UNIVERSITY OF GUYANA MARKETING 1101…..MODULE 4 ,WEEK 4

ERIC M. PHILLIPS (MBA,

CTP, BSc. Eng.)

SEPT-DECEMBER 2013

STRATEGIC MARKET PLANNING

THE GARDEN OF EDEN?

TWO UNIVERSAL QUESTIONS???

Tremendous uncertainty about their lives

encased in the two universal questions of

“Who am I?”

“What is my Purpose on Earth?”

WHAT IS EDUCATION?

SYDNEY J. HARRIS

“The purpose of education is to turn mirrors into windows”.

MARTIN LUTHER KING JR.

“To save man from the morass of propaganda, in my opinion, is one of the chief aims of

education. Education must enable one to sift and weigh evidence, to discern the true from the

false, the real from the unreal, and the facts from the fiction."

"The function of education, therefore, is to teach one to think intensively and to think critically. But education

which stops with efficiency may prove the greatest menace to society.“

“Intelligence plus character--that is the goal of true education”

EDUCATION?

SRI SATHYA SAI BABA

“ The end of education is character”.

MARK TWAIN

“Never argue with stupid people. They bring you down to their level

then beat you with experience”.

KNOWLEDGE IS POWER……KNOW THYSELF

MARKETING & YOU

Marketing is an exciting subject.

A Way of Life.

We humans are walking, talking Marketers.

The process of planning and executing the conception, pricing,

promotion and distribution of ideas, goods and services to

create exchanges that satisfy individual and organizational

goal.

FIRST DEFINITION

OVERARCHING DEFINITION

PHILIP KOTLER and GARY ARMSTRONG……………..PRINCIPLES OF MARKETING (14TH EDITION)

MARKETING IS

“CREATING AND CAPTURING CUSTOMER VALUE”

“MANAGING PROFITABLE CUSTOMER

RELATIONSHIPS”

THE MARKETING PROCESS

COGNITIVE DISSONANCE; PERCETION IS REALITY……..THE POWER OF MARKETING

REVISION FROM MODULE 3

OVERVIEW

MARKET INFORMATION SYSTEMS

WHAT IS MARKETING RESEARCH?

THE DIFFERENCE BETWEEN MARKET RESEARCH AND

MARKETING RESEARCH

THE MARKETING RESEARCH PROCESS

THE STRATEGIC IMPORTANCE OF MARKETING RESEARCH

A CASE STUDY

THE VALUE OF MARKETING RESEARCH

MARKETING RESEARCH & MARKET RESEARCH

Can we create a luxury vehicle to challenge

the world's best?

THE MARKETING RESEARCH PROCESS

PRIMARY RESEARCH

SAMPLING METHODS

FISHBOWL TECHNIQUE

OPEN SPACE TECHNIQUE

OPEN SPACE TECHNIQUE

I AM THE PERFECT PRODUCT

MODULE 4… SESSION GOALS

STRATEGIC MARKETING MANAGEMENT

STRATEGIC BUSINESS UNITS

BOSTON CONSULTING MATRIX

SWOT ANALYSIS

I AM THE PERFECT PRODUCT……………INDIVIDUAL ASSIGNMENT

MARKETING PLAN FOR THE THIRD CELLULAR…GROUP EFFORT

LIFE LESSONS

STRATEGIC PLANNING AND THE

MARKETING PROCESS

STRATEGIC PLANNING

The process of developing and maintaining a strategic

fit between the organization’s goals and capabilities

and its changing marketing opportunities.

It involves defining a clear company mission, setting

supporting objectives, designing a sound business

portfolio, and coordinating functional strategies.

“If you fail to plan, you are planning to fail.”

The annual and long-range plans deal with the

company’s current businesses and how to keep them

going.

