Session 2: Understanding

Marketing & the Market

Process
Strategic Planning & the Marketing Process
Strategic Planning
Designing the Business Portfolio
What is Strategic Planning
Strategic Planning is the process of
developing and maintaining a strategic fit
between the organization’s goals and
capabilities and its changing marketing
opportunities.
How to strategize?
Steps in Strategic Planning
Defining Company Mission
What is our Business?
Who is the Customer?
What do Consumers value?
What should our business be?

A mission statement is a statement of the

organization’s purpose – what it wants to
accomplish in the larger environment.
Setting Company Objectives &
Goals
•Are specific.
•Are realistic.
•Are motivating.
•Are customer-centric.
•Fit the market environment.
•Mission statements guide the
development of objectives and goals.
Examples of Company Mission

Our Mission
Our Roadmap starts with our mission, which is enduring. It
declares our purpose as a company and serves as the standard
against which we weigh our actions and decisions.
• To refresh the world...
• To inspire moments of optimism and happiness...
• To create value and make a difference.
 OUR VISION
To be the leading Filipino
Company with the Most Loved
Brands by 2025.

OUR MISSION
We Build Loved Brands.

OUR CORE VALUES

We Do it With Love.
We Do it Right the First Time.
We Do it Better.

OUR BRAND ATTRIBUTES

Genuine. Thoughtful. Delightful.
Designing the Business
Portfolio

Business Portfolio is the collection of businesses

and products that make up the company.

Designing the business portfolio is a key step in

the strategic planning process.
Analyzing the Current Business
Portfolio

Analyzing the current business portfolio is the

process by which management evaluates the
products and businesses making up the company.
Designing the Business
Portfolio • Identify strategic
business units (SBUs)
Portfolio Design • Assess each SBU :
• The Growth Share
Step 1: Matrix classifies
Analyze the current SBUs into one of
business portfolio four categories
using market
Step 2: growth rate and
Shape the future the SBUs relative
business porfolio market share
wthin the market
Strategic Business Unit
Strategic Business Unit (SBU) is a unit of
the company that has a separate mission
and objectives and that can be planned
independently from other company
businesses.
• Company Division
• Product line within a division
• Single Product or brand
OUR BRANDS
Steps in Analyzing the current
Business Portfolio

1. Identify key business making up the company.

2. Assess the attractiveness of its various SBUs.
3. Decide how much support each SBU deserves.
Assess the Attractiveness of Various
SBU’s and decide how much support
each deserves
Growth Share Matrix is a portfolio planning method that
evaluates a company’s strategic business units in terms of their
market growth rate and relative share.

Strategic business units are classified as:

• Stars
• Cash Cows
• Question Marks
• Dogs
The Growth Share Matrix
The Growth Share Matrix
Stars are high-growth, high-share businesses
or products requiring heavy investment to
finance rapid growth. They will eventually turn
into cash cows.

Cash Cows are low-growth, high-share

businesses or products that are established
and successful SBUs requiring less investment
to maintain market share.
The Growth Share Matrix
Dogs are low-growth, low-share businesses and
products that may generate enough cash to maintain
themselves but do not promise to be large sources of
cash.

Question Marks are low-share businesses units in high-

growth markets requiring a lot of cash to hold their
share.
Designing the Business
Portfolio • Determine the future
role of each SBU and
Portfolio Design choose the
appropriate resource
Step 1: allocation strategy:
Analyze the current • Build
business portfolio • Hold
• Harvest
Step 2: • Divest
Shape the future • SBUs change positions
business porfolio overtime
Developing Strategies for
Growth & Downsizing

Product/ Market Expansion Grid is a tool for identifying

company growth opportunities through the following:
1. market penetration
2. market development
3. product development
4. diversification.
Developing Strategies for
Growth & Downsizing
Market Penetration is a growth strategy increasing sales to
current market segments without changing the product.
Ex. Add new stores in current market areas; improve
advertising, prices, menu, service.

Market Development is a growth strategy that identifies

and develops new market segments for current products.
Ex. Develop new markets for current products.
Review new demographic such as women, youth.
Examine large potential U.S. market.
Developing Strategies for
Growth & Downsizing
Product Development is a growth strategy that offers new
or modified products to existing market segments.
Ex. Offering modified or new products to current markets.
Add lunch offerings and iced drinks, sell coffee in
supermarkets, co-brand products.

Diversification is a growth strategy through starting up or

acquiring businesses outside the company’s current
products and markets.
Developing Strategies for
Growth & Downsizing

Downsizing is the reduction of the business portfolio by

eliminating products or business units that are not
profitable or that no longer fit the company’s overall
strategy
The Growth Share Matrix
Problems with Matrix Approaches:

1.Difficulty in defining SBUs and

measuring market share and
growth.
2.Time consuming.
3.Expensive
4.Focus on current businesses, not
future planning
In Conclusion
Strategic planning is concerned about the overall direction of
the business. It is concerned with marketing, of course. But it
also involves decision-making about production and operations,
finance, human resource management and other business
issues.

The objective of a strategic plan is to set the direction of a

business and create its shape so that the products and services
it provides meet the overall business objectives.
In Conclusion
Marketing has a key role to play in strategic planning, because it
is the job of marketing management to understand and manage
the links between the business and the “environment”.

A marketing plan is useful to many people in a business. It can

help to:
• Identify sources of competitive advantage 
• Gain commitment to a strategy 
• Get resources needed to invest in and build the business 
• Inform stakeholders in the business 
• Set objectives and strategies 
• Measure performance
 END
Session 2: Understanding Marketing & the Market Process

By: Paquito Jose Li