Módulo 2 : Entendiendo el Mercado

1. Programa de Formación en Marketing Cono Sur Módulo 2 : Entendiendo el Mercado

2. Understand the Market MarketFocus Understand the Market Designed to Answer Principal Question: How should we focus our marketing efforts in the Value-Adding Chains of our chosen industry/market segments in order to build competitive advantage for our business?

3. Agenda Día 1 • Introduction/Objectives • Review of Key Understand the Market Concepts • Team Review of Current VAC Map & Dynamics • List key Business Strategy inputs • Update VAC Diagram to reflect new inputs • Verify Value Driver and power distribution • ID current allocation of Marketing Effort • Brainstorm: Ways to enhance DP influence on decisions • Capture all ideas • Prioritize top 5 • Trends Analysis: Capture and Prioritize Trends affecting relevant VACs

4. Agenda Día 2 • Competitive Analysis • Review new info from each “expert” • Chart likely competitor moves to thwart Project success • Prioritize by “Likelihood” & “Significance” • Brainstorm DuPont responses to high-priority competitive moves • Customer Analysis • Create “Sources of Competitive Advantage” & “Unmet/Poorly met Needs” matrix (3-4 levels of VAC) • Brainstorm potential DuPont Value-Add responses • Mktg Effort Future State: ID ideal allocation of Mktg effort along VAC • Decision: What is Targeted Level for Mktg Planning emphasis? • Project Path Forward Exercise: Defining Next Steps • Pre-Work for Segmentation Workshop • Reflections

5. Understand the Market Roadmap • Objectives for thisTraining • Data Gathering Techniques for Latin America • Review of Key VAC Concepts • Refining Value Chain Process Maps • Brainstorming Influence Strategies • External Trend Analysis • Competitor Analysis • Customer Analysis • VOC & Market Insights • Path Forward Exercise • Pre-Work for Marketing Competency Training Session #3: Segmentation, Targeting & Positioning

6. Objectives of Understanding the Market In the context of the Business Direction: • Fully understand the “players”, operation and dynamics of the relevant Value-Adding Chain(s) • Assemble and analyze VOC, competitor and external trend data for insights into where and how to create competitive advantage by adding value • Qualitatively and quantitatively identify business/market opportunities • Decide where to focus Marketing & Sales efforts along the Value-Adding Chain

7. Additional Objectives for this Session • Determine the work that must be done to complete Understand the Market for each Project and establish Path Forward for accomplishing that work • Understand the Pre-work assignment for Session #3, Segmentation, Targeting and Positioning

8. Understand the Market Key questions to be answered: • What are the dynamics in those Value Chains that may create opportunities we can address? • Player roles, flow of materials and decisions, trends • What do we know about customers that can guide our efforts to create greater value and influence them in favor of our offerings? • What should we expect from our competitors? How can we benefit from anticipating their actions? • How should we focus our marketing efforts in the Value-Adding Chains of our chosen industries in order to capture greater value for DuPont?

9. SIPOC - Understand the Market S I P O C Customer Needs, Values & Critical Success Factors Competitors’ Strategic Thrusts, Capabilities & Limitations Key Trends which Must be Planned for Identification of Info. Gaps & a plan to address Rigorous foundation for Market and Sales Strategy Development Agreement as to where we will focus resources along VAC Bus. Ldrs., Customers, Competitors, Channel Partners; Industry/Market. Associations, Literature & Experts Value Chain Analysis Marketing & Sales Teams, Business Leaders, other internal organizations Customers, Channel Partners VOC Data & Insights Business Strategy/Goals Prioritized CTQ’s(translated from VOC) Channel Partner Insights Industry/Market Data & Insights Customer Satisfaction Data Market Research Data Competitor Literature and Data Economic & Societal Insights Customer Analysis External Trend Analysis Competitor Analysis “Planning Focus” Decision

10. Key Marketing Strategy Questions Where will we compete? How will we compete? What will it take to win? These Questions must be addressed in the context of Business Strategy

