Marketing Strategy 02/10/2012
Last week • Analysis before strategy. Which companies do you perceive to be market leaders? • Monday: Talked quite extensively about TomTom. o Strategy: Wants to be the biggest company of navigation devices and lead the market of products. Wants to be a market leader. • Other companies who are market leaders, see slide. Like Unilever, Coca-Cola (most market share), Google, Apple, Nike. • Why are they market leaders and what has created this dominant position for them? o Strong consumer focus (understanding what they want and developing products for that, like Unilever). o Innovation (developing new products, like Google). o Technology, new products, consumer focus, branding • But also Aldi and Wal Mart are market leaders. Velo (bikes, innovation). Three paths to market leadership: Value disciplines (Treacy and Wiersema, HBR, 1993) • Operational Excellence o Providing customers with reliable products or services at competititve prices and delivered with minimal difficulty or inconvenience. o Examples: Dell, Wall Mart • Customer Intimacy o Segmenting and targeting markets precisely when tailoring offerings to match exactly the demands of those niches. Operational flexibility is needed to respond quickly to almost any need. o Examples: Home dept, Kraft. • Product Leadership o Offering customers leading edge products and services that consistently enhance the customer’s use or application of the products, thereby making rivals’ goods obsolete. o Example: Apple. • These are 3 ways to try and reach a market leadership. Question: Can you Excel at multiple value disciplines? • You can be, but the paper favors 1 thing. • Example of a company that did 2 things. o Toyota: Operational Excellence. Then they introduced hybrid cars and engaged in product leadership. o Question: Is it possible to do both at the same time? Very difficult, like Toyota is known for very reliable cars and then they had to recall thousands of Prius cars worldwide. It is complicated to engage in more than 1 thing. • Which strategy to focus on? What fits with the organization. To become successful it is interesting to know who your customers are. They have to be interested in the proposition. Choosing disciplines or choosing customers? • One set of potential customers are less particular about what they buy than they are about getting it at the lowest price possible and with the least possible hassle. o This business
o Add text In order to be successful you need a customer group that is interested in there.
Choosing where to compete: Market attractiveness business position matrix • McKinsey/GE) • You match the internal perspective with the external possibilities. The marketing audit: • External analysis o Customer analysis: Motivations, unmet needs, segments. o Competitor analysis: Strategic groups, strategies, weaknesses. o Market/submarket analysis: Size, growth, entry barriers, cost structure, distribution systems, trends. o Add text • Internal analysis o Add text • Based on this audit you can see where you’d be most successful/where tochange. Customer Analysis: What do we buy? • Theodore Lewis is for this. • Fujifilm o What do they sell? Camera’s Film • Fujifilm: What market ar ewe in? what is our competition? o Traditionally: Filmroles and Kodak o Then other camera’s (fancy ones), then apple became a competitor. o If you think traditionally you are ‘wrong’ when you look at competition. The iphone is also a problem! • What do Fujifilm customers buy? o They made a transition. o Kodak didn’t survive, they were too much focused on their current products and defined competition accordingly. They went bankrupt. Kodak was a very internally oriented company; didn’t have that much outside perspective. • Product vs. market definition. o Product definition might be too limited. See the slide. • What do ipad buyers buy? o Status, then a competitor could be luis vuitton. If you define competition as making notes then Samsung is...
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