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Identifying Markets: The art of Strategic Marketing

Identifying Markets: The art of Strategic Marketing. Every choice you make has an end result – Zig Ziglar. Getting Market Understand Wrong. Pepsi in Taiwan - " Come Alive With the Pepsi Generation," came out as, "Pepsi Will Bring Your Ancestors Back From The Dead .“

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Identifying Markets: The art of Strategic Marketing

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  1. Identifying Markets: The art of Strategic Marketing

  2. Every choice you make has an end result – ZigZiglar

  3. Getting Market Understand Wrong • Pepsi in Taiwan - "Come Alive With the Pepsi Generation," • came out as, "Pepsi Will Bring Your Ancestors Back From The Dead.“ • Ford Pinto launched in Brazil: • Brazilian slang for "Tiny Male Genitals." Ford pried all the nameplates off and substituted Corcel, which means horse

  4. Getting Market Understand Wrong • Parker Pen marketed a ballpoint pen in Mexico, its ads were supposed to say, "It Won't Leak In Your Pocket And Embarrass You." • However, the company mistakenly thought the Spanish word "embarazar" meant embarrass. Instead the ads said that "It Won't Leak In Your Pocket And Make You Pregnant."

  5. Recent Failures of Wrong Market Choices • Use local knowledge • Start small • Work on several fronts • Be different • Stay humble

  6. Separating a heterogenous market into separate homogenous markets

  7. Two key questions • Who is your target market? • Why should they buy from you?

  8. What is a right market? • The one with a POTENTIAL • SIZE • GROWTH • CULTURAL FACTORS • MARKET STRUCTURE

  9. Market/customer Size ($’s, units) Market potential Market growth rate Product life cycle stage Differentiation potential Customer loyalty Price elasticity Economic/technological Investment intensity Industry capacity Level & maturity of technology utilization Ability to pass through inflation effects Barriers to entry/exit Access to raw materials Market Attractiveness Factors

  10. Competitive Industry structure Competitive groupings Substitution threats Perceived differentiation among competitors Individual competitors’ strengths Environmental Regulatory climate Degree of social acceptance Market Attractiveness Factors

  11. Market Position Relative market share Rate of change in share Perceived actual or potential differentiation Breadth of current or planned product line Company image Economic/technological Relative cost position Capacity utilization Technological position Patented technology Competitive Position Factors

  12. Capabilities Management strength & depth Financial R&D/product development Manufacturing Marketing Salesforce Capabilities, con’t Distribution system Labor relations Relations with regulators Interactions with other segments Market synergies Operating synergies Competitive Position Factors

  13. Market-Attractiveness/Competitive-Position Matrix

  14. 3 Key things to find in a market • Unmet need • Unique proposition • Utility value

  15. Unmet Needs

  16. Where Novelty begets Need Coffee Retailer Starbucks has a substantial presence in China with over 500 stores and 10,000 employees. It expects China to be its second largest market after the USA by 2015, projecting 1,500 stores by that year. The company will be present in more than 70 Chinese cities by 2015

  17. Where Need can become a Necessity Branded breakfast cereal market in India is pegged at Rs. 500 crores.  80% of the market is cornflakes and the rest is shared by Oats, Muesli and Wheat Porridge.   Kellogg's holds 70% of the total market. The industry was pegged at Rs. 150 crores way back in 1995 and the growth over past 15 years is only 8.4% per annum.

  18. Utility Value

  19. When the Market takes Time to Test and take Money to Pay KelloggsKpak Sachet shampoos Times of India entry price strategy

  20. Unique Proposition

  21. Where Competition can’t give what you give During his travels to Asia the Austrian Unilever employee Dietrich Mateschitz found that Asian businessmen drank local syrups to revitalize Modified the taste to suit the western palate. Launched Red Bull in 1986. Slim pack….. Focus on Energy Adventure Events More than $2 B Revenue annually Pepsi and Coke’s slim cans were not energy drinks

  22. Where Competition can’t have what you have

  23. Services Companies: The Challenge of the Retards (Catch the Long Tail) Revenue High Potential Clients

  24. Proof of Concepts • Demo centers • Demo products • Marketing programs • Price competitiveness • New Products / Services • Market Research • Technology Research • Thought Leadership • Center of Excellence • Capability Enhancement Programs Product & Services Companies: The Challenge of Readiness High Earn Engage Organizational Readiness • Availability of products • Ease of building competencies • Ease of leveraging on existing client relationships • Current competitive advantage Explore Enable Low High Market Readiness • Market Size • Market Growth • Value chain sizing • Technology maturity and adoption

  25. Capital Intensive & Infrastructure Companies: The Challenge of balancing Risk and Reward Source: EIU, Worldbank, Deloitte analysis

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