Marketing strategies

WHAT IS A STRATEGY??

A strategy consists of a well thought out series of tactics to make a marketing plan
more effective. Marketing strategies serve as the fundamental underpinning of
marketing plans designed to fill market needs and reach marketing objectives. Plans
and objectives are generally tested for measurable results.

"What is Strategy?"
Michael E. Porter
Harvard Business Review, November-December 1996.
Today's dynamic markets and technologies have called into question the
sustainability of competitive advantage. Under pressure to improve productivity,
quality, and speed, managers have embraced tools such as TQM, benchmarking,
and reengineering. Dramatic operational improvements have resulted, but rarely
have these gains translated into sustainable profitability. And gradually, the tools
have taken the place of strategy. As managers push to improve on all fronts, they
move further away from viable competitive positions. Michael Porter argues that
operational effectiveness, although necessary to superior performance, is not
sufficient, because its techniques are easy to imitate. In contrast, the essence of
strategy is choosing a unique and valuable position rooted in systems of activities
that are much more difficult to match.

WHAT IS marketing strategy?

Marketing strategy is a method of focusing an organization's energies and resources
on a course of action which can lead to increased sales and dominance of a targeted
market niche. A marketing strategy combines product development, promotion,
distribution, pricing, relationship management and other elements; identifies the
firm's marketing goals, and explains how they will be achieved, ideally within a stated
timeframe. Marketing strategy determines the choice of target market segments,
positioning, marketing mix, and allocation of resources. It is most effective when it is
an integral component of overall firm strategy, defining how the organization will
successfully engage customers, prospects, and competitors in the market arena.
Corporate strategies, corporate missions, and corporate goals. As the customer
constitutes the source of a company's revenue, marketing strategy is closely linked
with sales. A key component of marketing strategy is often to keep marketing in line
with a company's overarching mission statement

Basic theory:

1. Target Audience
2. Proposition/Key Element
3. Implementation

A marketing strategy can serve as the foundation of a marketing plan. A marketing

plan contains a set of specific actions required to successfully implement a
marketing strategy. For example: "Use a low cost product to attract consumers.
Once our organization, via our low cost product, has established a relationship with
consumers, our organization will sell additional, higher-margin products and services
that enhance the consumer's interaction with the low-cost product or service."

A marketing strategy often integrates an organization's marketing goals, policies, and

action sequences (tactics) into a cohesive whole. Similarly, the various strands of the
strategy , which might include advertising, channel marketing, internet marketing,
promotion and public relations can be orchestrated. Many companies cascade a
strategy throughout an organization, by creating strategy tactics that then become
strategy goals for the next level or group. Each one group is expected to take that
strategy goal and develop a set of tactics to achieve that goal. This is why it is
important to make each strategy goal measurable.
Marketing strategies are dynamic and interactive. They are partially planned and
partially unplanned

Types of strategies

Marketing strategies may differ depending on the unique situation of the individual
business. However there are a number of ways of categorizing some generic
strategies. A brief description of the most common categorizing schemes is
presented below:

 Strategies based on market dominance - In this scheme, firms are

classified based on their market share or dominance of an industry. Typically
there are four types of market dominance strategies:
o Leader
o Challenger
o Follower
o Nicher
 Porter generic strategies - strategy on the dimensions of strategic scope
and strategic strength. Strategic scope refers to the market penetration while
strategic strength refers to the firm’s sustainable competitive advantage. The
generic strategy framework (porter 1984) comprises two alternatives each
with two alternative scopes. These are Differentiation and low-cost leadership
each with a dimension of Focus-broad or narrow.
o Product differentiation (broad)
o Cost leadership (broad)
o Market segmentation (narrow)
 Innovation strategies - This deals with the firm's rate of the new product
development and business model innovation. It asks whether the company is
on the cutting edge of technology and business innovation. There are three
types:
o Pioneers
o Close followers
o Late followers
  Growth strategies - In this scheme we ask the question, “How should the
firm grow?”. There are a number of different ways of answering that question,
but the most common gives four answers:
o Horizontal integration
o Vertical integration
o Diversification
o Intensification

A more detailed scheme uses the categories[6]:

 Prospector
 Analyzer
 Defender
 Reactor
 Marketing warfare strategies - This scheme draws parallels between
marketing strategies and military strategies

