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Presented To:Professor Atul Tandan

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AGENDA Essential Concepts

From Branded Bulldozers to Global Distribution Partners From Brand Acquisitions to Brand Rationalization From Market-Driven to Market-Driving From Strategic Business Unit to Corporate Marketing Conclusion
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Essential Concepts
According to him three Vs for Analyzing and Planning Marketing

Strategy are:Value Customer

3 Vs

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Essential Concepts

Radical Innovation

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Essential Concepts

Brand Proliferation

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Introduction

Earlier Power in distribution channel rested upstream

Remarkable shift in power downstream From Suppliers To Distributors and retailers

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Challenge From Global Retailers

Substantial growth in global retailing has led to

Distribution consolidation Increased globalization Value migration downstream

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Retailer challenge to manufacturers

Challenge of global integration for retailers Retail is the image of the

Powerful retailers demand more

from their multinational suppliersPrice concessions Uniform terms of trade Single point of contact Standardization of product & services
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country in which it livesAdapt to local culture

Global Integration is global challenge

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Developing Relationship Mindset

To implement global account management, suppliers and their

global retail partners must develop a shared relationship building mind set. Manufacturer-Reseller Relationship Matrix
Manufacturer
Strong

Branded Bulldozers

Tug- of Wars

Strategic Partnerships

Opportunistic Mating
Weak

Shelf-Space Bidders

Assortment Filers

Weak

Strong & Adversarial

Strong & Cooperative

Reseller
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Two Tough Companies Learn To Dance Together

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Strategies For Developing Relationship Mindset

Create Trust, Not Fear in Distribution Relationships
Pursue what is fair, Bilateral Communication. Resolve conflicts through procedures

Adopt Fairness Principles in Relationships

Distributive Justice:-Fairness of outcome received

Procedural Justice:- Fairness of policies and practice

Implement Efficient Consumer Response

Retailers and Manufacturer work together to eliminate excess costs and serve the consumer cheaper, faster and better
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Transformations Required

Strategic Transformation
Common Policy Brand Portfolio Rationalization Transparent Pricing Strategy Globally Competitive Supply Chains

Organisational Transformation
Global Business Units Country Organizations Customer Business Development Teams Joint Planning Processes

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Transformations Required

Information System Transformation

Use standard cost allocations rather than activity-based costing

Human Resource Transformation

Coordination Co-Location Compensation Composition

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Introduction
Value is determined less by the tangible assets and increasingly by intangible assets
Brands are the most prized intangible assets

Were not a manufacturing company anymore. We re brand marketing group that happens to make some of its products. -Niall FitzGerald, Co-chairman Unilever

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Brand mergers and acquisitions

Buying Brands &its market share

Large Brand portfolios

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Brand Proliferation
Insufficient differentiation

Inefficiency

Brand Proliferation Is Costly

Lower market power

Management Complexity
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The Managerial Dilemma

How can Brand Portfolios be Pruned without losing the customers and sales revenue of the doomed brands?
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The Brand Rationalization Process Conduct a Brand Portfolio Audit Determine the optimal Brand Portfolio Select appropriate Brand Deletion Strategies Develop a growth strategy for the surviving brands
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1. Brand Portfolio Audit

Win the support of top-line managers
Goal is to optimize the portfolio rather than optimizing each brand in the portfolio. Focus on what could occur, not what is actually occurring

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2. Determine The Optimal Brand Portfolio

Bottom-Up Approach or Need Based

Top- Down Approach or Corporate Portfolio

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3.Brand Deletion Strategy

Sell

Milk
Merge Delist

Deletion strategies
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4.Develop A Growth Strategy For Surviving Brands

Shifting the products

Replacing the deleted with surviving

Shifting the attributes of products

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Market Driving Firms

Change the fundamentals of the industry through Radical Business Innovation. Visionary rather than traditional market research inspires them. Teach potential customers to consume their drastically different Value-Proposition.

