Marketing Strategy Notes
Marketing Strategy 02/10/2012
Last week • Analysis before strategy. Which companies do you perceive to be market leaders? • Monday: Talked quite extensively about TomTom. o Strategy: Wants to be the biggest company of navigation devices and lead the market of products. Wants to be a market leader. • Other companies who are market leaders, see slide. Like Unilever, Coca-Cola (most market share), Google, Apple, Nike. • Why are they market leaders and what has created this dominant position for them? o Strong consumer focus (understanding what they want and developing products for that, like Unilever). o Innovation (developing new products, like Google). o Technology, new products, consumer focus, branding • But also Aldi and Wal Mart are market leaders. Velo (bikes, innovation). Three paths to market leadership: Value disciplines (Treacy and Wiersema, HBR, 1993) • Operational Excellence o Providing customers with reliable products or services at competititve prices and delivered with minimal difficulty or inconvenience. o Examples: Dell, Wall Mart • Customer Intimacy o Segmenting and targeting markets precisely when tailoring offerings to match exactly the demands of those niches. Operational flexibility is needed to respond quickly to almost any need. o Examples: Home dept, Kraft. • Product Leadership o Offering customers leading edge products and services that consistently enhance the customer’s use or application of the products, thereby making rivals’ goods obsolete. o Example: Apple. • These are 3 ways to try and reach a market leadership. Question: Can you Excel at multiple value disciplines? • You can be, but the paper favors 1 thing. • Example of a company that did 2 things. o Toyota: Operational Excellence. Then they introduced hybrid cars and engaged in product leadership. o Question: Is it possible to do both at the same time? Very difficult, like Toyota is known for very reliable cars and then they had to recall thousands of Prius cars worldwide. It is
Last week • Analysis before strategy. Which companies do you perceive to be market leaders? • Monday: Talked quite extensively about TomTom. o Strategy: Wants to be the biggest company of navigation devices and lead the market of products. Wants to be a market leader. • Other companies who are market leaders, see slide. Like Unilever, Coca-Cola (most market share), Google, Apple, Nike. • Why are they market leaders and what has created this dominant position for them? o Strong consumer focus (understanding what they want and developing products for that, like Unilever). o Innovation (developing new products, like Google). o Technology, new products, consumer focus, branding • But also Aldi and Wal Mart are market leaders. Velo (bikes, innovation). Three paths to market leadership: Value disciplines (Treacy and Wiersema, HBR, 1993) • Operational Excellence o Providing customers with reliable products or services at competititve prices and delivered with minimal difficulty or inconvenience. o Examples: Dell, Wall Mart • Customer Intimacy o Segmenting and targeting markets precisely when tailoring offerings to match exactly the demands of those niches. Operational flexibility is needed to respond quickly to almost any need. o Examples: Home dept, Kraft. • Product Leadership o Offering customers leading edge products and services that consistently enhance the customer’s use or application of the products, thereby making rivals’ goods obsolete. o Example: Apple. • These are 3 ways to try and reach a market leadership. Question: Can you Excel at multiple value disciplines? • You can be, but the paper favors 1 thing. • Example of a company that did 2 things. o Toyota: Operational Excellence. Then they introduced hybrid cars and engaged in product leadership. o Question: Is it possible to do both at the same time? Very difficult, like Toyota is known for very reliable cars and then they had to recall thousands of Prius cars worldwide. It is