Strategic Marketing Business Plan

( Five Stage Modular Approach to Marketing strategy)

Module 1: Product strategy( MS-3) Module 2: Market strategy

Module 3: Competitive strategy Module 4: Customer strategy

Module 5: Segmentation strategy

Marketing Strategy( MS-4)

Module 2:Market Strategy

Module3 :Competitive strategy

 Strategic Marketing Business Plan
(For market opportunity for growth and/or strategic
investment)

segmentation Product
Where to invest
(product) •Expansion
When to invest
(market) •New product launch

how to invest Entry of new player

(competitor) customer Market
& • Targeting new markets
who will buy (Domestic/ global)
(customer)

Competition
 Strategic Marketing Plan : Assignment for submission by every student
(30 marks/ only hard copy)

• Market opportunity for expansion in the Indian tyre industry by leading

players like MRF Ltd, Apollo, J.K, etc : Scenario building for next five
years( Expansion/ Green field project)

• Market potential for small car in India ( such as Nano and other potential
new entrants) : Scenario building for next five years( new product)

• Emerging competition in the Indian cement industry and scope for

creating new capacities by major players ACC, Ambuja cement, Birla
group, J.K. cement, etc: Scenario building for next five years( major
investments)
Strategic Marketing Plan : Assignment for submission by every student
(30 marks/ only hard copy)

• Strategic marketing plan for the Indian washing machine industry

with major players like LG, Samsung, Whirlpool, IFB, etc: Scenario
building for next five years( target customer, price range & regional
segmentation)

• Analysis of Indian aviation industry, the need for strategic

initiatives by leading airlines like Indian, Jet Airways, King Fisher,
Spice Jet, Go Air, etc (Emerging markets (metros, tier1/2 cities),
growth in passenger traffic, customer servicing, profitability, etc)

• Emerging trend in the Indian Retail business: Opportunities and

threats for global players like TESCO, Wal-Mart, Metro and Indian
major groups like Reliance, Birlas, Tatas, Future Group, Spencer's,
etc: Scenario building for next five years
 Market Strategy: Environmental Audit & Analysis

External environmental analysis: PEST Frame work

 P: Political & legal factors

 E: Economic factors
 S: Socio, cultural, demographic factors
 T: Technological factors
Internal (organizational) marketing audit analysis:

 Sales & market share (past, present & future)

 Brand loyalty & customer servicing/ satisfaction
 Sales, cost structure & profitability( current/ long term)
 New product activity & technology
 Market Strategy: Dimensions of market analysis

Relates to industry or product

• Analysis of past trend & current market status

• Prevailing market forces & key success factors (KSF)

• Future market potential & demand projections

(Short, medium and long term/ use forecasting methods)

• Market distribution systems & channels

• Market profitability & cost structure

 Michael Porter’s Five factor model for industry analysis

Opportunity for growth & new entrants

 Market Strategy: Risk of high growth markets

Risks of High
Growth markets

Market changes
Competitive risk Firm limitations
•New technology
•Over crowding
•Price instability
•Resource constraints
•Superior competitive entry
•Changing KSF
•Low cost advantage •Distribution constraints
•Disappointing growth

•Indian aviation industry

•Indian consumer durable industry

•Indian passenger car industry

 Market Strategy: BCG growth share Matrix

(Allocating resources amongst SBUs and comparison at a glance)

Competitor Analysis: Understanding Competitors & actions

Image and
Positioning Objectives and
Size, Growth Commitment
& Profitability

Strengths and Competitor Current and

Weaknesses Past Strategies
Actions
Exit Barrriers Organization
and Culture
Cost Structure

10
Figure 4.3
 Competitor’s Strengths & Weaknesses

Innovation
Technology, new product
Tech superiority, etc
Management
Strategic goals, Manufacturing/operations
Decision making process, Economies of scale,
entrepreneurial thrust, etc Productivity,
Sourcing, etc

Marketing
Finance/ risk analysis
differentiation, Pricing
Financial capability
Brands, distribution
Access to capital, credibility,
Positioning, selling, etc

Customer base
Customer segments,
Market share, CRM, etc
 Competitor Analysis: The Value Chain

Firm Infrastructure M
ar
Support
Activities

Human Resource Management gi

n
Technology Development
Procurement

Inbound Marketing
Operations Outbound & Service
Logistics Logistics M
Sales ar
gi
n

Primary Activities
Figure 4.5 Source: Reprinted with permission  1985 Michael Porter
 Thank You

Module 4: Customer strategy

Module 5: Segmentation strategy

Will be covered in the next lecture