Transcript III. Marketing Strategy Scenarios

JICA Training Materials
STRATEGIC CONSULTING FIRM
Essential Marketing Consulting for Professionals
March, 2014
STRATEGIC CONSULTING FIRM CO.,LTD.JAPAN
PRESIDENT : SHINOBU FUJITA
Lecturer’s Profile
Name
: Shinobu Fujita
Company
: Strategic Consulting Firm Co., Ltd.
STRATEGIC CONSULTING FIRM
http://www.scf.co.jp/
Business History : ■27 years in a Japanese Cosmetic company(Shiseido)
※Sales, Marketing, Business Stratesy, Planning of Corporate Strategy
■13 years consulting in Business Strategy, Marketing Strategy,
Management Accounting, Market Research, Branding,
National Projects in Japan and several countries
Position
: President(C.E.O)
COPYRIGHT2014 STRATEGIC CONSULTING FIRM CO.,LTD.
＜ＩＮＤＥＸ＞
I. Belief System for Business Consultants
1. Logical Thinking
2. Logic Trees
3. Consulting Work
4. Presentations
II. Consulting Tools
1. PEST Analysis
2. 5 Forces Model
3. 4 Competitive Rankings
4. 3Cs Model
5. Marketing Mix
6. ABC Analysis
7. PLC
8. Positioning Map
9. Ansoff Growth Matrix
10. PPM
11. SWOT Analysis
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III. Marketing Strategy Scenarios
1. Overview
2. Scenario Format
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20 – 26
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I. Belief System for Business Consultants
1. Logical Thinking
■ Company A wants to hire your consulting firm. Below is a message
from the president of Company A:
Our sales have been slumping recently, so we investigated the matter
internally. First, we had all our employees suggest reasons why sales
have been slumping. The Sales Division said that there were problems
with the products, and the Planning Division said we weren’t putting
enough effort into sales; each division criticized the other divisions. It
was a mess, but we finally determined that we needed to invest in
new products because our current products were weak, and that
declining sales in Region X were the main cause of our troubles. We
took prompt action to counter the slump, but our sales did not
recover. We need help.
■ Consultants do not normally persuade clients; they get clients to
accept. People accept things that are explained to them logically.
This is why logical thinking is a basic skill required of consultants.
Logical thinking can help people arrive at solutions to problems in
short amounts of time.
■ Company A should have worked tirelessly to figure out why there are
problems with the products, where the problems exist, and what
caused them in the first place. If they correctly understood the
essence of the problems, they could have set their sights on
challenges, and their countermeasures could have succeeded as well.
■ This example demonstrates a common mistake. The approach to
solving the problems was near-sighted, sensory and superficial. They
took action without proving or investigating objective facts about the
problems and, worse, without determining the true nature of the
problems. Logical thinking is required to determine the true causes of
problems and to solve them.
■ Consultants can use objective data to clarify why sales are slumping
and where the roots of the problems exist. In so doing, they can
logically determine the right challenges that need to be tackled first
and foremost. Consultants then consider how to meet those
challenges while adding the marketing environment and strategic
analysis to develop specific measures to resolve the problems.
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I. Belief System for Business Consultants
2. Logic Trees
■ Logic trees are typical examples of logical thinking. Starting with the
problematic event (problem point), consultants dig deep to find the
reasons that event occurred. They also break down ways the
company could tackle challenges it is facing. The logical progression
consultants use to analyze and investigate these things resembles a
tree, and a logic tree is the method they use to express them and
think about them.
HOW
HOW
WHY
WHY
■ Consultants repeatedly ask “Why?” and “How?” for each building
block of the Why and How Trees and split each block into several
layers lined up side by side to determine reasons for problems and
search for specific ways to tackle challenges; they are not repeatedly
asking “Why?” and “How?” with no aim in mind.
■ Consultants can effectively find solutions in a short amount of time
by determining the angle of their repeated questions ahead of time.
Marketing keywords that comprise those problematic or challenging
events and market KFS are used to determine that angle.
(Example)
Low quality
Problems with the
product
Outdated functions
Not satisfying consumer needs
■ You are probably aware that Toyota Motor’s custom of asking
“Why?” five times to find not just reasons but the root cause of
problems is the foundation of its efforts toward kaizen improvement.
Sluggish sales for Product A
The method of repeatedly asking “Why?” to determine the essence
of the problematic event is called a Why Tree, and the method of
repeatedly asking “How?” to tackle challenges in order to determine
specific countermeasures is called a How Tree.
