Converting Strategy Into Corporate Plans

8/2/2019 Converting Strategy Into Corporate Plans

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Converting Strategy Into

Corporate Plans

Unit 8

Trimester 6

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Operational Strategy

Please refer earlier ppt.

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Marketing Strategy

³You¶re headed in the right direction when you

realize the customer viewpoint is more important

than the company viewpoint. It¶s more productive

to learn from your customers than about them´.

John Romero

John Romer o is a Casino Marketing Consultant, Writer

and Lecturer specializing in direct mail, databasebuilding, floor pr omotions and direct response

advertising f or gaming clients in the US and abr oad.

4



Marketing strategy is essentially a patter n or plan

that integrates an or ganization's major goals,

policies, and action sequences in a cohesive wholeto achieve a 360 degree customer success.

Marketing strategies are generally concer ned

with f our Ps: product strategies, pricing strategies,

promotional strategies, and placement strategies.

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Marketing Strategy



Marketing strategy is a pr ocess that allows an or ganization to concentrate limited resources on thegreatest opportunities to increase sales and achieve

a sustainable competitive advantage. Marketing strategies are developed as multi-year

plans, with a tactical plan detailing specific actions

to be accomplished in the current year. Marketing strategies are dynamic and interactive.

They are partially planned and partially unplanned.

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Marketing Strategy



Marketing strategy involves careful scanning of theinter nal and exter nal envir onments.

Inter nal envir onmental factors include the marketing

mix, plus perf or mance analysis and strategicconstraints.

Exter nal envir onmental factors include customer analysis, competitor analysis, tar get market analysis,elements of the technological, economic, cultural or political/legal envir onment .

Marketing strategy is often in line with acompany's mission statement.

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Marketing Strategy



A good marketing strategy will also have a plan that

monitor pr ogress and a set of contingencies if

pr oblems arise in the implementation of the plan. Marketing strategies differ depending on the unique

situation of the individual business.

Some commonly used strategies are based on

1. Market dominance (leader, challenger,

f ollower,nicher)

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Marketing Strategy



2. Generic strategies based on pr oductdifferentiation, cost leadership, marketsegmentation.

3.Innovation strategies based on cutting edgetechnology and business innovation. (Pioneers,close f ollowers, late f ollowers)

4. Gr owth strategies based on ³how the fir m should gr ow´ (horizontal integration, vertical integration,

diversification, intensification).

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Marketing Strategy



Product Strategy:

1. Product position Strategy

Placing a brand/pr oduct in the market where it will havea favorable reception compared to competing brands.

2.Product re-positioning Strategy

Reviewing the current position of the pr oduct and itsmarketing mix and seeking a new position f or it that

seems more appr opriate.

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Marketing Strategy



3.Product Scope Strategy

This strategy deals with the perspectives of the

pr oduct mix of the company which may be singlepr oduct strategy (tr y and be the market leader),

multiple pr oduct strategy (pr oducts that complement

each other)or system of pr oducts strategy (have an

understanding of customer needs and uses of thepr oducts)

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Marketing Strategy



4.Product Design Strategy

Degree of standar dization of a pr oduct (standar d

pr oduct, customized pr oduct, standar d pr oduct with modifications, this combines the strategies of the

other two pr oduct design strategies.

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Marketing Strategy



5.New Product Strategy

Intr oducing a new pr oduct in its existing pr oduct line

thr ough pr oduct impr ovement/modification, pr oductimitation or pr oduct innovation.

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Marketing Strategy



Promotion Strategy

1.Pr omotion Mix Strategy ( a judicious mix of different kinds of pr omotion

2.Media Selection Strategy(choosing the channelsthr ough which messages concer ning pr oduct/ser vice inf or mation is transmitted to the

tar get audience. 3. Advertising Copy Strategy (designing the

appr opriate ad content f or the desired audience)

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Marketing Strategy



Place/Distribution Strategy

Intensive distribution, exclusive distribution,

selective distribution. You can employ two or more different channels f or

distribution of goods and ser vices.

These can be complementar y or competitivechannels.