11. Business Strategy Input • Business Definition / Purpose • Overall Strategies(e.g. Brand Portfolio Strategy) • Strategic Intent • Key Issues Impacting the Business • Resources Available • Limitations or Constraints • Industry Structure Analysis • Current and Future Industry Attractiveness • Chosen Product/Market Combinations • Measurable Goals and Objectives • Financial Performance and Expectations

12. Some Indicators of the Need to Refresh Marketing Strategy • A key patent will soon expire, opening the field to competitors • Market growth and/or market share are declining • Mergers among your customers increase their power • Significant change in competitor’s strategy or results • Segmentation is “fuzzy”, not universally understood • There’s no alignment on a clear-cut marketing strategy • Price increases aren’t “sticking” or cause defection • Environmental regulations threaten to make core products obsolete • The market is saturated; few green field opportunities remain • Price becomes king, and the market isn’t recognizing differentiation • Business conditions demand improved competitive performance

13. Workshop 1:Business Strategy Inputs Objective: Full understanding of the Business Strategy environment affecting the Team’s project Output: A list of Business Strategy considerations/parameters/ limitations/guidelines the Team must incorporate in its strategic thinking Steps: • Review the list of sample Business Strategy inputs (Slide #11) • Write down the Business Strategy inputs that affect this project; rephrase as appropriate to business situation as you know it • Decide which one require validation and note plan accordingly • Review Slide #12 for possible relevance to Team’s project; incorporate as appropriate • Designate spokesperson to characterize Team’s Business Situation for the class.

14. Value Adding Chain Definition: A progress of steps from fundamental raw materials through goods purchased by end-use consumers

15. Value Adding Chain (VAC) Analysis • A critical step in Strategic Marketing: Guides planning, segmentation, allocation of resources, activity • Potential competitive advantage from understanding the VAC better than competition!

16. Understand the Market Roadmap • Objectives for this Training • Review of Key VAC Concepts • Refining Value Chain Process Maps • Brainstorming Influence Strategies • External Trend Analysis • Competitor Analysis • Customer Analysis • VOC & Market Insights; Data Gathering Techniques for South America • Path Forward Exercise • Pre-Work for Session #3: Segmentation, Targeting & Positioning

17. Value Adding Chain Analysis Summary Understanding the VAC is a foundation for effective marketing Planning: • Describes the various levels of the Value Chain in terms of roles, power, critical success factors, values and needs • Recognizes value-adding activities throughout • Forces attention beyond the transactional customer—all the way to the End User/Consumer, the ultimate determiner of value • Assesses how well the Value Chain is working (effectiveness and efficiency) and opportunities for improvement • Prompts real consideration of how your business should allocate/focus marketing resources along the VAC to become more influential in selection of products/services used

18. Push and Pull Strategies Pull Strategy:Create demand downstream, thus pulling the offering through the channel with preference/specification TransactionalCustomer Value Driver Push Strategy:Focus effort on moving product into the VAC through marketing/sales efforts with transactional customers; little attention to what happens after that.sale to Transactional Customer.

19. Push / Pull Strategies Push IfPull If Broad Narrow Low High Complex Simple High Low Complex Simple Many Few Few Many Commodity Premium Few Many • Breadth of offering types • Differentiation of offering types • Complexity of offering • Dispersion of customer demand • Complexity of customer purchase decision • Availability of channels • Availability of communication vehicles • Positioning appeal • Availability of substitutes

20. Workshop 2: Value Adding Chain (VAC) Update

21. Value Adding Chain Definition: A progress of steps from fundamental raw materials through goods purchased by end-use consumers

22. Simplified Value-Adding Chain C O N S U M E R Customers E N D U S E R Raw MaterialSupplier Value Driver Transactional Customer DuPont Information Offering Revenue

