Competitive Marketing

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COMPETITIVE MARKETING STRATEGIES By PRAVIN ASIR S Meenakshi Sundararajan School of Management, Chennai

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IDENTIFYING COMPETITORS MONOPOLY OLIGOPOLY MONOPOLISTIC COMPETITION PURE COMPETITION ENTRY, MOBILITY, EXIT BARRIERS

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ANALYSING COMPETITORS STRATEGIES OBJECTIVES STRENGTHS & WEAKNESS REACTION PATTERNS

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REACTION PATTERNS The laid-back competitor The selective competitor The tiger competitor The stochastic competitor

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DESIGNING THE COMPETITIVE INTELLIGENCE SYSTEM Setting up the system Collecting the data Evaluating and analyzing the data Disseminating information and responding

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SELECTING COMPETITORS TO ATTACK AND AVOID Is it worth fighting? Are you strong enough to fight? How strong is your defense? Do you have any choice but to fight?

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DESIGNING COMPETITIVE STRATEGIES MARKET-LEADER STRATEGIES Expanding the total market Defending the market Expanding market share

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DEFENSE STRATEGIES

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MARKET-CHALLENGER STRATEGIES Defining the strategic objective & opponents Choosing a general attack strategy Choosing specific attack strategy

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ATTACK STRATEGIES

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SPECIFIC ATTACK Discount Cheaper goods Prestige goods Product proliferation Product innovation Improved services Distribution innovation Manufacturing cost reduction Intensive advertising promotion

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MARKET-FOLLOWER STRATEGIES COUNTERFEITER (which is illegal) CLONER e.g. the IBM PC clones IMITATOR e.g. car manufacturers imitate the style of one another ADAPTER

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MARKET-NICHER STRATEGIES

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COMPETITIVE STRATEGIES …company based analysis

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Name: Wal-Mart Stores, Inc. Founder(s): Sam Walton Industry: Retailing Products: Retail stores, Sam’s whole sale clubs, discount centres Target market: Mass market Competitors: K-mart, Target, Carrefour, etc… COMPANY PROFILE

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Branded products @ high quality and lowest price Buying in bulk from manufacturers Given authority to local managers to lower prices based on local competition Low pay for full timers and heavy reliance on part-timers

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SWOT ANALYSIS STRENGTHS: Great retail brand recognition Low cost leader One stop shopping facility WEAKNESS: Extensive labour & community relation problem Huge span of control OPPORTUNITIES: Many foreign locations unexplored Expand beyond retail & move in other sectors THREATS: Competitors can easily imitate them Both local and global players are threat

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Name: Dell computers Founder(s): Michael Dell Industry: Computer Systems Computer Software Consulting IT Services Products: Desktops Servers Notebooks Netbooks Printers Televisions Scanners Storage COMPETITORS: HP, LENOVO, HCL, SONY, ACER, TOSHIBA COMPANY PROFILE

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Customer can design their own computers with flexibility Good after-sales services Bundling products with various support services

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Works on 3 approaches… Listen: gather information from customers Solve: Innovative and cost effective solutions Impact: Position to impact industry trends

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SWOT ANALYSIS STRENGTHS: Wide loyal customer base Customer focus WEAKNESS: Huge range of products and components made Dell computers to face problems in providing efficient services all over the world. OPPORTUNITIES: Growing business, education and relationships in many countries Found strong potential markets in the recession THREATS: Currency fluctuations Tough competition from HP

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Name: Tata Nano Company: Tata Motors Industry: Automobile Project Head: Ratan Tata Target Market: Lower-middle class, Upper-lower class, Middle-middle class Competitors: Maruti 800, Nissan ULC PRODUCT PROFILE

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SWOT ANALYSIS STRENGTHS: Unique features Low cost Company brand name associated WEAKNESS: Actual showroom prices quotes higher than the actual price No power steering & less safety OPPORTUNITIES: Aiming at a segment which is untouched Internationalization also on cards THREATS: Delay in production because of politics Probability of risk is higher

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Name: Gulsar Company: Taian Chiran Machinery Co., Ltd Product: Motor bike Target market: Asian countries Carbon copy of Bajaj Pulsar

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Name: Chery QQ Manufacturer: Chery Automobile Also called: Chery IQ (Chile) Chery Sweet (Russia) MVM 110 (Iran) Production: 2003-present Class: City car Carbon copy of GM-Daewoo Matiz

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Markets in Iran Philippines Singapore South Africa Thailand Vietnam No good safety facilities Cheapest car in Vietnam Main competitor for Daewoo Matiz Hyundai Atos Hyundai i10 Chevrolet Spark

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COMPETITIVE APPROACH COST LEADERSHIP WALMART MARKET LEADER DIFFERENTIATION DELL MARKET CHALLENGER COST FOCUS TATA NANO MARKET NICHER DIFFERENTIATION FOCUS CHERY QQ MARKET FOLLOWER COMPETITIVE ADVANTAGE Lower cost Differentiation Broad target Narrow target COMPETITIVE SCOPE

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THANK YOU

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