Lecture 3- 19th Oct

8/3/2019 Lecture 3- 19th Oct

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Strategic Marketing

19th October 2011

S. Rashid HussainAssistant Professor- Marketing

[email protected]
mailto:[email protected]:[email protected]


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Discussion # 1Mr. Tariq was caught up in a quandary and had sleepless nights for

weeks. Sales figures of his discount store Sachee Chakee (SC) had anose dive with the opening up of Akbari Store (AS) across the road.

AS proved to be a crowd puller, not only it had three times space than

SC but carried vast range and depth of merchandise in all categories,

had better parking facilities and was apparently located on the rightside of the road. The impact was enormous. Small convenient stores

spread all around in trading areas of adjoining blocks in Allama

Iqbal Town felt the impact. Kausar Bakery, a traditional general store

locateed next door for over twenty years, and Utility Store

Corporations super market chain outlet near by, had to wind up theirbusiness. Sales of SC still were above the break even point but he did

not know where it was going to stop.

If you were to handle Mr. Tariqs dilemma how would you proceed?


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Discussion # 2A national company dealing in food with a standing of

over fifty years is considering launching mineral water.

It has score of food technologists, own facilities which

can easily accommodate the extension of facilities.

Money is no problem but the marketing director is apragmatic player and would like to depend on expert

advice rather than gut feeling of the enthusiastic

youngsters in his team. They face a multinational which

has dominance in the market with their brandNestle.

What do you think is the right way of deciding about

this opportunity?


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COMPETITORS

ANALYSIS


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5 Things About Competitors

. WHO are our Competitors?

. WHAT are their Strategies?

. WHAT are their Objectives?

. WHAT are their Strengths &

Weaknesses?

. WHAT are their Reaction Patterns?


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Competitor Analysis

Assumptions

What assumptions do our competitors holdabout the future of industry and themselves?

Current Strategy

Does our current strategy support changes inthe competitive environment?

Future Objectives

How do our goals compare to our competitors

goals?

Capabilities

How do our capabilities compare to our

competitors?

Response

What will our competitors doin the future?

Where do we have acompetitive advantage?

How will this change our

relationship with ourcompetition?


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Competitor Analysis

Compaq

Apple

Sony

Dell

gobi


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What is Competitive Intelligence?

A systematic and ethical program for

gathering information about competitors

and general business trends to further your

own companys goals


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Why CI?Playing the Game Better

Focus on existingcompetitors/strategic

position

Leverage value chainstrengths

Incrementally improve

existingstrategies/tactics

Play the Game Differently

New market opportunity

New customers

Develop/leverage new

value chain strengths

New strategies/tactics


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Competitor Intelligence Pyramid

s

z

aSources of Data

Analysis of Data

Recommendations


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Recommendations

Analysis of Data

Sources of Data


Industry experts/analystsIndustry publications

Trade shows/conferences

Advertisements/PR

University research centers

Financial

Court documents/patents

Suppliers/customers

Newspapers/business wire

Help wanted ads

Reverse engineering labs


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Recommendations

Analysis of Data

Sources of Data


Value chain analysisRatio analysis

Benchmarking

Cost analysisTrend analysis

Personality profiling

Wargaming/scenarioplanning

Competitive behavioranalysis


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Recommendations

Analysis of Data

Sources of Data


Track Existing RivalsAnticipate New Rivals

Inform Strategy:

Identify own/competitors

strengths/weaknesses

Early warning system

Plan of attack/retaliation


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CI Paradox

Many Global 1000 companies dont have

full-scale CI units

Most Global 1000 executives believe thatsuccess depends on:

Looking ahead

First-mover advantageStrategic flexibility and maneuvering


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Future Objectives

How do our goals compare

to our competitors goals?

Where will emphasis be

placed in the future?

What is the attitude towardrisk?

Competitor Analysis

What drives the competitor?


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Competitor Analysis

What is the competitor doing?

What can the competitor do?

Future Objectives





What is the attitude toward

risk?

Current Strategy

How are they currently

competing?Does this strategy support

changes in the competitive

structure?


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Competitor Analysis

What does the competitor believe about itself

and the industry?

Future Objectives






risk?

Current Strategy

How are we currently


changes in the competition

structure?

Do we assume the future

will be volatile?

Are we assuming stable

competitive conditions?

What assumptions do our

competitors hold about the

industry and themselves?

Assumptions


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Competitor Analysis

What are the competitors

capabilities?

Future Objectives






risk?

Current Strategy




structure?


will be volatile?

Are we operating under a

status quo?




Assumptions

What are my competitors

strengths and weaknesses?

How do our capabilities

compare to our

competitors?

Capabilities


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Future Objectives






risk?

Current Strategy




structure?

Dynamic Head-to-Head Rivalry


will be volatile?

Are we operating under a

status quo?




Assumptions

Response

What will our competitors

do in the future?

Where do we have a

competitive advantage?

How will this change ourrelationship with our

competition?

Capabilities

What are my competitors

strengths and weaknesses?

How do our capabilities

compare to our

competitors?

Documents

Lecture 3- 19th Oct