Marketing strategy and

planning
 Gregorio Fuschillo

gregorio.fuschillo2@euromed-management.com
 COURSE ORGANIZATION
• The marketing strategy and planning course is
organized in nine classes concerning major
marketing topics
• On the 10th class you are expected to submit a
project work concerning the development of a
marketing plan
• The project work is structured on several
assignments, present in each class, that will lead
you in the development of your marketing plan
• Furthermore, at the end of some classes (those
concerning the analysis) you will find some
templates helpful in structuring your work
• All slides on Henkel project which are not titled as
“Assignment” must be considered as guide lines
(or questions) to better focus your marketing
choices
 COURSE OBJECTIVES
• Familiarize with marketing concepts and
principles

• Understanding the toolkit enabling students to

analyse and interpret several marketing
situations

• Learning how to launch a new product

 EVALUATION
Evaluation criteria :                
• Level and quality of your project work
 
 Project work

• Setting a marketing plan

Upcycling Used coffee grounds
 Project work
Henkel “grease remover”
• You have to develop a marketing plan in
order to lunch a new product “grease
remover” by Henkel company.
• “grease remover” is a detergent obtained by
upcycling used coffee grounds.
•You have to work in team (max 4 students)
•At the end of the course on the 10th class,
you have to submit on my email box a
detailed report in word format (max 15 pp.)
 Course planning

• Audit
• Objectives
• Decision making (1)
• Decision making (2)
• Product (1)
• Product (2)
• Pricing
• Distribution
• Communication
 Audit

Chapter objectives

• Present/ return on main audit tools

 • Market audit tools
– SWOT
– PESTLE
– Segmentation

• Product audit tools

– Life cycle
– Positionning
– List of costs & benefits (*)
– Porter’s 5/6 forces

* See “Doing Cost Benefit Analysis” pdf paper

Cross Knowledge
• Management Fundamentals
– Understand marketing principles
• Introducing marketing

Kotler chapters 4 & 11

 1- Situation analysis
Introduction
A/ Market audit tools
SWOT
PESTLE
Segmentation
revision
Cost Benefit analysis
Porter’s 5 forces

B/ Product audit tools

Positionning
Life cycle
The Boston matrix/Mc Kinsey Matrix

C/ Focus on the Blue Ocean

Strategy
 Introduction & definitions
Reminder on the differences between:

• corporate-level strategy Long-term decisions

The company as whole
-
Sub-strategies
• business-level strategy Each departement

• marketing strategy
Decision making
+
The product reversible
The pricing strategy
The distribution plan
The advertising and
promotions plan
The sales plan
  Definition of marketing planning

Marketing planning

A logical sequence and a series of activities

leading to the setting of marketing objectives
and the formulation of plans for achieving them

Practice makes
perfect…
• The marketing strategy

- provides the goals for your marketing plans

- tells you where you want to go from here

• The marketing plan

- implements your marketing strategy

- outlines the specific actions you intend to
carry out to interest potential customers and clients in your
product and/or service and persuade them to buy the product
and/or services you offer

- is the specific roadmap that's going to get

you there
 The marketing mix

- is the combination of elements that

make up the entire marketing process

- scheduling

- evaluation
Marketing plan

Table of contents
A/ Market audit tools
Used/not/adapted
1.SWOT to real life

2.PESTLE
3.Segmentation
4.Cost Benefit analysis
5. Porter’s 5 forces
A/ Market audit tools

1- The SWOT analysis

2- The PESTLE analysis

Political Economic

Social Technological

Legal Environmental
3- Market segmentation

3 stages
a.How?
b.Who/what ?
c.Why?
a- How they buy? Market mapping
Various buying mechanisms, including the part played by ‘influencers’
Supplier

International National Local

Regional

Distributor Retailer

Final user

Private household Private companies Local institution

 Quantification:
volumes & value
Supplier 15k 10 %
25k
35k
9%
6%
Local 18k
International National Regional
5%
34k
5%

Distributor Retailer 45k

55k 4 %
2%

55k 19 %
Final user

34k 12 k 10 %
5% 29k
4%
Private household Private companies Local institution
 b- Who buys and what they buy?
 Who?
Demographics, groups, culture, geography…

• What?
• Type of product • Country of origin
• Specification • Range of product
• Colour • Method of purchase/payment
• Decision maker
• Size of package • Frequency
• Volume of purchase • Outlet(s)
• Volume used • Type of delivery
• Price level
• Intensity of use
• Brand
• Influencers
 c- Why they buy?
• 2 theories
– Rational consumer: maximises satisfaction
– Psycho-socio consumer
• Family
• Work
• Culture
• Groups
• Perception
• Personality
• Life style…
 Why the segmentation?

A marketing dilemma

Each consumer is a case

Production difficulty and cost increase

Mass Marketing Custom(er)ization

 A solution: segmenting the market

Divide the market into homogenous sub-groups

Sub groups of consumers with similar needs and characteristics

will respond similarly to marketing actions.

Different levels of segmentation

Mass marketing Segment Niche local

Custom(er)ization
Car owners looking for Male, high-ranking
power, status manager
> 35 years old

Car owners looking for space, Male, manager,

security and comfort Father 30 To 50 years
old

Car owners looking for Male or female

fun, aesthetics 25 to 35 years old

Car owners looking for economy

Urban women
and practicality
 Another examples

Mild cleaning, soft, gentle touch

Strong stain-fighting power, ultra clean

All inclusive Single Hiker Family
The benefits of segmentation

Improve the understanding of

consumer need

Provide products/services which

better cater for the consumer needs

Help to develop more effective

marketing strategy

Higher profitability
The most important in marketing : sell the same thing !

