Session – IV:

Environmental Analysis:
5C's - SWOT/TOWS, PESTLE

Marketing Management
by
A N Bhattacharya, SOIL, Gurugram
 We will cover
 Recap of Session III: Netflix Case Study ( 5 mins)
 Revisiting ‘Six Parts of the Marketing Process’ (5 mins)
 3 stages of Marketing Strategy Formation Process (10 mins)
 Importance of ‘5–C Analysis’ (10 mins + 20 mins + 10 mins)
 Porter’s Five Forces Model (25 mins)
 Recap of the topics (5 mins)
Strengths Weaknesses
1. Strongsubscription base (both international 1.Inflexible payment options (e.g., in some countries, people are
and domestic) reluctant to pay a monthly fee)
2. Strong brand reputation 2.Declining performance of the domestic digital video disc
3. Original content (e.g., House of Cards) (DVD) segment
4. Ease of use 3.Limited language services and international experience
5. No advertisements 4.High level of debt financing for international expansion
6. Strong financial position 5.Limited content availability (for international markets)

Opportunities Threats
1.High growth potential in international markets (e.g. as 1.High level of competition
proven in Canada) 2.Regulatory barriers and limited Internet access in
2.Improvements in streaming technology 3.some countries
3.Increased development of mobile devices for viewers 4.Video piracy from established video file sharing websites
to access streamed content such as The Pirate Bay and Mega Upload
4.Opportunity to develop partnerships with different 5.Rapid technological
content providers 6.changes
Six key elements of a customer-centered Marketing Process

Marketing
Strategy
Formation

Marketing
Planning

Programming,
Allocation &
Budgeting
Analysis &
Research
Implementation

Monitoring &
Auditing
 Marketing Strategy Formation Process
STAGE-I STAGE-II STAGE-III
 Analysis Underlying Marketing Strategy Formation
5 C Analysis
1. Customer: a) Decision Making Process
b) Decision Making Unit
c) Initiator/Gatekeeper/Decider/Influencer/Purchaser/User

2. Company a) Strengths & Weaknesses

b) Core Competency of companies (Prahlad & Hamel)

3. Collaborators a) External Assets – R&D facility

b) Distribution System, websites etc.
c) Financing Organizations

4. Competition a) Strengths & Weaknesses

b) Present & Future Competitors

5. Context a) P.E.S.T.L.E.
 Break-out Room Activity
 Break-out rooms of 5 members each (9 to 10 rooms)
 Rooms 1,4,7 = Collaborators of Aarogya Setu App
 Rooms 2,6,9 = Customers of Lactogen Milk Powder
 Rooms 3,5,8 = Competitors of a water park

 TIME: 20 mins
 Industry Analysis Tool: Porter’s 5 Forces Model 3. Threat of new entrants:
Barriers to entry:
Threat of - Economics of scale.
1. Intra-Industry Rivalry: New - Product differentiation.
• Number and size of firms Entrants - Capital requirements.
• Industry size and trends - Switching cost to buyers .
• Fixed v variable cost bases - Access to distribution channels.
• Product/service ranges - Other cost advantages.
• Differentiation, strategy - Government policies.

2. Determinants of suppliers power: Bargaining Intra- Bargaining

• Supplier concentration
Power of the Industry
supplier Rivalry
• availability of substitute inputs
• product differentiation
• importance of industry to suppliers
• buyers switching cost to other input suppliers
• threat of forward integration by supplier,
• threat of backward integration by buyer
Threat of
4. Threats of substitute products:  substitutes
- Relative price to substitute.
- Relative quality to substitute.
- Switching cost to buyers.  •
Power of the
Buyer
4. Determinates of buyer power:
• number of buyers relative to sellers
• product differentiation.
• Switching cost to use other product
• buyers profit margins.
• Buyer’s use of multiple sources.
• Buyers threat of backward integration.
• Sellers threat of forward integration.
• Importance of product to the buyer.
Buyer’s volume.
 Six Steps of the Marketing Process

 Three Stages of Marketing Strategy Formation

 5 C Analysis
 Porter’s Five Forces Model