Transcript PharmaSim COMPETITIVE STRATEGY

PharmaSim
COMPETITIVE STRATEGY
Products & Pricing
Management
Marketing 3349
Competitive Strategy
What is Strategy?
Multi Functional activities that
support corporate goals by
delivering superior customer value
What is Customer Value?
Customer Value = Benefits - Costs
Competitive Strategy
Approaches
Deliberate
Realized actions match intended
course
Emergent
Strategy is identified from patterns or
consistencies in past behavior
Intended course may be changed
Competitive Strategy
Situation Analysis
Demand-How/why do
consumers buy?
Population
and segment
Channels
Usage
rates
Environment
Health
issues and
symptoms
Economic-e.g. inflation
Information Sources
SURVEY – Decision Criteria
SURVEY – Tradeoffs
SURVEY – Brand Awareness
SURVEY – Purchase Intentions
SURVEY – Brand Perceptions
MARKET – Shopping Habits
MARKET – Share of Channel
Sales
MARKET – Symptoms Reported
Competitive Strategy
Situation Analysis
Performance
Market
share
Costs, resource allocation
Margins
Products
How
do consumers view
them?
New products?
Information Sources
MARKET – Share of Mfgr Sales
MARKET – Share of Channel
Sales
SURVEY – Brands Purchased
MARKET – Brand Formulations
Marketing programs
MARKET – Operating Statistics
Price
MARKET – Sales Force
Promotion
Distribution
MARKET – Advertising
MARKET – Promotion
Competitive Strategy
Situation Analysis
SWOT
Internal
Strengths
Weaknesses
External
Opportunities
Threats
Focus on trends – How are things changing?
Competitive Strategy
Problems and Opportunities
Problems
Financial
performance
Competitor actions
Product usage and
perceptions
Marketing Mix
Opportunities
Information Sources
SURVEY – Decision Criteria
SURVEY – Tradeoffs
SURVEY – Brand Awareness
SURVEY – Purchase Intentions
SURVEY – Brand Perceptions
SURVEY – Segmented Reports
Fragmenting
market
MARKET – Symptoms Reported
Submarket/segment growth
MARKET – Shopping Habits
Financial resources
MARKET – Brand Formulations
MARKET – Operating Statistics
COMPANY–Product
Contributions
Competitive Strategy
Problems and Opportunities
Segmentation
Identify subgroups in the market that act the
same
Develop profiles of the segments
Targeting
Determine segment attractiveness
Consider “fit” with products and its benefits
Select segment to target
Positioning
Develop marketing mix to appeal to each target
segment
Competitive Strategy
Evaluate Alternatives
Does the alternative support your
performance objectives?
e.g. Build market share, dominate new segments,
increase profits, increase distribution in a
particular channel
Develop marketing mix for the alternative
Product decisions
Channels of Distribution
Pricing
Sales force
Advertising
Promotions
Can the alternative be implemented within
your budget constraints?
Competitive Strategy
Evaluate Alternatives
Competitive Response
What should they be expected to do in response
to our alternatives?
Match
Cut
price
Exploit their strengths
Be mindful of competitor’s capabilities and…
Pick the battleground, if you can
Competitive Strategy
MONITOR RESULTS
Financial and market performance
Performance is driven by the ability
to fulfill customer needs and wants,
relative to the competition
Competitive Strategy
MONITOR RESULTS
Awareness
Try to learn consumer response
Advertising
by measuring the outcome variables
Helps in determining resource
allocation
Competitive Strategy
MONITOR RESULTS
The longer you go, the more you know
Signal vs. noise
Don’t “fight the last war”
Things may change!
Competitive Strategy
ISSUES
New
product development – a long
term key
Match
the marketing mix to the target
customer
Don’t
To
forget about price sensitivity
stay ahead, you must continue to
get better
Competitive Strategy
Situation Analysis
Demand-How/why do
consumers buy?
Population
and segment
Channels
Usage
rates
Environment
Health
issues and
symptoms
Economic-e.g. inflation
Information Sources
SURVEY – Decision Criteria
SURVEY – Tradeoffs
SURVEY – Brand Awareness
SURVEY – Purchase Intentions
SURVEY – Brand Perceptions
MARKET – Shopping Habits
MARKET – Share of Channel
Sales
MARKET – Symptoms Reported