1. Develop Market Strategies and plan
Module 2
Develop Market Strategies
and plan
Dr. Mohamed Zamil AL-Akhtaby

2. Strategic Planning
Strategic Planning is the Process of Developing and Maintaining a Strategic Fit Between the Organization’s Goals and Capabilities and Its Changing Marketing Opportunities.

3. Steps in Strategic Planning
Defining the
Company
Mission
Corporate Level
Setting Company
Objectives
and Goals
Business unit,
product,
and market
level
Designing
the Business
Portfolio
Planning,
marketing,
and other
functional
Strategies

4. Vision & Mission Statement
Vision statement
Defines your
long-term dream
It’s inspirational statement
WHAT TO DO?
Mission Statement
Products and services provided
your business – values
HOW TO DO?

5. Our vision is a world where everyone can be connected
Nokia
Vision :
Our vision is a world where everyone can be connected
Mission :
Nokia helps people to fulfill this need and we help people feel close to what matters to them. We focus on providing consumers with very recent technology that is a joy to use, and beautiful.

6. Otsuka Pharmaceutical Co.
Vision
Is the creation of products to serve the better health of people around the world.
Mission
Clinical studies are carried in research centers in the USA ,Germany, UK and Japan aiming for products of universal value. With a collaboration among marketing, research sectors so that customers' real needs may be feedback for further product development.
                        

7. Companywide Strategic Planning
Defining a Market-Oriented mission
The mission statement is the organization’s purpose, what it wants to accomplish in the larger environment
Market-oriented mission statement defines the business in terms of satisfying basic customer needs

8. Defining the Company’s Business and Mission
A Mission Statement is a Statement
of the Organization’s Purpose.
Characteristics of a Good Mission Statement:
Market Oriented
Realistic
Fit Market Environment
Distinctive Competencies
Motivating
Specific

9. Defining a Market-Oriented Mission
We help you organize the world’s information and make it universally accessible and useful.

11. Steps in Strategic Planning
Defining the
Company
Mission
Corporate Level
Setting Company
Objectives
and Goals
Business unit,
product,
and market
level
Designing
the Business
Portfolio
Planning,
marketing,
and other
functional
Strategies

12. Setting Company Objectives and Goals

13. Steps in Strategic Planning
Defining the
Company
Mission
Corporate Level
Setting Company
Objectives
and Goals
Business unit,
product,
and market
level
Designing
the Business
Portfolio
Planning,
marketing,
and other
functional
Strategies

14. Company wide Strategic Planning
Analyzing the Current Business Portfolio
Strategic business unit (SBU) is a unit of the company that has a separate mission and objectives that can be planned separately from other company businesses

15. Company wide Strategic Planning
Analyzing the Current Business Portfolio
Corporate Level
Division
Level
Business
Unit Level
Marketing

16. Company wide Strategic Planning
Designing the Business Portfolio
The business portfolio is the collection of businesses and products that make up the company
Portfolio analysis: is a major activity in strategic planning whereby management evaluates the products and businesses that make up the company

17. Company wide Strategic Planning
Analyzing the Current Business Portfolio
Identify key businesses (strategic business units, or SBUs) that make up the company
Assess the attractiveness of its various SBUs
Decide how much support each SBU deserves

18. Analyzing Current SBU’s: Boston Consulting Group Approach
Question Marks
High growth, low share
Build into Stars or phase out
Require cash to hold
market share
Stars
High growth & share
Profit potential
May need heavy
investment to grow
Cash Cows
Low growth, high share
Established, successful
SBU’s
Produce cash
Dogs
Low growth & share
Low profit potential ?
Relative Market Share
High Low
Market Growth Rate
Low High

19. Problems With Matrix Approaches
Can be Difficult, Time-Consuming, & Costly to Implement
Difficult to Define SBU’s & Measure Market Share/ Growth
Problems With Matrix Approaches
Focus on Current Businesses, But Not future Planning
Can Lead to Unwise Expansion or Diversification

20. Product/ Market Expansion Grid
Developing Strategies for Growth and Downsizing Product/market expansion grid strategies
Product/ Market Expansion Grid
1. Market
Penetration
2. Market
Development
3. Product
4. Diversification
Existing
Markets
New
Products

21. Corporate Growth Strategies
Market Penetration is a strategy for company growth by increasing sales of current products to current market segments without changing the product
Increase market share
Increase product usage
Increase frequency of use
Increase quantity used
Communicate new applications for the product.

22. Corporate Growth Strategies
Market Development is a strategy for company growth by expanding markets for existing products
Targeting new segments
Nonusers
Occasional users
Geographic expansion
Developing more distribution channels
Exporting to new countries

23. Corporate Growth Strategies
Product Development is a strategy for company growth by offering modified or new products to current market segments
Product-line extension
New products

24. NESPRESSO
Founded 2000
Growth rate 30%
50 Countries
Quality (Coffee, Machine)
Customer delight (Internet call center 7M)
B2B

25. Corporate Growth Strategies
Integration
Backward Integration
Forward integration
Pros
Access to scarce resources of supply
Tighter control over its value delivery network
Cons
Risk inherent in committing substantial resources in one business.
Investment incurred often offsets the additional profitability

26. Corporate Growth Strategies
Concentric (related) Diversification occurs when a firm internally develops or acquires another business that may or may not have customers in common with its current businesses but that might contribute to internal synergy such sharing production facilities or marketing and distribution skills.

27. Corporate Growth Strategies
Conglomerate (Unrelated) Diversification involves two businesses that have no commonalities. Reasons for engaging in such strategy may be:
Decrease in demand on core company businesses.
Company has more cash than it needs to expand its current business
Targeted growth is not achieved by other strategies +

28. Thank you