mkt leader,follower,challenger
Transcript of mkt leader,follower,challenger
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Marketing Strategies for Competitive Positions
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Definition
– The process of identifying key competitors; assessing their objectives, strategies, strengths and weaknesses, and reaction patterns; and selecting which competitors to attack or avoid.
• Competitive Competitive AnalysisAnalysis
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Types of Competitive Positions
Market Leaders
Market Challengers
Market Followers
Nichers
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Market Leaders
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Competitive Strategy
• Market Leader• Market Challenger• Market Follower• Market Nicher
• Expanding the total demand– Finding new users– Discovering and promoting new
product uses– Encouraging greater product
usage
• Protecting market share– Many considerations– Continuous innovation
• Expanding market share– Profitability rises with market
share
Competitive Competitive Positions Positions
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Marketing Strategy
Market Share
Marketing Effort ($)
100%
Market Leader Strategies
• Increase Size of Total Market• Product-Market Growth Strategies
• Protect Market Share• Fortification
• Assortment of brands, sizes
• Innovation• Best defense is a good offense
• Counteroffensive
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• Expanding the Total Market:– Targeting Product to New Users
• Market-penetration strategy• New-market strategy• Geographical-expansion strategy
– Promoting New Uses of Product– Encouraging Greater Product Use
Designing Competitive Strategies
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• Position defense
• Flank defense• Preemptive defense
• Counteroffensive defense
• Mobile defense• Contraction defense
Defending Market Share
Designing Competitive Strategies
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Expand Total Market Expand Total Market
Kodak ----- New user, new uses, more uses
Arms and hammer’s baking soda, refrigerator demand and kitchen grace fires
Michelin Tire (French) – French car owners to drive there car more miles per year. More tire replacement
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Coca vs. Peps, Gillette vs. Bick, Hertz vs. Avis
Defend market ShareDefend market Share
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Vs.
Heinz ketchup market enjoy high market share Hunts costly attack failed
Defense Strategy Defense Strategy
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Heublein’s brand Smirnoff attack by Wolf Schmidt vodka. Smirnoff price rise by one dollar for the advertising
Flank Defense Flank Defense
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Market LeaderMarket Leader
CounteroffensiveCounteroffensive
PositionPosition
ContractionContraction
PreemptivePreemptiveFlankingFlanking
MobileMobile
Market Leader Strategies
fortificationprotect
weaknesscreate
assault posts
guerrillapsychologicalpreventative
fast, solid, strategic withdrawalbroadening fronts
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• Before Attempting to Expand Market Share, Consider:– Probability of invoking antitrust action– Economic costs involved– Likelihood that marketing mix decisions will
increase profits
Designing Competitive Strategies
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Competitive Strategy
• Market Leader• Market Challenger• Market Follower• Market Nicher
• Option 1: challenge the market leader– High-risk but high-gain– Sustainable competitive
advantage over the leader is key to success
• Option 2: challenge firms of the same size, smaller size or challenge regional or local firms
• Full frontal vs. indirect attacks
Competitive Competitive Positions Positions
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• General Attack Strategies:– Frontal attacks match competition– Flank attacks serve unmet market needs or
underserved areas– Encirclement “blitzes” opponent– Bypassing opponent and attacking easier
markets is also an option
Designing Competitive Strategies
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FlankingFlanking BypassBypass
FrontalFrontal GuerrillaGuerrilla
EncirclementEncirclement
Challenger StrategiesChallenger Strategies
Market Challenger Strategies
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Competitive Strategy
• Market Leader• Market Challenger• Market Follower• Market Nicher
• Follow the market leader– Focus is on improving
profit instead of market share
– Many advantages:• Learn from the market
leader’s experience• Copy or improve on the
leader’s offerings• Strong profitability
Competitive Competitive Positions Positions
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ImitatorImitator
AdapterAdapter
ClonerCloner
Market Follower Strategies
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• Price-discount• Lower-price goods• Prestige goods• Improved services • Product proliferation
• Product innovation
• Distribution innovation
• Manufacturing cost reduction
Specific Attack Strategies Include:
Designing Competitive Strategies
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Competitive Strategy
• Market Leader• Market Challenger• Market Follower• Market Nicher
• Serving market niches means targeting sub segments
• Good strategy for small firms with limited resources
• Offers high margins• Specialization is key
– By market, customer, product, or marketing mix lines
Competitive Competitive Positions Positions
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Service Specialist
Quality-Price Specialist
Product/Feature Specialist
Geographic Specialist
Specific-Customer Specialist
Customer-Size Specialist
Vertical-Level Specialist
End-Use Specialist
Nicher Strategies for Advantage
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What makes a Niche a Good Niche?
General Nicher - Rules
• Be satisfied being small.
• Stay stealthy, stay healthy.
• Don’t be myopic.• The customer’s always right
but not always right for you.• stick to niching but not
necessarily to your niche.
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