.

Hypothetical Market Structure

.

10%
20%
Market Market
Nichers Follower

30%
Market
Challenger

40%
Market
Leader

Competitive Strategies
Competitive Positions

Market
Market
Market
Market

leader strategy
challenger strategy
follower strategy
nicher strategy

Competitive Strategies
1. Market leader is the firm with the largest market
share and leads the market price changes, product
innovations, distribution coverage, and promotion
spending
2. Market challengers are firms fighting to increase
market share
3. Market followers are firms that want to hold onto
their market share
4. Market Nichers are firms that serve small market
segments not being pursued by other firms

Market
.
leadership
Expansion of
the overall
market
Target groups
currently nonusers
Identifying
new uses for
the offering
Increasing
usage rates

Guarding the
existing market
share
Strong
market
positioning
Developing
competitive
advantage
Product /
process
innovation
Heavy
advertising
CRM
Strong
distribution
relations

Expansion of the
current market
share
Heavy
advertising
Improved
distribution
Price incentives
New product
development
Mergers
Takeovers
Geographic
expansion
Distributor
expansion

Expanding the Total Market

New customers
More usage

New Customer
New Customer
On the basis of features, Price & service
one company can find out its new
customer base. Company can find out this
solution by searching the user in three
ways
New Market Segment Strategy
Those customer never use it
Geographical-Expansion Strategy
Those Customers who lives elsewhere

More Usage
More Usage
Increasing the usage in existing
customer by several attractive ways
will be the best solution. It can be
done by using the following process
Force customer to increase the
usage

More Usage

Market Challenger
Strategies
Define the strategic objective
and opponents
I. Choose a general attack strategy
II. Choose a specific attack strategy

In Pakistan, Tapal has

challenged Unilever to emerge
as a serious competitor

General Attack
. Strategies
.
Frontal Attack

Flank Attack

Encirclement
Attack

Bypass Attack

Guerrilla Attack

Frontal Attack
Frontal Attack: Here company attack to
other company by copying almost
the
same
theme
of
price,
advertisement, Product & distribution.
Expert says that that company will win
which has greater resource.
Like
War of Coca Cola & Pepsi
Note: Focus on opponent strength

Flank Attack
Flank Attack: Here company attacks the other
companys weak point. It can find out the
weak point by geographical & segmental. The
challenger identifies spot area where company
underpins.
Example
LG identify the geographical & launched its small
town
&
rural
market
Color
Television
Sampoorna.
Color channel beat all the big competitors by
adopting different segment.

Encirclement Attack
Encirclement Attack: Here Challenger attack
the big company by offensive attack in all
front, by superior product & high quality
service. Challenger almost attacks in
offensive way to the established company.
Like
Google attacked on Yahoo in all front like
search Engine, mail, News, Chat etc.

Bypass Attack:
Bypass Attack: It is the most
dangerous indirect assault strategy
to
attack
the company.
Here
challenger attacks on that field
where there is no base of
present company.
Like
Nirma did
launching

it

at

the

time

of

Guerilla Attack:
Guerilla Attack:
These include selective price cuts, intense
promotional blitzes, and occasional legal action.
Normally Guerrilla warfare is practiced by
smaller firm against larger one.
It is basically small, intentionally & harasses
attack by the company or challenger to the
existing company.

Specific Attack Strategies

Price discounts
Lower-priced goods
Prestige goods
Product proliferation
(This can be done
through different
colour
combinations,produc
tsizes and
differentproductuses
)

Product innovation

Improved
services
Distribution
innovation
Manufacturingcost reduction
Intensive
advertising
promotion

Market Follower Strategies

.
Counterfeiter
Cloner
Imitator
Adapter

 Adapter
Adapter

is

white

collared

market

follower

strategy. Automobiles use the adaptation form

of market follower strategy.
Cars like Maruti 800, Alto, Zen, brio, etc are all

adapters and they adapt the best qualities from each

other by changing the style of the automobile.

 Imitator:
There is a huge market for imitators where
people want to buy products at lower cost as
they cant afford the higher one.
Imitation jewelers is probably the best and largest
example of imitation as a market follower strategy.
Second example can be the imitation of Tata sky,
where Tata sky is the market leader and brought
digital TV revolution to India but was soon imitated by
Videocon,Airtel, Reliance and others.

 Cloner
Cloning means making the same
product as yours, but with very subtle
difference.

 Counterfeiter
The best example of counterfeiting is
selling the originals via piracy. Where
cloning

involves

manufacturing

of

slightly altered products, counterfeiting

involves thieving and is a black market
follower strategy.

Six Types of Defense Strategies

Tata Brand: Position Defense

Position Defense
Position Defense
Make the brand much superior almost
leader in the market.
Like
Tata Truck.

Flank Defense
Flank Defense
Here Company prepare the outpost to protect
its weak front. Company may launch the
other product to counter the attack.
Like
surf excel came out with pouch after
attacked by Nirma. It was to protect its
main brand.

Preemptive Defense
Preemptive Defense
Here company wants to defense itself by
attacking before than competitors.
The attack can be by Guerrilla process. Company
can attack the competitors by randomly &
anywhere.
Like
SBI opened its branch approx 26.5K(14k own
& 12.5k associate bank) & 45k ATM

Counteroffensive Defense
Counteroffensive Defense

When hit by the attackers most of the

company responds aggressively &
counter attacked to the company
frontal or hit its flank position.
Like
Reliance & Airtell hit Tata Indicom by
decreasing its 1p/s call.

Mobile defense
Mobile defense
Here leader stretch its domain beyond
the current & meet in new territory.
Like
Reliance now indulge in all types
dealing

Contraction Defense
Contraction Defense
Sometime big company leaves their
one or more area to give more focus
on their parent goods or area. It is
also known as strategic withdrawal.

Competitive Strategies
Market Nicher Strategies
Ideal market niche is big enough to be profitable
with high growth potential and has little interest
from competitors
Key to market niching is specialization
Market
Customer
Product
Marketing mix

Niche Specialist Roles

End-user specialist:
The firm specializes in serving one type of enduse customer.
For examples, a value-added reseller (VAR)
customizes the computer hardware and software for
specific customer segments and earns a price
premium in the process.

Niche Specialist Roles

Geographic specialists:
The firm sells only in a certain locality
region, or area of the world.

Quality price specialists:

The firm operates at the low or high
quality ends of the market.

Niche Specialist Roles

Channel specialists:
The firm specializes in serving only one
channel of distribution.
For example Soft-drink Company decides to
make a very large-sized soft drink available
only at gas stations.

Service specialist:
The firm offers one or more services not
available from other firms.

Niche Specialist Roles

Job-shop specialists:
The firm customizes its products for
individual customers.