Priced unreasonably
Problems with the price
Competitors’ products are
cheaper
Retailers have few incentives
Problems with sales
promotion
Advertising budget was cut
Specialty stores have closed
Problems with sales
channels
Ability to sell directly has waned
Distributor sales sluggish
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COPYRIGHT2014 STRATEGIC CONSULTING FIRM CO.,LTD.
I. Belief System for Business Consultants
3. Consulting Work
i. Business Diagnosis
■ Business diagnosis is the process of fully understanding the
situation from the standpoint of the company’s value chain (the
process of creating value: the entire flow of internal operations
from developing and manufacturing products to creating and
selling products and services as well as after-market services),
determining strategic challenges and suggesting the direction to
take to tackle them, and presenting strategic improvements.
■ When a patient with a fever who goes to the doctor, the doctor
conducts a medical questionnaire, performs blood tests, takes Xrays and, depending on the situation, performs various
examinations. The doctor then looks at the results of the
examinations to identify and report the disease and to suggest a
treatment. In the same way, consultants examine companies from
all angles, clarify problems and then suggest responses to the
problems.
■ Consultants are people who use expert knowledge of a
company’s operations and lines of business to objectively observe
the company’s observations from outside the company, point out
problems, analyze their causes and suggest ways to resolve them
in order to help the company develop.
<Doctor>
<Business Consultant>
Medical
questionnaire
Interview
Examinations
Gather and analyze
data
Determine
examination
results
Strategic analysis
Identify and
report disease
Identify problem
points and
challenge areas
Suggest
treatment
strategy
Suggest resolution
method
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I. Belief System for Business Consultants
<5 Processes of Business Consulting>
ii. Business consulting process
■ Consultants begin business diagnosis with interviews and work to
fully understand problems and challenges as they analyze the
company’s situation, and with that understanding, they suggest
kaizen plans and improvement targets. The process from that
point until the presentation is common across projects. In some
cases, consultants will make a post-diagnosis by measuring
results after the company has implemented suggestions.
■ Interviews with management, executives and employees in the
course of business diagnosis are extremely important.
Consultants can fully understand a client company in a short
amount of time by hearing directly from top-level management
what they view as problematic and how they want to improve it,
then learning what executives and employees are dissatisfied
with and what conditions they are working under.
❸． Suggest specific targets and ways to improve based on
strategic thinking
❹． Presentation
❺． Move to implementing strategies
improvement and measure the results
❸
❹
and
plans
for
Presentation
Measure results after
implementation
➋
Suggest targets and ways to
improve
❶
Understand problems and
challenges
■ During interviews, consultants ask interviewees to identify the
company’s strengths, weaknesses and problems. From the
ensuing conversations, consultants can learn the extent to which
the company is aware of its problems.
➋． Analyze the situation based on data obtained and figure out
the client company’s problems and challenges
Interviews
■ Top-flight consultants use their findings from interviews to devise
theories about the essence of problems and then go through a
sequence of work and thinking that make up the business
diagnosis process. Next, they gather data that supports their
theories.
❶． Tour and survey stores and facilities when interviewing
management and relevant personnel
❺
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I. Belief System for Business Consultants
<Marketing Strategy Proposal Process>
iii. Marketing Strategies and Proposal Process
<Marketing Strategies>
■ In most cases, excepting monopolies, several companies vie to
win customers in a competitive environment. Marketing is one
way to figure out how to get customers to purchase a company’s
products and lend their support to that company, but it also
needs to help that company triumph over its competitors.
Marketing must also take into account consumer psychology,
social environments and other environments that surround
competitors as well as the company.
1. Target
(challenge)
clarification
Clarify what the company is striving for as well as
specific targets and challenges
2. Marketing
environment
analysis
Fully understand the condition of the company and
the market environment that surrounds it
3. Strategic
analysis
Analyze what kinds of strategies should be taken in
current and future market environments
■ This kind of marketing in aspects of real business needs to
respond to the market strategically because it has to respond to
all market factors in addition to the obvious elements of
competition, markets and social environments. This is why
systematized implementation plans in marketing are referred to
as marketing strategies.
4. Strategic
theories
Determine the direction to take with strategies to
create specific action strategies geared toward
achieving targets
5. Specific action
strategies
Create specific action strategies based on strategic
theories (what to sell where, how and for how
much)
6. Sales and profit
planning
Develop three- and five-year sales and profit plans
7. Milestones
Clarify who will implement what and for how long
<Marketing Strategy Proposal Process>
■ Marketing must be logical, strategic and viable. Thus, a marketing
strategy is not complete until those three elements are fully
present.
