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COMPETITIVE STRATEGIES
A. Market Leader
B. Market Challenger
C. Market Follower
D. Market Nicher
COMPETITIVE STRATEGIES
• Who can use but do not use: Market Penetration Strategy (Comfit)
• Who have never used: New Segment Strategy
• Who lives elsewhere: Expansion Strategy (Increase footprint)
(eg. Fair & Lovely, Perfumes, Baby Shampoo)
Market driven v/s Market driving: Responsive v/s Anticipative v/s Creative
(Sony, Nokia, Apple, Google, GoPro)
(i) Position Defense: occupying the most desirable market space in consumers
mind
(eg. Maruti, TCS, Marico, Taj, Nescafe, Maggi Noodles, Amul, Google,
Mercedes Benz)
(ii) Flanking Defense: setting outposts to protect a weak front or handle a counter
attack
(eg. Wheel, Tide, Cadbury, Big Bazar, Shoppers Stop, Mercedes Benz )
(iv) Counter Offensive Defense: meet the attacker frontally through price cuts,
promotional blitzkrieg, product upgrades, economic or political clout
(eg. Ariel, Surf, Lay Chips, Airtel, LG, Fogg, Audi, ITC, Amul, Reliance)
(vi) Contraction Defense: thro’ strategic withdrawal when capability is low and
competition is high
(Coca Cola withdrew from India in the 70’s, Tanishq in Kerala, Tata Motors in
passenger vehicle segment?, Tata Selling its soaps & detergents to HUL,
Maruti 800 pull out, Rationalizing Hero CD 100 )
COMPETITIVE STRATEGIES
3. INCREASE MS
Focus
Perseverance
Pitfalls;
(a) Attack the Market Leader to gain Market Leadership or move ahead of
other challengers (eg. Itchguard, Nirma, Ujala, Fogg, Micromax)
(b) Attack firms its own size to gain MS (Toyota-Honda, BMW-AUDI, Britannia-ITC)
(c) Attack smaller firms garner MS (Kalyan Gold v/s traditional jewelers)
COMPETITIVE STRATEGIES
(ii) Flank Attack: Finding gaps and filling it: Segmental or Geographic
(eg. Xerox-Cannon, Toyota-GM, Apple-Micromax, HP-Dell, Titan-HMT)
(v) Guerrilla Attack: intermittent, limited and selective attacks (small local Cos.)
(eg. Mysore sandal, Gharri Soap, Balaji Chips, Haldiram)
COMPETITIVE STRATEGIES
(i) Counterfeiter: Duplicates the leader’s product (routes thro’ black market)
(eg. Books, CDs, Softwares, Computer chips, Rado watches, Apple phones)
(ii) Cloner: Similar to the leader’s product in branding, look, packaging with
minor variations.
(eg. Parel-G, Glukon-D, Raxona, Luxe Delux, Indya Cements, Ujwala)
(iii) Imitator: Copies the leader’s product but makes differentiation in the 4Ps
(eg. Mamamia pizzas, MNC v/s India pharma Cos, MaskaChaska-50:50)
Short PLC
IN SUMMARY
Price or Discounts
New products or Improved products & services
Wider variety of offerings
Innovative promotions
Efficient channel management
Breakthrough technology
Efficiency or scale in manufacturing
Entry into newer geographical areas
Strength in R&D
Dynamic innovation
PRODUCT LIFE CYCLE (PLC)
PRODUCT LIFE CYCLE (PLC)
Pattern
Introduction Growth Maturity Decline
Sales Low Rapidly rising Peak Dropping
Expn. to Sales High Average Low Low
Profits -Ve Rising High Reducing
Competition Few More entry Stable- start of Less players
reduction in no.
Customers Few- Increasing- Stable- Reducing-
Innovators Early Adopters / Late Majority Laggards
Early Majority
PRODUCT LIFE CYCLE (PLC)
Marketing Objectives
Introduction Growth Maturity Decline
Create Awareness, Invest and Maximize Maximize Profit and Reducing Expn. and
Trial & Availability MS Defend MS Harvest or Divest
4P Strategies
Introduction Growth Maturity Decline
Product Basic Extension & Diversify brand Phase out weak
Services and product products
Price Skimming Penetrative/ Match Cut
Competitive competitors
Distribution Selective Intensive Intensive and Selective
Extensive/Wide
Promotion Awareness & Awareness and Emphasis on Minimal and
Trial among interest in the brand difference Selective to
early adopters mass market & benefits and retain loyalists
& dealers go for switching
PRODUCT LIFE CYCLE (PLC)