TO FAIL TO PLAN IS TO PLAN TO FAIL

STEPS IN STRATEGIC PLANNING

Corporate level Business

unit, product

and market levels

Defining the

Company

mission

Setting company

objectives

and goals

Designing

the business

portfolio

Planning marketing

and other functional

strategies

THE MARKETING PROCESS

7

GLOBAL PLANNING IS MORE COMPLICATED

Political/legal forces

Economic forces

1

2

Environmental uncontrollables country market A

Environmental uncontrollables country market B

Environmental uncontrollables country market C

Competitive structure Competitive

Forces

Level of Technology

Price Product

Promotion Channels of

distribution

Geography and

Infrastructure

Foreign environment (uncontrollable)

Structure of distribution

Economic climate

Cultural forces

3

4 5

6

7 Political/

legal forces

Domestic environment (uncontrollable)

(controllable)

STRATEGIC MARKET PLANNING IS AN INTEGRATED AND SOPHISTICATED PROCESS

STRATEGIC BUSINESS MANAGEMENT

VISION DIRECTED

VISION

“TO BECOME THE

PREMIER AND MOST PROFITABLE CARIBBEAN

MEDIA ENTITY IN NORTH AMERICA”

AN INTEGRATED MEDIA ENTITY

One

Caribbean

Media Inc.

EDUCATION

MUSIC

NEWS

SOCIAL

ISSUES

RADIO

97.9 HD2

CARIBBEAN IMPACT

Newspaper

ONECARIBBEANRADIO.COM

Internet Radio & Market Research

VP RECORDS

CARIBBEAN CULTURAL

THEATRE

CARIBBEAN

DIASPORA

INTERNATIONAL

US Markets R

A

D

I

O

S

E

R

V

I

C

E

S

CULTURE M

E

D

I

A

P

R

O

D

U

C

T

S EVENT MANAGEMENT

TRI-STATE

AREA IN THE CARIBBEAN

COMMERCIAL MISSION

To nurture, promote, develop and dominate a cohesive Caribbean

Diaspora market for OCM media products and services

leading to unprecedented brand loyalty and sustainable profits

through exceptional service quality and by anticipating and

exceeding customer needs through innovative marketing strategies

and unique customer control mechanisms.

SOCIAL MISSION

“ BUILDING CARIBBEAN UNITY

BY

CREATING A PLATFORM FOR OUR VOICE TO BE HEARD”

Becoming a “Cause” advocacy media entity thereby meeting targeted needs in the Caribbean

community while simultaneously partnering with Foundations which are predisposed to these

causes on a national and international basis.

Haiti census climate change immigration literacy HIV/AIDS

hypertension unemployment drugs teenage pregnancy

WHAT IS A MISSION?

Mission statement are enduring statements of purpose

that distinguish one business from other similar firms.

A clear mission statement acts as an “invisible hand” that

guides people in the organization.

It identifies the scope of a firm’s operation in product and

market terms.

It promotes a sense of shared expectations in employees

and communicates a public image to important

stakeholder groups in the company’s task environment.

JOHN FERNANDES LTD

John Fernandes Ltd is a private, limited liability company owned and

operated by the Fernandes family. Although in business previously

the Company was formally registered in 1959 by the founder and

first chairman, John Fernandes Snr.

Today the Company has

expanded and along with its subsidiaries, form the John Fernandes

Group of Companies. The present management of the Group of

Companies are second and third generation family members

FERNANDES PRODUCT PORTFOLIO

88% of current family business owners believe the same family or families

will control their business in five years, but succession statistics undermine

this belief. Only about 30% of family and businesses survive into the second

generation, 12% are still viable into the third generation, and only about 3%

of all family businesses operate into the fourth generation or beyond.

The statistics reveal a disconnect between the optimistic belief of today's

family business owners and the reality of the massive failure of family

companies to survive through the generation

JOHN FERNANDES GROUP OF

COMPANIES

Chris Fernandes,

Chairman & C. E. O.

1. Mark Fernandes

Terminal Director

2. Philip Fernandes

Company Secretary

3. Peter Baker

Finance Controller

4.