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The Market Driving Firm

The success of Market-Driving firm, stands on radical innovation in these dimensions: 1. Discontinuous leap in the value proposition 2. Rapid configuration of a unique value network. Discontinuous Leap

Value Proposition

Value Innovation

Market Driving

Continuous Improvement

Continuous Improvement

Architectural Innovation

Existing

Value 27 Network

Unique

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Market Driving IKEA Style

Interchangeable Parts

Simple Designs

Mass Production

Immediate Delivery

Inexpensive Locations

In Exchange Of Self Transportation

Self Service

Self Assembly
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Marketing Strategies Of Marketdriving Firms

Lead by Vision rather than by Market Research Sam Walton Give the world an opportunity to see what its like to save and have a better lifestyle, a better life for all.

Redraw Industry Segmentation A new market moves around Market-Driving Firms product-service offering and marketing strategy.

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Marketing Strategies Of Market-driving Firms Contd.

Create New Price Points for Value Setting prices much lower or considerably above. Have a value proposition that is substantially more compelling than available alternatives.
Educate Customers For Sales Growth

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Contd..
Reconfigure Channels

Exploit the Buzz Network for Brand Attachment Early Adopters and Opinion Leaders generate excitement.

Overwhelm Customer Expectations

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Barriers To Market-driving In Incumbent Firms

Well-Established Business Processes are unable to become Market-Driving.
As, Market Driving Ideas: Overturn Industry Assumptions Risky Consistently Lose to Incremental Innovation Cannibalize Existing Businesses

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Market-driving Transformation Process

Simultaneous management - Incremental as well as Radical Innovation.

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Develop Processes To Identify Hidden Entrepreneurs

Formalize process to encourage out-of-the-box thinking
Discover Hidden Entrepreneurs EG: NEC

Allow Space For Serendipity

Select and Match Employees For Creativity

Team Diversity on function, age, gender, education, culture, mind-set, and life-experiences.
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Offer Multiple Channels For New Idea Approval

3M Numerous Channels to secure approval and support.

Establish Competitive Teams and Skunk Works

Cannibalize Your Own Products -

Encourage Experimentation and Tolerate Mistakes Limiting Enormity of possible failure, Taking precautions against failure and Learn something from it.
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Introduction

Marketing is Local A Traditional Belief Introduction of New Concept i.e. CMO Enhancement in the Role of Marketing at Corporate Level

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Role of The Corporate Centre

Portfolio Choice
What business should we be in? Portfolio Relationship What value should our business add to each other? Parenting skills What value does the corporate centre add?
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The Search Of Marketing Synergies

Leverage Product Platform Develop Markets as Platform

Exploit Brand Platform

Nurture Customers as Platform

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Extend Channel Platforms

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Emerging Markets As A Growth Platform

Target Growing Masses in Emerging Markets

Keep the Value Proposition Simple & Keep it Simple

Reinvent the Three Vs Model for the Masses. Transfer Best Practices across Markets.

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Building Customer Focused Capabilities

Customer Focused Strategy Map

Strategy Is Asking The Right Questions

Customer Focused Processes Map

New Product Development Process Order Fulfillment Process Customer Relationship Management Process
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Building Customer Focused Capabilities

Organize Around Customers Specify Measure & Reward Customer Oriented Behavior Empower Employees to Resolve Customer Problems Create a Customer Driven Mission Involve General Managers with Customers Develop Norms of Customer Obsession

Customer Focused Organization Map

Customer Focused Culture Map

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Building Customer Focused Capabilities

Continuously Learn about Customer Benchmark Marketing Develop Marketing Talent Invest In Customer Focused Strategy Understand the Role of Marketing Metrics Define Marketing Metrics Conduct Marketing Experiments to Demonstrate Return on Investment (ROI) Confront Marketing Mix Allocations

Customer Focused Competences Map

Customer Focused Resources Map

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The Challenges Of Being A Customer Focused Firm

CEO as Commander, Chairman, Coach & Catalyst

Stimulate Great Conversation Around Customers

Making Market Transformation Happen Marketing as a Change Agent
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Distribution channels have consolidated and have become increasingly sophisticated. Increased shift in power to retailers Changes are required in strategy, organizational structure, information technology and human resource management. Companies must move from brand acquisitions/mergers to Brand Rationalization Successful Rationalization leads to shrinking brand portfolio while growing sales and profitability
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Emphasis should be on becoming market driving than market driven.

Marketing must become more innovative.

Simultaneous management of incremental and radical innovation

Emerging markets should become a growth platform.

Marketing managers should become strategic partners to CEOs.

Building Customer focused organization.

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