COMPETITIVE MARKETING

POSITIONS AND RELATED

STRATEGIES

Hamirol Niza Azlyza Noorul Norizan Azrin

MARKETING MANAGEMENT | MKT

750
 Presentation Content
Introduction - Izan

Competitive Market Structure - Mirol

Market
Positions & Competitive Position - Noorul
Related
Strategies Marketing Warfare Strategies
- Azlyza
Tools application on
Gascoyne Gold Case - Azrin

http://marketinginformationcentre.ca/ma
rketing_definitions_(c-d).htm
Introduction to Competitive Market
and Related Strategies

• An element in considering
business strategic direction
company strategy
company strategy
brand/product or
brand/product
• Assist companies to
respond according to the
Market
Market -- A A market
market
or
is by one
by
is aa set
set of
of all
all actual
one
actual market that is held
and potential

type of market structure of

buyers of a product
sales within aa
sales within
or service percentage of
percentage of all
all
market share -the
market share -the
competition
competition
entry, and forms of
their business and their
position among competitors
firms, ease of
uniformity across Strategy -the
number of
number of firms,
firms, direction and scope

• Ensuring the competitive

market such
market as the
such as the of
of an
an organization
organization
features of a over
over the
the long-term
long-term
The important
Market Structure:
edge of a business is
Market Structure:

preserved

http://marketinginformationcentre.ca/ma
rketing_definitions_(c-d).htm
Where Competitive Positions And Related
Strategies Fit in Marketing Planning

Form A Part of Current Situation Analysis

Assist to identify and rank opportunities and threats in

SWOT analysis

An input when selecting the most appropriate strategies to

take advantage of opportunities and counter threat
http://marketinginformationcentre.ca/ma
rketing_definitions_(c-d).htm
 Pure Competition
NO OF SELLERS ●
Many Sellers

DIFFERENTIATION OF ●
Very little,
●
commodity markets
OFFERINGS ●
fresh food type markets

INDICATED COMPETITIVE ●
Little difference between offerings
DIRECTIONS ●
Competitive strategies

EXAMPLES

http://marketinginformationcentre.ca/ma
rketing_definitions_(c-d).htm
 Monopolistic Competition

NO OF SELLERS ●
Many

Differentiated based on specific target market

DIFFERENTIATION OF
●

●
Small business, serving particular geographic market segment,
OFFERINGS usually service based

INDICATED COMPETITIVE ●
Franchising
DIRECTIONS ●
Strong defensive strategies

EXAMPLES

http://marketinginformationcentre.ca/ma
rketing_definitions_(c-d).htm
Homogenous Oligopoly
●
Two or Several
NO OF SELLERS ●
Fewer than Pure & monopolistic competition

DIFFERENTIATIO ●
Offering same products/ services
●
E.g. Petrol company, pharmaceuticals, movie theaters
N OF OFFERINGS

INDICATED COMPETITIVE ●
Creating and sustaining cost advantages
DIRECTIONS strategies

EXAMPLES
http://marketinginformationcentre.ca/ma
rketing_definitions_(c-d).htm
Differentiated Oligopoly
●
Two or Several
NO OF SELLERS ●
Fewer Than Pure & monopolistic competition

DIFFERENTIATIO ●
Offering within any product partially differentiated on quality,
features, price points and image
N OF OFFERINGS ●
e.g. Universities, motor vehicles and processed food

INDICATED COMPETITIVE ●
Strong branding strategies
DIRECTIONS ●
Market penetration and market development

EXAMPLES
http://marketinginformationcentre.ca/ma
rketing_definitions_(c-d).htm
 Monopoly
●
One seller per distinct geographic
NO OF SELLERS area/region

DIFFERENTIATIO
N OF OFFERINGS
●
No close substitute
INDICATED COMPETITIVE ●
No direct competition
DIRECTIONS ●
Strategies aimed at cost management

EXAMPLES
http://marketinginformationcentre.ca/ma
rketing_definitions_(c-d).htm
 What is
Competitive
Market Position?

An organization's ranking in its

industry by size and business
strength; hypothetically, each
competitor may be classified as
a market leader, market
challenger, market follower, or
market niche player, according
to the market share it holds.

http://marketinginformationcentre.ca/ma
rketing_definitions_(c-d).htm
 COMPETITIVE POSITION

Also known as Market Share strategies

Refers to strength or weaknesses of firm in relative to

those its direct competitors .

Often based on combination factors.

Categorized as strong, medium or weak.

