Marketing Strategy, HBR Article

1. Strategies to Crack Well-Guarded
Markets

2. Summary
• Attack the enemy at its weakest points
• Using combination of these strategies
• Picking the right combination
• Can we reconfigure the value chain?
• Can we find a niche?
• Can we leverage our assets and resources?
– Technology, Countries, New Channels etc.
• Creating Barriers for New Entrants Eg. JetBlue
Live TV, Patents

3. Three Basic Strategies
• Leverage existing assets to overcome entry
barriers.
– Zenith & AT&T, MVNO Concept (Telecom), Tata-
Daewoo
• Reconfiguring the value chain
– Walmart, Dell Computers, Ebay, Amazon etc…
• Creating a niche
– High priced Nokia N-Series, Apple Iphone

4. • Premium Entertainment Group of ADA-Group.
• Target - All the people who watch movies
• Rent - Rs 299 per month (Security Fees-Rs 400)
• Position with 'Ab aam zindagi ban jaye filmy’
• Media Campaign - TV, Radio & Print, Online
medium-15 to 35 yrs
• Competitors - Planet M, Local CD's & DVD's
rental stores

5. • Availability -Ahmedabad, Bangalore,
Chandigarh, Chennai, Delhi NCR, Hyderabad,
Indore, Kolkata, Mumbai and Pune.
• Tie Ups - Shemaroo, StarTV, Zoom, NDTV etc
• Free delivery & pick-up system
• Big screen in local areas.
• Innovative, convenient and cost-effective
entertainment

6. TVS SUZUKI
• Suzuki wanted to enter in 2 & 3 wheeler
segment.
• Tie up with TVS in 1982.
• Success of TVS SUZUKI
1. First Co. to launch 100cc bike
2. Market Share of 22%
3. Turnover around 1630 crores in 1999 - 2000

7. • Parle Agro launched Frooti in 1984
• Rs300 crore Tetrapak Fruit Juice (TFJ) market
• First in India to come with Tetrapak, thus
created a Niche
• Leveraging Strong distribution network as an
Asset
• Market leader with 75% share.

8. • Once termed to be heading towards bankruptcy
& a terminal debt trap
• Downsizing, Outsourcing & Product Innovation
were the strategies adapted.
• Today its the 2nd largest profit making
Organization.
• Combination of leveraging existing assets and
reconfiguring value chain

9. • In the year 1991, out the total revenues, 19%
went into pensions of retired employees &
44% in staff wages.
• DOWNSIZING: Did not directly bring the VRS &
CRS schemes, instead did not fill the vacancies
created after retirement of employees, 16.5lac
workforce in 1991 was reduced to 14.1 lac in
2006
•

10. • PRODUCT INNOVATION:
– Double stack container trains on some diesel tracks
which carried 2500 tonnes instead of 1500 t
– So, line capacity constraint reduced by half & also 7%
savings on capital cost
25% savings on operating expenses
• RISE IN FREIGHT REVENUE: Due to increasing
demand, frieght on all goods was increased by
17%.
• REDN IN PASSENGER FARES: 1st AC 24%, 2nd AC -
18%, 3rd AC- 40%, sleeper – 4%

11. Thank You