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Strategic Marketing Planning


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To gain an understanding of:

The nature and scope of planning and how it fits within themanagement process

Similarities and differences among mission, objectives,strategies and tactics

The essential difference between strategic company planningand strategic marketing planning

The steps involved in strategic marketing planning

The purpose and contents of an annual marketing plan

How planning models can be useful aids in developing amarketing program


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PLANNING

Analyze situation

Set goals

Select strategies

and tactics

IMPLEMENTATION

Organize

Staff

Direct

EVALUATION

Compare

performance

with goals

Feedback, so management can adapt future plans and their

implementation to the changing environment

The Management Process


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Strategic Marketing Management

strategic management involves planning,implementation, and evaluation

implies ongoing revision of the marketing program,based upon feedback

consistent with the firms mission statement and basedupon clear goals and objectives

strategies suggest how firm will reach its goals

tactics relate to how strategies will be implemented

policies guide how the firm does business


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Strategic company planning

1. Define org. mission

2. Conduct situation analysis

3. Set org. objectives

4. Select appropriate strategies

Strategic marketing planning

1. Conduct situation anal.

2. Develop marketing obj.

3. Determine positioning and

differential advantage

4. Select target markets,

measure market demand

5. Design strategic

marketing mix

Annual marketing planning

Prepare annual marketing plan

for each major product and

company division

PLANNING SEQUENCE

IMPLEMENTATION AND EVALUATION


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Strategic MarketingPlanning

strategic planning is based upon what is happeningin the firms environment

matches resources with the opportunities, changes,and characteristics of the marketplace

must be consistent with the firms mission objectives must be actionable and measurable

formulation of objectives is often based upon ananalysis of strengths, weaknesses, opportunities, andthreats (SWOT)


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Annual MarketingPlanning

short-term plan prepared for a firms major functions

summarizes strategies that will be used to achievespecific objectives over the year

points out other activities that must be performed inimplementation and evaluation

outlines who is responsible and what resources are tobe made available

represents a road map to guide marketing activityover the coming year


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Contents of theAnnual Plan

executive summary

situation analysis --including resources

objectives tailored toorganizational goals

strategies relating tosegments and

marketing mix

tactics --activities tocarry out strategies

financial schedules --projections

timetable to guideimplementation

evaluation ofperformance against

goals


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PremiumCigarette


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Mission and Vision

Mission:

To prove ourselves as thebest CigaretteManufacturingCompany in India

Vision:

To promote a Swadeshi

product such thatPremium is known forBest Quality and LowerPrices.


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S.W.O.T Analysis of Tobacco and Cigarette Industry

Strengths

India is one the largest manufacturers of tobacco in terms ofproduction.

India amounts for 5.8% of the international trade and ranks 5thafter

Brazil, U.S.A. Turkey and Zimbabwe.

Weakness

The growth of various varieties of Tobacco is at the mercy ofunscrupulous traders and middlemen. The burden of Tobacco tax hasincreasingly shifted to cigarette with the removal of duty on rawTobacco since 1979, resulting in discriminatory rates of duty comparedto other Tobacco products.

Prohibition of Direct advertising.


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Opportunities Central Tobacco Research Institute at Rajahmundry has

been entrusted with the research for development ofalternative uses of Tobacco in view of anti-smokingcampaign.

India's share in world cigarette production has remained ataround 1.7% whereas India's exports of around 2.8 billionsticks of cigarette per year amounts for less than 1%of theworld export of cigarette.

Threats Various N.G.Os and Forums against the use and

consumption of tobacco.The passing of various bans onsmoking.


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MARKET SIZE & FORECAST

The exports of Indian tobacco and tobacco productscontinued to grow for the sixth consecutive year andregistered a record performance during the fiscal2011-12 surpassing all the previous records on three

countsthe exports have surpassed- 200million kgsmark in quantity terms and Rs.2000 crores markand US$500 million mark in value terms. Exports oftobacco and tobacco products increased by about

13% in quantity terms and 17 % in rupee terms on y-o-y basis. In dollar terms the increase is about 32%.This is a record performance


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Positioning:

Positioned to the Indian consumer as the Qualityproduct at cheap price (More for Less)

Positioned to the exotic customers as a Premium

product at competitive prices and best qualityproduct.

Positioned as a Cigarette, which has the minimumburning smell from the mouth after consumption

and good to taste in comparison with the otherbrands.


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Competitive Advantages:

Unique taste than the other brands.

Provision of extra filterwith the packs ofStrong and mild.

Best quality provided at reasonable Price.

Low smoke

Avoid the burning smell from the mouth of the

consumer. Provide better consumer satisfaction than the

other products in the market.


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Pricing:

Price penetration strategy to be used.

Premium Strong@ Rs.60 per Pack of 20

Premium Mild @ Rs.50 per Pack of 20

Premium Light@ Rs.45 per Pack of 20


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Expected Production:

3,000 Cigarettes by a roller everyday or 9,000 MasterBoxes annually by 100 rollers.

9,000 Master Boxes

60% Domestic 40% Exports

5,400 Master Boxes 3,600 Master Boxes

@ Rs30/light packet @0.08$/Packet- $48@ Rs.35/mild Packet-

@ Rs4 0/strong Packet-

Note:-One box contains 10 such packets and 1 master box accommodates 60boxes


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MAJOR BRANDS


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Clauses required:

No Objection Certificate (NOC) on pollution angle from the departmentof technology and Environment.

Approval of factory building and machinery layout from the inspectorof factories.

Site clearance from the town and the country planning department

Permission for land use, conversion and ground water clearance fromagricultural department.

Power feasibility certificate from the electricity department.

Clearance from health and revenue Department.

License from Food Administration for the canteen in the premises. License from the civil supplies department


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Promotional Techniques:

Sponsorships to local cultural and sport events.

Sponsoring constructions of Family Parks.

Public announcements and publicity onRickshaws.

Posters at the points of sales.

Internet for Exotic Markets.


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RIVALRY AMONGCOMPETING SELLERS IN THE

INDUSTRY

1. EXISTING CIGARETTE

MARKET.

2. LOCAL POPULAR EXISTING

BRAND IN BIDI LIKE MEGHNA,

501 PATAKHA

POWER OF BUYERS

1. TASTE IS

DISLIKED

2. NEW CONCEPT HIT

THE CigaretteMARKET

3. CHEAP PRICED HIT

THE BUYERS

POWER OF

SUPPLIERS

1. IF THE

SUPPLIERS STOPTO SUPPLY US

RAW, MATERIAL

2. LATE SUPPLY

3. BAD QUALITY

4. HIGHER PRICE

POTENTIAL NEW

ENTRANTS

NEW COMPANY CAN

EMERGE

GOVERNMENT CAN

ENCOURAGE THE

Cigarette MAKERS.

THREATS OF

SUBSTITUTE

PRODUCT

DIFFERENT

CIGARETTE

CIGAR

HUKKAS


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