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Marketing Strategy



Pricing Strategy

Pricing Strategy f or a new pr oduct

Pricing Strategy f or an established pr oduct Pricing Flexibility Strategy

Price Leadership Strategy

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Marketing Strategy



Pricing Strategy for a new product

Skimming (setting a relatively high price f or a new

pr oduct in its intr oduction stage of the PLC) Penetration (setting a relatively low price f or a new

pr oduct in its intr oduction stage of the PLC)

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Marketing Strategy



Pricing Strategy for an established product

Maintaining the price (to maintain positing in themarket place)

Reducing the price (to meet or beat competition or to respond to a customer need that has been created by a change in the market envir onment)

Increasing the price (to maintain pr ofitability during inflation, or to take advantage of pr oduct differencesor to segment the current ser ved market)

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Marketing Strategy



Pricing Flexibility Strategy

One price (same price to all customers under similar circumstances and f or same quantities, thisis done to simplif y pricing and maintain goodwill )

Flexible pricing (char ging different prices to differentcustomers f or the same pr oduct and quantity. To

maximize short ter m pr ofits, depending on competitive conditions and how much the customer is willing to pay)

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Marketing Strategy



Price Leadership Strategy

This strategy is used by the leading fir m in an industr y in making a major price move and othersf ollow suit.

The objective of this strategy is to gain contr ol of pricing decisions within an industr y in or der to

support the leading fir m¶s own marketing strategy (i.e. create barriers to entr y, increase pr ofit mar gin etc.)

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Marketing Strategy



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Push-Pull Strategy

Pr omotional strategies to get your pr oduct or ser vice to market can be r oughly divided into two separatecamps.

A push promotional strategy involves taking thepr oduct directly to the customer via whatever means to ensure the customer is aware of your brand at the pointof purchase.

Taking the pr oduct to the customer.

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The ter m 'push strategy' describes the work amanufacturer of a pr oduct needs to perf or m to get thepr oduct to the customer.

This may involve setting up distribution channels and persuading middle men and retailers to stock your pr oduct.

The push technique can work particularly well f or lower value items such as fast moving consumer goods(FMCGs), when customers are standing at the shelf ready to dr op an item into their baskets and are ready to make their decision on the spot.

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Push-Pull Strategy



This ter m now br oadly encompasses most directpr omotional techniques such as encouraging retailersto stock your pr oduct, designing point of sale materials

or even selling face to face. New businesses often adopt a push strategy f or their

pr oducts in or der to generate exposure and a retailchannel.

Once your brand has been established, this can beintegrated with a pull strategy.

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Push-Pull Strategy



Examples of push tactics

Trade show pr omotions to encourage retailer demand

Direct selling to customers in showr ooms or face to

face Negotiation with retailers to stock your pr oduct

Efficient supply chain allowing retailers an efficientsupply

Packaging design to encourage purchase Point of sale displays

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Push-Pull Strategy



Getting the customer to come to you.

´Pull strategyµ refers to the customer actively seeking out your

pr oduct and retailers placing or ders f or stock due to direct

consumer demand. A pull strategy requires a highly visible brand which can be

developed thr ough mass media advertising or similar tactics.

If customers want a pr oduct, the retailers will stock it - supply and

demand in its purest f or m and this is the basis of a pull strategy. Create the demand, and the supply channels will almost look after

themselves.

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Push-Pull Strategy



Examples of pull tactics

Advertising and mass media pr omotion

Wor d of mouth referrals

Customer relationship management

Sales pr omotions and discounts

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Push-Pull Strategy



A successful strategy will usually have elements of

both the push and pull pr omotional methods.

If you are starting a new business and intend to sella pr oduct thr ough retailers you'll certainly need to

persuade outlets to purchase and stock your

pr oduct.

You will also need to raise brand awareness and

start building valuable wor d of mouth referrals.

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Push-Pull Strategy



Human Resource Strategy

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HR strategy is linked to business strategy and facilitates the or ganization to achieve its objectivesby building people capabilities.

It is linked to the Vision, Mission and overallbusiness strategy of the or ganization.

How companies treat employees, particularly

thr ough theH

R practices they use, can ultimately impact fir m perf or mance, either positively or negatively

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HR Strategy is the system of human resource

practices f or a particular job or collection of jobs

aimed at the best employee perf or mance possible

to meet the fir m¶s ultimate goals.

Human Resource Strategy, f ocuses on choices and

actions concer ning the management of people

within the or ganization.

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Or ganizations are likely to have human resourcepractices that fit with their competitive businessstrategies.

Or ganizations whose human resource strategiesmatch their competitive strategies do indeed perf or m better.

