is1 workshop 5 make, take & sell challenge v2 student

Industry Studies 1

Make, Take and Sell Challenge:

Using a blue ocean approach to take your product to market

Topic Number: 5

Conventional business strategy has always focused on increasing market share and winning over competitors in order to increase profitability. However, in todays business environment organisations are continually looking at new ways and markets to gain incremental profit. What has been uncovered is a new strand and ways of considering untapped markets known as Blue Ocean strategy.

In essence, this is a market developing approach that looks to create demand where none existed before. This is advantageous as there is a lack of competition however it comes with many challenges as well.

Today’s workshop we will explore this notion and look at how your product could be market creating. We will contrast a number of examples and relate these to your product. Finally, we will look at some of the challenges you may face when adopting a Blue Ocean strategy.

Overview

• Develop and determine how you could adopt the principles of Blue Ocean Strategy

• Critically evaluate examples of Blue Ocean Strategy being adopted in the global consumer goods industry

• Discuss the challenges you may face in undertaking a Blue Ocean Strategy

Learning outcomes for these workshops

Contrasting Red and Blue Strategy

Contrasting Red and Blue Ocean Strategy

Contrasting Red and Blue Strategy

View video: https://www.youtube.com/watch?v=V2b99iZviUk

What is Blue Ocean Strategy?Value Innovation

Break the value-cost tradeoff by answering the following questions:

What factors can be eliminated that the industry has taken for granted?

What factors can be reduced well below the industry’s standard?

What factors can be raised well above the industry’s standard?

What factors can be created that the industry has never offered?

What is Blue Ocean Strategy?Sequence of BOS

What is Blue Ocean Strategy?Strategy Canvass

The strategy canvas serves two purposes:

• To capture the current state of play in the known market space, which allows users to clearly see the factors that the industry competes on and where the competition currently invests

• To propel users to action by reorienting focus from competitors to alternatives and from customers to noncustomers of the industry

What is Blue Ocean Strategy?4 Actions Framework

What is Blue Ocean Strategy?Tiers of Non-Customers

Task 1: Applying the concepts to your product

Take 10

minutes

Consider the following questions:

What factors can be eliminated that the industry has taken for granted?

What factors can be reduced well below the industry’s standard?

What factors can be raised well above the industry’s standard?

What factors can be created that the industry has never offered?

Task 1: Applying the concepts to your product

Each group has 5

minutes to feedback

Task 1: An example from TATA

Safety AffordableAccommodating

Task 1: An example from TATA

Safety AffordableAccommodating

Task 1: An example from TATA

Task 1: An example from TATA

Sustainability

3. Community

2. People(Intrinsic and Extrinsic)

1. Business (commercial)

Task 2: Consider how you would adapt your product

Take 10

minutes1. Core benefit: the benefit

the customer is really buying

2. Basic product: Marketer must turn the core benefit into a basic product

3. Expected product: Set of attributes and conditions that buyers normally expect

4. Augmented product: Exceeds customer expectations

5. Potential product: Possible augmentations and transformations that a product might undergo

Task 2: Adapting your product

Each group has 5

minutes to feedback

Task 2: An example from Unilever

Task 2: An example from Unilever

Task 3: Taking your product to a new untapped market

Take 10

minutes

Consider the following questions:

What would be the likely distribution mechanism you would use?

How would you reach customers that are currently untapped?

Task 3: Taking your product to a new untapped market

Each group has 5

minutes to feedback

Page 24

Person 2 Person Transfer

Airtime Top-Up

Bill Payment

Merchant Payment

ATM Withdrawals

International Transfer

Cash In Cash Out

The Proposition Is Simple

Social Payments

Task 3: Taking your product to a new untapped market

Page 25

Over 5 million customers registered Average of 10,000 new registrations per day

Kenya growth

End of Workshop

Note: This recording is for your personal use only and not for further distribution or wider review.

© Pearson College 2013