 COMPETITIVE POSITION

• Detailed breakdown of competitive position :-

– Dominant Strong

– Strong
– Favorable
Medium
– Tenable
– Weak
– Non-Viable Weak
 Strong

Domin ●
The firms control the behavior of
other rivals and has a wide choice of
strategic options.
ant ●
Example: Air asia, MAS

●
Firm can take independent action
without endangering its long-term
Strong ●
position regardless of rival’s action.
Example: Shell, Petronas, Esso, Caltex
 Medium

Favorab The firm has a strength that is

●

exploitable in particular strategies and

has a more-than-average opportunity
le to improve its position.

The firm is performing at a sufficiently

●

satisfactory level to stay in business and

Tenable has a less-than-average opportunity to
improve its position.
 Weak

The company has an unsatisfactory

●

performance but an opportunity

Weak exists for improvement and it must
change or exit.

Non- ●
The firm has unsatisfactory
performance and no opportunity
for improvement.
viable ●
Example: Sate Ria
WHICH STRATEGIES TO CHOOSE?

Before selecting
the strategies,
need to
determine the
market
attractiveness.

Market with high

Market with low
attractiveness,
attractiveness,
choose growth
then choose
strategies or
defensive
combination of
strategies.
both.
 GROWTH STRATEGIES

Moving into
new and
Increase different
market markets or
segments industries
Increase target • Concentric
profitability • Market diversification,
development, conglomerate
within existing diversification.
franchising
market
Increase • Backward or
forward
sales within integration
the existing
market
• Market
penetration,
product
development
 DEFENSIVE STRATEGIES

Retrenchment
strategies to withdraw
• Brand equity, from market slowly • Selling business
customer • Liquidating if a buyer can
loyalty program remaining be found
stocks
Retrenchment
Protecting existing
strategies to withdraw
market share
from market quickly
 COMPETITIVE POSITION
Market Competitive Position
Attractiveness
Strong Medium Weak
High Growth/build where
possible
 Growth/build to
increase share
 Defensive to reduce
exposure and protect
 Defensive – to protect share  Defensive – to protect
share or quickly divest
and redirect resources
position, improve
strength

Medium  Growth/build in more

attractive segments
 Defensive to protect
share, or quickly divest
 Defensive to quickly
divest if possible,
 Defensive – to protect share otherwise harvest and
or harvest.
Selective growth where redirect resources
warranted
Cautious growth if
market is improving

Low  Defensive – protect

position, otherwise harvest or
divest.
 Cautious growth strategies
to improve attractiveness if
necessary.
 Defensive to protect
position where desirable,
 Defensive to withdraw
as fast and as profitably
otherwise divest or as possible (or with
harvest minimum loss).
http://marketinginformationcentre.ca/ma
rketing_definitions_(c-d).htm
Marketing Warfare Strategies

Market Challenger -
Market Leader – firm
firm with a smaller
with the largest share
share than the market
in the relevant product
leader but have a
market.
relatively large share.

Market Follower - with

a smaller market share
Market Nicher -
than the market leader
smaller firm that
but prefer to follow
targets segments
rather than attack,
within segments or
lacking either the
sub-segments or
resources or the desire
market niches.
to become the market
leader
• -has sufficient customer
• growth potential
• negligible interest to larger competitors
Market Nicher
• has the specialist capabilities and resources
• can defend itself against attacks from larger competitors
• Cloner
Follower
• imitator
• adapter
Market
• can attack the market leader
Challenger
• attack businesses of a similar size
• attack smaller businesses
Market
• expand the whole market
• expand their market share or maintain defend their market
Market Leader
share
Characteristics
Marketing Warfare Strategies -
 Market Leader Strategies

The market leader is dominant in its industry and sometimes has some market
power in determining either price or output

●
i. finding new users
●
ii. finding new uses
●
iii. increase frequency of usage

Expand the whole market :

●
i. Frontal attack
●
ii. Flank attack
●
iii. Encirclement attack
●
iv. Bypass attack
●
v. Guerrilla attack

Expand their market share

 Market Leader Strategies

Maintain and defend their market share

●
A market leader should generally adopt a defense strategy
●
Six commonly used defense strategies
●
Maintenance of market share
●
Position Defense
●
Flanking Defense
●
Pre-emptive Defense
●
Counter-Offensive Defense
●
Mobile Defense
●
Contraction Defense

Example :

●
Apple - market leader on the cutting edge of new technologies and innovative business process (Steve
Jobs)
●
McD - market leader in the U.S fast food restaurant industry
 Market Challenger Strategies

Market Challenger

●
i. can attack the market leader
●
ii. attack businesses of a similar size
●
iii. attack smaller businesses

Companies in the market challenger position try to directly and aggressively

steal market share from the market leader.

