Outline of Marketing Planning

• Summary
• Market (Opportunity) Analysis or Situational Analysis – Macro-
Environment, Industry, Micro-Environment (Market) Analysis
• Company Analysis – Performance analysis, Sustainable Competitive
advantage, Strategic Resources & Capabilities, Internal Environment
analysis.
• Market Research
• Assumptions
• SWOT / TOWS Analysis
• Objectives – Business Objectives, Financial Objectives, Marketing
Objectives
• Strategic Choice / Strategic Approach
• Marketing Strategy (Alternative Scenarios) - STDP
• Marketing Mix Objectives & Strategies – 4Ps(Goods)/8Ps (Services)
• Implementation - Marketing Programs & activities
• Measurement & Control (Metrics Dashboard)
• Financial Projections & Budgeting
 Strategy Formulation

Based on Product Portfolio Strategic Approach

 (c) Evaluating Current Business Portfolio

• Boston Consulting Group (BCG) Growth-Share Matrix

20%
Business
Stars
Sizes
Market Growth Rate

Question
Marks

10%

Cash
Dogs
Cows

10x x 0.1x

Relative Market Share

 (c) Evaluating Current Business Portfolio

• Boston Consulting Group (BCG) Growth-Share Matrix

20%
Business
Stars
Sizes
Market Growth Rate

Question
Marks

5%
Cash
Dogs
Cows

10x x 0.7x 0.1x

Relative Market Share

 Strategic Options
• Invest – Increase market share sacrificing short term profits
• Hold – Maintain Current market Share
• Harvest – Increase short term Profits
• Divest – Reduce investments/ costs to increase short term profits
or liquidate.
 Strategy
SBU Position Strategy
• Stars • Invest/Hold

• Question Marks • Invest/ Harvest/Divest

• Cash Cows • Harvest/ Hold

• Dogs • Divest/Harvest
 (c) Evaluating Current Business Portfolio
• General Electric Portfolio Matrix
High Selectivity/
Invest/
earnings
Market Attractiveness

Hold
Market Size &
Share
Selectivity/
Medium earnings

Selectivity/ Harvest/
earnings Divest
Low

Strong Medium Weak

Company Strength
 Evaluating Factors
Market Attractiveness
• Overall Market Size
• Annual Market Growth Rate
• Historical Profit Margins
• Life Cycle Stage
• Competitive Intensity
• Technological Requirements
• Environmental Impact:
Social/Cultural/Political/Legal
Competitive Positions
• Market Share
• Share Growth
• Product Quality
• Brand Reputation
• Distribution Network
• Promotional Effectiveness
• Production Capacity
• Production efficiency
• Unit Costs
• Material supplies
• R&D performance
• Managerial Personnel
 (d) New Business Plan Strategy
Growth Strategy
• Intensive Growth (Ansoff’s Matrix)
– Market Penetration
– Product Development
– Market Development
• Diversification Growth
– Concentric Diversification
– Horizontal diversification
– Conglomerate Diversification

• Integrative Growth
– Forward Integration
– Backward Integration
– Horizontal Integration
 Case Analysis
Amercian Well:
Online Health Care Management
Company
 Strategic Growth Options
• Current Business: Online Health Care Services to Insurer
segment.
• International Expansion – Insurer segment
• Online Health Care Services: Hospitals Network, Clinic Chains,
• Retail Clinics, Pharmacies, Telemedicine
• Platform for health care provider to interact e.g. Primary
Physician to interact with Specialists, Patients to interact with
Physicians
• Platform for interaction between Buyer and Service provider
in other services
 Market Analysis
• Macro-Environment Analysis ?
• Industry Analysis ?
• Micro-Environment Analysis ?
• SWOT Analysis ?
• Sustainable Competitive Advantage ?
Customer Segments Online Health Care
Customer Segments of Online Health Care
 Value for Customers?

• Content Health Care

• Content Health Care + Ailment Treatment
Prescription
• Content Health Care + Prescription + Medicine
(Stores or order online)
• Content Health Care + Prescription + Medicine
+ Lab Testing (Lists or order online)
 Value for Physicians?

