creating competitve advantage - · pdf file · 2014-02-12advantage...

Creating competitve advantage

Importance of competitive advantage

• Competitive advantage is sustainable

• Competitive advantage is unique

• Competitive advantage is relevant

Competitive strategies

• Cost leadership strategy

• Differentiation strategy

• Innovation strategy

• Operational effectiveness strategy

The Brand

A Brand is a distinguishing identity and

fulfilled promise which benefits the customer.

Role of the brand

• Brand Awareness - Helps customer in simplifying decisionmaking

• Legal protection – restricted trademarks, packaging,manufacturing process

• Brand Loyalty – commands higher price in the market

• Brand Recognition – Consumers recognize the brand andknow what it offers versus competitors.

• Positive customer-based brand equity

• Consumer accepts new brand extension

• Less sensitive to price increases

• Withdrawal of advertisement support

The Brand Benefit: Up the Ladder

Brand Laddering

A simple technique that “ladders”

brand features up, into meaningful

benefits

• What does your brand do best?

• Why is that important?

• …and why is that important?

• The essence of the brand is a single, simple value

• It’s often your positioning point-of-difference

• Brand essence creates a relationship with the consumer, making an emotional connection

Different types of brands

• Product Brands

• Service Brands

• E-brands

• Media Brands

• Not-for-profit Brands

• Nation Brands

• Government Brands

• Global Brands

• Organization Brands

Alternative Branding Models

Company dominates Brands

Company is equal to Brands

Brands dominate the Company

American Express

BMW

Colgate

Disney

General Electric

IBM

L’Oreal

Sony

Holiday Inn

Chrsyler = Jeep

Estee Lauder = Clinique

Kraft = Maxwell House

PepsiCo = Mountain Dew

Time Warner = Warner Bros

3M = Scotch Tape

Marriott = Courtyard

Crest (P&G)

Kleenex (Kimberly-Clark)

Marlboro (Philip Morris)

Wranlger (VF Jeans)

BRANDING DECISIONS•BRAND•NO BRAND

BRAND SPONSOR DECISION •MANUFACTURER BRAND•DISTRIBUTOR BRAND•LICENSED BRAND

BRAND NAME DECISION•INDIVIDUAL NAMES•BLANKET FAMILY NAME•SEPARATE FAMILY NAME•COMPANY – INDIVIDUAL NAMES

BRAND STRATEGY DECISION•LINE EXTENSIONS•BRAND EXTENSIONS•MULTI BRANDS•NEW BRANDS•CO BRANDS

BRAND REPOSITIONING DECISION•REPOSITIONING•NO REPOSITIONING

BRANDING DECISION MAKING PROCESS

Brand Equity

• A set of stored values that consumers associated with a Product/Service.

• These associations add value beyond the basic product functions due to past investments in marketing the Brand.

Brand Equity Ingredients

– TOMA and Top of Name & heritage

– Packaging (structure & graphics) & signage

– Brand symbols, properties and logos

– Perceived quality, reliability & convenience

– Defined level of satisfaction

– Meaningful (premium) price/value relationship

– Purchase & usage experiences

– Consumer perceptions, attitude & behaviors

– Emotional associations with the product/services

COMPETETIVE WARFARE

Entry Strategies

FOREIGN MARKETENTRY

MANUFACTURINGAT HOME

MANUFACTURINGABROAD

INVESTMENTENTRY

EXPORTING

INDIRECTDIRECT

“PIGGY-BACKING”

CONTRACTUAL

LICENSING/FRANCHISING

CONTRACTMANUF.

TURNKEYPROJECTS

MGTCONTRACTS

OVERSEASASSEMBLY/

MIXING

JOINT VENTURES

ACQUISITION/SELF-BUILT

OTHER DIRECTENTRY

Approaches to Pricing

Approaches to Pricing

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Product Line Pricing – Band/FixedSetting Price Steps Between Product Line Items

i.e. Rs 299, Rs 399 / Rs 99

Optional-Product PricingPricing Optional or Accessory Products

Sold With The Main Product

Captive-Product PricingPricing Products That Must Be Used

With The Main Product

By-Product PricingPricing Low-Value By-Products To Get Rid

of Them

Product-Bundle PricingPricing Bundles Of Products Sold Together

Product Mix Pricing

Product

Mix

Pricing

Strategies

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Product-Mix Pricing Strategies

Product line pricing (Price lining) takes into account the cost difference between products in the line, customer evaluation of their features, and competitors’ prices. – the price differences represent the perceived quality differences

Setting Pricing Policy

1. Selecting the pricingobjective

2. Determining demand

3. Estimating costs

4. Analyzing competitors’costs, prices, and offers

5. Selecting a pricingmethod

6. Selecting final price

Pricing Objectives

Meet

Business

Objectives

Other Pricing Objectives

Status Quo

Image

Social & Ethical Considerations

The Three C’s Model for Price Setting

Costs Competitors’prices andprices ofsubstitutes

Customers’assessmentof uniqueproductfeatures

Low Price

No possibleprofit at

this price

High Price

No possibledemand atthis price

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25

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SOCIAL MEDIA STRATEGY – THE PROCESS

The Eight C’s Of Strategy Development

1. Categorize social media platforms by target market relevancy

2. Comprehend the rules of the road on the platform by listening and learning how to behave, successfully spark conversation, and engage and energize the participants

3. Converse by acknowledging and responding to other users of the platform, always remembering to be a contributor, not a promoter

The Eight C’s Of Strategy Development

4. Collaborate with platform members as a

means of establishing a mutually beneficial

relationship with the platform participants

5. Contribute content to build reputation and

become a valued member, helping to

improve the community

6. Connect with the influencers so that you

can enlist them to help shape opinions about

your product or service

The Eight C’s Of Strategy Development

7. Community participation (and creation) can elicit valuable consumer suggestions for improving products and innovative suggestions for new products or service

8. Convert strategy execution into desired outcomes such as brand building, increasing customer satisfaction, driving word-of-mouth recommendations, producing new product ideas, generating leads, handling crisis reputation management, integrating social media marketing with PR and advertising, and increasing search engine ranking and site traffic

Implementing the CRM Strategy

Elements of a CRM System

Customer

Interface/

Touch points

Sales Person

Contacts

CRM

Applications

Sales

Management

Functions

Marketing Functions

• Campaign Management

• Segmentation

• Personalization and

Customization

Customer Service

Functions

• Helpdesk

• Customer Care

Web based

Contacts

• Email

• Websites

• Telesales

• Kiosks

• Direct mail

• Coupons

Components of CRM Infrastructure

Component Description

1. Information Delivery/Online Catalogs Capability to display and list company's

products and services online

2. Customer Database Capture, organize, present, and analyze

customer-specific data

3. Personalization and Content

Management

Utilizing results of data analysis to

create an individualized experience for

customers

Enhance/modify service delivery

vehicles to match specific needs of

customers

Components of CRM Infrastructure (contd.)

4. Sales force Automation Deployment and use of tools and services

designed to automate sales and marketing

lifecycle

5. Partner Channel AutomationFor integration of a company's service vehicles

with those of its provider and third-party partners

6. Customer Services Use of technology and business processes to

successfully support a company's products and

services