy the brand uses.
Before next class