●
i. price discounts or cutting
●
ii. Line extension
●
iii. Introduce new products
●
iv. Reduce product quality
●
v. Increase product quality
●
vi. Improve service
●
vii. Change distribution
●
viii. Cost reductions
●
x. Intensify promotional activity

Options made by market challenger :

Market Challenger Strategies (cont..)

Example : Burger King is the market challenger to McD. By

differentiating its food as flame-broiled rather than fried and directly
attacking McD. BK has always followed a strategy of aggressively
attempting to steal market share from McD. Today, BK is the largest fast
food chain in the US, behind McD.
 Market Follower Strategies
The market follower is a strong firm but not dominant position. They will gain
much of the market from the leader while being exposed to very little risk.

●
‘Play Safe’ strategy

Market Follower

●
- imitator/ cloner
●
- adapter

The advantage :

●
i. No expensive R&D failures
●
ii. No risk of bad business model
●
iii. Best practice are already established
●
iv. Able to capitalize on the promotional activities of the market leader
●
v. Minimal risk of competitive attacks
 Market Nicher Strategies

Market Nicher

●
growth potential
●
has sufficient customer
●
negligible interest to larger competitors
●
has the specialist capabilities and resources
●
can defend itself against attacks from larger competitors
 Gascoyne Gold Pte. Ltd.

QUICK RECAP
• A fruit and vegetable packing company in
Carnarvon, WA
• Formed by a group of farmers and growers
• Main produce are tomatoes, capsicums,
bananas, cucumbers
• Supplying fruit and vegetables to Perth
market, eastern state, Asia & Middle East
• Produces 1.1% of total Agricultural Produce
in Western Australia
• Competitive edge:
– Located at fertile delta of Gascoyne River
– sub-tropical climate allows early supply of
products earlier than traditional production
areas.
– The availability of latest technology in grading
and packing, preserving quality

http://rdl.wa.gov.au/OpenFile.ashx?
Mode=446E37686749376A356D684D2B6E6D6D4D6E555273773D3D&ContentID=41487A61782F71524365773D
 • Opting for strategic alliance between farmers
DIRECTIONS
• Creating cost advantages via latest technology and COMPETITIVE
economies of scale INDICATED
• Very little, OF OFFERINGS
• commodity markets DIFFERENTIATION
• fresh food type markets
• Gascoyne competes with many Fruit and Vegetable
Packing company in Western Australia such as
• Karri Food Produce
NO OF SELLERS
• Manjimup Syndicate Cool stores
• Pacco Group
• Sunset Valley Processors
OLIGOPOLY Structure
HOMOGENEOUS
After merging: Gascoyne Gold Market
 Gascoyne Gold Competitive Position
Based on Arthur D. Little Classification

Arthur D. Little
Arthur (15(15
D. Little DecDec1863 - 1st- August
1863 1935)
1st August waswas
1935)
an American
an AmericanChemist
Chemist& Chemical
& Chemical Engineer. Fe Fe
Engineer.
founded Arthur
founded D. Little
Arthur consulting
D. Little consultinggroup, whowho
group,
introduced
introducedCompetitive
Competitive Position
Positionusing 6 Categories.
using 6 Categories.

Position
Characteristic
Characteristic
• Dominant & Strong

Characteristic Position
Position
Dominant & Strong
Bigger market share
Lesser competition
• Lesser competitor-more share & sales
• Cost leadership between grower & land
owner
• Optimizing operating cost- achieve Increase
Economic of Scale profitability of
• More focus current market
• Forward Integration:-
• Appoint experience market broker
• Produce & supply fresh tomatoes
Market Share Strategies
Marketing Warfare Strategies

Offensive
Strategy Frontal Attack
• Able to go head to
head with competitors
• Have vast resources

Leapfrog Strategy
• A new business model
• Use technology to
overrun the
competitors
 CONCLUSION
The Gascoyne Gold group has proven that in business, in order to survive
and grow; one has to join the alliance which they will able to grow and
prosper as which has been proven that in two years they have almost
doubled their output.

Through Gascoyne Gold group, both producer and consumer benefit it all
from the professional marketing and boosting the local economy.

The Gascoyne Gold group managed to tackle the main issues in producing
high quality, fresh products, having the latest technology really helps the
growers having the best products to be marketed all over Australia.