SMM Session 1A

8/6/2019 SMM Session 1A

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INTRODUCTIONS

S G Raja Sekharan

B. Tech in Chemical Engineering (1984) and

PGDBM from XLRI (1989)

Worked in SPIC, HCL, WIPRO, SRF, RamcoSystems, SAP and Keane. Also managed my own

company for 2 years in IT industry.

Last assignment - was heading HR for Keane in

India till April 2010. Prior to this, was managingthe business for Keane in Asia, Middle east and

Africa.

Visiting faculty in CUIM now for the past one

year.

Desirous of sharing my experiences and learning


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INTRODUCTIONS - I WANT TO KNOW YOU

BETTER

Roll number

Name

Your last degree and overall score.

Any work experience?

What industry you want to join

What is your dream company give one name

What is your dream role in this company posttraining

Expectations from this course?


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DIRECT OBJECTIVES OF THE COURSE

To introduce to you marketing practices at a

strategic level

To give you all a hands on experience of strategic

level thinking that senior managers do everyday.


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INDIRECT OBJECTIVES OF THE COURSE

To improve your learn_ability skills

To make you think

To improve your team interaction skills

To build you up for success in life


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BROAD PLAN FOR THE NEXT 30 HOURS


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BROAD PLAN FOR THE NEXT 30 HOURS

Course lectures from me -15 hours

Team presentations 12 hours

Sharing of experiences from visiting executives -

3 hours


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Strategic Marketing Management course

Session 1/2 Team formation and my inputs on Strategic analysis

- where we are now and team presentations anddiscussions on Where we are now

Session 3 My inputs on Strategy formulation where do you

wantto go

Session 4/5/6 My inputs on Strategy implementation How to

getthere - Discussion on Principles of marketingwarfare, description of current Indian Markets,

discussion on services marketing, discussion on

segmenting, positioning, branding, pricing, distribution,

communication

Session 7/8 Team presentations on Strategy formulation and

implementation by your companies - where do youwant to go and how do you go there

Session 9 My inputs on Measuring success of

implementation Did we getthere

Session 10 Reserved for corporate interaction


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SESSION 1 TEAM FORMATION

AND MY INPUTS ON STRATEGIC

ANALYSIS -WHERE ARE WE NOW


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SALES/MARKETING ORG STRUCTURE IN MOST

INDUSTRIES

Head-

Marketing

and Sales

Manager

Customer

Service

Manager

Market

Logistics

Manager

Sales

Manager

Market

Research

Manager-

Promotion

The

strategy

team


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INDUSTRIES/ COMPANIES THAT WE MAY BE

DISCUSSING AS STRATEGY TEAMS

Automotive 2 wheelers Hero Honda, Bajaj,

Automotive 4 wheelers Maruti Suzuki

Financial services Banks ICICI

Hotels Taj group

FMCG Dabur, HUL, P&G, Asian Paints,

IT services Infosys, TCS


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LET US SEE SOME RECENT DATA/

NEWS ON THESE COMPANIES/

INDUSTRIES


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AUTOMOTIVE INDUSTRIES

June 2, 2011 - Indian auto industry setto grow

bigger on stronger demand

y Maruti Suzuki sold more than 1 lac units per month in May

on the back of good sales of its mid segment car Swift and

Swift Dezire

y Tata Motors saw higher sales of 62000 vehicles (up by 10%)

due to surge of sales of Commercial vehicles (19% yoy) even

though Indica and Indigo sales fell by 35% yoy

y

Mahindra saw a 20% growth yoy in sales helped by itsutility vehicle business it sold 34000 units in May 2011


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AUTOMOTIVE INDUSTRIES

June 2, 2011 - Indian auto industry setto grow

bigger on stronger demand

y Hero Honda sold over 5 lac vehicles in May ( its third

month in a row) and is on target for a 6 million sale for the

year 2011-12.

y Bajaj Auto sold over 3.18 lac in May an 18% growth yoy

y TVS Motors also saw an 18% growth in sales YOY to reach

1.81 lac units


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FINANCIAL SERVICES INDUSTRY

For the quarter ended March 31, SBI posted a meager Rs 20.9crore profit - a whooping 99 per cent decline over the samequarter last year - the lowest quarterly profit in its corporatehistory. With its 12,000 branches and 90 million customers,SBI - the country's largest bank - commands about 18 per centmarket share in deposits and loans.

