Successfull marketing strategy analysis

Successfull marketing strategy analysis Marketing  is the process by which companies determine how products or services will be according of interest to customers, and the strategy use to increase in sales, communications and business development.  It is the process through which companies create value for customers and build strong  customer relationships  in order to capture and get good and positive feedback from customers in return. Marketing Planning Process: The planning process for the market can be described as shown in the figure below: For an organisation the target should be specific target, the objective concern as profitability, markets growth, efficiency, financial resources, organizational structure, and social responsibility. 2) Situational Analysis: Before developing a marketing strategy for a company this is important to conduct some analysis. This is form of essential part of any business or preparing marketing plan and should be reviewed over time to ensure that it is according to current situation. The following can be use to assess situational analysis for a company. The elements worth considering include: Product Situation What is current product? We cant break this definition up into parts such as the core product and any secondary or supporting services or products that also make up whats being sold. It is important to observe which different parts in order to be able to relate this back to client needs. Competitive situation To analyse the competitors what their situation and compare the feature/ benefit analysis. What are their competitive advantages? Distribution Situation Its about to Review the company distribution Situation how the product getting to market? Is it possible to get their through distributors or other intermediaries? Environmental factors Which external and internal environmental factors should be taken into account. This can include economic or sociological factors that impact on the companys performance. 3) SWOT analysis SWOT analysis is a strategic planning method used in to a business to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project. Also specifying the objective of the business venture and identifying the internal and external factors that are in the favour and those which are not in favour to achieve that objective. 4) Assumption Made: While preparing a strategy in a business assumption are very important and need to be focus on that. Its mean we made some assumption while taking any decision. Furthermore to attempt the predict future outcomes from the external and internal things. Some of the assumptions that made when a business plane and process are made, very likely to come true. Assumption-based planning identifies and tests the assumptions made in a business plan, the formulation of hedging actions and the construction of what-if scenarios. 5) Marketing Objectives: These objects should be as follows: Long-term Brand Value New Product/ Innovation and service Clear Product Definition Growth in market share 6) Forecasting results of strategies: Comparison strategies for effectiveness: Comparing promotes development, concept development, and higher level thinking.   Some company didnt compare like-for-like products forever. Some company battle between their products. A comparison strategy is the  process of identifying how things are alike and different. Marketing mix: When marketing their products firms need to create a successful mix of the right product ,sold at the right price, in the right place ,and of course using the most suitable promotion. In order to achieve its goal ,the company has to implement the main four Ps of the marketing mix . mmix Product Strategy: Product strategy is any decision that helps the company continue to develop new products around its signature ,it is very important for a company to implement its plans in a better way by Defining the characteristics of a product or service to meet the customers needs. Ducati failed to maximize sales of its all-new Monster;  Ducati  has added the 804cc engine to the range. The thinking goes that the Monster 1100 is too big, the Monster 696 is too small, but, hopefully, the  Ducati Monster 796  will be, like a bowl of warm porridge, just right. That engine gets pulled out of the Ducati Hypermotard 796 and shares that bikes 87bhp, 58lb/ft and wet slipper clutch. Combined with a low dry weight of 167kg .(369lbs) and the bikes friendly, flat-barred riding position, those new figures could make the Monster 796 the perfect first big bike for target market riders.   Pricing strategy: Identifying the total cost to the user (which is likely to be higher than the charge you make) is a part of the price element. Monster 796 the Urban Icon, as the name suggests is a luxury item launched by Ducati for those who look for brand and status symbol, price hardly matters for them. As per our target market the professional and sports people are going to buy it so following the porters differentiation strategy the pricing strategy will be premium. The Monster 796 will be available in the UK from May 2010 onwards and will be priced at  £6,995, with the ABS version at  £7,695 because our customers look for quality not price. Promotion Strategy: This includes advertising, personal selling like attending exhibitions, and sales promotions like special offers, and also atmospherics such as creating the right impression through the working environment. Public Relations is included within Promotion by many marketing people. Promotion strategy for Ducati: Advertising: The advertising campaign will be focused on the two target markets identified in the target market section, (Males and females).The purpose of the advertising campaign is to increase brand awareness of the Monster 796 the Urban Icon. The sources of advertising are TV, Internet, Magazines, sport websites and the advertisement will show the new looks, features and the style of Monster bike. Sales Promotion:   Ducati will use sales promotion to increase brand awareness, market share and revenue. The use of Point of Sales Displays will be used with a gift coupon for the purchase of Ducati 796. Although, the use of Point of Sales Displays produces a short-term effect in revenue and market share, the brand awareness will have a long-term effect. The use of this sales promotion along with the rest of the marketing strategy will produce a long term increase in both revenue and market share. Direct Communications: Direct communications will be used to measure brand awareness, as well as increase brand awareness and market share.   