BOSTON CONSULTING GROUPS GROWTH SHARE MATRIX.

GE MODEL ANSOFFS PRODUCT/MARKET EXPANSION GRID

IGOR ANSOFFS PRODUCT/MARKET EXPANSION GRID

Current Product New Product

Current Market Market Penetration Product Development

New Market

Market Development

Diversification

IGOR ANSOFFS PRODUCT/MARKET EXPANSION GRID

Market Penetration: Encourage current customers to buy more. Attract competitors customers to switch to its brand Convince non users who resemble current users to start using the companys product. Market Development Geographical expansion Channel expansion : If only present in consumer market, then look at institutional sales also.

IGOR ANSOFFS PRODUCT/MARKET EXPANSION GRID

Product development Strategy

Introduce products with new features Introduce different quality versions Alternative product forms Diversification Strategy

MARKETING RESEARCH
Defn:- Systematic design , collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company. e.g. :- 1) Product-concept development and testing 2)Test marketing 3)Effectiveness of advertising 4) Brand image study 5) Demand analysis 6) Features/trend Analysis 7) Brand awareness analysis

MARKETING RESEARCH
1) 2) 3) 4) Why Research To ascertain the customers real needs To find new applications or what is the existing product being used for (Punjab- w/m) To find solution to existing problems To find why competition is doing well

MARKETING RESEARCH
YO FROOTI
Define the situation: Will giving the rip and zip effect help broaden the market? Research objectives: 1) To find what kind of customers would prefer drinking straight:teenagers, executives. 2) To find how many are likely to switch to this packaging at different pricing. 3) What kind of flavors they would prefer 4) What other liquids can this container contain 5) When will consumers normally drink this 6) Will this package enable switching from Pepsis Miranda or other non-carbonated drink.

Demand Forecasting
Techniques used in forecasting market potential A) Extrapolation Techniques: 1) Persistence Model : 80 pieces in Feb, 100 pieces in March,---pieces in april. 2) Time Series decomposition : O=T*C*S*I Where O= Original data, C=Cyclical component S=Seasonal , I= Irregular component, T=Trend.

Demand Forecasting
E.g.: Washing Machines sold= Jan-Dec2003=12000 Estimation for year 2004 T=5% Growth :- 12000*(1.05)=12600, C=Business Recession expected (conservative estimates, 10% drop)=90%*12600=11340 If sales are same every month, then average per month=945. Add seasonal (S) component for festivals like Diwali , Durga Pooja, Pongal S= Seasonal Index:- 1.2 , Oct, Dec= 945*1.2=1134 Total O= 1134*2+945*10=11718

Demand Forecasting
B) Polling Techniques: Delphi Technique C) Historical Analogy : Sales experience of an earlier similar product is sometimes used as basis for forecasting sales of a new product. e.g. B/W:- CTV D) Econometric : E) Experimental : Test Marketing :new products.

Porters 5 Forces- Determining Segment Structural Attractiveness

Potential Entrants

Suppliers (Supplier Power)

Industry Competitors

Buyers (Buyer Power)

Substitutes (Threat of substitutes)

Eight Stages of New Product Development Idea Generation Idea Screening Concept Development & Testing Marketing Strategy Business Analysis Product Development Market Testing Commercialization

Eight Stages
1) Idea Generation :
Source of New Product Ideas:Customers , Employees, Competitors Products and services , sales team Idea Generating Techniques : Brain Storming , Need/Problem Identification , Problem /Need Identification 2) Idea Screening: Drop Error Go Error

 3) Concept Development & Testing:

A product concept is an elaborated version of the idea expressed in meaningful consumer terms. 4) Marketing Strategy Development : a) Describes the size , structure of the target market, Positioning, sales, Market share in the first few years. b) Product, Price, Place, Distribution strategy. c) Long run sales and profit goals. 5) Business Analysis:
Actual costs to R&D, MFG. ,Marketing cost and Profit Projection

6) Product Development: 1) Develop Prototype 2) Functional & Consumer Tests

7) Market Testing : Testing in select outlets with actual brand name and packaging 8) Commercialization : When to enter the market How to enter the market

Product width : Different Product categories the company is in Product Length : In each product category how many products are available Product depth : Variants that are offered for each product.