23. VAC Player Definitions • Transactional Customer • That level in the chain that we exchange goods and services for revenue • Value Driver • That level in the chain that best interprets end-user needs and values into specifications and represents (sometimes dictates) them along the chain • Power Center • That level of the chain having the ability to affect what happens in the industry • May be same level as Value Driver • VAC Influencer - People or entities(who may not purchase/handle products) that influence the buying decisions made by targeted customers

24. Workshop 2: Value Adding Chain (VAC) Update Objective: Update each Team’s “Process Map” of how the VAC operates Output: An easily-understood drawing showing: -- VAC Players & relationships along the VAC; approx. # per level -- Key flows of Value Adding activity -- Key influencers -- Notes indicating key dynamics -- Value Driver & estimated % of decision making power re inputs like ours at each level -- Current allocation of DP marketing effort at each level of VAC Steps: • Review current draft of VAC diagram; list new inputs from Team pre-work exploration • Incorporate new information into outputs listed above; update VAC Process Map accordingly • Prepare report back: overview of Project VAC and key learnings.

25. VAC Dynamics Questions • What level is the value driver? • What level has the power currently? • How would you anticipate that power distribution might change in the future? Why? • Do we anticipate structural changes due to: • Acquisitions/Divestitures -Technology Shifts • Backward/Forward Integration -Failures / New Entrants • Alliances • How might we gain power and influence along the chain to create and extract greater value? • Where along the chain is the business currently focused? • Where should it be focused in the future?

26. Capturing Value Downstream Your Business Direct Customer End Customer Distribution • Does our offering provide benefit/value to the End Customer? If not, what is the last level of the VAC to recognize DuPont’s contribution to value? • Does our Direct Customer recognize (and acknowledge) the benefit/value our offering delivers to the End Customer? To his Customer? Is he capturing value for benefits/uniqueness of what we provide? • What might we do to help our direct customers (and other VAC Players) be more successful? • Do downstream customers have a reason to specify our product to our Direct Customer? Or to exert other pull-through influence? Do we have a means of explaining tos them the value of specifying DP inputs?

27. Value Adding Chain Analysis Summary Understanding the VAC is a foundation for effective marketing Planning: • Describes the various levels of the Value Chain in terms of roles, power, critical success factors, values and needs • Recognizes value-adding activities throughout • Forces attention beyond the transactional customer—all the way to the End User/Consumer, the ultimate determiner of value • Assesses how well the Value Chain is working (effectiveness and efficiency) and opportunities for improvement • Prompts real consideration of how your business should allocate/focus marketing resources along the VAC to become more influential in selection of products/services used.

28. Workshop 3:Brainstorming Ways DP might Gain Influence Objective: Broad early-stage thinking about possibilities for improving DP’s Influence / Value Add / Value Capture in the VAC Output: A prioritized list of possible strategies/actions that would improve DP’s position Steps: • Designate Scribe • Encourage open participation by all Team members • Generate un-evaluate list of possibilities • Review list and highlight those that seem most “exciting” and somewhat practical

29. Workshop 3:Brainstorming Guidelines • Everyone participates equally • No criticism / evaluation of ideas during idea collection phase • Don’t be limited by practicality • As ideas dwindle, take a “new perspective” on the problem: • Turn it upside down or inside out • Paint it a new “color” or “texture” • Think about it from POV of customer at each level of VAC • Think about the most dreaded moves competitors might make and what they suggest you might do to preclude them • Write everything down; you’ll come back later to sort it all out • Be sure to highlight your best ideas for easy reference later

30. Understand the Market Roadmap • Objectives for this Training • Review of Key VAC Concepts • Refining Value Chain Process Maps • Brainstorming Influence Strategies • External Trend Analysis • Competitor Analysis • Customer Analysis • VOC & Market Insights; Data Gathering Techniques for South America • Path Forward Exercise • Pre-Work for Session #3: Segmentation, Targeting & Positioning