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There are f our human resource strategies

commonly used by or ganizations.

± Loyal Soldier

± Bargain Laborer

± Committed Expert

± FreeAgent

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Loyal Soldier HR Strategy

The Loyal Soldier label emphasizes hiring and retaining loyal employees who do whatever the company asks of them.

Or ganizations with this strategy design work so that

employees have br oad r oles and perf or m a variety of different tasks. People are recruited and hired because they fit the

or ganization culture and because of their potential to become loyal employees.

Eff orts are made to satisf y the needs of employees and build a str ong bond that reduces the likelihood of employee tur nover.

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Or ganizations hire people early in their careers and pr ovide them with extensive training in a number of different skills.

Careers often include a number of ver y different

positions, with pr omotions often made into positionsthat are not closely related to previous experiences. Perf or mance appraisals are designed to facilitate

cooperation rather than competition. Compensation includes long-ter m incentives and

benefits and is often linked to the overall perf or manceof the or ganization.

Unions, frequently help build feelings of unity.

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Loyal Soldier HR Strategy



Bargain Laborer HR Strategy

The emphasis of this strategy is obtaining employees who do not demand high wages.

Or ganizations with this strategy design work so thatmanagers can tightly contr ol employee eff orts.

Each employee is given clearly defined tasks that can belear ned easily. People are recruited and hired to perf or m simple tasks that do not require clearly developed skills.

Little attention is paid to meeting the long-ter m needs of employees.

Or ganizations with this human resource strategy don¶tpr ovide careers with clear paths f or pr omotion and advancement.

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Perf or mance appraisal f ocuses on day-to-day feedback and rarely incorporates f or mal measures.

Training is mostly limited to on-the-job techniques

that teach specific methods f or completing particular tasks.

Compensation is frequently based on hours worked,and benefits and long-ter m incentives are minimal.

The lack of consistency among employees tends to make unions somewhat rare.

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Bargain Laborer HR Strategy



Committed Expert HR

Strategy The primar y objective of this strategy is to hire and retain employees who specialize in perf or ming certain tasks.

Or ganizations using this strategy design work so thatemployees have a great deal of freedom to innovate and to impr ove methods of completing tasks.

People are recruited and hired because of their potential fitwith the or ganizational culture, as well as their aptitude f or becoming experts in particular areas.

These or ganizations hire people early in their careers and train them to be experts in specific fields, such as accounting or sales.

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Perf or mance appraisals are designed to balancecooperation and competition among employees.

Careers generally include numer ous pr omotionsinto similar jobs with increasing responsibility.

Employees receive long-ter m training that helpsthem develop str ong expertise.

Compensation is relatively high and usually includes a good benefits package that tiesemployees to the or ganization.

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Committed Expert HR

Strategy



Free Agent HR Strategy

The main emphasis associated with this strategy is hiring people who have critical skills but who are not necessarily expected to remain with the or ganization f or a long period of time.

Work is designed so that employees have extensive responsibility

within specific areas and substantial freedom to decide how to go about their work.

Long-ter m commitments are avoided, and no eff orts are made to encourage str ong attachments between employees and theor ganization.

People are recruited because they already have the skills and experience that they need to perf or m specific jobs.

They are not led to expect long-ter m careers in the or ganization.Higher-level positions are frequently given to people fr om outside theor ganization.

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Perf or mance appraisal f ocuses on outcomes and results.

Training is rare.

Short-ter m compensation is usually high, which isnecessar y if the or ganization is to obtain people with top skills.

Pay is linked specifically to individual perf or manceresults.

Benefits and long-ter m compensation packages, which tie employees to the or ganization, are avoided.

Unions are rarely seen in these or ganizations.

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Free Agent HR Strategy



HR Strategy

Recruitment

SelectionTraining

Development

Performance

Management

Rewards

Communication

What

Employees

Have

Skills,

Abilities,Competencies

What

Employees

FeelMotivation

Commitment

Engagement

What

Employees

DoTask,

Discretionary,

Counterproductive

Behavior,

Attendance,

Turnover

Customer

Outcomes

Satisfaction

Retention

Operational

Outcomes

Productivity

Quality

Shrinkage

Accidents

Financial

Outcomes

Expenses

Revenues

Profits

HR Strategy and

Performance

Documents

Converting Strategy Into Corporate Plans