Developing An Effective

Marketing Plan

• Conduct A Marketing Review

• Build A Marketing Strategy
• Implement Strategy Via Marketing Mix
• Evaluate The Success Of The Marketing
Plan
Conduct A Marketing Review (3-
C Analysis)

A. Analysis of B. Assessment of C. Analysis of

CUSTOMER COMPANY COMPETITORS
Trends, Needs, Capabilities and Current Position,
Perceptions, Current Marketing Capabilities,
Behavior Position Actions

Opportunity Identification
 Build A Marketing Strategy

Generic Strategies For

DIFFERENTIAL Selection of
ADVANTAGE TARGET MARKET
* Product Differentiation and Development of a
* Cost Leadership POSITIONING
* Special Market Focus STATEMENT
Implementation: The Marketing
Mix (Four P’s)

• Product

• Price

• Place

• Promotion
 3C - 4P Framework

• Product
• Customer
• Price
• Company
• Promotion
• Competitor
• Place
 Marketing System

Long Term Factors

Technological

Short Term Controllable Factors

Economic Product Legal

Place
Price
Promotion

Socio / Cultural
Recasting the 3C - 4P Framework in
Value Terms

Creating
Value
• Product
• Customer
Capturing
• Price
• Company Value
• Place
• Competitor Communicating
• Promotion Value
 Mapping Value Migration

• Limited competition
• High growth
• High profitability In the outflow stage,
talent, resources &
• Competitive stability customers leave at an
• Stable market share accelerating rate
• Stable margins
Market 2
Value 
Revenues • Competitive intensity
• Declining sales
1
• Low profits

Value Inflow Value Stability Value Outflow

 Value Migration in Coffee 1990

Affordable
1. Quality

Luxury
Coffee Shops & Gourmet
Office Coffee Cafes 1985 2. Freshness
3. Close to office
1. Price
Traditional Whole bean 2. Ease of purchase
Grocery Blend
. Gourmet Coffee

Starbucks
3. Uniform offering Coffee is Coffee

.
.. GCA
Millstone
Gloria Jean’s
Starbucks
Value Migration
Phases

.. . Folgers
Maxwell House Millstone

.
Nestle

Chock Full O’ Nuts

Folgers

Value Inflow Value Stability Value Outflow

 Replaying the Game
• P&G: “We sell coffee” vs. “We sell canned coffee of
moderate quality in groceries”
• The brand we have built to sell mid-tier coffee will not cater
to gourmet coffee position as its made of Robusta rather
than Arabica beans. So we need to launch a new brand that
preempts the quality position. We may need a new design
(but we’ve done radical stuff before!
• Most restaurants, food chains and institutions sell Coke or
Pepsi (branded) but unbranded coffee. Once our gourmet
brand is established in grocery stores, we may be able to
move into the institutional market (after all, we sell to Wal-
Mart!).
• Whole bean provider: Could have built a brand by
opening a café division. Took 7 years for Brothers
to catch on. By opening the café format, regional
whole bean providers could have built brand
loyalty. Especially as they do not have P&G’s
deep pockets. If the regional whole bean provider
launched in 1991, could have built a national
brand. By 1994, it was too late.
• Starbucks: May have missed an opportunity by not
aggressively expanding via franchising. Region by
region rollout gave competitors / imitators time to
preempt in certain markets. This way it would
have “conquered” the retail business and could
have focused more fully on institutional and
grocery markets.