2. Brand Business
Business Strategy
New Product Development Process
Growth Strategies
Competitive Strategies
Marketing Strategies in different situations
3. For New Product Development
BUSINESS STRATEGY
MARKETING STRATEGY
MARKETING PLAN
4. For Existing Product/ Brand
BUSINESS STRATEGY
BRAND STRATEGY/
BRAND PLAN
MARKETING PLAN
5. Business Strategy Document
New Product Proposal: Existing Brand/ New
Brand
Business Analysis
– Consumer NEED Analysis:Trends & Practices,
Habits & Attitudes, Need gap assessment
– Competitive Analysis: Positions, Strategies….
SWOT
– Corporate Analysis: Mission, Policy, …Portfolio
Analysis…SWOT
6. Business Strategy Document
Business Objective:
– Competition Focus- Reactive- Market Threat
– Self Driven- Proactive- Market Growth/ Leadership
Business Strategy:
– Market Penetration,
– Market Development,
– Product Development
– Diversification
Business Potential: Volume Projection, Demand
Estimation… User-Usage-Frequency
Business Plan: 3 year financial projection ( Turnover,
Investment details, Profits)
7. NPD: Process
Stage 1: Formulation of Business Strategy
Stage 2: Product Development Stage
Stage 3: Testing & Developing the
Marketing Strategy
Stage 4: Commercialization
Stage 5: Market Rollout
9. Idea Generation Process
Objective: To identify categories of interest
for the next 3 years
Internal ( multifunctional) Brainstorming
session from time to time
Various techniques used to Capture the Needs
/ Voice of the Consumers
Rule: Quantity over Quality… To generate
multiple ideas without applying “judgment”
10. Idea Generation Triggers : Case
Illustration
Brand : Parachute, Product : Coconut Hair Oil
Triggers : (mental map)
– Hair Needs: Wash to dry-clean, Natural style to
Colouring, Split ends to Dandruff.
– Oil Needs: Non oily oil, Non Smelly oil… single use
oil, Ayurvedic oil, massage oil
– Coconut needs: Haircare to skincare…..soaps to
shampoos
11. Idea Screening Process:
Innovation Funnel
Assessment of Ideas generated so as to PRIORITIZE
the same
Application of “ Judgment”: rationalization,
quantification techniques,feasibility studies
Key Inputs :
– Business Direction of the Organization
– Consumer Trends: Usage & Attitude Studies
– Environment / Market Scan: segment size & growth
– Competitive Analysis
12. Screening : Case Illustration
Process of Rationalization:
– Skincare , Hair Colourants: Low priority
– Split ends & Dry Clean: Niche Markets
– Shampoos : Extremely Competitive
Process of Prioritization:
– Hair Problems that can be addressed by a hair oil (
dandruff , hair growth etc)
– Modern forms of Hair oils ( light , perfumed etc)
13. Concept Development & Testing
Conversion of Ideation to Product Ideas
Formulation of Product Concepts from Product ideas
Product Concept captures the product benefit,
product usage details….image details
Concept Testing : Projective techniques amongst
target consumer segments or end user segments
14. Product Idea To Product
Concept : Case Illustration
Product Idea: Hair oil to fight hair problems…dandruff,
greying, hairfall etc
Product Concept 1: Herbal hair oil for strong hair
Product Concept 2: Hair oil + Anti dandruff agents for
Dandruff
Product Concept 3:Hair oil + sunscreens for greying
Product Concept Test : amongst hair oil users
15. Product Concept vs Positioning
Concept
Product positioning Idea: A specialized hair oil to
fight dandruff
Pdt Positioning Concept 1 : A herbal hair oil
containing ingredients which also fight dandruff
Pdt Positioning 2 : An effective dandruff treatment
oil, which is better than other dandruff treatment
products
TARGET SEGMENT
Concept Test 1 : Hair oil users having dandruff
Concept Test 2: Anti Dandruff Product users also
using hair oil
16. Product Approval Process: GATE
BUSINESS STRATEGY PRESENTATION
Presentation of the Product Concept to the Top
Management Team for Approval
Presentation to include the Marketing Strategy :
– Market size, structure.Consumer analysis (why?)
