Goals

Theory ,Apply & Pass

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 Contents of Marketing plan
• Executive summary
• Corporate strategy (mission /objectives)
• Situational analysis (Internal &Eternal—Macro &Micro)
Includes Porter 5 forces & summarized in SWOT
• Objectives (Marketing &financials)
• Strategy :
-Segmentation /targeting /positioning
-Marketing strategy ( Ansoff /Porter)
-Competitor strategy
• Marketing mix (programs /tactics)
• Implementation (Budget ,resource allocation ,schedule & responsibilities )
• Control (Assumptions &KPIs)

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External Environment Audit

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 External Environment
Macro Micro (Task)
P Customer
E Competitors
S Suppliers
T Public
E Distributors
L

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 Internal Environment
• Marketing Strategy
• Marketing Organization
• Marketing systems
• Marketing productivity
• Marketing functions (mix)

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S
SWOT WAnalysis
-Strong Brand Awareness
-Experienced management team
-Innovative culture
-New technology
O
-New Distribution channels
available
-Demand for new products
-Internet initiatives
-High staff turnover
-Lack of funding
- Poor channel relationships
T
-New players entering the market
-Low margins in market
market /concept in many countries
-Competitive market
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 Competitors

Know your Enemy ,Win your battle

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 Competitors
Porter Five Forces
First: Threat of competitive Rivalry:
-Intensity increases by:
lots of similar products, slow market growth-
-Key factors influencing competitive rivalry:
1. Stage in product life cycle
2. Liquidity of competitor
3. Relative size of competitor
-Exit barriers
-Competitors of equal size
-High fixed cost which needs high volume sales

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 Competitors
Porter Five Forces
Second: Power of Supplier:
-Strength of the supplier brand
(Ice cream bars)
-Cost of switching the supplier
-Presence of substitutes
-Forward integration :suppliers may
establish their own facilities

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 Competitors
Porter Five Forces
Third : Threat of Buyers
Buyers power is strong in the following cases :
-Few buyers controls a large volume of the market
-Large number of small suppliers competing in the
market
-Cost of switching is low
-Backward vertical integration :where the buyer can go
back to the supplier cutting the middle man
-Differntiation is not easy

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 Competitors
Porter Five Forces
Fourth : Threat of potential entrants
Obstacles for new entrants may be :
-Economics of scale
-Access to distribution channels
-Brand loyalty
-Capital investment

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 Competitors
Porter Five Forces
Fifth: Threat of substitutes :
New equivalent product

MP3 vs CD
DVD vs Video

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Competitor analysis

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 Competitor analysis
• What is a competitor ?
• Who exactly is the competitor?
• How much money are available to them ?
(SOV vs SOM)
• How innovative is the competition ?
• How skilled is their management team ?
• What are their objectives ?What are their strategy?
• SWOT your competitor ?
• How will they respond to offensive moves ?

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 Competitor Categories
• Laid-back Competitor : Arab contractor vs Orascom
Respond slowly due to :
-Loyalty
-Lack of resources
-Not recognizing the changes
• Selective Competitor : Nescafe vs Bonjourno
Respond selectively to certain situations
- Do not to sales promotion 0r price changes
-May react to advertising or new product launch
• Tiger Competitor –Vodafone vs Mobinil
Respond quickly & aggressive
• Stochastic Competitor – Coca &Pepsi
Response is unpredictable & different
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 Competitiors vulnerable points
• Finance
-Lack of cash
-Low margins
-High distribution cost (frozen goods &imported)
• Resources
-Dated technology
-Staffing issues
-Old Brands
• Markets
- Focus on one market sector ( if not substantial)
- Reliance on small number of customers

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 Application
Hyundai & Speranza
Mobinil & Etisalat
Rotato & Chipsi
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 Strategic Group Mapping
• Market Share
• Product diversity
• Market segments served
• Distribution channels used
• Geographic coverage
• Size

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 Perceptual Map

Positioning map of service level versus price.

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Perceptual Map

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 Military Strategies
Defensive marketing warfare
-Only the market leader should consider playing defense.
-The best defensive strategy is the courage to attack.
-Strong competitive moves should always be blocked.