■ As shown in the figure, a marketing strategy is generally complete
when it has passed through the following seven processes: (1)
target (challenge) clarification; (2) marketing environment
analysis; (3) strategic analysis; (4) strategic theories; (5) specific
action strategies; followed by (6) sales and profit planning and (7)
milestone planning.
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I. Belief System for Business Consultants
<How to Create a Presentation>
4. Presentations
■ The aim of consultation is not to persuade management but to get
them to accept and feel like they want to take the initiative to
implement improvement. To arrive at that point, the following five
presentation preparation techniques are key:
i. Logical development (using facts and investigations to develop
scenarios)
ii. Visual presentation method (using figures and graphs to present
ideas that can be understood at first glance)
iii. Creating simple presentation materials (seven sheets of A4
paper for a 30-minute presentation)
iv. Leading with the conclusion (explaining at the outset that the
conclusion represents strategy that should be implemented)
v. Ease of understanding (using simple sentences and single
sentences to the extent possible)
■ People in management are usually busy, so it is difficult to get a lot
of their time at once. Presentations that require management to
listen to the end to understand the conclusion, read long sentences
or sit through for too long have been rejected in spite of their
presumably good content.
■ Presentations should deliver the points in a short amount of time.
Thus, the trick is to lead with the conclusion and then explaining
reasoning and specific examples. At any rate, the key to successful
presentations is to get to the points as simply as possible.
A title that readily explains the presentation
Title
Purpose/targets
to achieve
○○○Action
strategies
*Marketing Strategy Presentation for Recovering
Potential for Growth
Specifically explain things to resolve and things
to achieve
Explain marketing strategies that will serve as
conclusions
*Name and outline strategies
Explain the marketing environment that surrounds
the company
*Explain finding method that combines macro
environment with 3C
*Use graphs and figures
Explain the strategic analysis results and strategic
theories
*Explain the strategic direction derived from the
brand
*Use graphs and figures
Explain specific action strategies (4P)
Explain three- and five-year sales and profit
plans *Explain with figures
Present milestones
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II. Consulting Tools
<Applications of PEST Analysis>
1. PEST Analysis
■ When a company makes strategic decisions, it needs to correctly
understand its own situation as well as outside environments it cannot
control. Outside environments refer to political, economic, social and
technological environments.
■ It is also critical to clearly define the objective of any analysis being done.
In other words, since these environments cover such a wide range, it is
more efficient for the company to establish angles for looking at its
business, and this analysis can also be used in SWOT analysis.
Type of Environment
Political
Economic
Social
Technological
Examples of Analysis
・ Stability
・ Expectations for legislation favorable to
foreign capital
・ Highly fair, transparent court system
・ Economic climate
・ Price fluctuation
(inflation/deflation)
・ Economic growth rate
・ Stock prices, exchange rates
・ Rising real estate values
・ Relatively low cost of living/wages
・ Demographics
・ Consumer awareness,
lifestyles
・ Education standards, safety
・ Increasing working-age population
・ Growing middle class
・ Culture, religion, language
・ Technological innovation
level
・ Patents
・ Penetration of new
technology
<Applications of 5
Forces Model>
<5 Forces (Competitive Factors)>
・ Government
・ Legislation/legal revision
・ Court system, precedent
2. 5 Forces Model (proposed by Michael E. Porter in 1995)
■ Five forces form the framework with which to analyze the structure of an
industry. Consultants model the industry in terms of five competitive
factors and analyze those factors to clarify the profitability and
attractiveness of the industry.
■ The 5 Forces model is effective for prioritizing management resource
investment and deciding whether to venture into an industry.
■ PEST analysis focuses on macro environments even for outside
environments, but the 5 Forces model is a framework for analyzing micro
environments directly related to the company.
Factors
・ High GDP growth rate
・ Good infrastructure maintenance in the
region
・ Official languages are local languages and
English, high education level, possible to
secure workers strong in the sciences and
technology
・ Christianity and Islam
・ Difficult to top secure suppliers
・ Patent system exists, but counterfeit
products abound
・ Number of mobile phone and Internet users
increasing
[Threat of new entrants]
・Distributors
Threat of new entrants
[Threat of seller
bargaining power]
・Rising price of solvents
Threat of sellers’
bargaining power
Competition in the
same industry
Threat of substitute
products
Threat of buyers’
bargaining power
[Competition in the same industry]
・Major chain stores
・98-yen dress shirt stores
・Stores within supermarkets
・24-hour stores
[Threat of buyers’
bargaining power]
・Condominium
management companies
・Hotels
[Threat of substitute products]
・Fully automatic washing machines
・Laundromats
・Permanent press shirts
・Low-priced clothing
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II. Consulting Tools
3. 4 Competitive Rankings
(proposed by Philip Kotler in 1980)
■ Marketing strategies for a company depend heavily on its competitive
ranking within an industry. The approach is to break competitive rankings
into the four classes of Leader, Challenger, Follower and Nicher (in order
from top to bottom), clarify the circumstances of each and develop
strategies that fit each ranking.
