Strategic Planning & Marketing Process

Nitinn Shharma

Strategic Planning

objectives Defining Business Portfolio Planning Functional Strategies .Corporate Strategic Planning Strategic Planning involves developing an overall company strategy for long-run survival and growth. This process involves: Defining Mission Setting Co.

Mission Market oriented Distinctive competencies Realistic Motivating Specific Fit market environment .

Designing Business Portfolio The best portfolio is the one that best fits the company s strengths and weaknesses to the opportunities in the environment. .

or no investment develop growth strategies for adding new products or businesses to the portfolio . less.Designing Business Portfolio The company must: analyze its current business portfolio or Strategic Business Units (SBU s) decide which SBU s should receive more.

low share Build into Stars/ phase out Requires cash to hold market share Dogs Low growth & share Low profit potential . high share Established.Analyzing SBU s: Boston Consulting Group Matrix Relative Market Share High Low Market Growth Rate Low High Stars High growth & share Profit potential May need heavy investment to grow Cash Cows Low growth. successful SBU s Produces cash Question Marks High growth.

Nelco . TISCO Dogs Tata Pharma.Analyzing SBU s: BCG Matrix Tata Group Relative Market Share High Low Market Growth Rate Low High ??????? TCS Tata Telecom Cash Cows TATA Motors. Tata chem.

GE Matric Market attractiveness replaces market growth as the dimension of industry attractiveness GE includes broader range of factors other than just the market growth rate. Competitive strength replaces market share as the dimension by which the competitive position of each SBU is assessed.BCG Vs. .

Analyzing SBU s: GE Analyzing Grid Divest .

GE Analyzing Grid: TATA HIGH HIGH Business Strengths LOW Consumer durables Market Attractiveness IT LOW Textiles .

Analyzing SBU s: GE Analyzing Grid .

Growth Stratégies Diversification Integrative Sales (in mn.) Intensive Strategic-planning gap Time (Years) .

Developing Growth Strategies: Ansoff s Product-Market Matrix (Intensive) .

colors. (Honda Bikes. flavors.Cut prices.Start up or buy new businesses. or modified products. cars) Diversification: new products for new markets. ( Reliance) .New styles. (Eg.Ansoff s Matrix Market Penetration: increase sales to present customers with current products. increase advertising. get products into more stores. Product Development: offering modified or new products to current customers. Nirma) Market Development: develop new markets with current productsIdentify new demographic or geographic markets.

At the Business Level .

Porter s Generic Strategies .


PEST Analysis Political Economical Socio-cultural Technological .


Analyzing SBU s: TOWS Matrix Opportunity Threats SO Strengths Use strengths to take advantage of opportunities WO Weaknesses Use opportunities to overcome weakness ST Take advantage of strengths to avoid threats WT Defensive strategies to minimize weakness/ avoid threats .

The Marketing Process DemographicEconomic Environment Market Intermediaries Marketing Intermediaries Product Target Customer Price PoliticalLegal Environment SocialCultural Environment TechnologicalNatural Environment Suppliers Publics Competitors .

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