Offensive marketing warfare

-The main consideration is the strength of the leader’s position
-Find weakness in the leader’s strength and attack at that point.
-Launch the attack on as narrow a front as possible.

Flanking marketing warfare

-A good flanking move must be made into an uncontested area.
-Tactical surprise ought to be an important element of the plan.

Guerrilla marketing warfare

-Find a segment of the market small enough to defend.
-No matter how successful you become, never act like the leader.

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 Competitor Tips
• If it threats you ,buy it !!!

• Price wars …
MKT Share vs profit !!!

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Do not underestimate the
competition
Japanese football

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Marketing Research

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1-Informed
2-Business
3-Decisions

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Knowledge is power

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 Every day decisions :
-Re-launch product
-On line channel
-Image enhancing
-Communication improvement
-Ramadan campaign
-Sales vouchers or promotions
-New packaging
-New sales structure
-Branding icon
-Major conference or event
-New line extension approval
-New Launched competitor
-International marketing
-CRM Launch

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 Is marketing research is
needed??
• Risk and added value
= Cost of wrong decision x probability

• If not scenario (Success rate )

• Can not be used for new products innovation

• Look for capacity &capability

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 1-Problem Definition
• Poor customer service NOT decreased sales
• Media campaigns quality NOT low awareness
• Non competitive packages NOT high turnover
Basics :
-No pre-defined assumptions =experts pest
-Poorly defined problems =cost + unnecessary
output.

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 2-Exploratory Research
• Informal (The most valuable info is..)
• Secondary data :
-Previous research
-Internal data :CRM
-Desk research :May solve it
-Minutes of meeting
- Publications

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 Sources of Secondary data
“ Do not invent the wheel”
• Financial statement
• Sales invoices
• Minutes of marketing meetings
• Marketing plans documents
• Job descriptions
• Customer complaints
• Distributors reports
• Websites

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 3- Field Research
(Descriptive or causal)
• Observational or questioning
• The output is either qualitative or quantitative
• Tools are a lot:
-In-depth interviews
-Focus groups
-Telephone/on line research
-Mailings
-Mystery shopper

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 Questionnaires
• Simple
• Short
• Different styles (open ended ,choices
,likert scale)
• Think of incentives
• Think of showing responses

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 Focus Groups
• Often used in exploratory work
• In-depth with group (6-12)
• Success depends on moderator (semi-
structured)
• Range of views should be represented
• Recorded ,analyzed &tailored

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 Depth interviews
• Structured or semi-structured interview with
individuals
• When more truthful response is needed
• Sample size is lower so risk of manipulation
• No guarantee of success ,but we minimize
risk

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Sample Size Determination
• Population
• Adequacy for analysis & homogeneity
• Time constraint
• Budget constraint (the extra unneeded
accuracy = marginal increase in
accuracy )
• So …Appropriate sample size

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 4- Data collection
• Credibility

• Validity

• Consistency

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 Examples of research field
• U & A scenario

• Campaign tracking

• Service perception

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 Advantages
It make me feel strong and powerful 33 46
Gives continuous source of energy 42
29
Nutritious 37
23
It increases immunity 36
33
Contains vitamins more than the natural intake 24
18
Used for general well being 22
34
It supplies body with a high percent of elements needed 19
23
Safe 19
5
Has no side effects 17
5
Quick effect 17
7
It makes me feel relaxed 15
9
Pain relief 15
9
Easily absorbed in body 11
7
Easily available 9
1
Used without prescription 6
2
Made of natural ingredients 5
1
Multi-Vitamins Users Multi-Vitamins non-users

Base: Multi-vitamins P1Y users (246) / Aware of multi-vitamins but non-users in P1Y (244)
Q.39/Q109 What do you think are the advantages of using multi-vitamins?

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 First Time Purchase
Specialty of Dr (Base 189)
-General Practitioner 53%
-Internist 22%
-Gynecology 17%

Source of Knowledge (Base 27) Small Base

-Friends 75%
-POS at Pharmacists 47%
-Family members 44%
Base: Multi-vitamins P1Y users (246)
Q27 When you bought it for the first time did you …?

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 Impact Summary - Visibility
•• The
Thevisibility
visibilityof
ofthe
thead
adhigher
higherthan
thanregional
regionalnorms,
norms,more
moreso
soin
inUAE.
UAE.

