Strategic planning Amity business School Noida

Mamta Mohan

Strategic planning

Perspective of Planning.How to make a Marketing plan.

Mamta Mohan

Corporate and division strategic planning. I Define the corporate mission

II Establish SBUs Assign resources to SBUs - BCG Matrix - GE model - SWOT AnalysisIII Assessing growth strategies. - Strategic planning gap - 3 intensive growth strategies ( Ansoffs product market Expansion Grid)

Mamta Mohan

Marketing Planning: The Basics for Strategy and TacticsPlanning: Process of anticipating future events and conditions and of determining the best way to achieve organizational goals

Marketing planning: Implementing planning activities devoted to achieving marketing objectives

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Strategic Planning versus Tactical Planning

Strategic planning: Process of determining an organizations primary objectives and adopting courses action that will achieve those objectives

Tactical planning: Process that guides the implementation of activities specified in the strategic plan.

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Strategic Planning versus Tactical Planning Top managementGreater proportions of their time engaged in planningUsually focus their planning activities on long-range strategic issuesMiddle level managers Focus on operational planning; creating and implementing tactical plansSupervisors Developing the specific programs to meet goals in their areas of responsibility

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Steps in the Marketing Planning Process

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Elements of strategic marketing planning Corporate missionopportunitiesobjectivesResourcesCorporate & SBU strategyMarketing objectiveMarketing strategiesSelection of target marketMarketing mix decisions

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Defining the corporate mission.

the purpose of Motorola is to honorably serve the needs of the community, by providing products and services of superior quality. At a fair price to our customer., to do this so as to earn adequate profits., which is required for the total enterprise to grow. and by so doing provide an opportunity for our employees and shareholders to grow to achieve the reasonable personal objectives.

In fosys technologies limitedto achieve our objectives in an environment of fairness, honesty and courtesy towards the clients, employments vendors and society at large.E-bay We help people trade practically any thing on earth. We will continue to enhance the online trading experience of all collectors, dealers , smaller business, unique item seekers, bargain hunters , opportunity sellers and browsers.

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To define missionTo define mission address What business are we in, Who is our customer? What is the value to the customer? they are best when they reflect the vision- an impossible dream

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3 major characteristics-Mission3 major characteristicsThey focus on limited Number of goals.Stress the companys major policies and values.They define the major competitive sphere. in terms of industry,Products and applications. competence,Market segment, Vertical , geographical

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Defining the business

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Establish SBUsThe purpose is to develop separate strategies and assign appropriate funding.

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Methods for Marketing PlanningBusiness Portfolio AnalysisStrategic Business Units (SBUs) are key business units within diversified firmsA division, product line, or single product may define an SBUFirms redesign their SBUs as market conditions dictate

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The BCG MatrixMarket Share/ Market Growth Matrix: a marketing planning tool that classifies a firms SBUs or products according to industry growth rates and market shares relative to competing productsStarsCash CowsDogsQuestion Marks

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Corporate and Division Strategic PlanningThe Boston Consulting Groups Growth-Share Matrix

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BCG Market Share/Market Growth Matrix

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1. Stars (=high growth, high market share) - use large amounts of cash and are leaders in the business so they should also generate large amounts of cash. 2. Cash Cows (=low growth, high market share) - profits and cash generation should be high , and because of the low growth, investments needed should be low. Keep profits high - Foundation of a company 3. Dogs (=low growth, low market share) - avoid and minimize the number of dogs in a company. - beware of expensive turn around plans. - deliver cash, otherwise liquidate 4. Question Marks (= high growth, low market share) - have the worst cash characteristics of all, because high demands and low returns due to low market share - if nothing is done to change the market share, question marks will simply absorb great amounts of cash and later, as the growth stops, a dog. - either invest heavily or sell off or invest nothing and generate whatever cash it can. Increase market share or deliver cash

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The Four strategies that can be pursued.

Build increase market shareHold- preserve market shareHarvest- increase short term cash flowDivest- to sell and liquidate

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DisadvantagesHigh market share is not the only success factorMarket growth is not the only indicator for attractiveness of a market

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Assessing the SBUsThe General Electric MatrixThe GE Matrix overcomes a number of the disadvantages of the BCG . Firstly, market attractiveness replaces market growth as the dimension of industry attractiveness, and includes a broader range of factors other than just the market growth rate. Secondly, competitive strength replaces market share as the dimension by which the competitive position of each SBU is assessed.

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Corporate and Division Strategic Planning Market-Attractiveness Portfolio Strategies

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Corporate and Division Strategic PlanningMarket-Attractiveness Portfolio Strategies

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Factors that Affect Market Attractiveness- Market Size - Market growth - Market profitability - Pricing trends - Competitive intensity / rivalry - Overall risk of returns in the industry - Opportunity to differentiate products and services - Segmentation - Distribution structure (e.g. retail, direct, wholesale

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Factors that Affect Competitive Strength-Strength of assets and competencies - Relative brand strength - Market share - Customer loyalty - Relative cost position (cost structure compared with competitors) - Distribution strength - Record of technological or other innovation - Access to financial and other investment resources

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SWOT Analysis

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Planning New BusinessIf There is a strategic gap between future desired sale & projected sales then corporate has to plan new Business.Three Options are availableIntensive GrowthIntegrative GrowthDiversification Growth

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Intensive Growth

Review if any opportunity exist in current business.