■ Nichers are companies that exhibit strengths in specific areas (niches) into
which companies from the other three classes have not extended
themselves.
■ There are cases when the top three shares in an industry cannot be clearly
identified, and cases when an industry is an outlier because of its KFS
(success factors) and other times when this way of thinking does not
match reality.
<Strategies for Each Competitive Ranking>
Leaders
Challengers
Followers
Nichers
No. 1 Companies
No. 2 Companies
No. 3 Group
Companies in
Specific Areas
Main objectives
Increase share
Increase share
Capture No. 1
Maintain share
Corner the
specific market
Basic strategy
All-around
Differentiation
Copy
Specialize
Standard
strategies
Expand market
size
Homogenize
Reduce prices
Emulate leaders
and challengers
Become a minileader in a
specific market
Target markets
All
Economic
segments
Specific segments
Catch up to other
companies
Uniqueness
Low
Medium to high
Competitive
Ranking
<Competitive Ranking by Market Share>
Attack leaders’
weak spots
Most all
[Class Name]
Share No. 3
[Class Name]
4P Strategies
[Class Name]
Product
Full line
Price
Medium to high
Differentiate
from leaders
Place
Open channels
Economic
channels
Special channels
Promotion
Mid- to high-level
Low-level
Special
*Share No. 1
[Class Name]
*Share No. 2
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II. Consulting Tools
4. 3Cs Model
i. Company
(proposed by Kenichi Ohmae in 1984)
■ The 3Cs model is vital for creating management and marketing strategies.
The three Cs are company, customer and competitor, and the concept
originated from Sun Tzu’s Art of War quote, “If you know your enemy and
you know yourself, you need not fear the result of a hundred battles.” The
3Cs model is a time-tested method of gathering and assessing data.
■ The 3Cs model is applicable to any business or service, so it is a common
analytical method for developing a company’s strategy and is easy for
management and strategy developers to introduce.
■ As explained below, data is gathered in terms of people, things, money and
data when using 3Cs to analyze the company and its competitors.
The McKinsey 7S Framework is useful for analysis in terms of management
resources:
(1) Shared values; (2) Style; (3) Staff; (4) Skills; (5) Strategy; (6) Structure;
and (7) Systems
■ The company fully understands the qualitative and quantitative aspects
of its circumstances, resources and abilities. Below are specific examples:
• Sales, market share, profitability, brand imaging ability, technical
capability, organization, employee structure, data systems, service
quality, etc.
 How are sales? Have they grown over the past three years, or are they
slipping? Which products or services garner the most sales? For which
products or services have sales grown over the past three years?
 Has market share grown or shrunk over the past three years? For which
products has the share grown in particular?
 Which products are highly profitable?
 How do customers view the company?
 Which technologies does the company excel at? Does the company
possess technologies cannot be copied by competitors?
Customer
 In what specific ways do the company’s products and services excel?
 What is the employee structure like? What is the average age of
employees compared to that of competitors?
 What kind of data systems does the company have?
 Is the company capable of customer management?
Company
Competitor
 Does the company have a system for accepting and responding to
customer complaints? Are customers highly satisfied? Does the
company have repeat customers?
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II. Consulting Tools
ii. Customers
■ The company fully understands the customers and markets that purchase
or are likely to purchase its products and services. Below are specific
examples:
iii. Competitors
■ The company fully understands competitive circumstances and its
competitors for its products and services. Below are specific examples:
• Market scale, growth potential, customer needs, customer trends,
technological trends, social trends, political background, environmental
background, buying-decision process, who decides to buy, etc.
• Number of competitors, barriers to entry, competitors’ resources
(sales staff size, production capacity), competitors’ performance
(sales, market share, customer base, brand), etc.
 What is the scale of the market for products and services?
 What are the market’s attributes (geographic, demographic, lifestyle,
personality)?
 Is the market growing or shrinking?