A survey will be sent out as a focus mailing to Ducatis target markets. The survey will measure; brand awareness of insect repellents, likes and dislikes between Ducati and its competitors, and the outdoor activities of the survey taker.   Place Strategy:. Looking at location and where a service is delivered, in other words, Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet. Ducati has good relationship with its all dealers throughout the UK. The dealers are contributing a lot to the overall performance of the company. The company is recognising their efforts with the rewards to improve it distribution strategy. Ducati dealers from all over the UK gathered for the annual Ducati dealer meeting during the recent London Motorcycle Show at Excel. The dealers were presented with an overview of 2009 and the plans and strategies for 2010 which should prove to be exciting times for the Ducati dealer network with the launch of the eagerly awaited Multistate and other innovative bikes such as the Monster ABS models. ANSOFFS Matrix: The Ansoff Growth matrix is a tool that helps businesses decides their product and market growth strategy.. It is used by marketers who have objectives for growth. Ansoffs matrix offers strategic choices to achieve the objectives. (Johnson, G. et. al., 2002) Market Penetration Is one of the four growth strategies of the  Product-Market Growth Matrix  defined by  Ansoff. Market penetration occurs when a company enters/penetrates a market with current products. The best way to achieve this is by gaining competitors customers (part of their market share). Other ways include attracting non-users of your product or convincing current clients to use more of your product/service (by advertising etc). Ansoff developed the  Product-Market Growth Matrix  to help firms recognize if there was any advantage of entering a market. Market Development Market development is the name given to a growth strategy where the business seeks to sell its existing products into new markets. There are many possible ways of approaching this strategy, including: à ¢Ã¢â€š ¬Ã‚ ¢ New geographical markets; for example exporting the product to a new country à ¢Ã¢â€š ¬Ã‚ ¢ New product dimensions or packaging: for example à ¢Ã¢â€š ¬Ã‚ ¢ New distribution channels à ¢Ã¢â€š ¬Ã‚ ¢ Different pricing policies to attract different customers or create new market segment Product Development Companies develop new products in existing markets. This is called  product development. An organization that already has a market for its products might try and follow a strategy of developing additional products, aimed at its current market. Diversification The two principal objectives of diversification are Improving core process execution, and/or Enhancing a business units structural position. The fundamental role of diversification is for corporate managers to create value for stockholders in ways stockholders cannot do better for themselves1. The additional value is created through synergetic integration of a new business into the existing one thereby increasing its  competitive advantage Implementing the Ansoffs matrix growth strategies on Ducati Company Market Penetration: The company has to get some more market share buy promoting and selling its new Monster bike, especially in the UK market where its sale decreased by 18% last year. The company has a good brand name so it is easy for them to eat up the competitor market share if they can provide some more customer benefit. Product Development: As far as the new target market is concerned the company has a great opportunity to expand its market share with the launching of Ducati Monster 796 and to produce the similar and more modified models in near future which includes female bikes as well. Market Development: The UK sport market is very large and Ducati is not having the enough market share as compare to its competitors, so the company has to broaden its market in UK. Ducati has to increase the range of dealers and to make sure that every corner of the country is covered by the company. Diversification: Bringing the new vehicles like monster 796 is the good choice for the company in order to meet the customers new and requirements and expectations and the company has to focus on the green technology products soon in order to strengthen its reputation in market and to bring a change in company style. New Marketing Strategies (strategic options) 1-Porters Generic strategy (Differentiation Strategy): According to Michael Porter, the generic strategy is to be unique in the industry along some dimensions that are widely valued by buyers. It is rewarded for its uniqueness with a premium price. A firm that can achieve and sustain differentiation will be an above-average performer in its industry if its price premium exceeds the extra costs incurred in being unique. (Porter M, 1985) Ducati main target is people who look for quality instead of price; the company adds something more to their products as compared to the competitors. Differentiation strategy will help company to achieve its premium price and to meet the needs of the target customers. Michael Porter has classically defined five forces that drive industry