– Product Opportunity…volumes, profitability, resources,time
frames (what?)
– Long term strategy,projected financials ( how?)
Business analysis:Estimating Sales, Costs & profits,
financial paybacks
GO or NO GO
18. Technology Brief
Project handover to the Research & Development
Team to develop a “Technical solution” to the Product
Need..within specified time frame & cost considerations
The Technical Task : Example:
– “Effective Dandruff Hair oil”: A coconut hair oil which
reduces the dandruff flakes, & does not freeze during the
winter months
– “Fairness Soap” : A wash off product ( soap) which provides
UV protection for a minimum of 5 hours post bath
19. Product Development
Product Brief:For the completion of the actual
product & packaging development
Quality Function Deployment ( QFD): a
technique to translate consumer needs &
wants into a technical concept or design
– Marketing & R&D work towards a joint solution
– Translation of marketing inputs ( consumer needs,
wants & perceptions) & R&D factors ( design
attributes & specs) via a relationship matrix
20. Product Tests & Concept Tests
( Concept Use Test)
To finetune the product attributes according to
consumer needs
Product form tests: product attributes, delivery
system, colour, shape, perfume etc
– Example: “playtime” & absorbency of a lotion and foam & after
wash perfume of a detergent : important parameters of Quality
Packaging options: size , colour, design , finish etc
– Example: Shampoos in sachets and Lip Balms in tubes :
deliver Convenience
21. Clinical Tests
To quantify the product performance
Product usage amongst the target consumer
Technical calibration of before & after use
Often used in communications as “ Product Claims”
Example: Fair skin over 6 weeks or Twice as effective
as other washing powders
Expensive & time consuming
Competitive attack : High Legal sensitivity
22. Completion of a Benched Product
Preparation of a product & packaging
prototype
Quality checks to test stability & other
parameters
Issue product Raw Material & Packaging
Material specifications to the Manufacturing
Department for the Commercialization stage.
24. Brand Strategy
Brand Positioning : Benefits, competitive
advantage
Target Segment Definition
Marketing mix elements ( product , branding,
packaging,price, promotion, distribution)
Communication development
Marketing Plan
Brand financials
25. Market Testing Methods
Test Market launch:
– Select markets ( Strong & weak)
– Launch prototype product with complete support
– Expensive, time consuming but reliable
– Issues on Confidentiality
Simulated Test Market
– Simulate a test market situation
– Sample consumers exposed to advertising
– Map responses before & after product placement
31. Product Launch : Front Stage
Sales Launch Conference: Product
background ,market analysis,product support,
selling tools
Product placement: Retail briefing, displays,
incentives…below the line activities
Media Break
32. Important Tracks : Back Stage
Monitor stock distribution, movement, inventory control
Monitor sales- areawise, outletwise, SKU wise
Monitor effectiveness of inputs – displays, promotions
Monitor advertising effectiveness
Monitor media effectiveness
Take corrective action : where ever & when ever
required
33. BRAND-WAGON
Mktg Obj Mktg Obj Sales Obj
Business
Potential
Brand
Values
Segment
Target
Position
Marketing Mix:
Product/Pkg
Price
Place
Promo
Mktg
Plan
Sales Plan
Busi. Obj.
