what the gurus say

Strategic Brand ManagementSeries

Slide Presentation 1

By Suhas Wadwalkar

What the Gurus Say!

Peter Drucker Philip Kotler

Igor AnsoffTheodore LevittTom Peters

Jagdish Sheth

C K Prahlad

The Gurus of StrategyKevin Keller

Albert Humphrey

The Father of Strategic Management

Igor Ansoff

DevelopedProduct-Market Growth Matrix

a tool he created to plot generic strategies for growing a business via existing or new

products, in existing or new markets.

Igor Ansoff

Ansoff’s Matrix

Consolidate current market position by focusing attention and Initiating marketing activities in the area of competitive advantage

The strategy choice

Igor Ansoff

Build on existing knowledge to explore new opportunities.

Invest in R & D, modifications, etc.

Example: Unilevers 3 in 1 dishwasher tablet to replace salt, detergent & rinse agents

The strategy choice

Igor Ansoff

Extend current products to new markets, new sales areas, segments, Uses.

Consider export or licensing.

Example : McDonalds spreading across the world

Igor Ansoff

The strategy choice

Horizontal diversification activities that are complimentary to the company’s existing activities.

Vertical diversification. Downward integration leading to precedingStage of production & upward to the succeeding stage of production

Conglomerate diversification where there is no relation to the current business activities.

The strategy choice

Igor Ansoff

Boston Consultancy Group

Created by Bruce Henderson

Used as an analytical tool in brand marketing, product management, strategic management

and portfolio analysis.

Growth Share Matrix

The BCG Matrix

Relative market share

Hig

h

LowM

arke

t Gro

wth

Rat

eHigh

Low

High growth / high share

The ‘stars’ generate good income although they consume heavy resources.

Need to be supported as they have the potential to become future ‘cash cows’.

Eg. Chronic segment

The BCG Matrix

The BCG Matrix

Low growth / High share

These are called ‘cash cows’ which generatemore revenues than they consume. Surplus revenues can be used to launch new products and support them .

Eg. Unienzyme

High growth / low share

The problem kids consume lots of energy but the return is meagre.Need to be supported since they hold promise of better future – Influenza vaccine

The BCG Matrix

The BCG Matrix

Low growth / low share

The dogs are products with low share and low market growth potential.They tend to become loss makers in future – Parenteral iron

The poet laureate of Marketing Academy

Known for the concept ‘Marketing Myopia’ & ‘Globalization’

He was the first guru to present his thoughts on PLC management from its birth till

retirement

Theodore Levitt

Time Scale

Theodore Levitt

Product life Cycle Stages & Management

Sale

s

Product life Cycle concept & Management

Introduction stage

The demand needs to be ‘created’Product needs to gain a foot hold in the market Sales are slow & creepy.Competition is limited

Theodore Levitt

Growth stage

Product acceptance gains groundSales start rising rapidlyCompetitors enter the marketProduct differentiation needs to be establishedMarketing efforts are stepped up

Product life Cycle concept & ManagementTheodore Levitt

Maturity stage

Peak volumes are reachedSales growth stagnatesMarket gets saturatedPrice competition intensifiesProfits are all time highCustomer services need to be stepped up

Product life Cycle concept & ManagementTheodore Levitt

Decline stage

Product gets irrelevant at the market placeSales start dippingProfits start decliningInnovation is required

Eg. New drug delivery systems

Need to look at possibilities of brand extension

Product life Cycle concept & ManagementTheodore Levitt

Multinational Marketing

M9M10

M7

M1

M11

M3

M2

M8M4

M5

M6

Theodore Levitt

Global Marketing

World as 1 market

Theodore Levitt

Globalization or Glocalization?

The glocalized brand

Mr Humph of Stanford Research Institute

Known for his contribution to ‘SWOT analysis’ & ‘Stake holders concept’

SWOT is technique used to evaluate internal & external factors involved in a project, venture

or product

Albert Humphrey

Threats

Internal

External

Albert Humphrey

What are we good at and are doing well

Product qualityProfitable marginsStrong sales forcePowerful marketingWide distributionBackward integration

Albert Humphrey

What are we not good at and are not doing well

Poor product qualityPoor marginsWeak sales forceSluggish marketingLimited distributionInadequate backward integration

Albert Humphrey

Favorable events & trends

Market growthEconomic boostPositive customer trendModerate competitionScope to expand

Albert Humphrey

ThreatsUnfavorable events & trends

Market saturationEconomic meltdownNegative customer responseStiff competitionGovernment obstaclesPoor raw material availability

Albert Humphrey

By Suhas Wadwalkar

Strategic Brand ManagementSeries

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