is1 workshop 5 make, take & sell challenge v2 student
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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