Creating competitve advantage - ??2014-02-12advantage •Competitive advantage is sustainable...

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Transcript of Creating competitve advantage - ??2014-02-12advantage •Competitive advantage is sustainable...

  • Creating competitve advantage

  • Importance of competitive advantage

    Competitive advantage is sustainable

    Competitive advantage is unique

    Competitive advantage is relevant

  • Competitive strategies

    Cost leadership strategy

    Differentiation strategy

    Innovation strategy

    Operational effectiveness strategy

  • The Brand

    A Brand is a distinguishing identity and

    fulfilled promise which benefits the customer.

  • Role of the brand

    Brand Awareness - Helps customer in simplifying decisionmaking

    Legal protection restricted trademarks, packaging,manufacturing process

    Brand Loyalty commands higher price in the market

    Brand Recognition Consumers recognize the brand andknow what it offers versus competitors.

    Positive customer-based brand equity

    Consumer accepts new brand extension

    Less sensitive to price increases

    Withdrawal of advertisement support

  • The Brand Benefit: Up the Ladder

    Brand Laddering

    A simple technique that ladders

    brand features up, into meaningful

    benefits

    What does your brand do best?

    Why is that important?

    and why is that important?

    The essence of the brand is a single, simple value

    Its often your positioning point-of-difference

    Brand essence creates a relationship with the consumer, making an emotional connection

  • Different types of brands

    Product Brands

    Service Brands

    E-brands

    Media Brands

    Not-for-profit Brands

    Nation Brands

    Government Brands

    Global Brands

    Organization Brands

  • Alternative Branding Models

    Company dominates Brands

    Company is equal to Brands

    Brands dominate the Company

    American Express

    BMW

    Colgate

    Disney

    General Electric

    IBM

    LOreal

    Sony

    Holiday Inn

    Chrsyler = Jeep

    Estee Lauder = Clinique

    Kraft = Maxwell House

    PepsiCo = Mountain Dew

    Time Warner = Warner Bros

    3M = Scotch Tape

    Marriott = Courtyard

    Crest (P&G)

    Kleenex (Kimberly-Clark)

    Marlboro (Philip Morris)

    Wranlger (VF Jeans)

  • BRANDING DECISIONSBRANDNO BRAND

    BRAND SPONSOR DECISION MANUFACTURER BRANDDISTRIBUTOR BRANDLICENSED BRAND

    BRAND NAME DECISIONINDIVIDUAL NAMESBLANKET FAMILY NAMESEPARATE FAMILY NAMECOMPANY INDIVIDUAL NAMES

    BRAND STRATEGY DECISIONLINE EXTENSIONSBRAND EXTENSIONSMULTI BRANDSNEW BRANDSCO BRANDS

    BRAND REPOSITIONING DECISIONREPOSITIONINGNO REPOSITIONING

    BRANDING DECISION MAKING PROCESS

  • Brand Equity

    A set of stored values that consumers associated with a Product/Service.

    These associations add value beyond the basic product functions due to past investments in marketing the Brand.

  • Brand Equity Ingredients

    TOMA and Top of Name & heritage

    Packaging (structure & graphics) & signage

    Brand symbols, properties and logos

    Perceived quality, reliability & convenience

    Defined level of satisfaction

    Meaningful (premium) price/value relationship

    Purchase & usage experiences

    Consumer perceptions, attitude & behaviors

    Emotional associations with the product/services

  • COMPETETIVE WARFARE

  • Entry Strategies

    FOREIGN MARKETENTRY

    MANUFACTURINGAT HOME

    MANUFACTURINGABROAD

    INVESTMENTENTRY

    EXPORTING

    INDIRECTDIRECT

    PIGGY-BACKING

    CONTRACTUAL

    LICENSING/FRANCHISING

    CONTRACTMANUF.