BUSINESS STRATEGY MARKETING STRATEGY SALES STRATEG
Analysis
34. Business Strategy
Powering the Engine
Business/ Growth Potential: Analyse Company-
Competition- Consumer
Brand Fit: Image- Identity- Proposition-Position
G r o w t h C h a r t
N o n - U s e r s
O t h e r B r a n d s
S W I T C H
O w n B r a n d
C A N N I B A L I Z A T I O N
E x is t in g U s e r s
N e w U s e r s I n c r e a s e U s a g e Q u a n t i t y I n c r e a s e U s a g e F r e q u e n c y
35. Growth Strategies
Intensive Growth Opportunities
1. Market Penetration Strategy
2. Market Development Strategy
3. Product Development Strategy
Integrative Growth Opportunities
Backward( Supplier), Forward( Distribution),
Horizontal( Competition)
Diversification Growth Opportunities
Current MktCurrent Mkt
New MarketNew Market
Current PdtCurrent Pdt New PdtNew Pdt
1 3
2 Diversify
36. Market Penetration Strategy: Increase
Mkt Share
G r o w t h C h a r t
N o n - U s e r s
O t h e r B r a n d s
S W I T C H
O w n B r a n d
C A N N I B A L I Z A T I O N
E x is t in g U s e r s
N e w U s e r s I n c r e a s e U s a g e Q u a n t i t y I n c r e a s e U s a g e F r e q u e n c y
39. Growth Strategies
G r o w t h C h a r t
C o n v e r t N o n - U s e r s o f t h e P d t C a t e g o r y
M a r k e t P e n e t r a t i o n S t a r t e g y
E g : U p g r a d e T o o t h p o w d e r u s e r s t o t o o t h p a s t e
E n t e r N e w M a r k e t S e g m e n t s
M a r k e t D e v e l o p m e n t S t r a t e g y
E g : C o m p u t e r s fr o m O ffic e t o H o m e U s e
S w it c h C o m p e t it o r 's U s e r s t o y o u r B r a n d
B r a n d S w i t c h i n g
E g : F a ir & L o v e ly u s e r s s w it c h in g t o F a ir e v e r
A t t r a c t N e w U s e r s t o t h e B r a n d
I n c r e a s in g t h e o c c a s io n s fo r u s e
U s a g e F r e q u e n c y o r R a t e
E g : B r u s h in g T e e t h T w ic e a D a y
M o r e U s a g e p e r O c c a s io n
U s a g e A m o u n t o r Q u a n t i t y
E g : A p p ly s h a m p o o t w ic e & r in s e o ff fo r b e t t e r c le a n in g
N e w / D iffe r e n t U s e s fo r t h e s a m e P r o d u c t
N e w U s e s
E g : M ilk m a id fo r D e s s e r t R e c ip e s
M o r e U s a g e
40. Growth Path
Britannia Cheese: Major player in Niche market
Cadbury’s Dairy milk: Leading the Chocolates
market.
Nestle Frugurt: First Mover of the Flavoured yoghurt
market.
Pepsi Cola: Less than 30 % share in a Competitive
market, dominated by Thums Up & Coke
Bisleri : First mover of the Mineral water market.
Lost its position to Kinley.
Onida TV: Erstwhile Market Leader in a competitive
Market.
41. Competitive Analysis- Porter’s Model
Five Competitive Forces determine Industry Profitability
– Threat of New Entrants/ Entry of New Competitors
Entry Barriers: Market Leadership, Brand identity,Distribution,
Capital Reqt, Technology, Govt. Policy, Switching Cost
– Threat of Substitutes….Mobiles to Telephones, Shampoos
to hairoils
Price- Value equation, Switching cost
– Bargaining Power of Buyers….Instore Labels
Buyer concentration/ information/ volumes/ switching costs,
Ability to backward integrate, substitute products, relative
switching costs, price sensitivity
42. Porter’s Model
– Bargaining Power of Suppliers…Godrej Real Good
Chicken, Diamonds
Differentiation of inputs, Importance of volume, Forward
Integration ability, Relative switching Costs
– Rivalry amongst existing competitors
Product Differentiation, Brand identity, Industry growth,
Market penetration, Operating Costs, Exit Barriers
43. Competitive Strategies
Based on Level/ Nature of Competition
Cost Leadership Strategy
– Lower Cost of Production than its Competitors
– May or May NOT be at the Lowest price
– Ensures Higher returns which it can use advantageously against the
Competitor
Differentiation Strategy …. Competitive Advantage
– Differentiating the Product/ the Offering in the minds of the Consumer
– From Product Innovation to Brand Building , all aim to create a
sustainable competitive advantage
Focus Strategy
– Selecting only a certain segment/ group in the entire market… & then
ensure a cost advantage over the competitors or a point of
differentiation to attract the consumers.