31. Marketplace Trends Marketing Strategy is most effectively developed when external trends are well understood, or anticipated, and used to advantage • Significant trends must be planned for and met with a timely, appropriate response • Anticipating and responding to trends more effectively than competitors can provide significant competitive advantage

33. Si Usted no piensa en el futuro es porque no quiere tener uno. Proverbio chino

34. Para talar un árbol hacen falta 10 minutos para cortarlo y 2 horas para afilar el hacha.

35. ESCENARIOS LOS ESCENARIOS SON HERRAMIENTAS PARA ORDENAR LAS PERCEPCIONES DE LA DIRECCION SOBRE LOS CONTEXTOS FUTUROS ALTERNATIVOS DENTRO DE LOS CUALES LA EMPRESA PODRIA TENER QUE OPERAR Y TOMAR DECISIONES. DENTRO DE CADA ESCENARIO SE MANIFIESTAN Y RELACIONAN LAS TENDENCIAS DEL CONTEXTO DE UNA MANERA DETERMINADA.

36. MATRIZ DE IMPACTOS (I)

37. MATRIZ DE IMPACTOS (II) ACTUACION PLANES INMEDIATA CONTINGENTES IMPACTO MONITOREAR A A B PLANES A B MONITOREAR LISTOS GRADO DE PROBABILIDAD DE OCURRENCIA

38. EL DIAMANTE DETERMINANTES DE LAS VENTAJAS COMPETITIVAS NACIONALES

39. DOTACIÓN DE FACTORES • RECURSOS HUMANOS • RECURSOS FISICOS • RECURSOS DE CONOCIMIENTO • RECURSOS DE CAPITAL • INFRAESTRUCTURA

40. JERARQUÍAS ENTRE FACTORES

41. COMPOSICIÓN DE LA DEMANDA INTERNA • ESTRUCTURA SEGMENTARIA DE LA DEMANDA • COMPRADORES ENTENDIDOS Y EXIGENTES

42. INFLUENCIAS SOBRE LAS CONDICIONES DE LA DEMANDA INTERNA

43. TAMAÑO Y PAUTAS DE CRECIMIENTO DE LA DEMANDA • TAMAÑO DE LA DEMANDA INTERIOR • TEMPRANA DEMANDA INTERIOR • TEMPRANA SATURACION

44. SECTORES CONEXOS Y AUXILIARES EL TERCER DETERMINANTE GENERICO DE LA VENTAJA NACIONAL EN UN SECTOR ES LA PRESENCIA EN LA NACION DE SECTORES PROVEEDORES O SECTORES CONEXOS QUE SEAN INTERNACIONALMENTE COMPETITIVOS

45. INFLUENCIAS SOBRE EL DESARROLLO DE SECTORES CONEXOS Y DE APOYO

46. ESTRATEGIA, ESTRUCTURA Y RIVALIDAD • NATURALEZA DEL SISTEMA COMPETITIVO • FORMAS DIRECTIVAS VINCULADAS A UNA ESTRATEGIA COMPETITIVA • METAS Y MOTIVACIONES EN LINEA CON LAS FUENTES DE VENTAJAS COMPETITIVAS

47. INFLUENCIAS SOBRE LA RIVALIDAD DOMÉSTICA

48. DETERMINANTES DE LA VENTAJA COMPETITIVA NACIONAL CONCEPTOS GENERALES • LAS FUENTES DE LA VENTAJA COMPETITIVA DIFIEREN MUCHO ENTRE LOS SECTORES Y ENTRE LOS SEGMENTOS DE UN SECTOR • SE CONSIGUEN Y MANTIENEN LAS VENTAJAS COMPETITIVAS MEDIANTE LA MEJORA, INNOVACION Y PERFECCIONAMIENTO • ES NECESARIO CONTAR VENTAJAS EN TODO EL DIAMANTE • LA UNIDAD BASICA PARA EL ESTUDIO ES EL SECTOR

49. EL SISTEMA COMPLETO

50. Marketplace Trends Model Industry External