June 12, 2006

3rd Lecture.

Presentation

Maximum 12 slides.

Case study:

Amitabh The Brand: Make your presentation based on the following two
case studies.
Q1. What is the problem in the case study?
Q2. What are suggested solutions for this case?

Time allotted to each group is 10 minutes.

Marking based on presentation skill: Stage confidence, Eye contact and

clarity of thought.
Marking also based on content.
Analysis current business portfolio.

Strategic business unit.

• A unit of the company that has a separate mission and objectives

and that can be planned independently from other company
business…
• An SBU can be a division, or sometimes a single product or brand.

Boston consulting group approach

Growth - share matrix.

Growth here means the growth potential of the product or the company.
Share here means the share in the market.

Growth – share matrix:

• A portfolio planning method that evaluates a company’s strategic

business unit in terms of their market growth rate and relative
market share.
• SBU’s are classified as
o Stars
o Cow
o Question mark
o Dogs.

Market growth

High star question mark

Low cash cow dog

High Low
Relative market share
For instance : take maruti udyog

Star : Swift
Cash cow : Maruti 800
? Mark : Baleno, WagonR
Dogs : Zen, Esteem.

Star:
• High growth
• High share business or market
• Need heavy investment
• Eventually they turn into cash cows.

Cash cows:
• Low growth
• High market share business or products.
• These established & successful SBU’s need less investment to hold
their market shares.
• They produce a lot of cash to pay bill and support other SBU’s

Question Mark:

• Low share business units in high growth markets.

• They require lot of cash to hold on their market shares.

Dogs:
• Low growth
• Low share business
• Enough cash to maintain business – but not very large source of
cash.

Developing growth strategies.

Various growth strategies has to be developed. One of the way is as follows:

Product – Market expansion: We are talking about both market and product.
A portfolio planning tool for identifying company growth opportunities
through

• Market penetration: A strategy for company growth by increasing

sales of current products to current market segments without
changing the product.

• Market development: A strategy for company growth by

identifying & developing new market segments for current
company products. For e.g. Shampoo scathes, air travel. No
changes were done in the product, but in strategies.

• Product development: A strategy for company growth by offering

modified or new product to current market segments. For e.g.
Kellogs. It initially used to come in only one taste. But today they
come in variety of flavors.

• Diversification: A strategy for company growth by starting up or

acquiring businesses outside the company’s current product and
markets. For e.g. ITC which was earlier in tobacco business now
enters into hospitality business.

Existing products new products

Existing Market penetration product development

Market

New Market development Diversification

Market

THE MARKETING PROCESS

Marketing Process:
The process of
• Analyzing marketing opportunities
• Selecting target markets
• Developing marketing mix..
 • Managing the marketing efforts.
Analyzing marketing oppurtunities:

• Market segmentation:
o Divinding the market into distinct groups of buyers on the basis
of
 Needs
 Characteristics
 Behavior.
• Market targeting: The process of evaluating each market segment’s
attractive and selecting one or more segments to enter.
• Market Positioning: Arranging of a product to occupy a clear,
distinctive and desirable place relative to competing product in the
mind or target customer.

Marketing strategies for the competitive advantage.

• Market Leaders : E.g. coca cola

• Market Followers: TATA AIG has copied Max New York life
• Challengers: Mountain dew
• Niche Players: Nike in its

Developing marketing mix

It is combo of 4P’s

The set of controllable tactical marketing tools – Product, price, place, and
promotion – that the firm blends to produce the response it wants in the
target market.

Product Price

Target customer
Intended positioning

Promotion Place
 • Product: We can alter the product strategy in following ways.
o Variety
o Quality
o Design
o Features
o Brand name
o Packaging: for e.g. chicken mc grill – mc donalds.
o Services: it can be either
 Pre-sales services- free demos
 After sales services

• Price: We can have price advantage by following ways.

o List price: we can keep high price initially and then sell them at
discount
o Discounts
o Payment periods: buy now but pay later, more like financing
o Credit terms: terms on which the period

• Promotions:
o Advertising
o Personal selling
o Sales promotion
o Public relations.

• Place:
o Channels of distribution
o Coverage
o Assortments
o Locations
o Inventory- some company may like to have certain advantage
by way of inventory management
o Transportation
o Logistics: combination of transportation, warehousing and
distribution.

Managing the marketing effort

 • Market analysis : The company analyze its markets and marketing
environment to find attractive opportunities and potential threats.
Analysis

Planning developing Implementations Control.

strategic
Plans carrying out measure results
The plan
Develop marketing evaluate results
Plans
Take corrective actions

• Planning
• Implementation
•