1 market evvironment,planning segmentation, targeting and positioning 105 mkt-2 nmims october...

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Market Evvironment,planningSegmentation, targeting and positioning

105 MKT-2 NMIMS OCTOBER 25,2009

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The market Environment

Objectivesa) Undersatnd the behavior of key

environmental forcesb) Techniques available for

envirommental scan

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Why do we need it ?

History has not been kind to people who have ignored this aspect.

Automobile sector Watch sector Detergent segment Television industry

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Enironmental analysis

Socio –Economic Competition Technology Government policy Suppliers Complementors

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Sociological forces

Demographic Changes Age composition Sex structure and role of women New urban women, men and child Occupation and literacy profile Growth in affluency

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Sociological forces

Geographical location changes Changes in the value system Economic factors

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Competition

Direct competition Firms not in industry but likely to

overcome entry barrier Firms which derive synergy from

being in the industry Firms with forward and backward

integration

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Technology

Design /technical upgradation Packaging Transport Information technology

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Government Policies

Regulation on advertising Telecom regulatory authority Security exchange board Insurance regulatory authority

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Suppliers

Raw material suppliers Energy suppliers Labour and capital suppliers Situation of a buyer will affect the

strategy

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Techniques for scan

Primary research Undertake research directlySecondary data Radio and television report Cutomers Published data & reports Internet Employees, consultants etc

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Marketing Planning

Objectives Correctly identifying marketing

opportunities How to identify marketing

opportunities How to design a marketing plan

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Market Opportunity analysis

Size of the market How well the market is served Marketing programme required to

satisfy the market wants Marketing mix required to succeed Core competencies required

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Size of the market

Demand Analysis Market segment analysis Industry analysis Competition analysis Trade analysis

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Basic structure of a marketing plan

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[Product Name]Marketing Plan (SMP)

[name]

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Market Summary(SMP)

Market Past, Present, & Future Review changes in market share,

leadership, players, market shifts, costs, pricing, competition

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Product Definition(SMP)

Describe product/service being marketed

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Competition(SMP)

The competitive landscape Provide an overview of product

competitors, their strengths and weaknesses

Position each competitor’s product against new product

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Positioning(SMP)

Positioning of product or service Statement that distinctly defines the

product in its market and against its competition over time

Consumer promise Statement summarizing the benefit of

the product or service to the consumer

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Communication Strategies(SMP)

Messaging by audience Target consumer demographics

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Packaging & Fulfillment(SMP)

Product packaging Discuss form-factor, pricing, look,

strategy Discuss fulfillment issues for items not

shipped directly with product COGs

Summarize Cost of Goods and high-level Bill of Materials

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Launch Strategies(SMP)

Launch plan if product is being announced

Promotion budget Supply back up material with detailed

budget information for review

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Public Relations (SMP)

Strategy & execution PR strategies PR plan highlights Have backup PR plan including editorial

calendars, speaking engagements, conference schedules, etc.

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Advertising(SMP)

Strategy & execution Overview of strategy Overview of media & timing Overview of ad spending

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Other Promotion(SMP)

Direct marketing Overview of strategy, vehicles & timing Overview of response targets, goals &

budget Third-party marketing

Co-marketing arrangements with other companies

Marketing programs Other promotional programs

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Pricing(SMP)

Pricing Summarize specific pricing or pricing

strategies Compare to similar products

Policies Summarize policy relevant to

understanding key pricing issues

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Distribution(SMP)

Distribution strategy Channels of distribution

Summarize channels of distribution Distribution by channel

Show plan of what percent share of distribution will be contributed by each channel -- a pie chart might be helpful

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International(SMP)

International distribution Address distribution strategies Discuss issues specific to international

distribution International pricing strategy Localization issues

Highlight requirements for local product variations

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Schedule (SMP)

18-month schedule highlights Timing

Isolate timing dependencies critical to success

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Market Segmentation & Targeting

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Segmentation- Objectives

Need for segmentation Process of segmenting the market The bases of segmenting consumer

and industrial market The critera for choosing a segment The targeting strategy

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Bases for segmenting the market

Customer based segmentation Product based segmentation Competition based segmentation

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Customer based segmentation

Geographic location of customers Psychographic Variables Buyer readiness

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Geaographic location

Urban and rural Metros and non metros Region wise

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Demographic segmentation

Age Education Income Occupation Sex & family size Marital status

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Socio-economic groups

A1 & A2- (9.5 %)- graduates, white collar, professionals

B1 & B2 (17 %) – SSC, 40 % graduates, clerks, shopkeeper

C (19.5 %) – skilled workers, sales D (22,4%) – same as above, SSC E1 & E2 ( 31.6 %) –inskilled worker

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Psychographic variable

Life style related Titan, Credit card, famina Buyer readiness not aware aware but not interested ready to buy

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Product related segmentation

Product use situation (Zandu) Benefit segment(Titan) Consumption (tea, coffee, ) Decision criterion( price, quality,

service,technology)

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Copmpetition based segmentation

Hard core Loyals ( newspaper ) Soft core loyals (soaps, detergent) Switchers (cloths, mobiles)

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Sementing Industrial buyers

Size Geographical location End use Price ( sensitive, custom-made) Combination of above

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How to segment the market

Survey stage Analysis stage Profiling stage

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Targeting Strategies

Standardization (Coke, pepsi) Differentiation (airlines) Focus( cars, computers)

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Positioning The art of creating a distinct image

for a product in the minds of the consumer

Anything can be positioned – product,political party.church,ski resort

Product ATM-automated teller machine

Position ATM- anytime money

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Positioning Statements Broadcast yourself – You Tube The joy of Flying – Jet airways Fly the Good times – KingFisher

airlines A diamond is forever – De Beers Bond with the best – Reid & Tayler Born tough – Ceat Earth’s biggest book store - Amazon

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Positioning Statements…

We bring good things to life – GE Life is Good – LG Always low prices-always – Wal Mart Applying thought – Wipro Taste of India – Amul I’m loving it – Mc Donalds

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Repositioning Dettol Toilet soap- beauty to germ kill Lipton Yellow label Tea – Exotic &

foreign to exotic & Indian Visa card – Pay the way the world

does –world’s most preferred card-Visa power

Bournvita – Taste additive to milk- Extra nutrition,extra taste-nutrition mental stimulation

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Repositioning…

Burnol – Curing burns- 3-in-1(burns cuts,gashes)

Odomos – Indoor to indoor+ outdoor Titan – Elegance to gift Vicks cough drops – cough drops to

adult candy Complan – Food for sick- for family-

for growing children

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Brand Extension

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Need for brand extension

Energising a brand(ponds) Expandind a core promise to new

area(Godrej shaving cream) Blocking competition( surf to surf

ultra) Managing a dynamic environment

(colgate gel)

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Some Failures

Parle Frooti orange Palmolive regular soap Pond’s soap

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Category related extensions

Ariel to Ariel Super Soaker Cinthol to Cinthol Cologne fresh Colgate dental cream to colgate gel Nirma Powder to Nirma Detergent

cake

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Image related extension

Amrutanjan – cold rub to inhaler Amul – Milk to cheese spread Britannia – Biscuits to bread Eveready – dry cells to torches J &J – Baby soap to baby oil Maggie – Noddles to sauces Zodiac – Ties to shirts and belts

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Unrelated extensions Ceat Tyres to Financial services Enfield to TV Godrej & Tata HMT machine tools to watches and tractors Parrys – Ceramics,tea,chocolates T-series – cassettes to washing powder Wipro – Computers to Lighting

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Thank You