Competitive Mktng Stg

8/3/2019 Competitive Mktng Stg

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Team 7Aarti SrinivasanAashinaNeha RathoreSanjana ReddyGargi Banerjee

Competitive Marketing Strategies


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The Hyundai Story


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Topics

Identifying Competitors

Assessing Competitors

Predicting Reaction Patterns

Attack and Defense Strategies

Designing Competitive Intelligence

Formulating Marketing Strategies Approaches

Porters Competitive Forces

Competitive Positions and Related Strategies

Case Study-Dell

Balancing Customer and Competitor Orientation Blue Ocean Strategy


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Creating Competitive Advantage

Competitor Analysis

Competitive Strategies


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Competitor Analysis


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Competitorsobjectives

Profitability

Market sharegrowth Cash flow Technological

leadership Service

leadership

Competitorsstrategies

Strategic group

offers thestrongestcompetition


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Competitorsstrengths andweaknesses

What can ourcompetitors do?

Benchmarking

Estimatingcompetitors

reactions

What will ourcompetitors do?


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Assessing CompetitorsReactionPatterns

The laid back competitor

The selective competitor

The tiger competitor

The stochastic competitor


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Selecting Competitors to Attackand Avoid

Strong or weak competitors?

Close or distant competitors?

Good or bad competitors?

Is it worth fighting?

Are you strong enough to

fight?

How strong is your

defence?

Do you have any choice

but to fight?


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Designing a Competitive IntelligenceSystem

Identifies competitive information and the bestsources of this information

Continually collects information

Checks information for validity and reliability Interprets information

Organizes information

Sends key information to relevant decision makers

Responds to inquiries about competitors


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Approaches to Marketing Strategies

Entrepreneurial marketing

Formulated marketing

Intrepreneurial marketing


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Basic Competitive Strategies

Overall costleadership

Differentiation

FocusMiddle of the

road


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Competitive Positions


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Market Strategies


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Market Leader Strategies

EXPAND TOTAL DEMAND BY: New users

New uses

More usage of its products

PROTECT MARKET SHARE BY:

Fixing or preventing weaknesses that provide opportunities tocompetitors

Maintain consistent prices that provide value

Keep strong customer relationships

Continuous innovation


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EXPAND MARKET SHARE BY:

Increasing profitability with increasing market share inserved markets

Producing high-quality products

Creating good service experiences

Building close relationships

Market Leader Strategies


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Market Challenger Strategies

Challenge the leader with an aggressive bid for more marketshare

Frontal Attack

Indirect Attack

Play along with competitors and not rock the boat


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Market Follower Strategies

COUNTERFEITER : they duplicate the leaders product andpackages and sells it on the black market or through disreputabledealers. ( which is illegal)

CLONER: they emulate the leaders products ,name, and packagingwith slight variations e.g. the IBM PC clones

IMITATOR: imitator copies some things from the leader butmaintains differentiation in terms of packaging,advertising,pricing orlocation the leader doesnt mind the imitator as long as the imitatordoesnt attack the leader aggressively e.g. car manufacturersimitate the style of one another

ADAPTOR: the adaptor takes the leaders products and adapts orimproves them.


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Market Nicher Strategies

Ideal market niche is big enough to be profitable with highgrowth potential and has little interest from competitors

Key to market niching is specialization

Market Customer

Product

Marketing mix


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Dells Competitive Advantage

PRODUCTS: Desktops, servers, notebooks, netbooks, printers,televisions, scanners, storage

COMPETITORS: HP, LENOVO, HCL, SONY, ACER, TOSHIBA


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SWOT Analysis

Wide loyal customerbase

Customer focus

Huge range ofproducts and

components madedell computers toface problems inproviding efficient

services all over theworld

Growing business ,education andrelationships inmany countries

Found strongpotential markets in

the recession

Currencyfluctuations

Tough competitionfrom HP

STRENGTHS

OPPORTUNITIES

WEAKNESS

THREATS


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Dells Competitive Advantage

B l i C d


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Balancing Customer andCompetitor Orientations

Companies need to continuously adapt strategies tochanges in the competitive environment

Competitor-centered company

Customer-centered company

Market-centered company

B l i C d


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Balancing Customer andCompetitor Orientations


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Summary

1. To prepare an effective marketing strategy, a company must studycompetitors as well as actual and potential customers. Marketers need toidentify competitors strategies, objectives, strengths, and weaknesses.

2. A companys closest competitors are those seeking to satisfy the same

customers and needs and making similar offers. A company should alsopay attention to latent competitors, who may offer new or other ways tosatisfy the same needs. A company should identify competitors by usingboth industry-and market-based analyses.

3. A market leader has the largest market share in the relevant product

market.to remain dominant, the leader looks for ways to expand totalmarket demand, attempts to protect its current market share, and perhapstries to increase its market share.

4. A market challenger attacks the market leader and other competitors in anaggressive bid for more market share.


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5. A market follower is a runner-up firm willing to maintain its marketshare and not rock the boat. A follower can play the role of counterfeiter,cloner, imitator , or adapter.

6. A market nicher serves small segments not being served by larger firms.The key to nichemanship is specialization. Nichers develop offerings to fullymeet a certain group of customers needs, commanding a premium price inthe process.

7. As important as a competitive orientation is in todays global markets,companies should not overdo the emphasis on competitors. They should

maintain a good balance of consumer and competitor monitoring.

Summary


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Making Competition Irrelevant


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Tata NanoFinding UncontestedMarket Space

Competitive Mktng Stg

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