Playbook DMA April 05 Show

8/14/2019 Playbook DMA April 05 Show

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Marketing Strategy De-mystified:

A Simple Playbook

John ZagulaandRichard Tong

April 2005


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2The Marketin Pla book LLC, All Ri ht Reserved. Confidential and Pro rietar

Strategy without tactics is theslowest route to victory.

Tactics without strategy is the noise

before defeat.

- Sun Tzu

(Chinese General, circa 500BC)


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What is a Strategy?

The Play Five basic strategies

The Playing Field

Find the gapThe Tactics

From A to Z


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Play 1. Drag Race


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Drag Race Example

Microsoft Word vs. WordPerfect, 1990 Word 15%, WP 30%, Other 55% GUI/WYSIWYG on IBM PCs

Go to Market

Word/WordPerfect Challenge, People prefer $129 upgrade = switcher product

Outcomes No one wrote about Wordstar anymore Word at 85% share


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Drag Race

Conditions Fragmented market, vulnerable competitor

Product/Resources to win

Implications

Better on price, product, everything

Shootouts, features wars galore

Risks/Rewards

Easy to explain, to focus, to get PR Netscape pokes bear, bears eats Netscape


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Play 2. Platform


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Platform Example

NTT DoCoMo, 1997 10 million subscribers, $18 billion original IPO Fat and happy with voice/paging

Go to Market Open I-mode with simple development, billing DoCoMo providing tools, billing; taking only 9%

Outcomes 40 million subscribers 1000s of profitable, dependant partners


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10/2810The Marketin Pla book LLC, All Ri ht Reserved. Confidential and Pro rietar

Play 3. Stealth



Stealth Example

Enterprise Car Rental, 1970s Embroiled in grizzly battle for airport rentals No way to outspend Hertz or Avis

Go to Market Hometown, insurance replacement Well pick you up

Outcomes Low marketing costs, near monopoly in

insurance

One of the most profitable in the rentalbusiness


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Play 4. Best of Both



Best of Both Example

Lexus, 1989Japan low-end/Europe high-end Dramatic manufacturing improvements in Japan

Go to MarketJapanese luxury not an oxymoron; fresh, not

staid Whole product approach, car + whole

experience

Outcomes

JD Powers best car line, Number one luxuryimport Best of both again with Luxury SUV oxymoron



Best of Both

Conditions Mature market, two established competitors Customers trade-offs (low-high, power-ease,

etc.)

Implications Why have to chose? value/have-it-all

messaging One winner SKU, attack high end first

Risks/Rewards

Requires real differentiation Worst of both worlds e.g. Peugeot?



Play 5. High-Low



High-Low Example

Sheraton, 2000 Strong luxury brand Marriott lower price, good enough

Go to Market Four Points ($89) Sheraton Keauhou Bay ($500-$5,000)

Outcomes Growing share of the mid market When can I book Four Points Hawaii?



High-Low

Conditions A key contender, often drag-racing/BoBing you Can be done with alliances (partner for low-

end)

Implications Why compromise? right-one-for-you

messaging Entry plus premium SKU, attack low end first

Risks/Rewards

Defensive, until you BoB, hard to execute (e.g. Old Navy stealing from Gap?)



Sun Tzu

If you know the enemy andyourself, you need not fear ahundred battles.

If you know yourself but notthe enemy, for every victoryyou will also suffer a defeat.

If you know neither the enemynor yourself, you will succumbin every battle.



Playing Field andGaps



Playing FieldElements



The Campaign

Keep it simple. When you get toocomplex, you forget the obvious."

- Al Maguire

(Coach, Marquette basketball)



Positioning

X

CategoryDefinition

The onlyXsolution

Y

CustomerTarget

that solvesYproblem

Z

CompetitiveDifference

in Zunique Way



Proof>Benefits>Features



Messaging Tips

R1: Rule of One One promise, one offer, one action

R3: The Rule of Three

No more than three of anything Features, benefits, proof points

Awesome, Awesome, Not Screwed Up

Motivate and Incent Action Remove barriers to inaction



Messaging LitmusTest



Summary

Know your playing field ABCs/Gaps

Customer, Competitors, Competencies

Pick your play

Dragrace, Platform, Stealth, Best of Both, High-Low

Right conditions; clear, focused bet; readiness toshift

Run it down the field

Positioning: get XYZs right

Messaging: solid proof stronger than cool

features


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Playbook DMA April 05 Show