 What points do customers use to choose the company’s products and
services? In what settings are the company’s products and services used?
What do customers want from the products and services? Have there been
any unforeseen successes or failures?
 How are customers’ attitudes changing? How about customers’ lifestyles?
Toward what kinds of lifestyles are customers aspiring?
 How is technology developing? What new technologies exist in relevant
fields? What kinds of new technologies that could disrupt the company’s
advantages are being developed?
 Has anything in the latest news or newspaper articles affected the company’s
products and services?
 Has any legislation that affects the company’s products and services been
revised?
 What kinds of ecological effects exist for the company’s products and
services?
 What is the buying-decision process undertaken by customers when they
choose the company’s products and services? Who makes the final decision as
to whether to use the company’s products and services? What has the biggest
effect on that person?
 What kinds of companies can be viewed as competitors?
 What are the barriers to entering the market with new services? Are the
company’s products and services easy or difficult for competitors to imitate?
What specifically makes them difficult to imitate?
 What are competitors’ circumstances (What is the size of their sales staff?
What is their production capacity?)?
 How are competitors performing (How are their sales? How large are their
market shares? How large are their customer bases? How do their brand
images differ from the company’s?)?
 How do the prices and functions of competitors’ products and services differ
from those of the company?
 What advantages and disadvantages do competitors see in the company’s
products and services?
 Is the product in question the competitors’ main product, or is it a
supplementary product?
 How will competitors develop in the near future?
 Are there any products or services that could serve as substitutes for the
company’s?
 What disadvantages would users of the company’s products and services
suffer if they used those of competitors?
 Will the company compete directly with competitors?
 Will the company avoid competition with competitors?
 Are there any markets or needs that competitors have not yet entered or
explored?
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II. Consulting Tools
<4P (4C) Items to Examine>
5. Marketing Mix (4P) (Proposed by Jerome McCarthy in 1961)
Product
■ In this approach, a mix of marketing is critical to selling and providing
products and services. This approach examines various marketing elements
of the target market and combines marketing keywords that describe what
a company will sell and provide where, how and for how much.
■ The four Ps are Product, Price, Place and Promotion, and they are the
essence of modern marketing strategy. This approach is critical to
developing marketing strategies.
Ｐｒｏｄｕｃｔ
⇔
Customer value
・Product/items ・Quality ・Design ・Product name
・Warranty ・After-market services, etc.
Price
Ｐｒｉｃｅ
⇔
・Brand name
Customer cost
Ｃｕｓｔｏｍｅｒ ｖａｌｕｅ
・Packaging
Ｃｕｓｔｏｍｅｒ ｃｏｓｔ
・Retail price (at convenience stores, drug stores, supermarkets and department stores)
・Wholesale price ・Discounted price ・Payment term ・Terms and conditions ・Contract
period, etc.
Place
Ｐｌａｃｅ
⇔
Convenience
Ｃｏｎｖｅｎｉｅｎｃｅ
・Sales channels (convenience stores, drug stores, supermarkets, department stores, factory-outlet
stores)
・Distribution area ・Store locations ・Inventory, etc.
Promotion
Ｐｒｏｍｏｔｉｏｎ
⇔
Communication
Ｃｏｍｍｕｎｉｃａｔｉｏｎ
・Advertising media (TV, radio, newspapers, magazines, Internet) ・Promotion activities
(promotional events, sampling) ・Push strategy ・Pull strategy, etc.
<Marketing Mix>
Product
Customer value
“What”
Price
Customer cost
“How much”
Place
Convenience
“Where”
Promotion
Communication
“How”
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II. Consulting Tools
6. ABC Analysis (Pareto Analysis)
■ This analysis breaks multiple things and events into categories according to
their frequency in an effort to improve management efficiency.
■ ABC analysis is the act of breaking things and events into an A Group (up to
70% of the whole), a B Group (up to 90%) and a C Group (90% and above)
to select the ones on which the company should focus its management
resources and efforts.
■ ABC analysis has applications in inventory management for the
manufacturing, wholesale and retail industries as well as sales
management and marketing in the retail and service industries. ABC
analysis strives to help companies improve on challenges and achieve
management goals efficiently.
■ This is referred to as the 80–20 Rule (Pareto Principle), derived from the
empirical rule that 80% of sales come from the top 20% of products (or
best customers).
Pareto Analysis
Total Sales
Pct.