    TURNKEYPROJECTS

    MGTCONTRACTS

    OVERSEASASSEMBLY/

    MIXING

    JOINT VENTURES

    ACQUISITION/SELF-BUILT

    OTHER DIRECTENTRY

  • Approaches to Pricing

  • Approaches to Pricing

    19

  • Product Line Pricing Band/FixedSetting Price Steps Between Product Line Items

    i.e. Rs 299, Rs 399 / Rs 99

    Optional-Product PricingPricing Optional or Accessory Products

    Sold With The Main Product

    Captive-Product PricingPricing Products That Must Be Used

    With The Main Product

    By-Product PricingPricing Low-Value By-Products To Get Rid

    of Them

    Product-Bundle PricingPricing Bundles Of Products Sold Together

    Product Mix Pricing

    Product

    Mix

    Pricing

    Strategies

    20

  • Product-Mix Pricing Strategies

    Product line pricing (Price lining) takes into account the cost difference between products in the line, customer evaluation of their features, and competitors prices. the price differences represent the perceived quality differences

  • Setting Pricing Policy

    1. Selecting the pricingobjective

    2. Determining demand

    3. Estimating costs

    4. Analyzing competitorscosts, prices, and offers

    5. Selecting a pricingmethod

    6. Selecting final price

  • Pricing Objectives

    Meet

    Business

    Objectives

    Other Pricing Objectives

    Status Quo

    Image

    Social & Ethical Considerations

  • The Three Cs Model for Price Setting

    Costs Competitorsprices andprices ofsubstitutes

    Customersassessmentof uniqueproductfeatures

    Low Price

    No possibleprofit at

    this price

    High Price

    No possibledemand atthis price

    24

  • 25

  • 26

  • SOCIAL MEDIA STRATEGY THE PROCESS

  • The Eight Cs Of Strategy Development

    1. Categorize social media platforms by target market relevancy

    2. Comprehend the rules of the road on the platform by listening and learning how to behave, successfully spark conversation, and engage and energize the participants

    3. Converse by acknowledging and responding to other users of the platform, always remembering to be a contributor, not a promoter

  • The Eight Cs Of Strategy Development

    4. Collaborate with platform members as a

    means of establishing a mutually beneficial

    relationship with the platform participants

    5. Contribute content to build reputation and

    become a valued member, helping to

    improve the community

    6. Connect with the influencers so that you

    can enlist them to help shape opinions about

    your product or service

  • The Eight Cs Of Strategy Development

    7. Community participation (and creation) can elicit valuable consumer suggestions for improving products and innovative suggestions for new products or service

    8. Convert strategy execution into desired outcomes such as brand building, increasing customer satisfaction, driving word-of-mouth recommendations, producing new product ideas, generating leads, handling crisis reputation management, integrating social media marketing with PR and advertising, and increasing search engine ranking and site traffic

  • Implementing the CRM Strategy

  • Elements of a CRM System

    Customer

    Interface/

    Touch points

    Sales Person

    Contacts

    CRM

    Applications

    Sales

    Management

    Functions

    Marketing Functions

    Campaign Management

    Segmentation

    Personalization and

    Customization

    Customer Service

    Functions

    Helpdesk

    Customer Care

    Web based

    Contacts

    Email

    Websites

    Telesales

    Kiosks

    Direct mail

    Coupons

  • Components of CRM Infrastructure

    Component Description

    1. Information Delivery/Online Catalogs Capability to display and list company's

    products and services online

    2. Customer Database Capture, organize, present, and analyze

    customer-specific data

    3. Personalization and Content

    Management

    Utilizing results of data analysis to

    create an individualized experience for

    customers

    Enhance/modify service delivery

    vehicles to match specific needs of

    customers

  • Components of CRM Infrastructure (contd.)

    4. Sales force Automation Deployment and use of tools and services

    designed to automate sales and marketing

    lifecycle

    5. Partner Channel AutomationFor integration of a company's service vehicles

    with those of its provider and third-party partners

    6. Customer Services Use of technology and business processes to

    successfully support a company's products and

    services