competition, and has described a valuable approach to assessing the overall competitive dynamics of an industry. This approach has come to be known as a five-force analysis. (Colley.J et al, 2007) Managing change ( Kotter,1998) ,According to change management guru John Kotter, fewer than 15 of the 100 or more companies studied have successfully transformed themselves. While the particulars of every case vary, Kotter has identified eight critical stages of successful change management. Mismanaging any one of these steps can undermine an otherwise well-conceived vision. PESTEL ANALYSIS: Macro environment Macro is remote environment of a company comprising economic, social, political, technological and ecological. One way of looking at remote environment is PESTEL framework. http://www.businessmate.org/images/PESTEL.jpg Swot analysis: SWOT  analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues.  SWOT  stands for strengths, weaknesses, opportunities, and threats.  Strengths and weaknesses are internal  factors. Opportunities and threats are  external  factors. In SWOT, strengths and weaknesses are  internal  factors. For example: Strength  could be: Your specialist marketing expertise. A new, innovative product or service. Location of your business. Quality processes and procedures. Any other aspect of your business that adds value to your product or service. A  weakness  could be: Lack of marketing expertise. Undifferentiated products or services (i.e. in relation to your competitors). Location of your business. Poor quality goods or services. Damaged reputation. In  SWOT, opportunities and threats are  external  factors. For example: An  opportunity  could be: A developing market such as the Internet. Mergers, joint ventures or strategic alliances. Moving into new market segments that offer improved profits. A new international market. A market vacated by an ineffective competitor. A  threat  could be: A new competitor in your home market. Price wars with competitors. A competitor has a new, innovative product or service. Competitors have superior access to channels of distribution. Taxation is introduced on your product or service. Implementing SWOT analysis on Ducati company The following SWOT analysis will provide insights into Ducatis internal strengths and weaknesses at the end of the turnaround as well as the opportunities and threats posed by the external environment in which the company operates. Strengths Technical Excellence Efficient Value Chain ensure quality Strong Brand Location Advantages Effective management Strategic Alliances Weaknesses Narrow Target Audience Polarized sales Low economies of scale Sparse Dealer Network Limited Growth since yr. 2000 Opportunities Fast growing segment Customers of Japanese motorcycles have low brand loyalty Reduction in international trade barriers Threats Low price of competitors Competitors enjoy lower costs Competitors have high economies of scale and low cost of capital These strategies can be adopted for the best marketing: Branding strategy New product develops plc strategy Market segmentation positioning strategies Sustained marketing strategies with ethics and social responsibility Competitive strategies for marketing Relationship management strategies International marketing Some of the strategies explained below with example. Branding: Company brand is not what thinks of the company, its about what the customer thinks it is. And in an industry where the patent expiration clock is constantly ticking, its vital to make a lasting impression, and quickly, Patricia Malone offers five steps to creating a brand. Example: In the pharmaceutical world, when one considers the enormous pressure from reimbursement sources on providers to prescribe generics rather than brand-name products, the importance of branding prior to patent expiration is clear. Beyond that, the entire branding process has value for a company because it helps the business focus on, enhance and be consistent with its message. In addition, it enables a company to continually test the message and see if its being played back the right way. findarticles.com/p/articles/mi_qa5351/is_200405/ai_n21348846/ Market Segmentation strategy: To compete successfully in todays volatile and competitive business markets, mass marketing is no longer a viable option for most companies. Marketers must attack niche markets that exhibit unique needs wants. Market segmentation is the process of partitioning markets into groups of potential customers with similar needs or characteristics who are likely to exhibit similar purchase behaviour. http://www.s-m-a-r-t.com/Exp_marketseg.htm Product Development Strategy: Effective project planning is critical to implementing new product development strategies. In some cases new product development strategy initiation includes original research but in this case research actually resulted in the formulation of the new product concept Example: Ground breaking research undertaken at Victoria University (VU) showed that children wake up to smoke alarms with familiar voices much more easily than they do with traditional smoke alarms that beep. VU Researcher Dorothy Bruck said: One hundred percent of children tested have woken to the mothers voice message- played at 1am in the morning. This compares to only 57 percent wakening to the current smoke alarm signal, played at the same time of night and at the same volume. This ground breaking new product development research set the stage for KidSmarts intellectual property suite and drove our new product development strategies. From the start, we mapped out our performance requirements, usability strategies and product cost targets. It was also critical early on in the new product development process to identify component suppliers and production strategies for all major components including the actual smoke sensor. bresslergroup.com/process/speed_planning.asp