95%
16,000
A
14,000
78%
100%
B
C
90%
80%
12,000
70%
10,000
60%
8,000
50%
6,000
40%
30%
4,000
20%
2,000
10%
0
0%
(1) Create detailed data that includes all points to visualize
(2) Add up all points to be aggregated
(3) Rearrange points in order from largest to smallest
(4) Calculate percentages so that the total is 100%
(5) Calculate the cumulative percentage
(6) Break points into groups based on the cumulative percentage
②
Name
Product R
Product I
Product H
Product S
Product P
Product D
Product O
Product T
Product J
Product Q
Product E
Product L
Product B
Product K
Product F
Product C
Product M
Product A
Product N
Product G
Product A
Product B
Product C
Product D
Product E
Product F
Product G
Product H
Product I
Product J
Product K
Product L
Product M
Product N
Product O
Product P
Product Q
Product R
Product S
Product T
Total
④
Total
Sales
9,600
1,600
4,200
400
900
3,300
15,000
200
150
850
2,100
1,400
7,700
12,100
500
300
1,000
100
250
600
62,250
Name
③
Product G
Product N
Product A
Product M
Product C
Product F
Product K
Product B
Product L
Product Q
Product E
Product J
Product T
Product O
Product D
Product P
Product S
Product H
Product I
Product R
Total
Total
Sales
15,000
12,100
9,600
7,700
4,200
3,300
2,100
1,600
1,400
1,000
900
850
600
500
400
300
250
200
150
100
62,250
Pct.
24%
19%
15%
12%
7%
5%
3%
3%
2%
2%
1%
1%
1%
1%
1%
0%
0%
0%
0%
0%
100%
⑤
Overall
Pct.
24%
44%
59%
71%
78%
83%
87%
89%
92%
93%
95%
96%
97%
98%
98%
99%
99%
100%
100%
100%
⑥
A
B
C
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II. Consulting Tools
<Market Situation in Each Stage>
7. Product Life Cycle (PLC)
■ Products grow just like people do, and they pass through four stages:
Introduction, Growth, Maturity and Decline. PLC describes strategies to
take for each of the four stages.
■ Realistically, however, it is difficult to use PLC because of the many
uncertainties surrounding it. It is difficult to tell which life cycle stage the
product is in, product growth does not always follow the same curves, it
isn’t possible to define a product’s life cycle, and various conditions can
lead to a product repeating its life cycle.
■ Therefore, the decision of when to use PLC requires discretion.
Introduction
Growth
Maturity
Decline
Company
Extremely few
Many in the market
Gradually
decreasing
Decreasing
Differentiation
Little
Increasing
Progressing
Declining
Customers
Innovators and
early adopters
Early majority
Late majority
Laggards
Demand
Moderately
increasing
Rapidly increasing
Flagging
Decreasing
Sales
Low
Rising rapidly
Rising, then falling
Declining
Profits
Some negative
Maximum
Declining
Some negative
again
<Company Strategies at Each Stage>
Introduction
PLC
Sales
Lock in
customers
Launch new
products
Reduce costs,
streamline
Create value
through
innovation, or
even withdraw
Product
Basic product
Product line
Differentiation
Downsize
product line
Price
Same as cost
Penetration
pricing
Competitive
pricing
Falling prices
Place
Selective
Expanded,
concentrated
Further
expanded
Selective, or
even ceased
Improve name
recognition
Build awareness
of products
Differentiate
brand and
enhance benefits
Reduce expenses
High
High
Declining
Low
4P
Introduction
Growth
Maturity
Decline
Differentiate to
increase share
Establish product
brand
Prepare new
products
Company Strategy
Time
Maturity
Establish sales
promotion
activities and
distribution
channels
Profits
０
Growth
Decline
Promotion
Marketing Expenses
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II. Consulting Tools
8. Positioning Map
<Positioning Map Example (1)>
Design (High)
■ Positioning is a company’s method of establishing a unique position in a
target market or industry and differentiating its products and services for
its customers. A positioning map is a two-dimensional graph that makes it
easily to visually grasp the company’s position.
Company
C
Company
B
Company
B
Company
A
Design (Low)
■ If two attributes do not correlate with one another, they should not be set
as the two axes. One example is the pairing of quality and price. If the
quality is high, the price will be high, and if quality is low, the price will be
low. Without any particular technological innovations, such a positioning
map is meaningless. (See Example (3))
Durability (High)
Company
C
Durability (Low)
Functionality
(High)
■ The manner of deciding what to map on the two axes is critical. The
creators of these maps must consider what they want to use the
positioning to do. They would want to include customer needs (buyingdecision factors) for new products, or new values if they are prioritizing
impact on the market. (See Examples (1) and (2)).