Canara Bank reported a 34.48 per cent rise in its consolidatednet profit to Rs 4,034.19 crore for the year-ended March 31,2011.

ICICI bank raises $1 B through issue of bonds @ 4.75% ratefrom Dubai operations and it will be used for its International

operations Bank of Baroda will increase its international branches from

85 to 100 this year these new branches will be opened in thecountries where it is already present in Kenya, Tanzania,New Zealand and other parts of Africa and ME.


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HOTEL INDUSTRY NEWS

Indian companies are looking for stand-aloneproperties in the US and Europe, which are up forgrabs following losses they made during the globalslowdown, and also to use them tap into the growing

breed of Indian travellers. Outbound travel has been grown by 7-10% every year

since 2009 with about 11 million Indians going abroadannually.

Most leading international hotels have set shop inIndia and are introducing all their brands across allcategories. These hotel firms have strong loyaltyprogrammes that help them drive occupancies intotheir hotels not only from international but domesticguests.


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IT SERVICES INDUSTRY NEWS

Are Infosys and Wipro going through a mid life crisis?

both are restructuring at the top and both have given

revenue guidance that have disappointed analysts.


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INTRODUCTION TO MARKETING

STRATEGY


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THE CONCEPT OF

STRATEGY

Generic

a plan of attack for winning

a plan for beating the opposition

Organisational

a plan for achieving organisational goals

a plan for securing a competitive advantage in a given

market


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THE CONCEPT OF

STRATEGY

the direction and scope of an organisation

over the long(er) term, which ideally

matches its resources to its changingenvironment and, in particular its

markets, customers or clients so as to

meet stakeholder expectations

Johnson & Scholes


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PURPOSE OF STRATEGY

To set the future direction for theorganisation.

To state how it is to create value tocustomers.

To identify what product/s and in which

markets the firm will invest its resources.

To describe how it is to perform better thancompetition.


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STRATEGY HELPS IN:

Defining the scope of business.

Finding Strategic Fit between organisation

and its environment.

Identifying a Sustainable CompetitiveAdvantage (SCA).

Guiding the allocation of resources.


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HIERARCHY OF STRATEGY

CORPORATE

SBUs

FUNCTIONAL AREAS

CorporateThe plan for achieving the

overall goals of the business,often expressed in financial

terms

SBUHow to compete in

individual product-marketsand support the corporate

strategy

FunctionalFunctional strategies in

marketing, finance,production, services etc to

achieve the SBU / Corporategoals


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TITAN INDUSTRIES


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HIERARCHY OF STRATEGY

CORPORATE

SBUs

FUNCTIONAL AREAS

Titan Industry

Watches

Jewellery

Precision Engg. Eye wear


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TITAN WATCHESA BRIEF HISTORY

Titan Industries started in 1987 as a watch company,

at a time when India had only HMT and Allwyn

watches

In those days watchesy had mechanical drives and hence were thick and needed

winding and were not 100% accurate

y were sold through wholesalers/ retailer channel where the

company had little contact with the customer and the shops

selling watches were dingy and old plus there were farfewer choices on design then.

y Were seen as time keeping devices and hence everyone

needed only one watch

y the existing companies had not invested much in technology

or markets


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Titan Industries changed the game byy Introducing quartz based slim and accurate watches

y Focusing on styling and large variety of options Titan introduced thecatalogue style advertisement in India for the first time.

y Bringing in the concept of retailing into the watch market by

establishing a network of fine showrooms which would later becomethe world's largest network of exclusive watch stores

y Investing in Brand building - right from Day 1 despite having manysub brands like Raga, Fast track, Xylis, etc, Titan remains a superbrand and its background music is probably the longest playing jinglein India.

Titan changed the perception of watches from a time keeping to a

fashion accessory. In about 25 years, Titan has emerged as the market leader in

watches with over 60% market share in organized sector thesheer scale of offering sin the market, the number of retail outletswhere one can buy it, the quality of the watches, the post saleservice infrastructure Titan has set benchmarks in each of theseareas.

