MARKETING PLANNING & STRATEGY

Marketing Planning and Strategy

How good are you at leveraging your knowledge and skills so that you are able to provide value to your business and customers? How smart are you when it comes to understanding both the fundamentals of the business and new trends? How well do you understand the art and craft of management?
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Thinking Manager.

Taking charge and responsibility

Batsman hitting a six on the last ball

Knowledge explosion and internet revolution have forced organisations to innovate.

Knowledge explosion..

There is an increased pressure from the customers, shareholders and society. Globalisation and liberalisation have opened up new business opportunities.

Managing a business in new economy

Managing a business in the new economy requires a different Strategy. Innovation and sustainability are the keys to success.

Delivering better value faster than competition will determine the winner.
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Maruti Suzuki is launching sedan Kizashi. The car is pitted against Honda Civic, Toyota Corolla and Skoda Laura. The company will be looking to a new set of customers with Kizashi. All this is being done to create a different perception about Maruti.

Case Maruti Suzuki

Why do we need Strategy?

Environment is the key factor. Changing technology, behaviour, political and require strategies. market, buyer socioconditions competition different a business we firm

Survival and success of depends on its adaptability.

To survive in the ever changing market, need strategy.

Success is not about having the right people, the right attitude, the right tools, the right role models or the right organisation.

It is about the right Strategy?

It is about the right Strategy.

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Strategy sets the competitive direction, strategy dictates product planning, strategy tells how to communicate internally and externally, strategy tells us on what to focus.

Strategy sets the competitive direction

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Strategy and marketing must be combined. A great marketing plan without proper business strategy will often fail.

Strategy & marketing must be combined

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What is a Strategy
What makes us unique and what is the best way to put that difference into the minds of our customers and prospects is Strategy. Strategy is about pursuing a course of action different from competitors and providing superior value to particular market segments.
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A tactic is an idea. A tactic must have a competitive angle in order to have a chance of success.

Strategy is distinct from tactics

This does not necessarily mean a better product or service but rather there must be an element of differentness.

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What strategy really is.

We need to distinguish between pursuing practices that are good for any company and pursuing a practice that is unique to a particular organisation.

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Is outsourcing a strategy?
A company may outsource many services and call this a strategy.

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Is merger a strategy?
A merger is a step that may move you towards a unique position, to have a strategy.

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Better for consumers..

It is better for consumers that companies have strategies. The more companies have strategies, the more consumers have unique choices.

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Compete on price..
We want all companies to compete on price.

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Become the first one..

There is only one ideal way to compete and the challenge is to be the first one to get there.

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L&T is a Rs 46,900 crore engineering and infrastructure professionally managed company. It has 64 businesses ranging from power to roads to aerospace to switchgear. These businesses are being converted into 9 operating units such as Power equipment Hydrocarbon Heavy engineering Infrastructure Building and factories Metals and minerals Electrical and automation products Electrical construction Machinery and industrial products

Case Study L&T

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Strategy is arrived at by thinking, imagining and planning. Strategic thinking requires us to do four things simultaneously: Think realistically Think creatively Think big Think continuously

Strategic Thinking

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Strategic Thinking - Think realistically

Realistic appraisal of the organisation Resources and capabilities Business environment.

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E-commerce
Many companies overestimated the demand for goods and services purchased on the Web. The demand for Web-available goods and services is now only reaching the levels hoped for in 1999.

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Think creatively means looking at new strategic opportunities. For centuries, people dreamed of being able to fly. Wright brothers worked on that dream and made it a reality. Today we take flying in airplanes for granted.

Strategic Thinking Think creatively

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Strategic Thinking - Think big

People are not measured in inches or pounds or college degrees or family background; they are measured by the size of their thinking.
Team Nano at Tata pushed itself to find solutions. When budget constraints, design restrictions, the rising costs of materials and political agitation threatened to derail the project, they dug deeper. Finally Nano astonished the world and started a renaissance in business thinking.

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Strategic Thinking - Think continuously

Think continuously means done on a daily basis. The strategic thinker has to think across several dimensions. Making strategy is likened to conducting a music orchestra. A conductor knows his band, the musicians and their instruments. The conductor knows that under his leadership, the band can produce music of such quality that can stir the souls.

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Strategy defined..
Thus strategy is defined as the overall plan of an organisation for deploying its resources within its environment, to establish a favourable position, that is, a targeted competitive position and satisfy its long-term goals.

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Key challenges of the business environment

Increasingly inconsistent environment Familiar landmarks no longer serve as guide posts Competitors, partners, suppliers and customers increasingly unpredictable Micro decisions influenced by macro parameters

are

Broadly factors that impact all businesses equally are called macro factors and those that influence a specific business are called micro factors.
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Key challenges of the business environment

Our country s growth is fuelled by growing middle-class population, young consumers and rising per-capita incomes.

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Key challenges of the business environment

India will become the third largest emitter of carbon dioxide worldwide by 2015.

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Key challenges of the business environment

Steadily the spending power of rural India is increasing. Combine these factors with improved roads and other infrastructure, rural growth story is scripting a new chapter.

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Key challenges of the business environment

Customers are going back to nature and thus demanding herbal and natural therapies.

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The Pestel framework

The PESTEL framework consists of broad environmental factors that impact almost all organisations.

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The Pestel framework

i) Political factors Business cycles GNP/GDP trends Interest rates Money supply Inflation Unemployment Disposable income

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The Pestel framework

Business cycles The five stages of the business cycle are growth, peak, recession, trough and recovery.

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The Pestel framework

GNP/GDP trends
Gross National Product, GNP is the total value of all final goods and services produced within a nation in a particular year, plus income earned by its citizens (including income of those located abroad), minus income of non-residents located in that country. It is important to differentiate Gross Domestic Product from Gross National Product. GDP includes only and services produced within the geographic boundaries of the country, regardless of the producer s nationality. GNP does not include goods and services produced by foreign producers, but does include goods and services produced by Indian firms operating in foreign countries.

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Money Supply
The Reserve Bank of India defines monetary aggregates as: Reserve Money (M0): Currency in circulation + Bankers deposits with the RBI + Other deposits with the RBI = Net RBI credit to the Government + RBI credit to the commercial sector + RBI s claims on banks + RBI s net foreign assets + Government s currency liabilities to the public RBI s net non-monetary liabilities. M1: Currency with the public + Deposit money of the public (Demand deposits with the banking system + Other deposits with the RBI). M2: M1 + Savings deposits with Post office savings banks.

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Money Supply
M3: M1+ Time deposits with the banking system = Net bank credit to the Government + Bank credit to the commercial sector + Net foreign exchange assets of the banking sector + Government s currency liabilities to the public Net non-monetary liabilities of the banking sector (Other than Time Deposits). M4: M3 + All deposits with post office savings banks (excluding National Savings Certificates).

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The Pestel framework

Economic factors Government stability Taxation policy Foreign policy Trade regulations and trade policy Social welfare policies Socio-cultural factors Population demographics Income distribution Social mobility Cultural diversity Lifestyle changes Attitude towards work and leisure Consumerism Levels of education Skilled manpower availability

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The Pestel framework

Technological factors Government spending on research and development Government and industry focus on technological efforts New discoveries, innovations and development Speed of technology transfer Rates of obsolescence Environmental factors Environmental protection laws Waste disposal regulations Energy consumption and production Competition law

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The Pestel framework

Legal factors Monopolies legislation Employment law Health and safety Product safety and liability regulations Exit policy

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Organisation to be abreast of changes

Businesses should: identify new openings and opportunities identify dangers and problems identify whether there is any need to change

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