Price
competitiveness
(Low)
<Positioning Map Example (3)>
<Positioning Map Example (4)>
Price (High)
Luxury (High)
Company
A
Company
A
Price (Low)
Innovative
(High)
Company
C
Innovative (Low)
Company
B
Quality (High)
Quality (Low)
■ When entering a market, mapping each company’s brand image should
result in a blank area. (See Example (4)) Needless to say, the company
entering the market needs to have what it takes to occupy that blank area.
Price
competitiveness
(High)
Company
A
Functionality
(Low)
■ The vertical and horizontal axes represent different attributes and cross
each other. Then, objective assessments of the products and services to be
assessed are mapped onto the graph.
<Positioning Map Example (2)>
Company
C
Company
B
Luxury (Low)
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II. Consulting Tools
9. Ansoff Growth Matrix (proposed by Igor Ansoff)
<Market/Product Matrix>
■ An Ansoff Growth Matrix derives four growth strategies by considering
vectors for company growth in terms of the markets and the products.
Products and Services
Existing
Existing
Market
New
■ Ansoff created divisions between existing and new products and markets,
and he described the four resulting strategies:
i. Market penetration strategy
• This strategy for existing products and services in an existing market
aims to expand sales and market share by hanging onto existing
customers and winning customers away from competitors.
ii. Product development strategy
• This strategy for new products and services in an existing market
aims to increase sales and stimulate demand by developing new
products through technological development as well as updating and
changing the models of existing products.
iii. Market development strategy
• This strategy for existing products and services in a new market aims
to increase sales by expanding the geographical range or by
changing targets.
iv. Diversification strategy
• This strategy for venturing into a field that has little relation to a
company’s current operations aims to increase sales and profits
through new business.
New
Market penetration
strategy
Product development
strategy
• Increase use, non-users
• Win customers away
from competitors
• Updating, model change
• New technology
Market development
strategy
Diversification
strategy
• Geographic expansion
• New targets
•
Venture into different
fields
■ Before using this method, a company has to fully understand whether it
will work, assuming the company understands its own circumstances. Thus,
the company must clarify its strengths and weaknesses as well as its
management resources.
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II. Consulting Tools
10. PPM (proposed by the Boston Consulting Group in the 1970s)
High
Market growth rate
Low
High
Star
Problem Child
Financial inflow:
Large
Financial outflow:
Large
Financial inflow:
Small
Financial outflow:
Large
Cash Cow
Dog
Financial inflow:
Large
Financial outflow:
Small
Financial inflow:
Small
Financial outflow:
Small
Relative market share
Low
<PPM Matrix for Company X>
High
Market growth rate
■ Some companies engage in multiple operations or produce many projects
rather than focusing on just one operation or product. However, very few of
those companies strategize with a full understanding of the attributes and
profitability of each of their operations and products.
Product portfolio management (PPM) is a business analysis and
management method for strategically determining the most efficient
combination of product operations for such a company’s management
resources.
■ A PPM matrix is divided into four quadrants by the relative market growth
rate on the vertical axis and the relative market share on the horizontal axis.
The matrix can be used to evaluate sales, profits, growth potential, cash flow
and other elements to determine strategic actions.
i. Problem child
• Operations and products in this quadrant generate little income
despite a high market growth rate, so they need concentrated
investment to increase their share.
ii. Star
• Operations and products in this quadrant generate significant sales
and profits but require continuous investment for growth.
iii. Cash cow
• Operations and products in this quadrant are very profitable. They are
not expected to grow, so the cash they generate can be diverted to
operations that require investment.
iv. Dog
• Operations and products in this quadrant are slated for
discontinuation because they are not expected to generate profits or
grow.
■ PPM is a convenient method for operations and investment, but it is difficult
to use because the two axes cannot be refined further, business decisions
cannot be made based on cash flow alone, and market shares are always in
flux. Its application in actual business management is limited.
<PPM Matrix>
Star
Problem Child
Field
B
Field
C
Cash Cow
Dog
Field A
Field
D
Low
High
Profitability
Low
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II. Consulting Tools
<SWOT Analysis Model>
11. SWOT Analysis (proposed by Albert Humphrey in the 1970s)
■ SWOT analysis is a tool consultants can use on a company that needs to
make a decision to derive strategies for achieving the company’s objectives
by assessing business and analyzing current circumstances in terms of its
strengths, weaknesses, opportunities and threats. It is a tool that
consultants make sure to use when analyzing the current situation at client
companies.