Bernie Fernandes

Marketing Director

5. Alan Fernandes

Operations &Technical Director

7. Shad Fernandes

Workshop Manager

8. Jeremy Fernandes

Terminal Operations Manager

NEAL AND MASSEY

Our Vision

We shall be a flexible, decisive and opportunistic world class

organization, operating globally, listed on a major stock exchange with

a well recognized brand image. We shall achieve excellent profitability

as an innovative, customer focused, entrepreneurial Company with

empowered CEO’s

Founded in 1880s 50 Companies

Annual revenues (US$ 800 M)

Asset base (US$ 1.5 B)

NEAL AND MASSEY

Parent Company: Neal & Massy Holdings Limited

+A. Lok Jack - Chairman

E.G. Warner - President & Group Chief Executive Officer

*R. Balgobin - Executive Chairman, Quicksilver Convenience Limited

*R. Bermudez - Chairman, Bermudez Biscuit Company Limited

E. Boodasingh - Group Executive Vice President, Neal & Massy

Food Group

R.G. Cave - Chairman, Cave Shepherd & Company Limited

A.C. Fields - Chairman, Banks Holdings Limited

G.A.A. King - Group Executive Vice President, Neal & Massy

Barbadoss

Paula Rajkumarsingh - Group Executive Vice President, Chief

Financial Officer

*B. W. Young - Chairman, Neal & Massy Group Jamaica Limited

NEAL & MASSEY GROUP

The Neal & Massy Group is a conglomerate operating in the majority

of the English-speaking countries of the Caribbean.

We have been in business for over 85 years. We operate across a

wide spectrum of industries, offer a range of quality products and

services and represent several international brands.

We have a long established reputation for integrity and fair play

in our business dealings.

AUTOMOBILE AND INDUSTRIAL EQUIPMENT NEAL & MASSEY

1 NEAL & MASSY TRANSPORTATION GROUP LTD

2 NEAL & MASSY AUTOMOTIVE LTD

3 CITY MOTORS (1986) LTD

4 TOBAGO SERVICES LTD

5 BEST AUTO LTD

6 AUTOMOTIVE COMPONENTS LTD

7 MASTER SERV LTD

8 TRACMAC ENGINEERING LTD

9 PRES-T-CON LTD

NEAL & MASSEY ENERGY AND INDUSTRIAL GASES

NEAL & MASSEY

10 NEAL & MASSY ENERGY LTD

11 NEAL & MASSY ENERGY SERVICES LTD

12 NEAL & MASSY ENERGY RESOURCES LTD

13 NEAL & MASSY Wood Group LTD (Holding 50%)

14 NM INSERTECH (CARIBBEAN) LTD

15 NM INDUSTRIAL GAS HOLDINGS LTD

16 NEAL & MASSY GAS PRODUCTS LTD

17 INDUSTRIAL GASES LTD

18 TRINTOGAS CARBONICS LTD

19 CARIBBEAN INDUSTRIAL GASES UNLIMITED

20 NMAP SERVICES UNLIMITED (Holding 50%)

21 NM PETROCHEMICALS SERVICES LTD

22 NM SUPPLY CHAIN INTEGRATORS (Holding 51%)

FOOD GROUP (FOOD/LOGISTICS/DISTRIBUTION) NEAL & MASSEY

23 HI-LO FOOD STORES DIVISION

24 MARKETING & DISTRIBUTION DIVISION

25 HUGGINS SHIPPING

26 CUSTOMS BROKERAGE LIMITED

27 MELVILLE SHIPPING LTD

28 CMA CGM TRINIDAD LTD (Holding 40%)

FINANCIAL, PROPERTY & OTHERWISE NEAL & MASSEY

29 GENERAL FINANCE CORPORATION LTD

30 NM REMITTANCE SERVICES LTD

31 MAGNA REWARDS (TRINIDAD & TOBAGO) LTD

32 NEALACO PROPERTIES LIMITED

33 NEALCO REAL ESTATE LTD.

INFORMATION TECHNOLOGY, COMMUNICATIONS, OTHER SERVICES (NEAL & MASSEY)

34 NEAL & MASSY ITC GROUP LTD

35 ILLUMINAT (TRINIDAD & TOBAGO) LTD

36 NEALCO DATALINK LTD

37 THREE SIXTY COMMUNICATIONS LTD

38 PEREIRA & COMPANY LTD

39 G4S HOLDINGS (TRINIDAD) LTD

FACTORS FOR MISSION STATEMENT

Product and technologies eventually become outdated,

but basic market needs may last forever.