ARIEL Format :
ARIEL Power
ARIEL Liquid
ARIEL Concentrated liquid
ARIEL Tablets
ARIEL Liquitabs
 Segmentation: the steps

A procedure working on the principles

of heterogeneity & homogeneity
Geographic: area, country, region, town

Demographic : age, sex, life stage, incomes,

generation

Psychographic : personality, life-style, attitude,

norms and values, interests, religion.

Behavior (of consumption) : quantity and frequency

of pourchaising, occasions and situations of use.

Benefits or advantages expected: User status,

loyalty status, what we’re looking for whan we buy a
new product
• List the features of major products
+ what they mean to the customer
= different offering

• Identify differential benefits compared

with those of major competitors
 Methodology
• Identify the costs
• Identify the benefits

• Quantify the costs = assign value to costs

• Quantify the benefits = assign value to benefits

• Set up indicators
Intangible, unquantifiable ….
Waiting time, noise, disk failures, illness… ± easy
• Calculate net benefits

Spec sheet
 new hardware (or upgrades to existing hardware)
Examples of Costs
  new software (or upgrades),
  network costs (including management and administration),
  telecommunications,
  environment (e.g., computer room cost),
  physical installation,
  outside consulting and assistance (e.g., support services),
  training,
  documentation,
  programming,
  software development tools,
  software testing and testing tools,
  conversion,
  operating costs,
  maintenance costs,
  labor costs,
  research and development costs,
  opportunity costs,
  technology obsolescence,
  disruption to the organization when implementing the system.
 Examples of benefits
scrap value of equipment,
  increase in productivity due to better system response time,
  increase in productivity due to improved process,
  decrease in inventory,
  reduction in average annual accounts receivable,
  reduction in errors,
  improved control,
  research and development spill overs,
  reduction in maintenance costs,
  reduction in office space required,
  personnel savings,
  better customer service,
  better system security,
  better fault tolerance,
  disaster recovery,
  employee satisfaction,
  other positive effects in the corporation (e.g., marketing support).
•  
Porter’s five forces The product
strategy
for industry analysis

Entry barriers
Porter’s sixth forces
for industry analysis 6th force?
Other stakeholders
Complementors
Companies/entities  goods or services
- compatible with, or complementary
- offer more value to the consumer together than apart.

The Government

The public

Shareholders

Employees
 B/ Product audit tools
1- Brand/product positioning
What the brand actually does and with what it competes
Brand position map
Chocolate
 Product Positioning of Ice Cream

La Compagnie des Glaces

Häagen Dazs light ice cream Häagen Dazs
Miko Mariotti
Carte d’Or

High

Magnum Light

Distributor’s brand
PRICE

Distributor’s brand

Low
RICHNESS (BUTTERFAT CONTENT) High
Education
Touristic places
Several axis

Enterprise Resources Planning

www.messagesthatmatter.com/. ../audit_message.php
 2-Product life cycle

Diagram which lots out the volume or value of sales of a product from its launch to its
decline and withdrawal
3- The Boston matrix
classifies a firm’s products according to their cash usage and their cash
generation using market growth and relative market share to categorize
them in the form of a box matrix

 Market share 
Newish
High market share
Self-financing Not yet dominant
position
 Market growth 

High cash flow

Little future

Leader in market
Stability
Little additional growth
Nabaztag rabbit
Further developments of the BCG Matrix
Mc Kinsey Matrix
C/ Blue Ocean Audit tools
(an insight)
 The Blue Ocean Approach
• Simultaneous pursuit of differentiation & low cost

• NOT to out-perform competition

• But to create new market space or a “blue

ocean” thereby making the competition
irrelevant
Red Ocean vs Blue Ocean
Value Innovation
 Which of the factors
• takes for granted should be eliminated?

• should be reduced well below the

industry's standard?
• should be raised well above the
industry's standard?
• should be created that the industry has
never offered?
 Strategy canvass
•central diagnostic & action framework
•current state of play
•reorienting your focus from competitors to alternatives from
customers to noncustomers of the industry
XXXXX
17211759

Yellow Tail Wine

• http://www.yellowtailwine.com
Before
After
 Cirque du Soleil

http://www.cirquedusoleil.com/en/home.aspx#/en/home/americas/usa.aspx
Strategy Canvas of Cirque du Soleil
 ERRC Grid
Eliminate-Reduce-Raise-Create Grid
 Assignment
- Form groups (4 students)

- Henkel
Level 1 present your audit:
SWOT, PESTLE, Segmentation, etc.

Level 2 BOS (audit tools)

Utilize Spec sheet # 1

Templates
 The SWOT analysis

Strenghts Weaknesses

Opportunities Threats
 The PESTLE analysis

Political Economic

Social Technological

Legal Environmental
Market segmentation
How? Who/what? Why?
 Costs-benefits analysis

Costs Benefits
5/6 Forces
 Product Positioning map

High

Low
High
 Product life cycle

Introduction Growth Maturity Saturation Decline

The Boston matrix
 Market share 
 Market growth 
Further developments of the BCG Matrix
Mc Kinsey Matrix
BOS Strategy canvas