Strategic Planning Tools

Planning tools /Matrices

• PESTEL
• SWOT
• PLC
• BCG
• GE
• GAP Analysis
Product Life Cycle
Product Life Cycle

Sales and
Profits ($) Sales

Profits

Time
Product Introduction Growth Maturity Decline
Develop-
ment
Losses/
Investments ($)

Sales and Profits Over the Product’s Life From Inception to

Demise
 Main stages in
Product Life Cycle
• Development :
NPD :ideas into viable +feasible +profitable products
• Introduction:
Negative profit , 10 % success
• Growth:
Positive profit ,need Investment , but competition enters
• Maturity:
Maximize profit but still need reasonable support
• Decline:
Market dynamics , New versions or decline
• Obsoletion :
Re-launch in other market or phase/run /drop it out /run
 Product Life Cycle
• Elongate the cycle

• Strong beginnings are needed but avoid fads !!

• Each stage is managed differently

• Repositioning or re-launching may be needed

Example : reviving the brand ….new chipsy ..new Nescafe …
new Mercedes shape… videos in Africa
Work shop

Mix elements in different stages

Portfolio Planning
BCG
• Not always used as a cycle !!!

• It is an analysis tool for investing decisions.

1.BCG Matrix
2. The General Electric Matrix
GE Matrix Dimensions
Industry Attractiveness Competitive position
(Business strengths)
• Market size • Current market share
• Market growth • Brand growth
• Profit margins • Available resources
• How easy to enter the • Profit margins
market
• Competition levels
GAP Analysis
GAP Analysis
• GAP definition. (sales or financial)
GAP Analysis
• GAP types : operational or strategic
• Operational gap filling :
-Increasing productivity by reducing cost
-Increasing/decreasing prices
-Increases expenditure.
-New Distribution channel
• Strategic gap filling:
-Reducing the objectives (realistic)
-Market development
-Product development
-Diversification
McKinsey Seven “S” Framewrok
 Value Chain basis
• Evaluate s the value each particular activity adds to the
organization's products or services.

• Only if these things are arranged into systems and

systematic activities; will add value for which
customers are willing to pay a price.

• Managing the linkages between these activities is a

source of competitive advantage.
Porter Value Chain Analysis
Primary Activities: Support activities :
• Inbound logistics • Firm infrastructure
• Operations • HR management
• Outbound logistics • Technology development
• Marketing & sales • Procurement
• Services
Porter Value Chain Analysis
• What adds value
• Gives distinctive advantages
• But should not add cost more than the added
value
• Analysis of the impact &link between one activity
an the other
Mission &vision
• Why does organizations exist ?

• Where we want to be ? (stretched inspirational

goal

• Mission is direction or focal point

• Vision is a dream or strategic intent

Setting Objectives
• SMART Objectives:

1. Specific S
2. Measurable - that can quantify the M
results A
3. Achievable (ambitious) R
4. Relevant T
5. Time bounded - are governed by
deadlines
 Objectives Hierarchy

Strategic Marketing
Corporate Strategy Management
Mission & Vision/Corp Objectives
Biz Strategy/ Resource Allocation
Corporate planning/ value system

Operational Function Marketing Function

Corporate objectives cascade
through the organizational
Finance functions Objectives
HR Strategy
Marketing objectives
translate into tactical plans

Marketing Tactics Marketing Operations

Objectives Management
The Marketing Mix
Actions

Beamish & Ashford, 2007

Marketing Objectives
• To increase sales by 15% by 2011
• To increase market share of Product X by 10%
by 2012
• To increase customer retention by 25% by 2012
• To increase the number of new products per
year from 2 to 5 by 2012
 Strategic trade offs
• Profit margins versus competitive position
• Profit goals versus non-profit goals
• Growth versus stability
• Short-term profitability versus long-term growth
• Penetration of existing markets versus development of
new markets
• Risk avoidance versus risk taking
ASSIGNMENT
Till next week !!!
minafanos@hotmail.com
0106613178