Strategic Dimensions in Marketing Planning

Large versus Small / Medium Companies in Indian Television Market

Christin Solomon Walter 13-Oct-2010

Agenda
Overview & Objective Details of Study Observations

OVERIEW & OBJECTIVE

Quick Overview
Author Neelam Kinra, Asst Prof of Mktg, Bilkent Univ, Ankara, Turkey Journal Marketing Intelligence & Planning, Vol 13 1995 Size of Article 11 Pages

Objective of Study
Why does a concept which is becoming so pervasive have such a high probability of failure ? Assess Company Approach to Significant Dimensions of Strategic Planning in a developing Country TV industry of India selected large/small/medium enterprises coexist

Strategic Marketing Defined

1962 - Oxenfeldt selection and evaluation of target market segments 1975 Oxenfeldt & Moore Associated with various elements of Mktg Mix

Entire range of product, pricing, distribution and advt strategies

1991 - Urban and Star To develop long run strategies for survival and growth

Strategy Marketing Defined

In large organization process approach

systematic identification of the company mission in light of corporate and business philosophy Formulation of objectives, growth strategies Product-market Positioning strategies based on target market Situation effects of environment opportunities and threats

Third World Strategic Marketing

Bartels, 1983; Cavusgil and Yavas, 1984 Constraints in buyers and sellers market Ross and McTavish, 1985 - effects of state government controls Akaah, 1988 Mktg Mgmt Activities Objective Setting, Planning, Coordination, Valuation and Control- is very high Buyers or sellers market and Income

DETAILS OF STUDY

Indian TV Industry in Brief

Growth due to Government Policies

Liberalized Import Policies - Components allowed to be imported under open general licenses Special TV Expansion Program Geographical coverage from 20% in 1983 to 70% in 1985

Industry has both Large and SmallMedium competitors

Research Methodology
Identified 176 TV Manufacturers registered with ITMA Questionnaire with emphasis on empirical analysis on dimensions of marketing strategy within the planning framework Personal follow-ups to respond

Analysis Methodology
Analysis of major Stages of the Strategic Planning Process How Mktg Mgrs perceived their organization in terms of company mission, management philosophy, company image Analysis of Company objectives, Growth Strategies and Marketing Elements that has bearing on product positioning and overall

Findings
70 / 176 Responded 39% 15(22%) - large companies (Sales > $30m) 55(78%) - small-medium co. ($10m$30m)

Company Mission/Business Purpose

58 % - Consumer Entertainment (Consumer Oriented) 42 % - Electronic Equipments (Product Oriented) Consumer Oriented is better than Product Oriented Results have No correlation on large and small companies

Mgmt Philosophy / Company Image

Mgmt Philosophy
Large Companies Pursuit for Excellence Small Companies Employee Relations

Company Image
Large Efficient Small Dynamic

Company objectives

Large Profitability/Performance Obj.

Profitability Sales maximization

Small Quality/Improvement Objectives

Customer Service Product Quality

Value for money Combining Profitability/Improvement Objectives is missing

Marketing and Growth Strategies

Large Companies
Intensive Market Penetration through After-Sales Service and Product Quality Diversification New Product Development

Small Companies
Integrative Expansion by economies of scale and new market

Market Opportunity Analysis

New Product Development both large and small companies perceive

Primarily due to broadbanding of electronic products

New Market Development Small companies perceive more than large ones New Product and Market Development

Strength & Weakness

Strength
Large Customer Satisfaction Small Dealer Network / Salesforce

Weakness
Large Rapid growth Small Thin market

Environment Threats
Small - Raw material Shortage Large - Increasing number of competitors, Changing Technologies, Govt Policies

Distinctive Competence
Large excellence in after-sales service Small Product Quality

Marketing Elements to Strategy Process

Product Quality Brand Image & Pricing Trade Promotion and Advertising

Small Firms prefer this over distribution network

Product Mix and Product Line Extension considered less important

Even though New Product Is Perceived as Market Opportunity

OBSERVATIONS

Observations - Introduction
Study is on analyzing strategic dimensions in marketing planning whereas the introduction starts with Indian Television Industry growth Introduction is intertwined that it is difficult comprehend with one reading Introduction could have been sequenced locally to start with
Definition/Evolution of Strategic Marketing Strategy in a turbulent environment Indian TV Industry an example of turbulent environment

Observations Literature Review

Fairly comprehensive and conclusions and discussions refers to Literature review Literature Review also spans a considerable timeframe (1962-93)

Observations Research Methodology

Questionnaire is not adequately supported by secondary data

Study entirely based on questionnaire can never portray the true picture Secondary market data should have been used to validate the responses provided in questionnaire Year-on-Year Market Share data / Product Line data could have been used to compare the results

Observations Research Methodology

No evidence of quantitative data requested in questionnaire

% of budget allocated for R & D % of budget allocated for marketing research % of budget allocated for marketing plan

No evidence of any definite forecast

Revenue Growth Product Line Growth

In a nutshell, methodology used was not sufficient to make a conclusion

Observations - Findings
Findings are summarized well Authors observation for each of the findings are alongside Findings reveal inconsistency in statements which emphasize the need for

Stronger questionnaire Substantiate with Secondary data

Observations - General

Study objective and Selection of Industry Life Cycle not so ideal

Electronics industry is turbulent Excellent Life Cycle is in growth mode Every company will exhibit growth since it is sellers market (demand is more than supply) so not an ideal situation to study It would have been ideal to study when demand is less or equal to supply where effectiveness of strategy could have been measured

Thank You