■ Four factors are derived from internal and external environments.
i. Internal environment
• Consultants gain an objective understanding of data collected on a
company’s current situation in terms of sits management, marketing,
human resources, history and other factors. Consultants then
separate the data into strengths and weaknesses.
ii. External environment
• Consultants separate economic, social, competitive, consumer and
industry phenomena that surround the company and separate them
into opportunities and threats.
■ During their analysis, consultants can logically derive strategies that fit the
company’s situation by pairing the S, W, O and T quadrants in different
combinations. Consultants list three to 10 items in each quadrant, but it
may not be possible to derive strategies when there are too few items.
Adding more items can solve that problem.
S
Strengths
O
Opportunities
W
Weaknesses
T
Threats
Internal
environment
External
environments
Internal
environment
4P, company history and culture, corporate philosophy, human
resources, assets, business conditions, etc.
External
environments
PEST, 5 Forces, 3Cs
<Strategic Action from SWOT Analysis>
SxO
Expand
Use strengths and opportunities to increase
the company’s advantages
SxT
Differentiate
Use the company’s strengths to differentiate
from threats
WxO
Strengthen
weaknesses
Use weaknesses and opportunities to increase
the company’s advantages
WxT
Defend
Withdraw or focus only on defense to avoid
the worst case scenario
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III. Marketing Strategy Scenarios
1. Overview
<Overview of Scenario Format>
Marketing Theme
Theme Background
Market
Competitors
Company
 Market conditions
(scale, environments, etc.)
 Market structure
(industry/distribution, etc.)
 Consumer trends
(needs/values/buying behavior)
 Main competitor conditions
Sales/profits/organization
 Main competitor marketing
Basic strategy/4P/core
competence/strengths and
weaknesses
 Performance
 Marketing
Basic strategy/4P/
core competence/
strengths and weaknesses/
positioning
Determining and Organizing Problems
Determining Challenges and Setting Targets
Challenges
Specific challenge items
Targets
Sales, profits, share, etc.
What problems and
challenges does the
Company face? How
do they want to solve
them? What are their
targets?
What is the course of
Action for tackling
challenges in order to
achieve targets?
Course of Action for Tackling Challenges (Theories)
Basic Marketing Strategy
Basic Strategy
Environment analysis/STP
What kind of market is
the company in, what
Kind of companies does
it compete with, and
under what
circumstances do they
compete?
Individual Strategy
4P
Basic marketing strategy
to serve as action plan
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III. Marketing Strategy Scenarios
2. Scenario Format
Scenario Format (1): Theme Background
Market Profile
Competitor Trends
Company Situation
■Current state of the market
■Main competitors
■Company’s marketing performance
■Market trends
■Competitor marketing strategies
■Current state of the company’s marketing
■Consumer needs and buying behavior
■Company’s management strategies, financial
situation, etc.
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III. Marketing Strategy Scenarios
Scenario Format 2: Determining and Organizing Problems
Why Tree
Problems
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III. Marketing Strategy Scenarios
Scenario Format 3: Determining Challenges and Setting Targets
How Tree
Setting Targets
■Marketing Objectives and Challenges
■Reasoning
■Specific Targets (Theories)
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III. Marketing Strategy Scenarios
Scenario Format 4: Course of Action for Tackling Challenges
Problems
<Theories>
Course of Strategy
<Theories>
■Option 1
Objectives/Targets
■Option 2
Challenges
■Option 3
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III. Marketing Strategy Scenarios
Scenario Format 5: Basic Marketing Strategy
Marketing Environment Analysis
In Management Terms
4P Analysis
Market
Industry
Company
Product
Strategy
Analysis 1
Strategy
Analysis 2
Strategy
Analysis 3
Price
Basic Strategy
Place
STP
Segmentation
Targeting
Positioning
In Marketing Terms
Promotion
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III. Marketing Strategy Scenarios
<Scenario Format 6: Income and Expenditure Simulation>
Conditions
Sales/Profit Simulation
■Sales
First
Year
Sales
YoY
%
Sales
Pct.
100%
Second
Year
YoY
%
Sales
Pct.
100%
Third
Year
YoY
%
Sales
Pct.
100%
■Sales Cost
Sales Cost
Margin
■Marketing Cost
■Expenses
Operating Profit
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III. Marketing Strategy Scenarios
Scenario Format 7: Milestones
Specific Action Plan
Person in
Charge
●・・Coordination
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
◎・・・Deadline
NOV
DEC
R&D
Production Purchasing Product
Price
Logistics Promotion
Sales
Financial
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