K.S. SCHOOL OF BUSINESS MANAGEMENT

4th Year M.B.ADiv : B

Subject : Marketing Management

Submitted to : Ms. Ingita Jain

Roll No Name

4134 Siddhali Prajapati

4138 Anal Sanghavi

4141 Disha Shah

4142 Foram Shah

4144 Moxa Shah

4147 Parini Shah

4153 Siddhi Shah

4154 Vishwa Shah

4172 Vinita Bhojwani

4232 Nishita Shah

4233 Pooja Shah

GROUP MEMBERS

CH: 8

COMPETITIVE STRATEGIES FOR MARKET LEADERS

EXPANDING TOTAL MARKET DEMAND

New Customers

More Usage 1) Additional Opportunities to use the

Brand 2) New Ways to use the BrandEg : Procter & Gamble

PROTECTING MARKET SHARE

Proactive Marketing

Defensive Marketing 1) Position Defense 2) Flank Defense 3) Preemptive Defense 4) Counteroffensive Defense 5) Mobile Defense 6) Contraction Defense

1) Position Defense : The position defense or fortress, relies on the

apparent impregnability of a fixed position. E.g. : Toyota, Suzuki, Prestige, LIC

2) Flank Defense : Weak Territory It has long been recognized that the flank of an

organization, be it an army or a company, is often less well protected than other parts.

3) Preemptive Defense : Preemptive behavior has been fundamental

element of their strategy for the past few decades and takes the form of consistent and broad-ranging product development, heavy advertising.

4) Counteroffensive Defense : This defense tends to come into play once an

attack has taken place.

5) Mobile Defense : The rationale for this is to cover new territories

that might in the future serve as focal points both for offence and defense.

6) Contraction Defense : It opts for a withdrawal from those segments

and geographical areas in which it is most vulnerable or in which it feels there is the least potential.

E.g. : Reliance closed down Petrol Pump

INCREASING MARKET SHARE

The possibility of attracting legal action for violating the competition act or Antitrust Law.

Economic Cost The danger of pursuing the wrong marketing

activities. The effect of increased market share on

actual and perceived quality.

OTHER COMPETITIVE STRATEGIES

Market – Challenger Strategies 1. Defining the Strategic Objective and

Opponent(s) 2. Choosing a general attack Strategy 3. Choosing a Specific Attack Strategy

Market Follower Strategies

Market Nicher Strategies

HYPOTHETICAL MARKET STRUCTURE

10%MarketNichers

20%Market

Follower

30%Market

Challenger

40%MarketLeader

MARKET – CHALLENGER STRATEGIES

1. Defining the Strategic Objective and Opponent(s)

It can attack the market leader.

It can attack firms its own size that are not doing the job and are underfinanced.

It can attack small local and regional firms.

MARKET – CHALLENGER STRATEGIES

2. Choosing a general attack Strategy Frontal Attack Flank Attack Encirclement Attack Bypass Attack Guerrilla Attacks

Frontal Attack : In launching a frontal attack, a market

challenger can opt for

Either the pure frontal attack (by matching the leader product for product, price for price, and so on)

OR

A rather more limited frontal attack (by attracting away selected customers).

Pepsi is an example of market challenger that has chosen to use a full frontal attack

Flank Attack : A flanking attack translates into an attack

on those areas where the leader is geographically weak and in market segments or areas of technology that have been neglected.

Encirclement Attack :

Encirclement has parallels with a blitzkrieg in that it involves launching an attack on as many fronts as possible in order to overwhelm the competitor’s defenses.

Bypass Attack :

A bypass attack, is (in the short-term at least) the most indirect of assaults in that it avoids any aggressive move against the defender’s existing products or markets.

Guerrilla Attacks :

This typically involves drastic short-term price cuts, sudden and intensive bursts of advertising, product comparisons, damaging public relations activity, poaching a competitor’s key staff, legislative moves, and geographically concentrated campaigns.

MARKET FOLLOWER STRATEGIES

Counterfeiter : E.g. Software, CDs, Battery

Cloner : Look alike Spell alike E.g. Vaslin & Vasleen Imitator : Copy Features & Attributes of other market Leader

Adaptive : Same Idea with some Innovation

Dial Corporation successfully uses a market follower strategy

MARKET NICHER STRATEGIES

• Serving market niches means targeting sub segments.

•Good strategy for small firms with limited resources

•Offers high margins

•Specialization is key by market, customer, product, or marketing mix lines E.g. Sugar Free (In Small Market)

PRODUCT LIFE-CYCLE (PLC) MARKETING STRATEGIES

4 Stages:

Introduction Growth Maturity Decline

MARKETING IN AN ECONOMIC DOWNTURN

Explore the Upside of Increasing Investment

Get Closer to Customers

Review Budget Allocations

Put Forth the most Compelling Value Proposition

Fine-tune Brand and Product Offerings.

THANK YOU!