10/11/2012

S6 Marketing Planning
MM
Gurudas NULKAR

Marketing 1| Gurudas Nulkar

Marketing Process

Marketing 1| Gurudas Nulkar

Marketing Micro-Environment
Market
Channels

Competitors
Public

Suppliers

Customers

The
Company

Marketing

Marketing 1| Gurudas Nulkar

Gurudas Nulkar

10/11/2012

Marketing Macro-Environment
Economic

Natural

Technological

Political
Cultural

Demographic

Changes in
population
demographic
>>Age
>>Density
>>Location
>>Gender

Factors
affecting
buying
power
>> Industrial
economy
>> Wealth
distribution

>> Natures
Most
capital
>>
dramatic
Marketing changes
Legislation
>>
Consensus
Barcode,
RFID,
Packaging,
Internet,
Mobile
recycling,
distribution
phone

Stability,
policies,
subsidies,
regulation

Cultural
values

Emission
norms

Houses,
transport,
markets
Marketing 1| Gurudas Nulkar

Estimating Market Opportunity

Segmentation
analysis

Industry
analysis

Competitive
analysis

Demand
conditions

Trade analysis

Market Opportunity

Marketing 1| Gurudas Nulkar

Demand Analysis
Derived demands
Packaged foods, electricity, tyres, transport

Unfulfilled want willingness to pay

How big is the pie, how much should you aim for?
What marketing investments required for reaching
this?

Marketing 1| Gurudas Nulkar

Gurudas Nulkar

10/11/2012

Segmentation Analysis
What segmentation can satisfy demand?
Are segments reachable?
What are the key success factors in each segment?
Luxury cars, mid-size sedans, small cars

Which segments to aim for?

Can my marketing investment lead to a market share
in the chosen segments?
Marketing 1| Gurudas Nulkar

Industry Analysis
Porters Five Forces framework

Marketing 1| Gurudas Nulkar

Michael Porters Five Forces Model

Assessing and analyzing the attractiveness of an industry
Michael Porter, Professor of Strategy at Harvard Business
School

Marketing 1| Gurudas Nulkar

Gurudas Nulkar

10/11/2012

Any industry is subject to five forces

Threat of new
entrants

Bargaining power
of customers

Internal rivalry

Bargaining power
of suppliers

Threat of
substitutes
Marketing 1| Gurudas Nulkar

Threat of new entrants

How attractive and how easy it is to enter the
industry?
Is there a good entry barrier?
New entrants = new competition
Low entry barriers can :
Increase credit terms (business markets)
Market share is diluted
Makes everyone cut prices to keep market share
Copies
Marketing 1| Gurudas Nulkar

Threat of new entrants

Typical entry barriers are :
Economies of scale Cell phone services
Capital investment - Petrol, cars
Brands Nike, Nestle
Government policy LIC, retail
Access to technology patents, IP

Marketing 1| Gurudas Nulkar

Gurudas Nulkar

10/11/2012

Bargaining power of suppliers

Ideal situation : many suppliers, offering competitive pricing,
Quick deliveries
Strategic alliance with supplier
Sometimes this is not possible

Marketing 1| Gurudas Nulkar

Bargaining power of suppliers

Supplier can be dominating if
Few suppliers in a large field
Sandvik Asia cutting tools
Boeing & Airbus, aircraft manufacturers

High switching costs

Change over from Windows to Mac OS / Linux
Changing the Contract Labor provider

Marketing 1| Gurudas Nulkar

Bargaining power of suppliers

Credible threat of making it by supplier
Adhesive manufacturer can make BOPP tapes

The industry is not an important customer to the supplier

Small business segment for Laptop suppliers

Marketing 1| Gurudas Nulkar

Gurudas Nulkar

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Bargaining power of Customers

Ideal situation is Monopoly, where seller decides
the prices, customers pays as per sellers terms
Some industries may not be possible

Marketing 1| Gurudas Nulkar

Bargaining power of Customers

Large volume buyer
Selling components to automotive mfg

Products they buy are standard, not much

differentiated
Supplying cashewnuts to Haldirams
Plastic containers for Asian Paints

Marketing 1| Gurudas Nulkar

Bargaining power of Customers

The item is a fraction of the total product cost for
the customer
Welding electrodes for Coal India
Soaps for Taj Hotel guests

