Competitve strategy
- 1. PharmaSim COMPETITIVE STRATEGY Products & Pricing Management Marketing 3349
- 2. 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
- 3. 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
- 4. 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
- 5. Competitive Strategy Situation Analysis Performance Market share Costs, resource allocation Margins Products How do consumers view them? New products? Marketing programs Price Promotion Distribution Information Sources MARKET – Share of Mfgr Sales MARKET – Share of Channel Sales SURVEY – Brands Purchased MARKET – Brand Formulations MARKET – Operating Statistics MARKET – Sales Force MARKET – Advertising MARKET – Promotion
- 6. Competitive Strategy Situation Analysis SWOT Internal Strengths Weaknesses External Opportunities Threats Focus on trends – How are things changing?
- 7. Competitive Strategy Problems and Opportunities Problems Financial performance Competitor actions Product usage and perceptions Marketing Mix Opportunities Fragmenting market Submarket/segment growth Financial resources Information Sources SURVEY – Decision Criteria SURVEY – Tradeoffs SURVEY – Brand Awareness SURVEY – Purchase Intentions SURVEY – Brand Perceptions SURVEY – Segmented Reports MARKET – Symptoms Reported MARKET – Shopping Habits MARKET – Brand Formulations MARKET – Operating Statistics COMPANY–Product Contributions
- 8. 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
- 9. 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 Sales force Channels of Distribution Advertising Pricing Promotions Can the alternative be implemented within your budget constraints?
- 10. 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
- 11. Competitive Strategy MONITOR RESULTS Financial and market performance Performance is driven by the ability to fulfill customer needs and wants, relative to the competition
- 12. Competitive Strategy MONITOR RESULTS Try to learn consumer response Helps in determining resource allocation by measuring the outcome variables
- 13. Competitive Strategy MONITOR RESULTS The longer you go, the more you know Signal vs. noise Don’t “fight the last war” Things may change!
- 14. Competitive Strategy ISSUES New product development – a long term key Match the marketing mix to the target customer Don’t forget about price sensitivity To stay ahead, you must continue to get better
- 15. 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