Management should avoid making its mission too

narrow or too broad. e.g. pencil manufacturer –

communication equipment business.

Missions should be realistic, specific and motivating.

Base on organization distinctive competencies and

should fit the market environment.

OBJECTIVES VS GOALS

Objectives are the end results of planned activity.

They states what is to be accomplished by when and

should be quantified if possible.

The achievement of corporate objectives should result in

the fulfillment of the corporation’s mission.

In contrast to objectives, a goal is an open-ended

statement of what one wishes to accomplish with no

quantification of what is to be achieved and no time frame

for completion.

DESIGNING THE BUSINESS PORTFOLIO

Business portfolio – the collection of businesses and products that make up the company.

Portfolio analysis – a tool by which management identifies and evaluates the various businesses making up the company.

SBU – a unit of the company that has a separate mission and objectives and that can be planned independently from other company businesses.

The company must

1) Analyze its current business portfolio and decide which businesses should receive more, less, or no investment.

2) Develop growth strategies for adding new products or businesses to the portfolio.

THE BOSTON CONSULTING GROUP APPROACH

A portfolio-planning method that evaluate a company’s SBUs in term of their

market growth rate and relative market share.

SBUs are classified as stars, cash cows, question marks, or dogs.

One of the four strategies can be pursued for each SBUs.

Invest more in the SBU in order to build its share.

Invest just enough to hold the SBU’s share at its current level.

It can harvest the SBU, milking its short-term cash flow regardless of the

long-term effect.

The company can divest the SBU by selling it or phasing it out and using

the resources elsewhere.

THE BOSTON MATRIX

Problem Children Stars

Dogs Cash Cows

Market Growth

Market Share

High

Low High

THE BOSTON MATRIX

Problem Child:

- Products having a low market share in a

high growth market

- Need money spent to develop them

- May produce negative cash flow

- Potential for the future?

Problem children – worth spending

good money on?

THE BOSTON MATRIX

STARS – products in markets experiencing high growth rates with a high or increasing

share of the market

- Potential for high revenue growth

THE BOSTON MATRIX

Dogs: – Products in a low growth market

– Have low or declining market share

(decline stage of PLC)

– Associated with negative cash flow

– May require large sums of money

to support

Is your product starting to

embarrass your company?

THE BOSTON MATRIX

Cash Cows: – High market share

– Low growth markets – maturity

stage of PLC

– Low cost support

– High cash revenue – positive

cash flows

Product Life Cycles and the Boston

Matrix

Sales

Time

Effects of Extension Strategies

PRODUCT LIFE CYCLES AND THE

BOSTON MATRIX Sales/Profits

Time

PLC and Profits

PLC

Losses

Break Even

Profits

ANSA McAL

4 DIVISIONs or SBUs

BEVERAGES

CONSUMER GOODS

PHARMACEUTICALS

CONSTRUCTION SOLUTIONS

ANSA McAL BEVERAGES

CARIB

MACKESON

STAG

SMALTA

CARIB MALTA

RIUNITE WINES

NURISHMENT

MAGNUM

ANSA McAL CONSUMER GOODS

TRINCHLORO

HEFTY BAGS

BUMBLEBEE

ARIEL

BOUNTY

PRINGLES

CHEEKIES

LUCAZADE

TROPICAL RYTHYMS

ANSA McAL PHARMACEUTICALS

OLAY

NICE & EASY

HERBAL ESSENCE

GILLETTE

SECRET

THE COLA WARS

COKE IS LIFE

THE COKE STORY

PepsiCo Inc.

