Brand Business
Business
Strategy New Product Development Process Growth Strategies Competitive Strategies Marketing Strategies in different situations
MARKETING STRATEGY
MARKETING PLAN
Analysis
Consumer NEED Analysis:Trends & Practices, Habits & Attitudes, Need gap assessment Competitive Analysis: Positions, Strategies. SWOT Corporate Analysis: Mission, Policy, Portfolio AnalysisSWOT
Business Objective:
Competition Focus- Reactive- Market Threat Self Driven- Proactive- Market Growth/ Leadership Market Penetration, Market Development, Product Development Diversification
Business Strategy:
NPD: Process
Stage
1: Formulation of Business Strategy Stage 2: Product Development Stage Stage 3: Testing & Developing the Marketing Strategy Stage 4: Commercialization Stage 5: Market Rollout
To identify categories of interest for the next 3 years Internal ( multifunctional) Brainstorming session from time to time Various techniques used to Capture the Needs / Voice of the Consumers Rule: Quantity over Quality To generate multiple ideas without applying judgment
Assessment of Ideas generated so as to PRIORITIZE the same Application of Judgment: rationalization, quantification techniques,feasibility studies Key Inputs :
Business Direction of the Organization Consumer Trends: Usage & Attitude Studies Environment / Market Scan: segment size & growth Competitive Analysis
of Rationalization:
Skincare , Hair Colourants: Low priority Split ends & Dry Clean: Niche Markets Shampoos : Extremely Competitive
Process
of Prioritization:
Hair Problems that can be addressed by a hair oil ( dandruff , hair growth etc) Modern forms of Hair oils ( light , perfumed etc)
Conversion of Ideation to Product Ideas Formulation of Product Concepts from Product ideas Product Concept captures the product benefit, product usage details.image details Concept Testing : Projective techniques amongst target consumer segments or end user segments
Product Idea: Hair oil to fight hair problemsdandruff, greying, hairfall etc Product Concept 1: Herbal hair oil for strong hair Product Concept 2: Hair oil + Anti dandruff agents for Dandruff Product Concept 3:Hair oil + sunscreens for greying Product Concept Test : amongst hair oil users
Product positioning Idea: A specialized hair oil to fight dandruff Pdt Positioning Concept 1 : A herbal hair oil containing ingredients which also fight dandruff Pdt Positioning 2 : An effective dandruff treatment oil, which is better than other dandruff treatment products TARGET SEGMENT Concept Test 1 : Hair oil users having dandruff Concept Test 2: Anti Dandruff Product users also using hair oil
Market size, structure.Consumer analysis (why?) Product Opportunityvolumes, profitability, resources,time frames (what?) Long term strategy,projected financials ( how?)
Technology Brief
Project handover to the Research & Development Team to develop a Technical solution to the Product Need..within specified time frame & cost considerations The Technical Task : Example:
Effective Dandruff Hair oil: A coconut hair oil which reduces the dandruff flakes, & does not freeze during the winter months Fairness Soap : A wash off product ( soap) which provides UV protection for a minimum of 5 hours post bath
Product Development
Product
Brief:For the completion of the actual product & packaging development Quality Function Deployment ( QFD): a technique to translate consumer needs & wants into a technical concept or design
Marketing & R&D work towards a joint solution Translation of marketing inputs ( consumer needs, wants & perceptions) & R&D factors ( design attributes & specs) via a relationship matrix
To finetune the product attributes according to consumer needs Product form tests: product attributes, delivery system, colour, shape, perfume etc
Example: playtime & absorbency of a lotion and foam & after wash perfume of a detergent : important parameters of Quality Example: Shampoos in sachets and Lip Balms in tubes : deliver Convenience
Clinical Tests
To quantify the product performance Product usage amongst the target consumer Technical calibration of before & after use Often used in communications as Product Claims Example: Fair skin over 6 weeks or Twice as effective as other washing powders Expensive & time consuming Competitive attack : High Legal sensitivity
prototype Quality checks to test stability & other parameters Issue product Raw Material & Packaging Material specifications to the Manufacturing Department for the Commercialization stage.
Brand Strategy
Brand
Positioning : Benefits, competitive advantage Target Segment Definition Marketing mix elements ( product , branding, packaging,price, promotion, distribution) Communication development Marketing Plan Brand financials
Select markets ( Strong & weak) Launch prototype product with complete support Expensive, time consuming but reliable Issues on Confidentiality Simulate a test market situation Sample consumers exposed to advertising Map responses before & after product placement
Testing Parameters
Volume
Validation Key measures: awareness,trial, repeat, adoption, purchase frequency Communication Effectiveness Pricing Test Priority Markets Finetune product / packaging Image Indicators
Stage 4 : Commercialization
project Schedules Allocate responsibilities Control Brand Decisions Co ordinate inter functional activities Manage changes
Launch Conference: Product background ,market analysis,product support, selling tools Product placement: Retail briefing, displays, incentivesbelow the line activities Media Break
Monitor stock distribution, movement, inventory control Monitor sales- areawise, outletwise, SKU wise Monitor effectiveness of inputs displays, promotions Monitor advertising effectiveness Monitor media effectiveness Take corrective action : where ever & when ever required
BRAND-WAGON
Business Potential
Brand Values
Marketing Mix: Segment Product/Pkg Mktg Target Price Plan Position Place Promo
Analysis
Sales Plan
Busi. Obj.
