Developing Marketing Strategies and Plans

Session -6, 4th Dec 2012

Value Creation & Delivery Sequence

Assessing Market opportunities & customer value Choosing a value Designing value Delivering value Communicating value Growth & Sustenance of value

Value Chain

Value Delivery Network

Holistic Marketing Orientation & Customer Value

Value Exploration

Value Creation

Value Delivery

Strategic Planning Levels:

Corporate Level Division Level

- The Tata group

Tata Group operate in seven different business sectors:

Information systems and communications Engineering Materials Services Energy Consumer products Chemicals

Strategic Planning Levels (Cont):

Business

Tata has 96 companies Tata

Unit Level

Motors, Landmark, Taj Hotels, Westland, Tata AIG, TCS, Tata Tea, Voltas Product Level
Includes product line and brands
E.g. Automobiles Tata Indica, Tata Ace, Tata Safari Wristwatches Titan, Raga, Fastrack, Sonata Jewellery - Tanishq
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Strategic Planning Levels (Cont):

Marketing Plan operates at two levels:

Strategic Marketing Plan: Lays out
broad marketing goals.

Tactical Marketing Plan: Outlines

specific marketing tactics.

Corporate and Division Strategic Planning

Planning activities include: Defining the Corporate Mission. Establishing Strategic Business Units (SBUs). Assigning Resources to SBUs. Assessing Growth Opportunities.

Corporate Mission: What are we doing?

Mission statements should define the companys major competitive scopes:

Industry scope Products and applications scope Competence scope

Vertical scope Market-segment scope Geographical scope

Vision & Mission of Nirma:

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Vision and Mission of Dabur:

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Example of SBUs:

Some of the SBUs of

Godrej and Boyce: Appliances, Furnitures, locks, conference equipment etc. Godrej Consumer Products: Cinthol, Fair Glow, Evita, No.1 Godrej Industries: Chemicals etc. Geometric Limited: Provides engineering solutions, PLM etc. Godrej Infotech: Developing software solutions Godrej Agrovet: Animal feed, poultry, etc. Godrej Sara lee: JV between Godrej group & Sara Lee (U.S.). Makers of home insecticides e.g. Hit Godrej Hi Care: Into pest control business Godrej Efacec: Logistics solutions and warehouse automations Godrej Properties: Sales & development of real estate 12

Resource Allocation:

Resources to SBUs can be allocated using: The BCG Growth-Share Matrix

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Assessing Growth Opportunities:

DIVERSIFICATION GROWTH S A L E S INTEGRATIVE GROWTH

INTENSIVE GROWTH

TIME

Strategic Planning for Intensive Growth:

Product-Market Expansion Grid (Ansoffs Matrix)

Existing Products Existing Markets New Markets Market Penetration
(e.g. introduction of sachets)

New Products Product Development

Market Development
(e.g. Scorpio being exported to S. Africa, US etc.)

Diversification Strategies

Integrative Growth

Backward integration- Acquiring Suppliers

Gas Authority of India Ltd (GAIL) has invested in 29 exploration blocks and three coal bed methane (CBM) blocks Tamil Nadu Newsprint and Papers (TNPL), manufacturers of printing & writing paper and newsprint has set up a captive plantation to meet its material requirements. Exide Industries has picked up a 51% stake in Leadage Alloys India Ltd. (LAIL) to get raw material source of recycled lead and lead alloys for making storage batteries.

Integrative Growth (Cont):

Forward Integration - Acquiring Buyers

National Mineral Development Corporation (NMDC), from mining iron ore, is leapfrogging into steelmaking by investing Rs 16,000 crore in a new plant in Chhattisgarh that will have an annual capacity of four million tonnes XL Telecom, a solar panel manufacturer, is going to establish a grid connected solar farms in Spain and Portugal with an investment of Rs 1,000 crore.

Integrative Growth (Cont):

Horizontal Integration - Acquiring Competitors

HP acquires Compaq Jet acquires Air Sahara Tata steel acquires Corus Mittal steel acquires Arcelor Hindalco acquires Novelis Videocon acquires Thomsons CPT plant Videocon acquires Daewoo Electronics

Diversification Growth:

Concentric Diversification Strategy:

Technological/marketing synergy with existing product line that may appeal to different group of customers.
E.g. Tata Motors going in for Nano, IIMs offering Executive MBAs

Horizontal Diversification Strategy:

Technologically unrelated products that could appeal to current customers.
E.g. Microsoft key-board and mouse

Diversification Growth (Cont):

Conglomerate Diversification Strategy: No relation to companys current technology, product or market.

Tata group manufactures cars as well as salt Godrej group manufactures soaps as well as furniture ADAG is into telecommunications as well as financial services Aditya Birla group is into manufacture of textiles as well as cement

Strategic Alliances:

Product or Service Alliance Promotional Alliance Logistics Alliances Pricing Collaborations

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Business Strategic Planning

Planning Involves Eight Steps:
Business Mission SWOT Analysis: Internal SWOT Analysis: External Goal Formulation

Strategy Formulation Program Formulation Implementation Feedback and Control