Our products can be found in more than 200 countries around the globe. PepsiCo is a global food and

beverage leader with a diverse product portfolio that includes 22 brands that each generate more than $1

billion each in annual retail sales. Take a closer look at the brands and products that make up the PepsiCo

portfolio

THE PEPISCO MISSION

Our mission is to be the world's premier

consumer products company focused on

convenient foods and beverages. We seek to

produce financial rewards to investors as we

provide opportunities for growth and enrichment

to our employees, our business partners and the

communities in which we operate. And in

everything we do, we strive for honesty, fairness

and integrity

THE PEPSI VISION

PepsiCo's responsibility is to

continually improve all aspects of the

world in which we operate -

environment, social, economic -

creating a better tomorrow than today."

PepisCo’s Americas Beverages

Pepsi was founded in 1898 by Caleb Bradham, a New Bern, North

Carolina, druggist, who first formulated Pepsi-Cola.

Today, Brand Pepsi is part of a portfolio of beverage brands that includes

carbonated soft drinks, juices and juice drinks, ready-to-drink teas and coffee

drinks, isotonic sports drinks, bottled water and enhanced waters. PepsiCo

Americas Beverages (PAB) has well known brands such as Mountain Dew,

Diet Pepsi, Gatorade, Tropicana Pure Premium, Aquafina water, Sierra Mist,

Mug, Tropicana juice drinks, Propel, SoBe, Slice, Dole, Tropicana Twister and

Tropicana Season's Best

SCOPE OF OPERATIONS

Pepsi Beverages Company (PBC) is PepsiCo's beverage manufacturing,

sales and distribution operating unit in the United States, Canada and

Mexico.

PBC handles approximately 75 percent of PepsiCo's North America

beverage volume. Its diverse portfolio includes some of the world's most

widely recognized beverage brands, including:

Pepsi, Mountain Dew, Sierra Mist, Aquafina, Gatorade, SoBe, Lipton,

and Amp Energy. In many markets, PBC also manufactures and/or

distributes non-Pepsi brands, including Dr Pepper, Crush, ROCKSTAR,

and Muscle Milk. The operating unit is headquartered in Westchester

County, New York and employs approximately 70,000 people.

PEPSI FOODS

PepsiCo Americas Foods (PAF) is PepsiCo's food and snack business in

North and South America. Its portfolio of businesses includes Frito-Lay

North America, Quaker Foods & Snacks, Sabritas, Gamesa and Latin

America Foods.

FRIT 0LAY NORTH AMERICA includes LAY'S® and RUFFLES® potato chips, DORITOS®

tortilla chips, TOSTITOS® tortilla chips and dips, CHEETOS® cheese flavored snacks,

FRITOS® corn chips, ROLD GOLD® pretzels, SUNCHIPS® multigrain snacks, CRACKER

JACK® candy coated popcorn.

QUAKER FOODS NORTH AMERICA .Its brands today include Quaker oatmeal, Life and

Cap'n Crunch ready-to-eat cereals, Aunt Jemima mixes and syrups, and Rice-A-Roni, Pasta

Roni and Near East side dishes

SABRITAS :Headquartered in Mexico City, Sabritas is a leader in the Mexican snack and fun

food market. the business manufactures and markets several local brands such as Crujitos,

Poffets, Rancheritos and Sabritones. Sabritas controls around 80% of the Mexican snacks

market.

GAMESA :Headquartered in Monterrey, Mexico, Gamesa is a global leader in the cookies

market, and Mexico's largest manufacturer of cookies. The company has offered its consumers

a wide variety of high-quality products for every lifestyle, producing pastries, oats, cereals and

other related products. It has production facilities in five states across Mexico. Among its most

successful brands are Marías Gamesa, Emperador, Arcoiris, Mamut, Chokis, and Maizoro.

PEPSI IN EUROPE

PepsiCo Europe is one of the region’s leading food and beverage

companies. Encompassing over 60,000 employees, almost 900

million consumers, 11 time zones and 45 countries, the business

spans from Russia west to Portugal, and Turkey north to Norway.