44. Understanding Business Strategies
Underlying Factors of a Business Strategy
Market Attractiveness:
Market Potential of the Category…. Market Size & Market
Growth
Competitive Position:
Level of Competition in the Category …Market Share &
Relative Market share of the players i.e. Market Share
Relative to the largest competitor.
Where the “Market” or the Potential User Segment ( those
who will use the pdt) is first defined by the Marketer, & then
quantified.
While the competition is accordingly determined.
46. Business Strategies of Brands
Growth / Market Expansion….Market Leader Strategies
– When the Market Potential is high, & the level of competition is minimal
– Objective to build a User base.
– High Investment Required over a period of time
Eg : Creation of the Deodorants category in India by Rexona.
Differentiation/ Competitive Advantage…Market Challenger Strategies
– When the Market Size is high, but there are strong existing competitors
one has to deal with.
– Objective to gain market share through Brand switches.
– Medium- High Investments
Eg: Introduction of Britannia Milkman, in the dairy pdts mkt dominated by
Amul & Nestle.
47. Business Strategies of Brands
Focus/ Specialization….Market Nicher stategies
– When Market Size is limited, no major competitors
– Objective to focus on & gain ownership of a particular target
segment
Eg: Launch of Loreal Hair Colour in India…focused on Beauty
Parlour distribution
Innovation+ Significant Cost advantage…Frontal/
Encirclement Attack strategy
– Need a lot of consideration before entering such a market
– Objective to displace competition
Eg: Launch of Pond’s Body Lotion at a Low Price Point in the
Skincare Market..threatening the leadership of Lakme
Maximum Moisturiser.
48. Marketing Strategies
Based on Market Position
Market Leader:
– Market Expansion Strategy…Market Growth strategies
Developing New Users- convert non-users to users of the
Product Category
Eg: Airlines flexible fares to attract Rail Passengers.
Developing New Uses for the Product …New applications, new
markets.
Eg: Maggi noodles … from choice cuisine to commonplace easy
to make snack food/ tiffin.
More Usage – Increase amount used or frequency of use of the
Product
Eg: Toothpastes promoting twice a day brushing
– Defense Strategy…Through continuous innovation
( Brand Revitalization Strategy)
49. Marketing Strategies
Based on Market Position
Market Challenger:
– Attack Strategy- Competitive
Frontal attack- Pitched against Competitor’s Strength
– Eg: Pepsodent- Fights germs Better than Colgate
Flank attack- Bring to light Competitor’s Weakness
– Eg Anchor Toothpaste as 100% Vegetarian, unlike others
Encirclement Attack- Close in on Competitor with Multiple
Attacks on all fronts
– Eg: Airtel
Bypass Attack – Deviate to unrelated products/areas
– Eg: Reliance Mobiles with Technology, Nirma with Price
Guerilla attack- Harass Competitor with small frequent attacks
– Eg: Nihar Coconut Hair Oil
50. Marketing Strategies
Based on Market Position
Market Follower: Me- Too Strategy- Following or
copying the moves of the Key Competitor
– Eg: Detergents…Ghari, Coconut Hair oil…Cococare, CocoRaj
Market Nichers:
– Specialist/ Focus Strategy- Building Customer goodwill where
competition is weak or not present or not interested.
– Eg: Gillete in men’s pdts
– Low volumes, but high growth & high margins.
– Eg: Loreal Hair Colour
51. Legal Aspects of Brand
Management
New Product Development: Product classification/
Excise classification, Trademark registration, copyright,
patent, FDA regulations on Brand name, formulation &
packaging
Advertising & promotions: Claim substantiation,
ASCI rulings, MRTP regulations
Sales & Distribution: Distributor relationship, region
specific issues
Manufacturing:Manufacturer relationship, product
specific issues
Notas del editor
Relative Market share:
In Market X,
Mkt Share of Player A= 90
Mkt Share of Player B= 10
Relative Mkt Share of Player A= 90/10= 9
Relative Mkt Share of Player B= 10/90=0.11
In Market Y,
Mkt Share of Player C= 50
Mkt Share of Player D=20
Relative Mkt Share of Player C= 50/20= 2.5
Relative Mkt Share of Player D= 20/50=0.40