Download Market Share

Planning Variables
Objectives
What is to be accomplished
Strategies
How objectives will be
accomplished
Execution
Detailed action plan
Copyright © 2007 Pearson Education Canada
7-1
Strategic Planning
The process of determining objectives
(stating goals) and identifying strategies
(ways to achieve goals) and tactic (specific
action plans) that will help achieve
objectives.
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7-2
Business Planning Process
Corporate Plan
Marketing Plan
Product
Mkt. Comm.
Price
Distribution
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7-3
Corporate Planning
Corporate plans are long-term and broad in scope.
They include an organization’s:
• Vision
• Mission
• Corporate Objectives
• Corporate Strategies
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Mission Statement
“A statement of an organization’s purpose that
reflects the operating philosophy and the
direction the company will take.”
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7-5
Vision and Mission
A vision statement defines plans for the future,
defines what the company is and does, and
where it is headed.
If a vision statement is used, the mission
statement tends to focus more on the present
condition of the company.
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7-6
Sample Vision and Mission
Our Vision
To be the best transportation company in
Canada
Our Mission
To provide high quality, low cost passenger rail
service.
Via Rail
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Corporate Objectives
Typical objectives include:
 Sales
 Profit
 Return on Investment
Objectives should be quantitative in nature,
growth oriented, and measurable.
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Corporate Strategies
The organization must allocate adequate resources
to achieve the objectives
 Financial Commitment
 Adequate Time
 R&D Commitment
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Corporate Strategies
• Penetration
• Acquisition
Strategic direction
varies from one
company to another
• New Products
• Vertical Integration
• Horizontal Integration
• Strategic Alliance
• Divestment
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7-10
Penetration Strategy
Aggressive action to build current businesses
and brands
Coca-Cola
Coca-Cola wants to be
the world’s leading
beverage company.
Coca-Cola
Diet Coke
Coke Zero
Dasani
Fruitopia
Powerade
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Acquisition Strategy
Some organizations find it cheaper and quicker to buy
their way into a market.
Reebok
Pepsi-Cola
Hockey Co. Holdings
(CCM, Koho, Jofa)
Quaker Oats
(Gatorade)
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7-12
New Product Strategy
New products in new markets produce new revenues
and profits.
Apple Computer
• iTunes
• iPod
• iMac
• iBook
• Mac mini
•Power Mac
Apple is now in the entertainment business.
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7-13
Vertical Integration Strategy
Apple
George Weston
Apple Stores
Loblaws
Provigo
Zehrs
No Frills
A company operates
in several levels of
channel.
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7-14
Horizontal Integration Strategy
Cara
Operations
Operates several
companies at same
level of channel
Swiss Chalet
Harvey’s
Second Cup
Kelsey’s
Montana’s
Outback
Milestones
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7-15
Strategic Alliance
A relationship between two or more companies who
decide to work cooperatively to achieve goals.
Tim Hortons
Esso
Timmy’s operates 300 kiosks in 300 Esso
outlets across Canada.
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Divestment Strategy
A company retreats to its core business by selling
unprofitable divisions or products that no longer fit
strategically.
Molson sells off the Molson Centre and the
Montreal Canadiens to focus on beer.
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7-17
Marketing Planning
The analysis, planning, implementation,
evaluation and control of marketing initiatives
in order to satisfy target market needs and
achieve organizational objectives.
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7-18
Marketing Planning Process
Evaluation and
Control
Situation
Analysis
SWOT
Analysis
Implementation
of Plan
Marketing
Plan
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7-19
Situation Analysis
Essential information is compiles and analyzed
• External Influences
• Market Analysis
• Brand analysis
• Competitor Analysis
The impact of past
marketing
strategies are
evaluated.
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SWOT Analysis
Critical factors from the situation analysis that
will influence future marketing direction are
identified
Strengths &
Weaknesses
Opportunities &
Threats
Internal Factors
External Factors
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Marketing Plan
Marketing
Objectives
• Sales
• Market Share
• Profits
Marketing
Strategies
• Positioning Strategy
• Target Market
• Marketing Mix
• Budget
Marketing
Execution
• Plan Details
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Marketing Objectives
Quantifiable statements identifying what will be
accomplished in one year.
Sales:
To increase sales from 10,000 units to….
Market Share:
To increase market share from 20% to ….
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Control and Evaluation
Measuring results and taking corrective action
when necessary.
Activity Review
Actual versus plan:
sales, market share,
and profit.
Financial Review
Evaluation of sales
forecasts, costs, and
budgets.
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Contingency Plan
The identification of alternative courses of
action that can be used to modify an original
plan when new circumstances arise.
 Flexibility
 Adaptability
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Common Marketing Strategies
Existing Market
New Market
Existing Product
New Product
Market
Penetration
Product
Development
Market
Development
Diversification
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Common Marketing Strategies
Penetration
Product Development
Pepsi-Cola versus CocaCola
Coke Zero, Vanilla Coke,
Coke C2
Market Development
Diversification
Home Depot opens
smaller, downtown stores
Apple markets music
products: iTunes and iPod
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7-27