With estimated net revenues of $13 billion, PepsiCo Europe brings

to the market some of the world’s most respected household

names – brands including Quaker Oats, Tropicana, Gatorade,

Walkers, Lay’s and Pepsi-Cola, as well as local favourites such as

Walkers, Fruktovy Sad, Ya, Tonus, Hrusteam, Russky Dar,

Yedigun, Alvalle, Kas, Matutano, Benenuts, Star Chips, Duyvis

and Sandora.

PEPSI…ASIA, AFRICA & THE MIDDLE EAST

PepsiCo Asia, Middle East & Africa (“AMEA”) makes, markets and sells a number of leading

snack food brands including Lay’s, Kurkure, Chipsy, Doritos, Smith’s, Cheetos, Red Rock Deli

and Ruffles, through consolidated businesses as well as through noncontrolled affiliates.

Further, either independently or through contract manufacturers, AMEA makes, markets and

sells many Quaker-brand cereals and snacks.

AMEA also makes, markets and sells beverage concentrates, fountain syrups and finished

goods, under various beverage brands including Pepsi, Mirinda, 7UP and Mountain Dew.

These brands are sold to authorized bottlers, independent distributors and retailers. However,

in certain markets, AMEA operates its own bottling plants and distribution facilities. In addition,

AMEA licenses the Aquafina water brand to certain of its authorized bottlers. AMEA also, either

independently or through contract manufacturers, makes, markets and sells ready-to-drink tea

products through an international joint venture with Unilever (under the Lipton brand name).

CULTURE WARS

PRODUCT PORTFOLIO MATRIX

ANALYZING YOUR SBUs

MAPPING THE FUTURE

ANSOFF MATRIX

Developing Growth Strategies

Existing New

products products

Existing

markets

New

markets

Market

Penetration

Market

Development Diversification

Product

Development

MARKET PENETRATION

THIS IS A STRATEGY FOR COMPNAY GROWTH BY

INCREASING SALES OF CURRENT PRODUCTS TO CURRENT

MARKET SEGMENTS WITHOUT CHANGING THE PRODUCT.

THIS CAN BE DONE THROUGH INCREASING THE NUMBER OF

OUTLETS OR REDUCING PRICE

A STRATEGY FOR COMPANY GROWTH BY IDENTIFYING AND DEVELOPING NEW PRODUCTS TO CURRENT MARKET SEGMENTS

MARKET DEVELOPMENT

PRODUCT DEVELOPMENT

A STRATEGY FOR COMPANY GROWTH BY

OFFERING MODIFIED OR NEW PRODUCTS TO

CURRENT MARKET SEGMENTS

DIVERSIFICATION

A STRATEGY FOR COMPANY GROWTH THROUGH

STARTING UP OR ACQUIRING BUSINESSES

OUTSIDE THE COMPANYS CURRENT PRODUCTS

AND MARKETS

Factors Influencing Company Marketing Strategy

TARGET

CONSUMERS

Product

Price

Promotion

Place Suppliers

Marketing

Intermediaries

Publics

Competitors

Demographic-

economic

environment

Technological-

natural

environment

Social-

cultural

environment

Political-

legal

environment

MARKET SEGMENTATION

DIVIDING THE MARKET INTO DISTINCT GROUP OF BUYERS WHO HAVE

DISTINCT NEEDS, CHARACTERISTICS OR BEHAVIOUR AND WHO MIGHT REQUIRE

SEPARATE OR SPECIFIC PRODUCTS OR MARKETING MIX

The four Ps of Marketing Mix

Target

customers

Intended

positioning

Product Variety

Quality

Design

Features

Brand name

Packaging

Services

Place Channels

Coverage

Assortments

Locations

Inventory

Transportation

Logistics

Promotion Advertising

Personal selling

Sales promotion

Public relations

Price List price

Discounts

Allowances

Payment period

Credit terms

The Marketing Environment and Competitor Analysis

SWOT analysis

PEST analysis

Five forces analysis

SWOT analysis

Strengths (internal)

Weaknesses (internal)

Opportunities (external)

Threats (external)

PEST analysis

Political factors

Economic factors

Socio-cultural factors

Technological factors

STRATEGIC MARKET PLANNING

End of week 4