DEVELOPING MARKETING STRATEGIES

Summary of discussion
Strategy ² Set of choices company make about where and how to compete in a market It·s a plan to gain competitive advantage or edge over rivals Its about performing set of activities in a different manner that creates unique value to the company and the customer Review of the case SWA, IKEA and Dell How these companies have created unique value to its customers by doing things differently

Single fleet. No frills. Ticketless entry etc . Rapid turnaround time. How functional activities are perfectly aligned to achieve low cost in the case of SWA ² Point to Point.Key lessons There should be proper alignment of functional activities with corporate or business level strategy. Functional activities should support corporate strategy. Crew performing varied tasks. WOM.

Direct from Dell Michel Dell redefined how computers were sold by eliminating middle men and directly dealing with customers using internet.   But how far this business strategy is sustainable? Can·t this strategy be easily imitated by competitors? Bottom line ² Companies have to constantly rethink or reassess their strategy in the light of changing environmental situations. Dell sought to differentiate itself through its core business mantra of being direct with customers. They should constantly look out for new opportunities and capitalize on them if it deems fit to their business objectives and strengths .

Strategy as Transformation .

strategic innovation represents the following types of creative departures from historical industry practices .The importance of strategic innovation Strategic innovation refers to this process of reinventing strategies. In other words.

IBM·s shift from selling hardware and software products to selling complete solutions) Innovations in the identification of potential customers (e.Strategic innovations Innovations in the design of the end-to-end value chain architecture (e..g. Canon·s pioneering focus on the development of photocopiers targeted at small businesses and home offices rather than large corporations)..g.. . Dell Computer) Innovations in the conceptualization of delivered customer value (e.g.

Reverse innovation .

Challenge the assumption: Products that address developing countries needs cannot be sold in developed nations .

Converting Environmental Opportunities into Organizational Opportunities Sources of environmental opportunity: Unmet or changing customer needs Unsatisfied buyer groups New means or technology for delivering value to prospective buyers .

(That 60 million represents only 5% of the population.An Indian Innovation Keeping Senior Citizens Safe India has a whopping 60 million senior citizens. even though it's a young country overall.) Providing those seniors with good health care is a growing problem. .

Challenges Health care infrastructure inadequate especially in rural areas Change in family structure ² From joint to nuclear family leaving less time for youngsters to take care of elders .

MUNOTH COMMUNICATIONS .

the blood group agency. The phone automatically sends out text messages to 10 preconfigured numbers. Further. the customer can simply press the red SOS button on the mobile phone to raise an alarm. and the insurance company. In case of an emergency. the GPS system in the phone helps responders to trace the location of the patient. .The company came up with a unique mobile phone. including that of the ambulance service. costing less than US $50.

After buying the phone. Based on the patient's medical condition.67 per month for these services. . the user can register the mobile phone on the web and store all of his or her medical records. Currently the company offers this service only to diabetes patients. After the first year. the company sends out pre-programmed reminders about taking medication and maintaining dietary restrictions. the user is charged just US $0. this service is free of cost for one year. but will soon extend it to cardiac patients.

LEVELS OF STRATEGY .

Levels of Strategy .

Corporate strategy concerns two different questions: What businesses the corporation should be in How the corporate office should manage the array of business units.  Competitive strategy on the other hand concerns how to create competitive advantage in each of the businesses in which a company competes. .

Corporate Strategy Deciding on the company·s objectives and goals. Acquiring the resources needed to attain those objectives. . Allocating resources among the different businesses so that the objectives are achieved. including the determination of which and how many lines of business to engage in.

The Strategic Management Process .

Assessing growth opportunity .

Ansoff·s Product-Market Grid Current products New products Current Mkts Mkt penetration strategy Product development strategy New Mkts Mkt development strategy Diversification Strategy .

Agri-biz. Fairness cream under different brand names Apparels ² Wills Classic.ITC·s Personal care products ² Shampoo.Ansoff·s Product-Market Grid . Retail.ITC Current products Apparels category ² Wills Sport Selling more of existing products New products FMCG . Club life and Signature Current Mkts New Mkts Wills life style stores in various cities Selling same product to new users or in geography ITC·s Diversification in to various businesses like FMCG. Paperboards and Packaging . Hotels. Soaps. Fragrance.

Balanced Scorecard Balanced Scorecard is a strategic planning and management system used: To align business activities to the vision and strategy of the organization To improve internal and external communications To monitor organization performance against strategic goals. .

Balanced scorecard .