21%
31%
36%

13%

17% 9%
[13%] 15%
4% [11%] [11%]
6% 17%
21%
[22%] 22%
[5%] [3%]
35%
26%
21%

Egypt KSA UAE

Definitely seen it Think I've seen it Unsure Don't think I've seen it Definitely haven't seen it
Base all: Egypt (160); KSA (150); UAE (150)

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 Absolute Likeability
•• Although
AlthoughEgypt
Egyptscores
scoreslower
lowerininterms
termsofoftop
topbox
boxfor
forabsolute
absolutelikeability,
likeability,itit
scores
scoresabove
abovethe
thenorms
normsininterms
termsof oftop
top22box.
box.Both
BothKSA
KSAand
andUAE
UAEscore
score
impressively
impressivelyhigher
higherin
interms
termsofoftop
topbox
boxfor
forabsolute
absolutelikeability.
likeability.
0%
3% 4%
17% 6%
[58%] [43%]
[35%] 28%
25%

[29%]
[39%]
52%

[37%] 64% 67%

31%

Egypt KSA UAE

Like it very much Like it a little Neither like nor dislike Dislike it a little Dislike it a lot
Base all those who claim to have definitely/ probably seen the ad: Egypt (75); KSA (64); UAE (79)

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 Conclusions and
recommendations
• The ad has been well received and is performing well in
all the three countries. Howe Egypt scores are relatively
lower.
• The ad has highest appeal in UAE followed by KSA
• We recommend to keep the ad copy as well as the media
plan for UAE and KSA. For Egypt, the media plan may be
evaluated in light of the media habits of Egypt.
• Further, as the brand has been recently launched in
Egypt, we strongly recommend to track the brand health
and equity in Egypt in order to ensure regular feedback
and provide early warning signals

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 Universal Definition
-Published data -Statistical
Research system
Government- packages
publications -Modules
Ex : Segmentation
Budgeting/ROI

Decision
Intelligence support
system
MKIS
system

-Sales
-Customer service
-Previous
researches
Internal records

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CRM

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 CRM
• CRM = Data base

• Personalization

• Direct marketing

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 Other CRM applications
• Sales rewards

• Loyalty programmers

• Technical support

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 CRM
• ***CRM = database for personalization (relationship marketing)
• Benefits :
1. Central source
2. Direct marketing
3. Segment & target (special offers)
4. Linked to website
5. Evaluating spend
6. Managing campaigns
7. Developing extranet
8. Quick response to customers
9. Support other functions

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• Problems of CRM :
1.In accurate or out of date info
2. Duplicate info
3. Data protection act
4. Staff training (fear of change)
5. Customer orientation
6. Technology performance
7. Performance issues (does it increase service
levels)

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 Research common practice
• The Brief &The proposal =experience

• Comprehensive brief = Up to expectation results

• Good proposal = reliable results

• The proposal is the measuring tool

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 The Brief
• Identification
• Current business position
• Research objectives (not marketing objectives)
• Results usage
• Outline methodology
• Sample details
• Previous research (what is that ??!!)
• Timings
• Budget
• Deliverables
• Terms &conditions
• Key personnel name
• Confidentiality

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 The proposal
• Identification data
• Situational analysis
• Research objectives (clear &defined)
• Methodology & rationale
• Sample
• Field work
• Questionnaire &topic guide
• Data handling &processing
• Reporting
• Timings
• Cost
• CVs
• References
• Contract details

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Tips to evaluate proposals
• Problem definition
• Experience in this field
• Focus groups vs questionnaires
• Secondary data search
• Cost
• References
• Importance to the agency
• Their presentation
• Flexibility
• Chemistry

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In-House or Out-sourcing ?!!

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 In House Advantages
Pros :
• Control
• Market experts (Look at third point down !!)
• Less costs
• Less time
Cons
• Lack of skills
• Coverage problem (if small business)
• Bias

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 Outsourced Agency
Pros :
• No bias
• Quality
• Cost (overhead saving)

Cons
• Conflict of interest ( competition )
• Industry expertise (AC Nielsen & Synovate)
• Junior staff for junior projects (revise proposal
evaluation slide)

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Assignment Discussion

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Till next week !!!
minafanos@hotmail.com
0106613178

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