BUSINESS STRATEGY
Mktg Obj
Mktg Obj
Sales Obj
MARKETING STRATEGY
SALES STRATE
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s e r s U s e r s d s
x is t in O S O C A N
t h e r B r a n W I T C H w N n B I B r a n d A L I Z
I O
Growth Strategies
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User Groups / Consumer Markets New Distribution Channel New Location/ Region
Growth Strategies
G A t t r a c t N e w U s e r s t o r o w t h e t h B C h a r t o r e U s a g e r a n d M
C E g
o n v e r t N o n - U s e r s o f t h e P I dn tc rC e aa t s e i g o r y h e n g t o c c a M a r k e t P e n e t r a t i o n S t a r t e g Uy s a g e F r e q u e n c y o : U p g r a d e T o o t h p o w d e r u s E e gr s : B o r ut o s o h t i hn pg a T s et e e t h t t e r N e w M a r k e t S e g m e n Mt s o r e U s a g e p e r O M a r k e t D e v e l o p m e n t S t r a t e U g sy a g e A m o u n t o r Q g : C o m p u t e r s f r o m O f Ef i cg e : A t o p H l y o m h e a m s p e o o U p s t w ic e w g it c h C o m p e t i t o r 's U s e r s N t oe w y o / u D r i Bf f er ar B r a n d S w i t c h i n g N e w : F a ir & L o v e l y u s e r s s w i t c E h g i n : g M t i ol k F m a en n d t U s e s U s e s ia r e d v ef o r r D e i E n
E S E
Growth Path
Britannia Cheese: Major player in Niche market Cadburys Dairy milk: Leading the Chocolates market. Nestle Frugurt: First Mover of the Flavoured yoghurt market. Pepsi Cola: Less than 30 % share in a Competitive market, dominated by Thums Up & Coke Bisleri : First mover of the Mineral water market. Lost its position to Kinley. Onida TV: Erstwhile Market Leader in a competitive Market.
Entry Barriers: Market Leadership, Brand identity,Distribution, Capital Reqt, Technology, Govt. Policy, Switching Cost
Buyer concentration/ information/ volumes/ switching costs, Ability to backward integrate, substitute products, relative switching costs, price sensitivity
Porters Model
Differentiation, Brand identity, Industry growth, Market penetration, Operating Costs, Exit Barriers
Competitive Strategies
Lower Cost of Production than its Competitors May or May NOT be at the Lowest price Ensures Higher returns which it can use advantageously against the Competitor Differentiating the Product/ the Offering in the minds of the Consumer From Product Innovation to Brand Building , all aim to create a sustainable competitive advantage Selecting only a certain segment/ group in the entire market & then ensure a cost advantage over the competitors or a point of differentiation to attract the consumers.
Focus Strategy
Market Competitiveness
Growth / Market Expansion.Market Leader Strategies When the Market Potential is high, & the level of competition is minimal Objective to build a User base. High Investment Required over a period of time Eg : Creation of the Deodorants category in India by Rexona. Differentiation/ Competitive AdvantageMarket Challenger Strategies When the Market Size is high, but there are strong existing competitors one has to deal with. Objective to gain market share through Brand switches. Medium- High Investments Eg: Introduction of Britannia Milkman, in the dairy pdts mkt dominated by Amul & Nestle.
Marketing Strategies
Based on Market Position
Market Leader:
Market Expansion StrategyMarket Growth strategies Developing New Users- convert non-users to users of the Product Category Eg: Airlines flexible fares to attract Rail Passengers. Developing New Uses for the Product New applications, new markets. Eg: Maggi noodles from choice cuisine to commonplace easy to make snack food/ tiffin. More Usage Increase amount used or frequency of use of the Product Eg: Toothpastes promoting twice a day brushing Defense StrategyThrough continuous innovation ( Brand Revitalization Strategy)
Marketing Strategies
Based on Market Position
Market Challenger:
Eg: Pepsodent- Fights germs Better than Colgate Eg Anchor Toothpaste as 100% Vegetarian, unlike others
Flank attack- Bring to light Competitors Weakness Encirclement Attack- Close in on Competitor with Multiple Attacks on all fronts
Eg: Airtel Eg: Reliance Mobiles with Technology, Nirma with Price Eg: Nihar Coconut Hair Oil
Marketing Strategies
Based on Market Position
Market Follower: Me- Too Strategy- Following or copying the moves of the Key Competitor
Eg: DetergentsGhari, Coconut Hair oilCococare, CocoRaj Specialist/ Focus Strategy- Building Customer goodwill where competition is weak or not present or not interested. Eg: Gillete in mens pdts Low volumes, but high growth & high margins. Eg: Loreal Hair Colour
Market Nichers:
New Product Development: Product classification/ Excise classification, Trademark registration, copyright, patent, FDA regulations on Brand name, formulation & packaging Advertising & promotions: Claim substantiation, ASCI rulings, MRTP regulations Sales & Distribution: Distributor relationship, region specific issues Manufacturing:Manufacturer relationship, product specific issues