STRATEGIC PLANNING PROCESS

IN MARKETING
CHAPTER 9
 WHAT IS STRATEGIC PLANNING ?
• Strategic market planning is the process in
which organizational leaders determine their vision
for the future as well as identify their goals and
objectives for the organization. The process also
includes establishing the sequence in which those
goals should fall so that the organization is enabled
to reach its stated vision.
IMPORTANCE OF STRATEGIC PLANNING
• Helps to deal with emerging technological
breakthroughs.
• Helps to deal with ever-changing customer needs.
• Helps to deal with turbulent market situation.
• Helps to deal with unpredictable competition.
• Helps to deal with changes in political, legal, social,
economical and technological environments.
 EXHIBIT 9.2
BSNL GRABBING THE MOBILE SERVICES MARKET
• SCENARIO: BSNL’s entry in the market was late. Hutch and Idea
cellular was operating in the market for long.
• STRATEGY IMPLEMENTED: BSNL focussed on non-metro areas
where the potential for mobile industry was substantial. BSNL
with its strong network covering the entire country easily targeted
the rural market and increased its market share tremendously.
• ACHIEVEMENTS: In Maharashtra Bharti Telecom started
operations in August 2002 and achieved 1.2 lakh subscribers by
March 2003, in spite of entering the market of Maharashtra in
October 2002, succeeded in capturing a subscriber base of 2.75
lakhs.
• SUCCESS FACTORS: Positioning of services at low and affordable
prices, waiving of deposits for landline owners, huge nationwide
network.
 SBU’s
• SBU is Strategic Business Unit.
• A Strategic Business Unit is a
separate and self sufficient
business unit operating in the
market.
• Each SBU should be an
individual business entity with
individual planning process.
• Each SBU should operate in a
market where it has its own
customers and competitors.
 BCG MATRIX
• BCG matrix is developed considering market share and product
life cycle.
• This model helps managers analyze and develop business level
strategy.
• This model helps multi- business or single business organizations
to allocate resources effectively and efficiently.
• In 1970’s Boston Consulting group developed the BCG growth-
share matrix that displays the positions of business units on a
graph of the market growth rate against their market share
relative to competitors.
 FOUR QUADRANTS OF BCG
• Stars: The business units or products that have the best market share and
generate the most cash are considered stars. Monopolies and first-to-market
products are frequently termed stars. However, because of their high growth
rate, stars consume large amounts of cash. This generally results in the same
amount of money coming in that is going out. Stars can eventually become cash
cows if they sustain their success until a time when the market growth rate
declines. Companies are advised to invest in stars.

• Cash Cows: They are the leaders in the marketplace and generate more cash
than they consume. These are business units or products that have a high market
share but low growth prospects. Cash cows provide the cash required to turn
question marks into market leaders, cover the administrative costs of the
company, fund research and development, service the corporate debt, and pay
dividends to shareholders. Companies are advised to invest in cash cows to
maintain the current level of productivity, or to "milk" the gains passively.
 FOUR QUADRANTS OF BCG
• Question Marks: These parts of a business have high growth prospects but a
low market share. They consume a lot of cash but bring little in return. In the
end, question marks, also known as problem children, lose money. However,
since these business units are growing rapidly, they have the potential to turn
into stars. Companies are advised to invest in question marks if the product has
the potential for growth, or to sell if it does not.

• Dogs: Dogs, or pets as they are sometimes referred to, are units or products
that have both a low market share and a low growth rate. They frequently break
even, neither earning nor consuming a great deal of cash. Dogs are generally
considered cash traps because businesses have money tied up in them, even
though they are bringing back basically nothing in return. These business units
are prime candidates for divestiture.
BCG MATRIX OF BAJAJ
SWOT ANALYSIS
 SWOT ANALYSIS
• Strengths describe what an organization excels at and what separates it from
the competition: a strong brand, loyal customer base, a strong balance sheet,
unique technology, and so on. For example, a hedge fund may have developed a
proprietary trading strategy that returns market-beating results. It must then
decide how to use those results to attract new investors.

• Weaknesses stop an organization from performing at its optimum level. They

are areas where the business needs to improve to remain competitive: a weak
brand, higher-than-average turnover, high levels of debt, an inadequate supply
chain, or lack of capital.

• Opportunities refer to favourable external factors that could give an

organization a competitive advantage. For example, if a country cuts tariffs, a car
manufacturer can export its cars into a new market, increasing sales and market
share.

• Threats refer to factors that have the potential to harm an organization. For
example, a drought is a threat to a wheat-producing company, as it may destroy
or reduce the crop yield. Other common threats include things like rising costs for
materials, increasing competition, tight labour supply and so on.
 MARKETING PROCESS
• The marketing process of a company typically involves identifying the
viable and potential marketing opportunities, evolving suitable
marketing strategies, and supervising the implementation of these
marketing efforts.

• VALUE DELIVERY SEQUENCE

• STEPS IN THE PLANNING PROCESS
• ANALYZING THE MARKETING OPPORTUNITIES
• DEVELOPING MARKETING STRATEGIES
• PLANNING MARKETING PROGRAMS
• MANAGING THE MARKETING EFFORT
PLEASE GO THROUGH BOOK PAGE NO 147 AND 148.
 MARKETING PLAN
• Marketing Planning involves the development of a
logical process to establish marketing goals and
plans to achieve these goals.
• CONTENTS
• EXECUTIVE SUMMARY
• OPPORTUNITY AND ISSUE ANALYSIS
• MARKETING STRATEGY
• ACTION PROGRAMS
• PROJECTED PROFIT AND LOSS STATEMENT
• CONTROLS
• NOTE: Please refer book.