What the Gurus Say!

The Gurus of Strategy

Peter Drucker Kevin Keller Philip Kotler
C K Prahlad

Tom Peters
Albert Humphrey
Theodore Levitt Igor Ansoff Jagdish Sheth
The Father of Strategic Management

Igor Ansoff

Developed
Product-Market Growth Matrix
a tool he created to plot generic strategies
for growing a business via existing or new
products, in existing or new markets.
Igor Ansoff

Ansoff’s Matrix
Igor Ansoff

The strategy choice

Consolidate current market position by

focusing attention and Initiating
marketing activities in the area of
competitive advantage
Igor Ansoff

The strategy choice

Build on existing knowledge to explore

new opportunities.

Invest in R & D, modifications, etc.

Example: Unilevers 3 in 1 dishwasher tablet to

replace salt, detergent & rinse agents
Igor Ansoff

The strategy choice

Extend current products to new markets,

new sales areas, segments, Uses.

Consider export or licensing.

Example : McDonalds spreading across the world

Igor Ansoff

The strategy choice

Horizontal diversification activities that are
complimentary to the company’s existing
activities.

Vertical diversification. Downward

integration leading to preceding
Stage of production & upward to the
succeeding stage of production

Conglomerate diversification where there is

no relation to the current business
activities.
 Boston Consultancy Group

Growth
Share
Matrix

Created by Bruce Henderson

Used as an analytical tool in brand marketing,

product management, strategic management
and portfolio analysis.
 The BCG Matrix
Relative market share
High Low
Market Growth Rate
High
Low
 The BCG Matrix

High growth / high share

The ‘stars’ generate good income

although they consume heavy
resources.

Need to be supported as they have

the potential to become future ‘cash
cows’.

Eg. Chronic segment

 The BCG Matrix

Low growth / High share

These are called ‘cash cows’ which generate

more revenues than they consume.
Surplus revenues can be used to launch new
products and support them .

Eg. Unienzyme
 The BCG Matrix

High growth / low share

The problem kids consume lots of

energy but the return is meagre.
Need to be supported since they hold
promise of better future – Influenza
vaccine
 The BCG Matrix

Low growth / low share

The dogs are products with low share

and low market growth potential.
They tend to become loss makers in
future – Parenteral iron
The poet laureate of Marketing Academy

Theodore Levitt

Known for the concept

‘Marketing Myopia’ & ‘Globalization’

He was the first guru to present his thoughts

on PLC management from its birth till
retirement
Theodore Levitt

Product life Cycle Stages & Management

Sales

Time Scale
Theodore Levitt
Product life Cycle concept & Management

Introduction stage

The demand needs to be ‘created’

Product needs to gain a foot hold in
the market Sales are slow & creepy.
Competition is limited
Theodore Levitt
Product life Cycle concept & Management

Growth stage

Product acceptance gains ground

Sales start rising rapidly
Competitors enter the market
Product differentiation needs to be
established
Marketing efforts are stepped up
Theodore Levitt
Product life Cycle concept & Management

Maturity stage

Peak volumes are reached

Sales growth stagnates
Market gets saturated
Price competition intensifies
Profits are all time high
Customer services need to be stepped up
Theodore Levitt
Product life Cycle concept & Management

Decline stage

Product gets irrelevant at the market

place
Sales start dipping
Profits start declining
Innovation is required

Eg. New drug delivery systems

Need to look at possibilities of brand

extension
Theodore Levitt

Multinational Marketing

M3

M1 M2

M8
M4
M6

M7
M11
M5

M9
M10
Theodore Levitt

Global Marketing

World
as 1 market

Globalization or Glocalization?
The glocalized brand
Mr Humph of Stanford Research Institute

Albert Humphrey

Known for his contribution to

‘SWOT analysis’ & ‘Stake holders concept’

SWOT is technique used to evaluate internal &

external factors involved in a project, venture
or product
Albert Humphrey

Internal

Threats

External
Albert Humphrey

What are we good at

and are doing well

Product quality
Profitable margins
Strong sales force
Powerful marketing
Wide distribution
Backward integration
Albert Humphrey

What are we not good at

and are not doing well

Poor product quality

Poor margins
Weak sales force
Sluggish marketing
Limited distribution
Inadequate backward integration
Albert Humphrey

Favorable events & trends

Market growth
Economic boost
Positive customer trend
Moderate competition
Scope to expand
Albert Humphrey

Unfavorable events & trends Threats

Market saturation
Economic meltdown
Negative customer response
Stiff competition
Government obstacles
Poor raw material availability
 Thank You
Now find out the contributions of the Balance
Grus and present it at the next class
(Powerpoint Please)