12 mm - marketing and strategic planning process

8/6/2019 12 MM - Marketing and Strategic Planning Process

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Marketing Management


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Marketing and Strategic Planning

Process


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SWOT Analysis


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Purpose of SWOT Analysis

It is an easy-to-use tool for developing anoverview of a companys strategic situation

It forms a basis for matching your companysstrategy to its situation


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Threat ofSubstituteProducts


Threat ofNew Entrants


RivalryAmong

Competing

Firms inIndustry

RivalryAmong

Competing

Firms inIndustry

BargainingPower ofBuyers


BargainingPower ofSuppliers


Porters Five Forces Model


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Threat ofNew

Entrants

Threat ofNewEntrants

Threat ofNew

Entrants

Threat ofNew

Entrants


Government PolicyGovernment Policy

Economies of ScaleEconomies of Scale

Product DifferentiationProduct Differentiation

Capital RequirementsCapital Requirements

Access to Distribution ChannAccess to Distribution Chann

ExpectedExpected

RetaliationRetaliation

Threat of

NewEntrants

Threat of

NewEntrants

Barriersto EntryBarriersto Entry


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Bargaining

Power of

Suppliers

Bargaining

Power of

Suppliers




Suppliers are likely to be powerful if:Suppliers are likely to be powerful if:

Supplier industry is dominated by a fewSupplier industry is dominated by a fewfirmsfirms

Suppliers products have few substitutesSuppliers products have few substitutes

Buyer is not an important customer toBuyer is not an important customer tosuppliersupplier

Suppliers product is an important inputSuppliers product is an important inputto buyers productto buyers product

Suppliers products are differentiatedSuppliers products are differentiated

Supplier poses credible threat ofSupplier poses credible threat offorward integrationforward integration


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Bargaining

Power ofBuyers

Bargaining

Power ofBuyers






Buyer groups are likely to be powerful if:Buyer groups are likely to be powerful if:

Buyers are concentratedBuyers are concentrated

Products are undifferentiatedProducts are undifferentiated

Buyers face few switching costsBuyers face few switching costs

Buyer presents a credible threat ofBuyer presents a credible threat ofbackward integrationbackward integration

Product unimportant to qualityProduct unimportant to quality

Buyer has full informationBuyer has full information


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Threatof

Substitu

teProducts

Threatof

Substitu

teProducts









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RivalryAmong

Competing

Firms inIndustry

RivalryAmong

Competing

Firms inIndustry







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Purpose of Five-Forces Analysis

The five forces are environmental forces thatimpact on a companys ability to compete in agiven market

The purpose of five-forces analysis is to diagnosethe principal competitive pressures in a marketand assess how strong and important each one is.


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Porters Five Forces for CoalIndustry

Entry Barriers

Government Policies

Huge capital investment (mining, logistics)

Bargaining Power of Suppliers

Controlled by Govt

Bargaining Power of Customers

Pricing controlled by Govt.

Approx. 95% produced by state and central govt. ownedcompanies

Competition

CIL alone accounts for around 85 % of domestic production


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Boston Consulting Group Matrix


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Boston Consulting Group Matrix

Market ShareHigh Low

Ma

rk

etGr

owth

Low

HighStars Leaders in business

Profit potential May need heavyinvestment to grow

Question Marks Build into Stars or phaseout

Requires cash to holdmarket share

Potential for the future?

Cash Cows Foundation of companyand often stars of yesterday

Established, successfulSBU

Produce cash

Dogs Low market share in adeclining industry

Low profit potential

May require large sums ofmoney to support

?


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Purpose of BCG Matrix

To assess :

Profiles of products/businesses

Cash demands of products

Development cycles of products Resource allocation and divestment decisions


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BCG Matrix for ITC Ltd

HotelsAgri business

FMCG- Others

FMCG-CigarettesITC Infotech


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GE / McKinsey Matrix

Marke tA

ttractivene

ss

Strong Medium Weak

Low

Mediu

m

High

Business Strength


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Marke tA

ttractivene

ss

Strong Medium Weak

Low

Mediu

m

High

Business Strength

Best segment Business is strong and themarket is attractive

Company should allocateresources in this business andfocus on growing the businessand increase market share


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Marke tA

ttractiv

ene

ss

Strong Medium Weak

Low

Mediu

m

High

Business Strength

Decision makersneed to makejudgment on how to

deal with these SBUsBusiness is strong -Market is notattractive Market is strong -Business is not

strong


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MarketA

ttractiv

ene

ss

Strong Medium Weak

Low

Medium

High

Business Strength

Worst segment Business is weak andmarket is not attractive

Decision makers shouldconsider either of thefollowing:

Repositioning these SBUsinto a different marketsegment

Develop better cost-effective offering Get rid of these SBUs andinvest resources into morepromising and attractive SBUs


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GE Matrix for TATA

Marke tA

ttractivene

ss

Strong Medium Weak

Low

Mediu

m

High

Business Strength

ITConsumer

Durables

Textiles


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Ansoff Growth Strategy Matrix

Existing PRODUCTS

New

Existing

MARKETS

New

Market Penetration

Market Development

Product Development

Diversification


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23

Product/ Market Expansion Grid

Market penetration Making more sales to current customers without changing its

products

(e.g.) Sales promotion, Advertising, Price discount

Market development Identify and develop new markets for its current products

(e.g.) Blackberry

Product Development

Offering modified or new product to current market

(e.g.) Intel

Diversification

Develop new products for new markets

(e.g.) Xerox personal computer


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Recap

SWOT Analysis


BCG Matrix

GE Matrix Ansoff Matrix

12 mm - marketing and strategic planning process

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