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Business Plan Strategy and Implementation Summary
Patricia SALGUERO Departemen Teknik Informatika Institut Teknologi Bandung
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STRATEGY AND IMPLEMENTATION SUMMARY
Armies fight to win terrain, kill or disable adversary combatants... Companies fight to capture market share, generate sales revenues, enhance profits... “Both armies and business enterprises try to achieve their objectives through strategies”
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STRATEGY AND IMPLEMENTATION SUMMARY
Strategic Pyramid Main focus Implement Strategies Specific business activities, each of which has concrete dates and responsibilities, and probably a budget.
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STRATEGY AND IMPLEMENTATION SUMMARY
Value Proposition: A value proposition define how product and service features are assembled and offered to meet customer needs; in other words, how a company gives value to customers. A value proposition define the benefit offered; the target market group; and the relative pricing.
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STRATEGY AND IMPLEMENTATION SUMMARY
Competitive Edge products, services, retail locations, prices, exclusivity, intellectual property rights, licenses, franchise agreements... Is this a key competitive edge?
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INNOVATION STRATEGY AND IMPLEMENTATION SUMMARY
ability to outwit, outsmart, outsell and otherwise outperform your competition. Key Competitive Edge driving force behind successful small businesses
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STRATEGY AND IMPLEMENTATION SUMMARY
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MARKETING STRATEGY STRATEGY AND IMPLEMENTATION SUMMARY
Every business owner should develop a written guideline that sets forth the business's marketing strategy. This document is used to judge the appropriateness of each action that the business takes. If a company has to take an action that is off-strategy, it may indicate a temporary emergency action prompted by competition or other factors beyond normal management control. Or it may indicate the need to change or revise the company's marketing strategy.
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Marketing Strategy Concentrated Marketing Involves introducing a single version of a product that is designed to appeal to a single, particular market segment. Differentiated Marketing Involves introducing a number of different versions of a product, each designed to appeal to a different market segment. Undifferentiated Marketing Involves introducing only a single version of the product in the hope that it will appeal to an entire universe of consumers, an appeal to the lowest common denominator.
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Positioning Statements
Unique features that have obvious value Positioning on specific product features Product features----> Customer Positioning on benefits Positioning for user category Used by models --->customer identify Implicit to explicit comparison Positioning against another product Product class disassociation New product that differs from traditional products
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PRICING STRATEGY Cost-Plus Pricing
With this method you simply set prices to cover your fixed and variable costs, and leave enough room for profits. Compares alternative products and services and sets prices accordingly Competitive pricing strategy
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Pricing Strategy Competitive pricing strategy/ Sample
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Premium price strategy
Pricing Strategy Customers must perceive the value of your premium service; Be willing to pay for it; It must cost you less that the price you receive. To the last point, "do not offer gold plated service if you are only going to receive silver plated prices." Premium price strategy
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Market penetration pricing
Pricing Strategy This option involves charging a high price relative to other brands within the product class. Cream skimming pricing Market penetration pricing This is the strategy of setting prices low, or below the competition, initially to attract new customers.
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Promotion Strategy PROMOTION STRATEGY
Promotion involves communication of product attributes and corporate image in the most favorable light possible to intermediary sellers and to end users.
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The “Pulling” Promotional Strategy
Promotion strategy The “Pulling” Promotional Strategy Originator Intermediary End User The “Pushing” Promotional Strategy Originator Intermediary End User
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Dimensions of Advertising Effectiveness
Promotion strategy Dimensions of Advertising Effectiveness Demographic What type(s) of people do we want to influence? Geographic Where are the people we want to influence? Impact Is the desired message well communicated and hard hitting enough to be memorable? Generally, advertising is designed to address the “AIR” concerns. Reach How many individuals or householders will experience one exposure of the message?
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Dimensions of Advertising Effectiveness
Promotion strategy Dimensions of Advertising Effectiveness Frequency How many times will these people experience the message? Duration How long is the message? When will the message be experienced? Timing How much does it cost to reach 1,000 people or households with a single exposure? Cost CPM Media Cost (Audience measured in thousands) =
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DISTRIBUTION STRATEGY
How the product is convoyed from the producer to the end user. Its functions include manufacturing, transportation, warehousing, wholesaling, and retailing.
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Distribution Strategy
There are essentially three distribution options, as follows: Intensive Aims for maximum exposure.The product is sold through any responsible wholesaler or retailer who will stock it. Elective Aims for moderate exposure. The product is sold through “better” retailers. Aims for limited exposure. The product is sold by a single dealer within each treading region. Selective
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Sales Strategy “Sales is asking the people what they do, how they do it, when they do it, where they do it, why they do it, and who they do it with-and then help them to do it better.” Stephan Schiffman Consultative model Models “A” for Attention “I” for Interest “D” for Desire “A” for Action AIDA model
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Sales Promotion Tools and Activities
Sales Strategy Sales Promotion Tools and Activities Discounts Premiums Twofers Coupons Samples Contests Sweepstakes Incentives Product publicity
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Sales Forecast Sales Strategy
Use the text to summarize and highlight the Sales Forecast in a detailed sales forecast table. Try to emphasize important points and explain assumptions to the sales forecast. The monthly sales forecast chart and annual sales forecast chart should be drafted
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