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© 2007 John Wiley & Sons Chapter 14 – Setting Priorities for Businesses and Brands PPT 14-1 Setting Priorities for Businesses and Brands – The Exit, Milk,

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Presentation on theme: "© 2007 John Wiley & Sons Chapter 14 – Setting Priorities for Businesses and Brands PPT 14-1 Setting Priorities for Businesses and Brands – The Exit, Milk,"— Presentation transcript:

1 © 2007 John Wiley & Sons Chapter 14 – Setting Priorities for Businesses and Brands PPT 14-1 Setting Priorities for Businesses and Brands – The Exit, Milk, and Consolidate Options Chapter Fourteen Copyright © 2007 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without the express written permission of the copyright owner is unlawful. Requests for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein.

2 © 2007 John Wiley & Sons Chapter 14 – Setting Priorities for Businesses and Brands PPT 14-2 Figure 14.1 The Growth-Share Matrix Stars Problem Children Cash CowsDogs Low High Low R&D Market Growth Rate Competitive Position (Ratios of Share-to-Share of Largest Competitor)

3 © 2007 John Wiley & Sons Chapter 14 – Setting Priorities for Businesses and Brands PPT 14-3 The Market Attractiveness-Business Position Matrix High Medium Low HighMediumLow Invest/ Grow Selective Investment Harvest/ Divest Figure 14.2 Market Attractiveness Business Position

4 © 2007 John Wiley & Sons Chapter 14 – Setting Priorities for Businesses and Brands PPT 14-4 Evaluating Ability to Compete Organization Growth Share by Segment Customer Loyalty Margins Distribution Technology Skills Patents Marketing Flexibility Figure 14.2

5 © 2007 John Wiley & Sons Chapter 14 – Setting Priorities for Businesses and Brands PPT 14-5 Evaluating Market Attractiveness Size Growth Customer Satisfaction Levels Competition: Quantity, Types, Effectiveness, Commitment Price levels Profitability Technology Governmental regulations Sensitivity to Economic Trends Figure 14.2

6 © 2007 John Wiley & Sons Chapter 14 – Setting Priorities for Businesses and Brands PPT 14-6 Brand Assessment Brand Equity Business Strength Strategic Fit Brand Assessment Brand Equity Business Strength Strategic Fit Figure 14.3 The Strategic Brand Consolidation Process Prioritize the Brands Strategic Brand Brands with specialized roles Cash cow role Eliminate On-notice Prioritize the Brands Strategic Brand Brands with specialized roles Cash cow role Eliminate On-notice Develop the Revised Brand Portfolio Strategy Design and Implement the Migration Strategy

7 © 2007 John Wiley & Sons Chapter 14 – Setting Priorities for Businesses and Brands PPT 14-7 Key Learnings The exit decision, even though it is psychologically and professionally painful, can be healthy both for the firm because it releases resources to be used elsewhere, but even for the divested business, which might thrive in a different context. A milking or harvest strategy (generating cash flow by reducing investment and operation expenses) works when the involved business is not crucial to the firm financially or synergistically. For milking to be feasible, though, sales must decline in an orderly way. Prioritizing and trimming the brand portfolio provides another perspective on prioritizing businesses, even clarify brand offerings, and can remove the paralysis of not being able to brand new offerings. A five-step prioritization process involves identifying the relevant brand set, assessing the brands, prioritizing brands, creating a revised brand portfolio strategy, and designing a transition strategy.

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9 © 2007 John Wiley & Sons Chapter 14 – Setting Priorities for Businesses and Brands PPT 14-9 Ancillary Slides

10 © 2007 John Wiley & Sons Chapter 14 – Setting Priorities for Businesses and Brands PPT “There is nothing so useless as doing efficiently that which should not be done at all.” - Peter Drucker

11 © 2007 John Wiley & Sons Chapter 14 – Setting Priorities for Businesses and Brands PPT “If you want to succeed, double your failure rate.” -Thomas Watson founder, IBM

12 © 2007 John Wiley & Sons Chapter 14 – Setting Priorities for Businesses and Brands PPT “Anyone can hold the helm when the sea is calm.” - Publilius Syrus


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