Chap 9,strategies for firm

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Marketing Management Prepared by

PROF. RAJESH KUMAR(MBA IMT, GBD,SIX-SIGMA BLACK BELT CERTIFIED)

Prof. of IMT-CDL(DIMS)IP UNIV

(Ex. HOD-MARKETING,BSD)E:forrajeshkumar@gmail.com

P:9810275444www.marketingandbrandingguru.com

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“Strategy is a choice on how to compete.”

- Michael Porter

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Hypothetical Market Structure

10%MarketNichers

20%Market

Follower

30%Market

Challenger

40%MarketLeader

Market Leader

For maintaining the market leadership the firm must maintain the three possible steps.

• Expanding total Market • Defending Market Share• Expanding Market Share

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Market leadership

Expansion of the overall market

Guarding the existing market share

Expansion of the current market share

• Strong market positioning

• Developing competitive advantage• Product / process

innovation• Heavy advertising

• CRM• Strong distribution

relations

• Heavy advertising• Improved distribution

• Price incentives• New product

development• Mergers• Takeovers

• Geographic expansion• Distributor expansion

• Target groups –currently non-users• Identifying new

uses for the offering• Increasing usage

rates

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Expanding the Total Market

New customersNew customers

More usageMore usage

New Customer

• New Customer On the basis of features, Price & service one company

can find out its new customer base. Company can find out this solution by searching the user in three ways

• Market Penetration strategy Those customers might use it but they do not.• New Market Segment Strategy Those customer never use it • Geographical-Expansion Strategy Those Customers who lives elsewhere

More Usage

• More Usage Increasing the usage in existing customer by

several attractive ways will be the best solution. It can be done by using the following process

• Increase the gradient• Force customer to increase the usage

More Usage

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Six Types of Defense Strategies

Tata Brand: Position Defense

Position Defense

• Position Defense

Make the brand much superior almost leader in the market.

Like Maruti, Tata Truck.

Flank Defense

• Flank Defense

Here Company prepare the outpost to protect its weak front. Company may launch the other product to counter the attack.

Like surf excel came out with pouch after attacked by

Nirma. It was to protect its main brand.

Preemptive Defense

• Preemptive Defense

Here company wants to defense itself by attacking before than competitors. The attack can be by Guerrilla process. Company can attack the competitors by randomly & anywhere.

Like SBI opened its branch approx 26.5K(14k own & 12.5k

associate bank) & 45k ATM

Counteroffensive Defense

• Counteroffensive Defense

When hit by the attackers most of the company responds aggressively & counter attacked to the company frontal or hit its flank position.

Like Reliance & Airtell hit Tata Indicom by decreasing

its 1p/s call.

Mobile defense

• Mobile defense

Here leader stretch its domain beyond the current & meet in new territory.

Like Reliance now indulge in all types dealing

Hamara Bajaj: Contraction Defense

Contraction Defense

• Contraction Defense

Sometime big company leaves their one or more area to give more focus on their parent goods or area. It is also known as strategic withdrawal.

Like: Tata soap Ok, Bajaj Auto

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Other Competitive Strategies

Market Challengers

Market Nichers

Market Followers

Market Challenger Strategies

• Define the strategic objective and opponents

• Choose a general attack strategy

• Choose a specific attack strategy

In Pakistan, Tapal has challenged Unilever to emerge as a serious competitor

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General Attack Strategies

Frontal Attack

Encirclement Attack

Bypass Attack

Flank Attack

Guerrilla Attack

General Attack Strategies

Frontal Attack

Frontal Attack: Here company attack to other company by copying almost the same theme of price, advertisement, Product & distribution. Expert says that that company will win which has greater resource.

Like War of Coca Cola & Pepsi

Flank Attack

Flank Attack: Here company attacks the other company’s weak point. It can find out the weak point by geographical & segmental. The challenger identifies spot area where company underpins.

ExampleLG identify the geographical & launched its small

town & rural market Color Television Sampoorna. Color channel beat all the big competitors by

adopting different segment.

Encirclement Attack

Encirclement Attack: Here Challenger attack the big company by offensive attack in all front, by superior product & high quality service. Challenger almost attacks in offensive way to the established company.

Like Google attacked on Yahoo in all front like search

Engine, mail, News, Chat etc.

Sony Brand:Bypass Attack:

Bypass Attack:

Bypass Attack: It is the most dangerous indirect assault strategy to attack the company. Here challenger attacks on that field where there is no base of present company.

LikeNirma did it at the time of launching

Guerilla Attack:

Guerilla Attack: It is basically small, intentionally & harasses attack by the company or challenger to the existing company.

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Market Follower Strategies

Counterfeiter

Cloner

Imitator

Adapter

Market Nicher Strategies