Titan today is the 5th largest watch maker in the world


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Titan has kept innovation core to its strategy, realising

fully that the only way to sustain the fashion accessory

perception is by continuously coming out with

collections that make the current ones somewhat

dated, thereby creating a certain discomfort in the

consumers' mind, which leads to another purchase.

This impact has shown up in every one of the

collections. Every new design is fresh and distinctive,

unlike what consumers have seen before, and hence itcreates curiosity, walk-ins and sales.


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TITAN INDUSTRIESA BRIEF HISTORY

Titan has also done the seemingly impossible reverse

thing: taking Indian quality to international markets -

Titan today sells in the UK, Spain, Portugal, Greece,

Singapore, Dubai, Malaysia, Oman, Philippines and

many more countries.

The customers are no longer only NRIs. They are the

Thais, the Greeks, the Arabs, the Filipinos - through a

combination of Contemporary Style, Great Quality and

Great Prices


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2010, More than a billion $

company

2136

3000+ 4000+

5000+

0

1000

2000

3000

4000

5000

6000

2007 2008 2009 2010

Income inRs Croresi

2136

3000+

4000+

5000+

0

1000

2000

3000

4000

5000

6000

2007 2008 2009 2010

Income inRs Croresi


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STRATEGIC PLANNING

MODEL


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THE INTER-RELATIONSHIP BETWEEN

MARKETING AND CORPORATE STRATEGY

INFORMS

DIRECTS

GUIDES

CONTROLS

ACHIEVES

SUPPORTS

OPERATIONALISE

Corporate Strategy Spe fy ng theo gan at on on

Allo at ng e ou e

Def n ng O gan at onal

obje t ve

Marketing Strategy Ident fy ng produ t market/ tocompete in

Selecting market segments to

target

Developingthe marketing mix


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OPERATIONALVS STRATEGIC

MARKETING

Operational Marketing

Action-oriented

Existing opportunities

Non-product variables

Stable environment

Reactive behaviour

Day-to-day

management

Marketing department

Strategic Marketing

Analysis-oriented

New opportunities

Product market variables

Dynamic environment

Proactive behaviour

Longer range

management

Cross-functional

organisation


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MARKETING STRATEGY AT STRATEGIC

BUSINESS UNIT (SBU) LEVEL

At the SBU level, marketing can play a significant rolein guiding the organisations whole activities.

At the functional level, the role of marketing is toinfluence the level, timing and character of demand ina way that will help achieving the marketingobjectives.


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DEFINITION - COMPETITIVE

MARKETING STRATEGY

A market-oriented strategy that establishes a

profitable & sustainable market position for the

firm against all forces that determine industry

competition by continuously creating & developing

a competitive advantage from the potential sources

that exist in a firms value chain.


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KEYELEMENTS OF COMPETITIVE MARKETING

STRATEGY

Market-oriented:Strategy based upon the needs & wants of the

marketplace

Establishes aprofitable market

position:

End goal of strategy to make a profit in the for-profit

sector or to meet alternate metrics (NFP sector)

Establishes a

sustainable marketposition:

Marketing strategy not about one-off transactions.

Aim is to find a place in the market

Forces that determineindustry competition:

Complex mix of ingredients that create the marketing

whirlwind

Continuously creating

& developing CA:

Find a spot where, if need be, the primary challenges

can be tackled

Potential sources that

exist in a firms value

chain:

What value any organisation wants to create using its

available marketing resources


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DEFINITION COMPETITIVE MARKETING

STRATEGY

A market-oriented strategy that establishes aprofitable & sustainable market position for the firmagainst all forces that determine industry competitionby continuously creating & developing a competitiveadvantage from the potential sources that exist in afirms value chain.

What were the key elements of competitivemarketing strategy of Titan in Watches:

Quality

Technology

Styling

Retail

Branding investment

Positioning as Fashion accessory


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OUR METHODOLOGY FOR THIS COURSE

Phase One:Where are we now?

Phase ThreeHow will we get there?

Phase Two:Where do you want to be?

Market Scan

PortfoliosSWOT/TOWS

Objecti es/Financial Decisions

Segmentation

Position

Action Plan

Control

Implementation

Figure 1.3: The Marketing Strategy Funnel

Corporate Social Responsibility

Phase FourDid we get there?


