Strategic Planning

Companies often talk about their strategies. What does strategy mean? A fundamental pattern of present and planned objectives, resource deployments, and interactions of an organization with markets, competitors, and other environmental factors.

Some of the Successful marketers.....

P&G Nike Southwest Airlines Disney Wal-Mart Sony Toyota etc...

Is it wow?

 Microsoft keeps a great deal of cash on hand to be able to jump on opportunities that come about. It would be difficult to compete against Intel and AMD in the microprocessor market since both these firms have a number of patents that it is difficult to get around.

Components of Strategic Planning

The Marketing Plan

A written document that acts as a guidebook of marketing activities for the marketing manager.

Chapter 2 Marketing 7e Lamb Hair McDaniel 2004 South-Western/Thomson Learning

Strategic and Tactical Marketing plan

The Strategic marketing plan lays out the target markets and the value proposition that will be offered, based on the analysis of the best market opportunities The tactical marketing plan specifies the marketing tactics, including product features, promotion,pricing,distribution, service etc.

What is a Mission
This is a more matter of fact statement of purpose that drives the business decisions. For Whom?

Who are You ? Product What? For Customer

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How?

Mission Statement
statement of your company s purpose and aims. usually answers the 6 Ws:
 What are the products and services?  Who is the expected target customer?  What industry is it in?  Which markets does it serve?  What is its major driving force?  Why will this business be successful?

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To be the best sports brand in the world.

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Southwest Airlines Mission Statement

PepsiCo s Mission Statement

PepsiCos overall mission is to increase the value of our shareholders investment. We do this through sales growth, cost controls and wise investment of resources. We believe our commercial success depends upon offering quality and value to our consumers and customers; providing products that are safe, wholesome, economically efficient and environmentally sound; and providing a fair return to our investors while adhering to the highest standards of integrity. http:\\www.pepsico.com

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Chapter 2 Marketing 7e Lamb Hair McDaniel 2004 South-Western/Thomson Learning

A vision without a task is but a dream. A task without a vision is a drudgery. A vision and a task can change the world.

Mission Statements Mission Statements

M r tt M r Ori tt Ori Motivating Motivating Reali ti Reali ti

2-3 2-3

Distinctive Di tinctive Competencies Competencies

Characteristics Characteristics of Good Mission of Good Mission Statements Statements

Specific Specific Fit M r ett Fit M r Environment E ironment

 Copyri t 1998 Pr ti H ll

SWOT Analysis

Wal-Mart
Strengths. Wal-Mart is a powerful retail brand. It has a reputation for value for money, convenience and a wide range of products all in one store. Wal-Mart has grown substantially over recent years, and has experienced global expansion The company has a core competence involving its use of information technology to support its international logistics system. For example, it can see how individual products are performing country-wide, store-by-store at a glance. IT also supports Wal-Mart's efficient procurement. A focused strategy is in place for human resource management and development. People are key to Wal-Mart's business and it invests time and money in training people, and retaining a developing them. Weaknesses. Wal-Mart is the World's largest grocery retailer and control of its empire, despite its IT advantages, could leave it weak in some areas due to the huge span of control. Since Wal-Mart sell products across many sectors (such as clothing, food, or stationary), it may not have the flexibility of some of its more focused competitors. The company is global, but has a presence in relatively few countries Worldwide.

Wal-Mart
Opportunities. To take over, merge with, or form strategic alliances with other global retailers, focusing on specific markets such as Europe or the Greater China Region. The stores are currently only trade in a relatively small number of countries. Therefore there are tremendous opportunities for future business in expanding consumer markets, such as China and India. New locations and store types offer Wal-Mart opportunities to exploit market development. They diversified from large super centres, to local and mall-based sites. Opportunities exist for Wal-Mart to continue with its current strategy of large, super centres. Threats. Being number one means that you are the target of competition, locally and globally. Being a global retailer means that you are exposed to political problems in the countries that you operate in. The cost of producing many consumer products tends to have fallen because of lower manufacturing costs. Manufacturing cost have fallen due to outsourcing to low-cost regions of the World. This has lead to price competition, resulting in price deflation in some ranges. Intense price competition is a threat.

Task for today....

Visit the website of Nike and evaluate the marketing strategies and how they are trying to reach to the target market