Iipm - Marketing Strategy - Lecture 4 - Strategic Analysis - Market, Environmental & Internal
-
Upload
avinash-sharma -
Category
Documents
-
view
217 -
download
0
Transcript of Iipm - Marketing Strategy - Lecture 4 - Strategic Analysis - Market, Environmental & Internal
-
8/4/2019 Iipm - Marketing Strategy - Lecture 4 - Strategic Analysis - Market, Environmental & Internal
1/22
MARKETING STRATEGY
Lecture 4
STRATEGIC ANALYSIS:
MARKET, ENVIRONMENTAL & INTERNAL
IIPM Bangalore
Faculty: Srikanth Gururaj
-
8/4/2019 Iipm - Marketing Strategy - Lecture 4 - Strategic Analysis - Market, Environmental & Internal
2/22
External Analysis
Customer motivations, segments
Competitor strategy, costs, strengths
Market size, growth, profitability, distribution
Environment technology, govt., cultural, demographic
Strategic Analysis
Internal Analysis
Performance profitability, sales, cust. sat., talent
Track Record past strategies, financial resources,competencies
SWOT
Strengths Weaknesses
Opportunities Threats
Whats the Best Strategy?
-
8/4/2019 Iipm - Marketing Strategy - Lecture 4 - Strategic Analysis - Market, Environmental & Internal
3/22
External Analysis
Customer motivations, segments
Competitor strategy, costs, strengths
Market size, growth, profitability, distribution
Environment technology, govt., cultural, demographic
Strategic Uncertainties Strategic Decisions
Internal Analysis
Performance profitability, sales, cust. sat., talent
Track Record past strategies, financial resources,
competencies
Strategic Uncertainties
Strengths
Weaknesses
Opportunities
Threats
Whats the Best Strategy? OR
Strategic Decisions
-
8/4/2019 Iipm - Marketing Strategy - Lecture 4 - Strategic Analysis - Market, Environmental & Internal
4/22
AIRTELWill HD be accepted / penetrate? - at what affordability levels- how fast- HD content v. TV sets (chicken/egg)
Will African growth inbasic cell faster than Indian HD?
Will vertical integration
increase customer loyalty?
MAHINDRAWill SUVs hold their place inconsumer preferences?Losing lifetime value?
Strategic Uncertainties Decisions
Do we invest in HD? - now (leader?)- later (follower?)
Where do we focus?
Sell handsets ?(Multiple locals: Micromax,Karbonn, Lemon, Bling )
Invest in sedans? LoganThey did scooters
Strategic Decisions
Strategic Uncertainties
AN A
LY S I
S
-
8/4/2019 Iipm - Marketing Strategy - Lecture 4 - Strategic Analysis - Market, Environmental & Internal
5/22
Customer Analysis
Customer Analysis can be examined in 3 key areas :
1) Segmentation (slides 6- 15 review of Brand Mgmt.)
2) Customer Motivations (slides 17, 18) (part of segmentation)
3) Exploration of Unmet Needs (slide 20) (also part of segmentation)
All 3 are inter-related, with
segmentation being all encompassing & seminal
-
8/4/2019 Iipm - Marketing Strategy - Lecture 4 - Strategic Analysis - Market, Environmental & Internal
6/22
Competitor Analysis
New / Potential Competitors
Market Expansion: Geographies
Product Expansion: Prince balls Rackets shoes ? Backward/Forward: supplier / customer enter
Integration CCD (Coffee) /
Acquire SCA Mahindra buys Reva
-
8/4/2019 Iipm - Marketing Strategy - Lecture 4 - Strategic Analysis - Market, Environmental & Internal
7/22
Competitor Analysis
Understanding Competitors
Build a Scorecard or Progress/Monitoring Report
Size,Growth
Profitability
BrandEquity &
Positioning
Current &Past
Strategies
CostStructures ExitBarriers
-
8/4/2019 Iipm - Marketing Strategy - Lecture 4 - Strategic Analysis - Market, Environmental & Internal
8/22
Market Analysis
Why do we do it?
1) Make strategic judgments about:
a market / sub-market current, potential participants market attractiveness
2) Understand market dynamics : key success factors, trends, threats, opportunities
-
8/4/2019 Iipm - Marketing Strategy - Lecture 4 - Strategic Analysis - Market, Environmental & Internal
9/22
Market Analysis
Typical Dimensions of Market Analysis
1. Size & Growth 2. Profitability 3. Cost Structure 4. Distribution 5. Market Trends
-
8/4/2019 Iipm - Marketing Strategy - Lecture 4 - Strategic Analysis - Market, Environmental & Internal
10/22
Market Analysis
1) Size & Growth:
Questions / Considerations rate, submarkets (actual vs. potential) too small for the big players? declining markets experience curve pricing
indicators : leading indicators, turning points, analogous industries? Price pressures (over- capacity, commoditization) Category Stagnation (non-differentiation, nothing new, exciting) Buyer maturity, sophistication (value more than just brand), no price premiums Substitutes ( smart phones & cell phones, even PCs) Saturation/Penetration
declining markets experience curve pricing
-
8/4/2019 Iipm - Marketing Strategy - Lecture 4 - Strategic Analysis - Market, Environmental & Internal
11/22
Market Analysis
2) Profitability
SupplierPower
COMPETITION existing firms
PotentialEntrants
Potential
Substitutes
CustomerPower
Porters Five -Factor Model of Market
Profitability (Industry Structure & Competitive Strategy)
-
8/4/2019 Iipm - Marketing Strategy - Lecture 4 - Strategic Analysis - Market, Environmental & Internal
12/22
Market Analysis
2) Profitability : (Right question? Any higher-level question?)
