8.

BLUE OCEAN STRATEGY

11 BLUE OCEAN STRATEGY

Dr. Waseso Segoro, Ir. MM.

IT TELKOM, APRIL 6, 2009

Kotler

Keller

10-2

10-3

10-4

10-5

10-6

BLUE OCEAN STRATEGY

Creating product and services for which there are no direct competitors Managers should look beyond those boundaries to find uncoppied market positions that represent real value innovation

Designing creative business ventures to positively affect both a companys cost structure and its value proposition to consumers
10-7

10-8

10-9

10-10

Southwest Airlines created an airline that offer reliable, fun, and convinient service at a low cost

Callway Golf designed Big Bertha, a golf club with a large head and expanded sweet spot that helped golfers frustrated by the difficulty of hitting a golf ball squarely.
NetJets figured out to offer private jet service to a larger group of customers through fractional ownership
10-11

10-12

10-13

10-14

10-15

BOS - Formulation Principles

Reconstruct market boundaries

Focus on the big pictures not the numbers Reach beyond existing demand Get the strategic sequence right
10-16

BOS - Execution Principles

Overcome key organizational hurdles (Cognitive,Resource, Motivational,and Political - hurdles)

Build execution into strategy

10-17

10-18

10-19

8. PLC STRATEGY DEVELOPMENT

10 Product Life Cycle

Dr. Waseso Segoro, Ir. MM.

IT TELKOM, APRIL 6, 2009

Kotler

Keller

Chapter Questions

What marketing strategies are appropriate at each stage of the product life cycle?
What are the implications of market evolution for marketing strategies?

10-21

Market Evolution Stages

Emergence, before a market materializes, it exists as a latent market. On launching the product, the emergence stage begins.
Growth, if the new product sells well, new firms will enter the market, ushering in a market growth stage. Maturity, eventually competitors cover and serve all the major market segments and the market enters the maturity stage. Decline, demand for the present products will begin to decrease and the market will enter the decline stage.
10-22

Product Life Cycle

Introduction, a period of slow sales growth

Growth, a period of rapid market acceptance and substatial profit improvement Maturity, a slowdown in sales growth Decline, sales show a downward drift and profits erode
10-23

10-24

Facts about Life Cycles

Products have a limited life.

Product sales pass through distinct stages, challencges, opportunity, problem to the seller Profits rise and fall at different stages. Products require different marketing, financial, manufacturing, purchasing, and human resource strategies in each stage.
10-25

10-26

10-27

10-28

10-29

Marketing Program Modifications

Prices, would a price cut attract new buyers?

Distribution, can more outlets be penetrated? Advertising, should advertising expenditures be increased?

Sales promotion, should the company step up the promotion?

Services, can the company speed up delivery?
10-30

10-31

3-32

10-33

10-34

10-35

10-36

10-37

NEXT WEEK GROUP ASSIGNMENT

PRODUCT LIFE CYCLE : DO BRANDS HAVE FINITE LIVES? PLEASE CHOOSE ANY BRAND

10-38