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Integrative GrowthBackward IntegrationForward Integration

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Diversification GrowthConcentric Diversification ( Synergies with existing Product Line)Horizontal Diversification ( New Product with appeal to Old customers)Conglomerate Diversification ( New product with no relation to the current products or technology)

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Successful Strategies: Tools and TechniquesAll planning strategies have the goal of creating a sustainable competitive advantage for a firm.

An advantage where other companies cannot provide the same offering or value.

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Porters Five Forces Model

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First Mover and Second Mover StrategiesFirst mover strategy: Theory advocating that the company that is first to offer a product in a marketplace will be the long-term market winner.

Second mover strategy: Theory that advocates observing closely the innovations of first movers and then introducing new products that improve on the original offering to gain advantage in the marketplace.

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Porters generic strategiesOverall cost leadershipDifferentiationFocus

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Business Strategic PlanningDifferentiationPorters Generic StrategiesFocusOverall cost leadership

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Business Strategic PlanningTravelocitys Web site helps users plan the entire trip -- flights, lodging, and car rental.

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Strategic alliancesProduct service alliancePromotional AllianceLogistics AlliancePricing Collaborations.

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Business planContents of marketing planExecutive summaryMarketing strategyFinancial StrategyImplementation Control

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Business Plan/ marketing planCurrent marketing situationOpportunity & issue analysisObjectivesMarketing strategyAction ProgramsFinancial projectionsImplementation & Controls.

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RecapPerspective of Planning.How to make a Marketing plan.

Define the corporate mission II Establish SBUs Assign resources to SBUs - BCG Matrix - GE model - SWOT AnalysisIII Assessing growth strategies. - Strategic planning gap - 3 intensive growth strategies ( Ansoffs product market Expansion Grid)

Mamta Mohan

Assignmentselect a diversified Indian company collect information about its businesses, Comment on mission, suggest how many business units. And Swot analysisMake a business plan for the business you want to take up.

Mamta Mohanhcl

Key ingredient of MM process is insightful creative marketing strategies and plans that can guide marketing.Walk into Brigade road boutiques you will see high fashion branded products with premium price tags. You walk into big bazar you see version of same style foe much less. With a choice of 1,70,000 products and discount rangesfm 6-60 %, big bazar has managed to bring masses and classes together.the reason has that it has emergr indias largest Hyper market.while so many other stores have floundered.its due to clarity of companys mission and soundness of its strategy.Store format, location, layout, merchandising policies, and the host of other elements of the companys offer to the customer reflect a deep appreciation of customers preferences and purchase behaviour.being one of the poineer in the large format, value for money retailing in india, the company has image association of the first movers advantagein this retail apacve.Due to rapid expansion policies, the company drives significant economies of scalein managing their supplychain. The company maintains strong supplier relationship in a partner mode, avoiding the exploitative supplier buyer transactional philosophy. theIT enabled back end operationsand supply chain management increase the relaiability and efficiency of business. The cos ambitious mindset are supported by a flexible mind set that helps the co to adopt to local conditions.Isse sasta or accha din aur koi nahin is big bazasrs promise expressed in advertising canpaigns, nothing could sound simplerYet fulfilling that mission requires a well coordinated set of marketing activities.big bazars guaranteeof the biggest shopping experienceand the bigger value for your money runs on some vaery sound business planning .Defining the Mission of the OrganizationMission: the essential purpose that differentiates one company from othersThe mission statement specifies the organizations overall goals and operational scope and provides general guidelines for future management actions.Determine Organizational ObjectivesAn organization lays out its basic objectives, or goals, in its mission statementThese objectives in turn guide development of supporting marketing objectives and plansWell-developed objectives should state specific, quantitative intentions along with deadlines for achieving themAssessing Organizational Resources and Evaluating Environmental Risks and OpportunitiesThis step involves a back-and-forth assessment of strengths, risks, and available opportunities.Formulating, Implementing, and Monitoring a Marketing StrategyMarketing strategy: a firms overall program for selecting and satisfying a target marketA marketing strategy is aimed at satisfying consumers in the selected target market through a careful balance of the elements of the marketing mix each of which represents a subset of the overall marketing strategyFormulating, Implementing, and Monitoring a Marketing StrategyMarketing strategy: a firms overall program for selecting and satisfying a target marketA marketing strategy is aimed at satisfying consumers in the selected target market through a careful balance of the elements of the marketing mix each of which represents a subset of the overall marketing strategy

organization exists to accomplish something.

It provides a shared sense of purpose direction( 20 yrs) and opportunity to employees.Sony-Akio Morita every body to have access to personal , portable sound.Walkman , portable cd plyer

Business is defines in terms of 3 dimendionsCustomer groups Customer needs and. Technology. eg incadencent lightningSingle businees is collection of related business. That can be planned seperately from rest of the companies.It has its own set of competitorsEach has a manager who controls profitabily.;The BCG Matrix It has 2 dimensions: market share and market growth The basic idea behind it is that the bigger the market share a product has or the faster the product's market grows the better it is for the company.

SWOT is an acronym for strengths, weaknesses, opportunities, and threats

A SWOT analysis is a method of studying organizational resources and capabilities to assess the firms strengths and weaknesses and scanning its environment to identify opportunities and threats

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