Mag. Aleksandra Kregar Brus Marketinški fokus, september … · CATEGORY A CATEGORY B ... STRATEGY...
Transcript of Mag. Aleksandra Kregar Brus Marketinški fokus, september … · CATEGORY A CATEGORY B ... STRATEGY...
AGENDA
• New dimensions in business space
• New role of marketing
• The concept of strategy
• DK group: Corporate strategy – business strategy – brand strategy
• Mindset transformation
THE WORLD IS CHANGING
• E-economic growth
• market evolution
• shifts in consumer tastes
• social changes
• political events
• huge discontinuities
• outsourcing
• geographic proximity is not essential
for working together
• chaos, speed
• complexity, big money
• self interest:
LIFE IN ALL INDUSTRIES REMAIN DIFFICULT
• Mature industry
• High-tech industry
• Global industry
• Strong brands in companies portfolio
• Consumer trends and lifestyle changes
• Tough raw materials environment
(NEW) COMPANY & MANAGEMENT PRIORITIES
• people
• management developement
• growth
• profit
• shareholder value
• new markets entrance
• regional contribution
• consolidation
• corporate governance
• ROA, ROE, ROM
• risk management
AGENDA
• New dimensions in business space
• New role of marketing
• The concept of strategy
• DK group: Corporate strategy – business strategy – brand strategy
• Mindset transformation
MARKETING?
VBM
EVA
CVA
EBIT
EBITDA
DCF
CM
NOPAT
COGS
Cash flow
WACC
CE
ROIC
ROCE
EPS
ROA
ROE
ROI
ROS
SHIFTS IN BUSINESS ENVIRONMENT
• retail CONSOLIDATION
• media FRAGMENTATION
• consumers / shoppers DEMANDS MORE
AGENDA
• New dimensions in business space
• New role of marketing
• The concept of strategy
• DK group: Corporate strategy – business strategy – brand strategy
• Mindset transformation
STRATEGY IS ABOUT CHOICE
Where to compete?
How to compete?
Company earns return on its capital that exceeds the cost of its capital
LEVELS OF STRATEGY
Source: Grant R., 2005
R&D R&D
HR HR
MARKETING MARKETING
FINANCE FINANCE
PRODUCTION PRODUCTION
CORPORATE
STRATEGY
FUNCTIONAL
STRATEGIES
BUSINESS
STRATEGY BRANDS STRATEGY
CATEGORY A CATEGORY B
OWNERS,
TOP MANAGEMENT
INDUSTRY
ATTRACTIVNESS
Which industry
RATE OF RETURN should we be in?
ABOVE THE
COST OF CAPITAL
How do we make money?
COMPETITIVE
ADVANTAGE
How should we compete?
source: R.Grant
HOW DO WE MAKE MONEY?
CORPORATE
STRATEGY
BUSINESS
STRATEGY
AGENDA
• New dimensions in business space
• New role of marketing
• The concept of strategy
• DK group: Corporate strategy – business strategy – brand strategy
• Mindset transformation
DK group STRATEGY HIERARCHY
DK group
management
Business units
Business units
Business units
Level 1
Level 2
Level 3
phase 1
phase 2
Level 4
CORPORATE STRATEGY +OBJECTIVES
CATEGORY STRATEGIES + OBJECTIVES
BRAND VISION + STRATEGIES
FIRST YEAR DETAILEDIMPLEMENTATION PROGRAM
SITUATION ANALYSIS
GOALS
SEGMENTATION - TARGETING
GROWTH STRATEGY - Must win battles
BOTTOM LINE- financial projections
SITUATION ANALYSIS
GOALS
SEGMENTATION - TARGETING
BRAND PLATFORM - BRAND VISION
5 P
RESOURCES ALLOCATION
BOTTOM LINE- financial projections
Product Categories’ Strategic Positioning
Competitive Strength
Market Attractiveness
Spices (Evo)
Soups
(Argo)
1
8
Instant
Coffee
Espresso Coffee
Turkish Coffee
Tea
PatéSoft
Drinks
Bottled Water
Cereals
(ZP)
Functional
BeveragesConfectionery
Savoury
Snacks
Cereals
(Coko)
Spices
(Maestro)
Pres. Veg.
(Droga)Salt
Baby
Food
Spices (Evo)
Soups
(Argo)
8
CORPORATE DK portfolio – build the strategy on our strenghts
CATEGORY STRATEGIES - go for regional reach
I. Situation analysis
II. Category / sub - category vision, goals and strategy
III. SegmentationTargetingPositioning• Identify groups of similar customers and potential customers
• Evaluate the segments (size and growth)
• Choose which segment to target
IV. Implemetation
• Clear decisions on Must-win-battles
• Define Strategic trusts & key actions
• KPI
• Financials – bottom line
I. Situation analysis� Consumer behaviour� The competitive arena� Dynamics of the market process
II. Develop brand(s) goals and strategy
III. Develop brand platform – brand vision
IV. 5 P� Marketing strategies over the brand / product life cycle
V. Resource allocation� Estimation of investments and other resource needs� Prioritization of investments
VI. Financials – bottom line� Sales projections� Market share evolution� Profit line
BRAND(S) STRATEGY - go for regional reach
Show root strenght• Symbols and values of the brands
Define target group• The person and the situation for which the brand is used (not just demographics)
Show Insight• How the brand can best solve a problem, or create an opportunity for them
Show benefits• The differentiating functional and emotional benefits that motivate purchase
Present reason to believe• The proof the brand offers
Present Values, Beliefs and Personality• What the brand stands for and believes in and its personality
Define discriminator• A statement of your point of difference
Present brand essence• The distillation of the brand's genetic code into one clear thought
BRAND(S) VISION – what do we want our brand to become?
WAYS OF BUSINESS GROWING
• Generating sales growth
• Must win markets
• Strong performance by all categories
• Growing market shares
• Strong brands growing above the markets
• Enchancing mix
• Mix contributing to margin improvement
• Driving margin
• COGS improvement
• Cash generation
• Driving efficiency
• Moving to higher performance
HOW WE DEAL WITH RISKS?
Risk is all about three questions:
� What can happen?
� What would be the result?
� What can be done to minimize the impact?
Risks company face at all stages of company
developement:
� Growth risk
� Innovation risk
� Market risk
� Financial risk
� Team & management risk
Risk categories
� Management
� Technology
� Resources
� External
� Political
� Timing
THE HIGHEST RISK
=
no (clear) company strategy
MARKETING
STRATEGY
ASSESSING
THE RISK
ASSESSING
SV CREATION
Vir: M.McDonald, B.Smith, K.Ward, 2006
AGENDAAGENDA
• New dimensions in business space
• New role of marketing
• The concept of strategy
• DK group: Corporate strategy – business strategy – brand strategy
• Mindset transformation
CHANGE IS POSSIBLE TO MANAGE
� Understand where you are
� Understand where you want to be
� What are the measures for having got there
� Communicate, involve, develop people
� Prepare for the unexpected
TOP DOWN PROCESS
STRATEGIC POSITIONING• Vision / Objectives
• How will we grow?
• How will we compete?
•Who will we serve?
• Brand portfolio
DELIVERING THE VALUE• Segments audit
• Brand management
• Functional alingment
• Portfolio management
TACTICS• Tactical objectives
• Tactical audit
• “4P”
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HOW TO THINK FASTER & DIFFERENTLY THAN
COMPETITION?
• understand the drivers of change
• stay close to customers and consumers
• have the ability to:
�Anticipate trends
�Forecasting
�Spot trends
�Create environment that let the best idea