chap 9,strategies for firm
DESCRIPTION
This slide will give overview of leader, challenger & followers. it also added the market nicher. here you will get which kind of strategy is required to defence, attack & protectTRANSCRIPT
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Marketing Management Prepared by
PROF. RAJESH KUMAR(MBA IMT, GBD,SIX-SIGMA BLACK BELT CERTIFIED)
Prof. of IMT-CDL(DIMS)IP UNIV
(Ex. HOD-MARKETING,BSD)E:[email protected]
P:9810275444www.marketingandbrandingguru.com
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“Strategy is a choice on how to compete.”
- Michael Porter
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Hypothetical Market Structure
10%MarketNichers
20%Market
Follower
30%Market
Challenger
40%MarketLeader
Market Leader
For maintaining the market leadership the firm must maintain the three possible steps.
• Expanding total Market • Defending Market Share• Expanding Market Share
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Market leadership
Expansion of the overall market
Guarding the existing market share
Expansion of the current market share
• Strong market positioning
• Developing competitive advantage• Product / process
innovation• Heavy advertising
• CRM• Strong distribution
relations
• Heavy advertising• Improved distribution
• Price incentives• New product
development• Mergers• Takeovers
• Geographic expansion• Distributor expansion
• Target groups –currently non-users• Identifying new
uses for the offering• Increasing usage
rates
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Expanding the Total Market
New customersNew customers
More usageMore usage
New Customer
• New Customer On the basis of features, Price & service one company
can find out its new customer base. Company can find out this solution by searching the user in three ways
• Market Penetration strategy Those customers might use it but they do not.• New Market Segment Strategy Those customer never use it • Geographical-Expansion Strategy Those Customers who lives elsewhere
More Usage
• More Usage Increasing the usage in existing customer by
several attractive ways will be the best solution. It can be done by using the following process
• Increase the gradient• Force customer to increase the usage
More Usage
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Six Types of Defense Strategies
Tata Brand: Position Defense
Position Defense
• Position Defense
Make the brand much superior almost leader in the market.
Like Maruti, Tata Truck.
Flank Defense
• Flank Defense
Here Company prepare the outpost to protect its weak front. Company may launch the other product to counter the attack.
Like surf excel came out with pouch after attacked by
Nirma. It was to protect its main brand.
Preemptive Defense
• Preemptive Defense
Here company wants to defense itself by attacking before than competitors. The attack can be by Guerrilla process. Company can attack the competitors by randomly & anywhere.
Like SBI opened its branch approx 26.5K(14k own & 12.5k
associate bank) & 45k ATM
Counteroffensive Defense
• Counteroffensive Defense
When hit by the attackers most of the company responds aggressively & counter attacked to the company frontal or hit its flank position.
Like Reliance & Airtell hit Tata Indicom by decreasing
its 1p/s call.
Mobile defense
• Mobile defense
Here leader stretch its domain beyond the current & meet in new territory.
Like Reliance now indulge in all types dealing
Hamara Bajaj: Contraction Defense
Contraction Defense
• Contraction Defense
Sometime big company leaves their one or more area to give more focus on their parent goods or area. It is also known as strategic withdrawal.
Like: Tata soap Ok, Bajaj Auto
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Other Competitive Strategies
Market Challengers
Market Nichers
Market Followers
Market Challenger Strategies
• Define the strategic objective and opponents
• Choose a general attack strategy
• Choose a specific attack strategy
In Pakistan, Tapal has challenged Unilever to emerge as a serious competitor
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General Attack Strategies
Frontal Attack
Encirclement Attack
Bypass Attack
Flank Attack
Guerrilla Attack
General Attack Strategies
Frontal Attack
Frontal Attack: Here company attack to other company by copying almost the same theme of price, advertisement, Product & distribution. Expert says that that company will win which has greater resource.
Like War of Coca Cola & Pepsi
Flank Attack
Flank Attack: Here company attacks the other company’s weak point. It can find out the weak point by geographical & segmental. The challenger identifies spot area where company underpins.
ExampleLG identify the geographical & launched its small
town & rural market Color Television Sampoorna. Color channel beat all the big competitors by
adopting different segment.
Encirclement Attack
Encirclement Attack: Here Challenger attack the big company by offensive attack in all front, by superior product & high quality service. Challenger almost attacks in offensive way to the established company.
Like Google attacked on Yahoo in all front like search
Engine, mail, News, Chat etc.
Sony Brand:Bypass Attack:
Bypass Attack:
Bypass Attack: It is the most dangerous indirect assault strategy to attack the company. Here challenger attacks on that field where there is no base of present company.
LikeNirma did it at the time of launching
Guerilla Attack:
Guerilla Attack: It is basically small, intentionally & harasses attack by the company or challenger to the existing company.
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Market Follower Strategies
Counterfeiter
Cloner
Imitator
Adapter
Market Nicher Strategies