• New Practitioners
• Retired Practitioners
• Not Busy Practitioners
• Extra Hours Practitioners
• Increase Physical Care Treatment
 Value for HIC? Hospitals? Clinics?

• Online Pre-treatment consultation

• Online treatment (non-serious nature)
• Online Post-treatment (Not-requiring physical
examination)
• Online Follow-Up
• Support services Cost/Booking – Pathology
Lab, X-Rays, Medicine
 Diversification of Model
• Homeopathy & Ayurveda Care
• Beauticians-Customer – Beauty Parlour
• Customer – Beauticians – Cosmetic Surgeon
Thank You
 Strategy Formulation

Based on Generic Competitive Strategic

Approach
Porter’s Generic Strategies
 Strategy Formulation
• Porter’s Generic Strategy
(1) Cost Leadership Strategy
– Low cost of production & distribution
(2) Differentiation strategy
- Quality leader
- Service leader
- Technology leader
(3) Focus strategy
– Differentiation or Cost Leadership route
– Niche market segment
 Strategy Formulation
Based on Competitive Positions Strategic Approach
 Definition
• The process of identifying key competitors;
assessing their objectives, strategies, strengths
and weaknesses, and reaction patterns; and
selecting which competitors to attack or avoid.
 Competitive Positions
• Market Leader
• Market Challenger
• Market Follower
• Market Nicher
 Assessing Competitors
Determining competitors’ objectives
• Identifying competitors’ strategies
– Strategic groups
• Assessing competitors’ strengths and weaknesses
– Benchmarking
• Estimating competitors’ reactions

• Strong or weak competitors

– Customer value analysis
• Close or distant competitors
– Most companies compete against close competitors
• “Good” or “Bad” competitors
– The existence of competitors offers several strategic
benefits
 Competitive Strategy: Market Leader

• Expanding the total demand

– Finding new users
– Discovering and promoting new product uses
– Encouraging greater product usage
• Protecting market share
– Continuous innovation
• Expanding market share
– Profitability rises with market share
 Competitive Strategy: Market
Challenger
• Option 1: challenge the market leader
– High-risk but high-gain
– Sustainable competitive advantage over the leader is key to success
• Option 2: challenge firms of the same size, smaller size or
challenge regional or local firms
• Full frontal vs. indirect attacks
Competitive Strategy: Market Follower

• Follow the market leader

– Focus is on improving profit instead of market share
– Many advantages:
• Lean from the market leader’s experience
• Copy or improve on the leader’s offerings
• Strong profitability
Competitive Strategy: Market Nicher

• Serving market niches - targeting sub-segments

• Good strategy for small firms with limited resources
• Offers high margins
• Specialization is key
– By market, customer, product, or marketing mix lines
Competitive Strategies
Competitive Strategies
Competitive Strategies
Company Orientations
 Thank You
Prof. DeviPrasad Ghosh
 Case Analysis
Brannigan Foods
 Case Questions
• How would you analyze the process Clark is using to
determine his best “investment bets” for allocating resources?
• Which of the four managers’ proposals should Clark favour?
Absent any resources constraints, which of the four
departmental directions do you think is the most viable?
Which is the second best strategy? Which is the least viable?
• If Clark chooses a strategic direction that favours only one
department, what negative effects could this have on other
departments? How can Clarke mitigate the damage?
• What effects is the change in strengths and weaknesses of
competition having on the Brannigan’s division? How does
this impact the investment decision?
• Given the information in the case, what strategic course do
you think the division should pursue?
 Market Size & Structure

(-)
(-)
(+)
(+)
(+)
(+)
(+)

6657 6503 ( - 2.3%)

Organised + Unorganised Market
Market Trends
Customer Analysis
Customer Analysis
Channel Analysis
Competitors Analysis
Company Analysis: Financial Analysis

-2%

-6%

10 % Gross Margin 10 %
Products Mix
 Thank You
Prof. DeviPrasad Ghosh