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WHERE ARE WE NOW?ANALYSIS OF CURRENT SITUATION

What are the major trends and possible changes inthe marketing environment?

Who are our competitors? How can we makeourselves different from competition?

Who are our target customers & what are theirneeds?

What competitive advantages and core competencesdo we have?

Where do we stand on market share, profitabilityvis a vis the competitors?


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STRATEGIC CHOICE

Strategic choice involves understanding the underlying

bases guiding future strategy, and generating strategic

options for evaluation and selecting from among them


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WHERE WE WANT TO GO?STRATEGIC CHOICE

Aset of interrelated strategicdecisions

about:

Strategic direction (generic strategy)

Product/s to offer

Market/s to target

Competitive stance to take Positioning strategy


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STRATEGIC

IMPLEMENTATION

Strategic implementation is concerned with the

translation of strategy into organisational action

through organisational structure & design, resource

planning and the management of strategic change


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STRATEGY IMPLEMENTATION

PLANNING MARKETINGACTIVITIES

Design the Marketing Mix to support thechosen strategy and achieve strategicobjectives.

Decide on tactics for positioning products inthe chosen markets.

Define targets & time frame.

Identify who will be responsible for differenttactics.

ARRIVAL?


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ARRIVAL?MEASURE, EVALUATE & CONTROL

ACTIVITIES

Methods of control and evaluation - not only atthe end of the time frame but on a regularbasis.

Ease of measurement depends on the types ofactivities implemented.

Measurement reveals effectiveness of

evaluation & helps decide if contingenciesmust be put in action.


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OUR METHODOLOGY FOR THIS COURSE

Phase One:Where are we now?

Phase ThreeHow will we get there?

Phase Two:Where do you want to be?

Market Scan

PortfoliosSWOT/TOWS

Objecti es/Financial Decisions

Segmentation

Position

Action Plan

Control

Implementation

Figure 1.3: The Marketing Strategy Funnel

Corporate Social Responsibility

Phase FourDid we get there?


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- where we are now and team presentations anddiscussions on Where we are now


wantto go


getthere - Discussion on Principles of marketing

warfare, description of current Indian Markets,

discussion on services marketing, discussion on


communication


implementation by your companies - where do youwant to go and how do you go there





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STRATEGIC ANALYSIS)


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STRATEGIC ANALYSIS

Strategic analysis is concerned with

understanding the strategic position

of the organisation in terms of its

external environment, internal

resources & competencies, and the

expectations and influence of

stakeholders

)


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WHERE ARE WE NOW?ANALYSIS OF CURRENT SITUATION

What are the major trends and possible changes inthe marketing environment?

Who are our competitors? How can we makeourselves different from competition?

Who are our target customers & what are theirneeds?

What competitive advantages and core competencesdo we have?

Where do we stand on market share, profitability visa vis the competitors?


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MARKETING ENVIRONMENT


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ENVIRONMENTAL ANALYSIS

Environmental scanningis the process of

gathering information about the various forces in the

environment. It involves observation, perusal of

secondary sources, such as business, trade,government and general interest publications and

marketing research.

Environmental analysis is the process of assessing

and interpreting the information gathered through

market intelligence and environmental scanning.


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MACRO (REMOTE) ENVIRONMENT:

PEST MODEL

PEST:

Political Factors,

Economic Factors,

Socio-cultural Factors, Technological Factors

A framework that assists in analyzing the

external (remote) environment andidentifying the existing opportunities &threats


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POLITICAL/LEGAL

Monopolies legislation

Environmental protection laws

Taxation policy

Employment laws Government policy

Legislation

Others?


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ECONOMIC FACTORS

Inflation

Employment

Disposable income

Business cycles Energy availability and cost

Others?


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SOCIOCULTURAL FACTORS

Demographics

Distribution of income

Social mobility

Lifestyle changes Consumerism

Levels of education

Others?


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TECHNOLOGICAL

New discoveries and innovations

Speed of technology transfer

Rates of obsolescence

Internet

Information technology

Others?