The customer makes a low profit product

Airlines, Computer assemblers
Component suppliers to Automobile industries, white
goods
Marketing 1| Gurudas Nulkar

Gurudas Nulkar

10/11/2012

Bargaining power of Customers

Where customers product is not affected by the purchases
item
Uniforms for workers in a factory

When customer can pose threat of making it himself

This is often used by industrial buyers

Retail buyers (distributors, dealers, shops) when they can

influence the consumers decision
TV shop, jewelry, sports goods etc.
Marketing 1| Gurudas Nulkar

Threat of substitutes
Substitutes trigger price-performance tradeoff
Competition from other manufacturers as well as from other
products
Substitute to a Restaurant business
Take-away food, drive-ins
Diet fads, protein bars

Marketing 1| Gurudas Nulkar

Internal rivalry

Heavy competition within the industry

Many suppliers, offering similar products
Product is perishable
Characteristics of such markets
Low or no switching costs for buyers to change suppliers
Low-differentiated products similar products
Very price sensitive
Regional selling strategies work
Marketing 1| Gurudas Nulkar

Gurudas Nulkar

10/11/2012

Internal rivalry
General industrial consumables like welding
electrodes, compressor spares, stationary and
housekeeping materials, bolts, screws etc
Industrial security services providers, courier
services, car hire services etc

Marketing 1| Gurudas Nulkar

Competitive Analysis
Defining your competition
Analyzing the competitive marketplace

Marketing 1| Gurudas Nulkar

Situation analysis defining competition

Who or what is competing with your product?
A narrow definition can have disastrous effect
Our definition of competition :
Someone / something which competes for the same customers
for a same / similar need satisfaction

Marketing 1| Gurudas Nulkar

Gurudas Nulkar

10/11/2012

Competitive Analysis

Marketing 1| Gurudas Nulkar

Situation analysis defining competition

Levels of competition

Product
Form
Product
Category
Generic
competition
Budget
competition

Marketing 1| Gurudas Nulkar

Situation analysis defining competition

Levels of competition : Example Diet Cola
Product form Diet Pepsi, Diet Coke, Diet-Rite

Same market segment,

similar value proposition
similar features and pricing
appeal to similar consumers

Product category Soft drinks Other colas, lemon fizz,

Apple fizz
Industry , traditional way to view competition

Marketing 1| Gurudas Nulkar

Gurudas Nulkar

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Situation analysis defining competition

Levels of competition : Example Diet Cola
Generic Competition Coffee, Water, Wine, Tea, Beer,
Juices
Fulfilling similar set of needs to similar seeking customers
Thirst Quenching
Needs perspective
Benefits need not be defined at product level
May not look similar

Marketing 1| Gurudas Nulkar

Marketing 1| Gurudas Nulkar

Situation analysis defining competition

Levels of competition : Example Diet Cola
Budget competition competing with the consumers
spending money
Chocolates, chips, yoghurt etc.

Marketing 1| Gurudas Nulkar

Gurudas Nulkar

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Situation analysis defining competition

Examples :
Your product : Backpacks, rucksacks for college students

Marketing 1| Gurudas Nulkar

Situation analysis Communicating

competition
Product form Convincing that your brand is better
Product category Convincing that the product form
is better
Generic Generic benefits exceed others
Budget Convince the Experience

Marketing 1| Gurudas Nulkar

Situation analysis Communicating competition

Example of Tata Nano
Product form Convincing that your brand is better.
No need of this for now.
Product category Convincing that the product form is better
Used car market
Nano has started the category
Generic Generic benefits exceed others
Need to convince motorcycle & 2 wheeler buyers
Budget Convince the Experience
Marketing 1| Gurudas Nulkar
Better than public transport, 2 wheelers

Gurudas Nulkar

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Situation analysis Communicating competition

Example of Fastrac Bags
Product form Convincing that your brand is better.
Strong brand among urban youth in India
Product category Convincing that the product form is better
Ad shows many uses of the bag
Generic Generic benefits exceed others
No need, this is more like fashion accessory
Budget Convince the Experience
Need to present it as a better fashion statement
Marketing 1| Gurudas Nulkar

Gurudas Nulkar

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