Porters Five Factors
1. Competition: Current/Existing . Future/potential? How many, resources, staying power Points of differentiation, uniqueness? Level of fixed costs (overcapacity & pricing pressures?). Exit barriers? Contracts, relationships New entrants? Barriers, scale, distribution?
2. Substitutes : Ciscco telepresence
3. Customer : retailWal -Mart / travelresorts / integrate back, forward
4. Supplier : concentrated and supplying diverse markets? Intel?
-
8/4/2019 Iipm - Marketing Strategy - Lecture 4 - Strategic Analysis - Market, Environmental & Internal
13/22
Market Analysis
3) Cost Structure :
Relative strategic degrees of freedom; competitive response? Look at Value Chain to see where the fat or opportunities/threats lie?
Air tickets online // containers in 1950s world trade // ready - made garments?
4) Distribution Systems :
Degree of directnesshow many steps? New channels, innovation in channels? Outlet shops, online, door -to-door/direct/multi-tier / bundled / co-branded / telesales,
phone/home-shopping
5) Market Trends :
Whats changing? Whats important? Fads vs. Trends = d riven by demographics, long-term values, technology, cross-category
-
8/4/2019 Iipm - Marketing Strategy - Lecture 4 - Strategic Analysis - Market, Environmental & Internal
14/22
Market Analysis
2) Profitability
SupplierPower
COMPETITION existing firms
PotentialEntrants
Potential
Substitutes
CustomerPower
Porters Five -Factor Model of Market
Profitability (Industry Structure & Competitive Strategy)
VARY BY INDUSTRY
& MARKET
-
8/4/2019 Iipm - Marketing Strategy - Lecture 4 - Strategic Analysis - Market, Environmental & Internal
15/22
Market Analysis: Hot Growth Markets? - cant ignore! Many rush in. (e -commerce, dot.com of late 1990s, early 2000s & 10
yrs later in 2011-12; mobile VAS operators in India)
- Market, economy slows down- Aggressive late entrants buy market share by dropping price - Market leader/ incumbent fights back with new products, price cuts
- Superior Follower (Apple Newton Palm Pilot Blackberry Smart PhoneApple iPod, iPhone, iPad)
Knock Offs, copies
All leads to Shakeout / consolidation Academic Study of highly anticipated, touted new products/markets from
articles/forecasts in Business Week, Fortune, WSJ from 1960-1979:55% of growth forecasts fell short for various reasons :- Overvaluation of technology, poor consumer demand, cost barriers, politicalissues, poor distribution(Roll your own cigarettes, moving sidewalks, tooth-decay vaccines, home grocery delivery)
-
8/4/2019 Iipm - Marketing Strategy - Lecture 4 - Strategic Analysis - Market, Environmental & Internal
16/22
The Competitive Life Cycle
-
8/4/2019 Iipm - Marketing Strategy - Lecture 4 - Strategic Analysis - Market, Environmental & Internal
17/22
Environmental Analysis
One Step removed
(higher level) than market analysis
Technology Government Economics Culture Demographics
Scenario Building
Monitor,analyze;
contingencies
Short-Term Long-Term
Analyze deeply, fast,
plan & act
Forget it! Monitor,analyzeLow
High
IMMEDIACY ( how soon? )
>>>>>>>>>>>>> Strategic uncertainties!
IMPACT ( how important )
12
3
-
8/4/2019 Iipm - Marketing Strategy - Lecture 4 - Strategic Analysis - Market, Environmental & Internal
18/22
Internal Analysis
Know Thyself!
Understanding a business organization in-depthMore information is available!
Analysis based on:1) Financial: Sales, Profits, Costs
2) Organizational structure3) Management style
Identify organizational Strengths, Weaknesses, Constraints and develop responsivestrategies!
-
8/4/2019 Iipm - Marketing Strategy - Lecture 4 - Strategic Analysis - Market, Environmental & Internal
19/22
Internal Analysis
Satisfaction / Loyalty
Quality
Relative Costs
Innovation / NewProducts
EmployeeTalent Pool
CURRENT PERFORMANCE
L-T PROFITS
-
8/4/2019 Iipm - Marketing Strategy - Lecture 4 - Strategic Analysis - Market, Environmental & Internal
20/22
Internal Analysis
Market Attractiveness
- Market size & growth rate- Market profitability- Pricing trends- Competitive intensity / rivalry- Entry barriers- Opportunity to differentiate- Demand variability- Segmentation- Distribution structure- Technology development
Competitive Strength
Company / Product Line / Strategic Business Unit:
- Strength of assets andcompetencies- Relative brand strength (marketing)- Market share & share growth- Customer loyalty- Relative cost position-Relative profit margins- Distribution strength- Production capacity- Technology / Innovation- Quality- Finances- Management strength
McKinsey matrix / GE
matrix portfolio analysis model
-
8/4/2019 Iipm - Marketing Strategy - Lecture 4 - Strategic Analysis - Market, Environmental & Internal
21/22
Internal Analysis McKinsey matrix / GE matrix portfolio analysis model
COMPANY COMPETITIVE STRENGTH
High Medium LowMARKET
ATTRACTIVENESS
High
Medium
Low
Invest / Grow
Earn Selectively
Harvest / Divest
-
8/4/2019 Iipm - Marketing Strategy - Lecture 4 - Strategic Analysis - Market, Environmental & Internal
22/22
News Items Remember Customer Analysis is already presented in class!
e-reading Google Editions
Market Analysis: distribution innovation ;Environ. Analysis: technology; fad or not?
Kids Luxury Brands Environ. Analysis: demographics, lifestyle (both parents working)
Upwardly Mobile Tea Market Analysis: demographics, work styles
Environ. Analysis: import incentive
Nestle global finance community pressure Internal Analysis financial resources
Tiffany watches Issues?