ENVIRONMENTAL IMPACT MATRIX:


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MACRO (REMOTE) ENVIRONMENT FOR

TITAN WATCHES

actor Impact of actor

PotentialOpportunity or

ThreatPolitical / legal Reduction of

Customs duty onimported watches

Significant threat(-3)

Economic Chinese Yuanappreciation Positive impact

(+2)

Technological Little innovationlikely from

competitors

Neutral impact

(0)Socio-cultural Increased

affordability forlifestyle products

Significantopportunity (+4)


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Threat ofThreat of

substitutessubstitutes

Potential

entrants

Threat ofThreat of

entrantsentrants

Suppliers

BargainingBargaining

powerpower

Substitutes

Buyers

BargainingBargaining

powerpower

COMPETITIVERIVALRY

Porters Fiveforces analysis


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Five Forces Analysis: Key Questions

and Implications

Whatarethekey forces at work inthe competitive

environment?

Arethereunderlying forces driving competitive

forces?

Will competitiveforces change?

Whatarethestrengths and weaknesses of

competitors in relationtothe competitiveforces?

Cancompetitive strategyinfluence competitive

forces (eg bybuildingbarriers toentryor reducing

competitive rivalry)?



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PORTERS FIVE FORCES MODEL FOR TITAN

WATCHES

Factor Impact of

factor

Potentialopportunity or

threat

Competition Increasingrivalry inpremium

segment andlower segment

Significant threat (-5)

Buyers Increasedorganisedretailing in India

Significantopportunity (+5)

Suppliers Few suppliersfor very high

precisionproducts

Significant

opportunity (+5)

Threat of newentrants

Newerinternationalbrands canenter Indianmarkets

Threat (-3)


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ANALYSIS OF INTERNAL

ENVIRONMENT

Two models to use in analysing the internalenvironment:

1. Resource audit:

financial resources, human resources, physical resources, intangible resources

2. Porters Value Chain Model: Help analysingFirms Competitive Advantage and CoreCompetencies


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STRATEGIC CAPABILITY PROFILE

RESOURCE AUDIT FOR TITAN WATCHES

Internal Area Resource/Competence

Evaluation

Physical resources New facilities

incorporating latest

technology

Major Strength (+4)

Human resources Highlytrained technical

staff

Major Strength (+4)

Financial resources Cash richoperation

75% revenue coming

from Tanishq range

Major Strength (+4)

Weakness (-2)

Intangible resources Brand value, market

leadership positionand

retail reach

Significant strength (+5)


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PORTERSVALUE CHAIN


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VALUE CHAIN ANALYSIS:

IDENTIFYING COMPETITIVEADVANTAGE

Competitive advantage will arisethrough:y Providing buyer value comparable to competitors

but performing value chain activities moreefficiently cost based advantage

and / ory

Performing value chain activities in unique waysthat create greater buyer value than competitorsand hence command a premium price differentiation based advantage



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VALUE CHAIN ACTIVITIES TITAN

WATCHES

Internal Area Resource/competence

Evaluation

Intangibles Strong corporate image in

the marketplace

Well-established brands and

market leadership position



Inbound logistics/

procurement

Less dependenceonfew

key suppliers

Strength (+1)

Outbound logistics Highlyautomated logistics

system

Strength (+2)

etail network Verygood network ofcompanyowned stores and

partner retailernetwork


Human resource

management

Well trained,high skilled and

motivated employees across

thevalue chain



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WHAT YOU NEED TO DO

Based on your choice and my analysis each one

of you will be part of a team and each team will

represent a company

In the next class, each team needs to analyse

WHERE ARE WE NOW please cover macro

environment, competitive environment and

internal environment

Use all the content in this ppt and more if you

can Each team needs to make a presentation for 10-

15 mins each ( max) in the next class


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OUR SECOND SESSION

Sequence of presentation will be based on draw of lots. Each team will get 15 mins of presentation time plus

5 mins (max) for discussion please keep the time as

we will run short.

Please share the ppt with me. For rating I will use the following criterion

y Have you put in enough work

y Content gets preference over style

y Availability of data over perceptions

y Ability to analyze data to come up with inferences

y Coverage of Macro, Operating & Internal environments

and the SWOT/TOWS framework

y Overall clarity of the big picture on where are we


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- where we are now and team presentations and

discussions on Where we are now


wantto go


getthere - Discussion on Principles of marketing

warfare, description of current Indian Markets,discussion on services marketing, discussion on


communication


implementation by your companies - where do you

want to go and how do you go there





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THANK YOU

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