Product Strategies
1) Downward Stretch 2) Upward Stretch 3) Two-way Stretch

Marketing Warfare
Defensive Warfare
Is what market leaders wage

Offensive Warfare
Is strategy for No.2 or No.3 in a category

Flanking Warfare
Smaller or new players that are trying to get a foothold in a category by avoiding the main

Guerilla Warfare
Is often the land of smaller companies

Marketing Warfare
Principles of Defensive Marketing Warfare Only the market leader should consider playing defensive. The best defensive strategy is the courage to attack yourself Strong competitive moves should always be blocked. e.g : Gillette : The best a man can get. Owned wet shaving market with Blue and Super Blue Blade. Launched Trac II (nonadjustable ) and ATRA (adjustable double bladed razor)

Marketing Warfare
Launched Good News (inexpensive disposable razor to counter BIC (French company which launched disposable razor) Mach 3:- 3 bladed razors Market share of over 60% in USA/Europe. Other examples: INTEL (286,386,486,PENTIUM etc.) J&J : :- Tylenol :- reduced price from $2.85 for 100 to $1.85 to beat Bristol Myers Datril.

Marketing Warfare
Principles of Offensive Marketing Warfare: The main consideration is the strength of the leaders position. Find a weakness in the leaders strength and attack at that point. Launch the attack on as narrow a front as possible. e.g. : AVIS :-- Rent from AVIS . The line at our counter is shorter:- AVIS attacked Hertz:-- weakness inherent in Hertzs position as the largest Rent-A-Car company. XEROX: Out-innovated the leader 3M (by developing a better copying process-dry instead of wet copying)

Marketing Warfare
Fed Express used principle 3 by saying When it absolutely , positively has to be there overnight (small packages less then 70 pounds)= challenged the leader EMERY. Wall Street Journal was the leader (2 Mn daily) for financial and business information. The name positions it as a financial paper , so the business side can be attacked == Business Times , The daily business newspaper.

Marketing Warfare
Principles of Flanking.
1) 2) 3) A good Flanking move must be made into an uncontested area. Tactical surprise ought to be an important element of plan. The pursuit is as critical as the attack itself. Michael Dell flanked the computer industry and Direct Marketed:- $ 500 Mn company in 5 years. Miller Lite flanked the beer industry with Lite beer. DEC flanked IBM (Minicomputers)

Marketing Warfare
Mercedes-Benz flanked GM (Cadillac cars ) at the high end. Volkswagen's Beetle flanked GMs big cars. Avon flanked cosmetic companies who used traditional distribution methods by resorting to direct door-to-door selling. To launch a true flanking attack you must be the first to occupy the segment. Otherwise its just an offensive attack against a defended position. Flanking skill requires exceptional foresight because there is no established market for the new product or service. Indian examples: Nirma, Close-up.

Marketing Warfare
Principles of Guerilla Marketing Warfare.
Find a segment of the market small enough to defend. No matter how successful you become , never act like a leader. Be prepared to bug out at a moments notice. e.g.: Rolls-Royce : High priced Guerilla : nobody competes because 1) existing market is small 2) The company initially has an enormous advantage. Indian examples: 1) Arun Ice-cream : T.N 2) Naturals Ice-cream : Mumbai 3) Crown CTV : Gujarat. (Geographic Guerillas)

Services Marketing
Defn: A service is any act or performance that one party can offer to another that is essentially intangible and doesn't result in the ownership of anything . Its production may or may not be tied to a physical product. E.g : Airlines, hotels,banks,insurance,brokers , real estate companies, police,post office, colleges,hospitals.

Services Marketing

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Services Marketing
Characteristics of service
Intangibility Inseparability Perishability Variability

Services Marketing
Intangibility : Cannot be seen , tasted,felt, heard or smelled before purchase. Tangibilize the intangible e.g HDFC bank 1) People : quick service,courteous,helpful 2) Machinery : state of the art ATMs, WAN network etc will connote modern and effective bank. 3) Place : Exterior, Interior ambience : should connote class.

Services Marketing
Inseparability: Services are typically produced and consumed simultaneously. Perishability: Services cannot be stored. Unused electric power, idle seats in bus, train represent business which is lost forever. Variability: Services are highly variable , since they depend on who provides them and when and where they are provided.