WHICH MARKETING STRATEGY DAWN BREAD IS

FOLLOWING??
Market expansion
Grow Sales with New Products - With this approach the marketer seeks to achieve
objectives through the introduction of new products. This can be accomplished by:

 introducing updated versions or refinements to existing products;

 introducing products that are extensions of current

Dawn foods is purely following the market expansion strategy by means of

increasing market share by
1 introducing updated versions or refinements to existing products;
1.1 Dawn bread
1.1.1 Bran bread is the variant
1.1.2 Fortified bread
 1.1.3 Milky bread
1.1.4 Plain white bread
1.2 Buns
1.2.1 Burger buns
1.2.2 Fruity buns
1.2.3 Hot dogs buns
2 Introducing new product lines
2.1Frozen foods
2.1.1 Frozen puri
2.1.2 Frozen plain paratha
2.1.3 Kababs
2.1.4 Fillet burgers
2.1.5 Combo wings
2.1.5 Crispy wings
2.1.6 Hot shots
2.2 Dawn rusk

 Positioning Strategy of DBG:

“Dawn gives you the freshest and the most wholesome baked and frozen
products because it extracts the essence of its products from the finely
selected PERFECT GRAINS”

Dawn, in essence, is the perfect grain

 The target audience

• SEC Sec A, B&C1

• Gender Primary Female & Secondary Male
• Age 30 years plus
• Education Graduate and above
• Areas of dwelling Middle Class, Upper Middle Class and above
• Personal incomes (if any) Dependent or working Mother
• Household incomes RS 25000 plus
• Stage in lifecycle Primary Just married and 2 small kids

Secondary Full Nest

• Personality attributes Self actualisers, innovators , esteem

seekers , strivers.

• Who do they idealize? Successful people in all walks of life

 Dawn’s Personality

• Taking cue from the great artistic references (such as Gandum key khoshey
jaisey soney ki baliyan; or Sunehri lehlahati gandum) in the traditional
literature and practiced language, the personality for Dawn will be that of
‘Gold’. The rich golden brown color of Gold, the heavy feel of it and the
evocative look will:
– Automatically strengthen Dawn’s position as an upscale ultimate
quality product
– Establish the Perfection factor in every single customer touch-point, be
it advertising, Dawn shelf at outlet or the product experience itself.

• Evoke emotional feelings toward a brand as rich and full as Gold itself.
Dawn Personality – Description

Competitive strategy

A firm's relative position within its industry determines whether a firm's profitability is
above or below the industry average. The fundamental basis of above average
profitability in the long run is sustainable competitive advantage. There are two basic
types of competitive advantage a firm can possess: low cost or differentiation. The
two basic types of competitive advantage combined with the scope of activities for
which a firm seeks to achieve them, lead to three generic strategies for achieving
above average performance in an industry: cost leadership, differentiation, and
focus. The focus strategy has two variants, cost focus and differentiation focus.
1. Cost Leadership

In cost leadership, a firm sets out to become the low cost producer in its industry.
The sources of cost advantage are varied and depend on the structure of the
industry. They may include the pursuit of economies of scale, proprietary technology,
preferential access to raw materials and other factors. A low cost producer must find
and exploit all sources of cost advantage. if a firm can achieve and sustain overall
cost leadership, then it will be an above average performer in its industry, provided it
can command prices at or near the industry average.
2. Differentiation

In a differentiation strategy a firm seeks to be unique in its industry along some

dimensions that are widely valued by buyers. It selects one or more attributes that
many buyers in an industry perceive as important, and uniquely positions itself to
meet those needs. It is rewarded for its uniqueness with a premium price.\

3. Focus

The generic strategy of focus rests on the choice of a narrow competitive scope
within an industry. The focuser selects a segment or group of segments in the
industry and tailors its strategy to serving them to the exclusion of others.

The focus strategy has two variants.

(a) In cost focus a firm seeks a cost advantage in its target segment, while in (b)
differentiation focus a firm seeks differentiation in its target segment. Both variants of
the focus strategy rest on differences between a focuser's target segment and other
segments in the industry. The target segments must either have buyers with unusual
needs or else the production and delivery system that best serves the target
segment must differ from that of other industry segments. Cost focus exploits
differences in cost behavior in some segments, while differentiation focus exploits
the special needs of buyers in certain segments.

DAWN DIFFRENTIATION STRATEGY

Being broad in approach, having nationwide and international appearance as well,

DAWN is following Differentiation strategy.

THE CORE ATTRIBUTES ARE HEALTH and freshness (softness).that what

they are deliver in adds,
 Competition

Competitive Position
• Various established local bread brands and bakers as well, with higher TOM
recall.
• Bake Parlor and Wonder are close

Personality
• Bake Parlour: Modern, Mature, and Trendy
• Wonder: Old, near obsolescence

Differentiators

• Duties Bake Parlour: Baking process driven expansion. None otherwise.

• Wonder: Harping about quality. None in fact.
• Bunny’s

Brand Health Measures

• TOM recall: Bake Parlor is higher than Dawn Bread

at times in Karachi
• Loyalties: Switching is usually due to non-
availability of the usual brand.