K.S. SCHOOL OF BUSINESS MANAGEMENT
4th Year M.B.ADiv : B
Subject : Marketing Management
Submitted to : Ms. Ingita Jain
Roll No Name
4134 Siddhali Prajapati
4138 Anal Sanghavi
4141 Disha Shah
4142 Foram Shah
4144 Moxa Shah
4147 Parini Shah
4153 Siddhi Shah
4154 Vishwa Shah
4172 Vinita Bhojwani
4232 Nishita Shah
4233 Pooja Shah
GROUP MEMBERS
CH: 8
COMPETITIVE STRATEGIES FOR MARKET LEADERS
EXPANDING TOTAL MARKET DEMAND
New Customers
More Usage 1) Additional Opportunities to use the
Brand 2) New Ways to use the BrandEg : Procter & Gamble
PROTECTING MARKET SHARE
Proactive Marketing
Defensive Marketing 1) Position Defense 2) Flank Defense 3) Preemptive Defense 4) Counteroffensive Defense 5) Mobile Defense 6) Contraction Defense
1) Position Defense : The position defense or fortress, relies on the
apparent impregnability of a fixed position. E.g. : Toyota, Suzuki, Prestige, LIC
2) Flank Defense : Weak Territory It has long been recognized that the flank of an
organization, be it an army or a company, is often less well protected than other parts.
3) Preemptive Defense : Preemptive behavior has been fundamental
element of their strategy for the past few decades and takes the form of consistent and broad-ranging product development, heavy advertising.
4) Counteroffensive Defense : This defense tends to come into play once an
attack has taken place.
5) Mobile Defense : The rationale for this is to cover new territories
that might in the future serve as focal points both for offence and defense.
6) Contraction Defense : It opts for a withdrawal from those segments
and geographical areas in which it is most vulnerable or in which it feels there is the least potential.
E.g. : Reliance closed down Petrol Pump
INCREASING MARKET SHARE
The possibility of attracting legal action for violating the competition act or Antitrust Law.
Economic Cost The danger of pursuing the wrong marketing
activities. The effect of increased market share on
actual and perceived quality.
OTHER COMPETITIVE STRATEGIES
Market – Challenger Strategies 1. Defining the Strategic Objective and
Opponent(s) 2. Choosing a general attack Strategy 3. Choosing a Specific Attack Strategy
Market Follower Strategies
Market Nicher Strategies
HYPOTHETICAL MARKET STRUCTURE
10%MarketNichers
20%Market
Follower
30%Market
Challenger
40%MarketLeader
MARKET – CHALLENGER STRATEGIES
1. Defining the Strategic Objective and Opponent(s)
It can attack the market leader.
It can attack firms its own size that are not doing the job and are underfinanced.
It can attack small local and regional firms.
MARKET – CHALLENGER STRATEGIES
2. Choosing a general attack Strategy Frontal Attack Flank Attack Encirclement Attack Bypass Attack Guerrilla Attacks
Frontal Attack : In launching a frontal attack, a market
challenger can opt for
Either the pure frontal attack (by matching the leader product for product, price for price, and so on)
OR
A rather more limited frontal attack (by attracting away selected customers).
Pepsi is an example of market challenger that has chosen to use a full frontal attack
Flank Attack : A flanking attack translates into an attack
on those areas where the leader is geographically weak and in market segments or areas of technology that have been neglected.
Encirclement Attack :
Encirclement has parallels with a blitzkrieg in that it involves launching an attack on as many fronts as possible in order to overwhelm the competitor’s defenses.
Bypass Attack :
A bypass attack, is (in the short-term at least) the most indirect of assaults in that it avoids any aggressive move against the defender’s existing products or markets.
Guerrilla Attacks :
This typically involves drastic short-term price cuts, sudden and intensive bursts of advertising, product comparisons, damaging public relations activity, poaching a competitor’s key staff, legislative moves, and geographically concentrated campaigns.
MARKET FOLLOWER STRATEGIES
Counterfeiter : E.g. Software, CDs, Battery
Cloner : Look alike Spell alike E.g. Vaslin & Vasleen Imitator : Copy Features & Attributes of other market Leader
Adaptive : Same Idea with some Innovation
Dial Corporation successfully uses a market follower strategy
MARKET NICHER STRATEGIES
• 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 E.g. Sugar Free (In Small Market)
PRODUCT LIFE-CYCLE (PLC) MARKETING STRATEGIES
4 Stages:
Introduction Growth Maturity Decline
MARKETING IN AN ECONOMIC DOWNTURN
Explore the Upside of Increasing Investment
Get Closer to Customers
Review Budget Allocations
Put Forth the most Compelling Value Proposition
Fine-tune Brand and Product Offerings.
THANK YOU!
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