Headquartered in Mumbai Tata Motors (formerly known as TELCO acronym form for TATA Engineering and Locomotive Company) are an Indian multinational automotive manufacturing company and a member of Tata group. Products offered by the company varies from cars, trucks, vans, coaches, military vehicles, sports cars, buses and construction equipment.

TATA Motors is ranked as 226^th in the Fortune Global 500 list of world’s biggest corporations as of 2016.

Segmentation, targeting, positioning in the Marketing strategy of Tata Motors –

Tata Motors does not follow a single marketing approach or formula but it believes that all members of the community should be served. Brand targets crowd from the rural part to the metros with its offerings varying from NANO to Jaguar Land Rover segment.

It targets anyone above 4 Lakh p.a. salary, millennial employed as professionals, managers and all those looking to switch from 2-wheeler to 4-wheeler. The age bracket for brand’s offering varies from 21-65 years with all Middle class. Upper middle class, High class and Affluent class in its target category.

Tata Motors offers products such as Tata ACE a mini truck mainly used for agriculture transport purpose, Tata NANO for the middle class, Tata Indica and Indigo for commercial purposes and Jaguar in the high-class segment thus creating the image that there’s something for everyone in its huge line of offerings.

Differentiated targeting strategy is used by Tata Motors to target the customers and satisfy their needs and wants.

Marketing mix – Here is the Marketing Mix of TATA Motors

SWOT analysis – Here is the SWOT Analysis of TATA Motors

Mission – “We innovate with passion, mobility solutions to enhance the quality of life”

Vision  – 

“As a high-performance organization, we are by, FY2019

• Among the top 3 in the global CV and domestic PV
• Achieving Sustainable financial performance
• Delivering exciting innovations”

Tagline – “Connecting Aspirations”.

Competitive advantage in the Marketing strategy of Tata Motors –

Based in India serves as a huge competition for the company as it offers the brand low-cost labour base with the help which company not only targets the Indian market but also other emerging markets with a huge range of economical segment vehicles. The products thus offered are manufactured at a much lower cost and sold to new markets earning huge profits for the company.

The policies and regulations for the automobile sector in the country along with the least expensive automobile parts availability are the some of the major conditions which help the brand in its business expansion.

The excellent innovation and research and development at TATA Motors have set up an example for its competitors. With its various research centres across the country, the brand is working on the improvement of the engine efficiency, design, style and instrumentation of vehicles.

For breaking into foreign markets TATA Motors has over the years acquired various foreign companies. While the company has delivered amazing results in the domestic market, its subsidiary Jaguar land rover has broken all the records of competitors as a top luxury automobile manufacturer. This mega expansion mode calls for major product development, capacity capitalization and various national and international mergers.

BCG Matrix in the Marketing strategy of Tata Motors –

Indica being the most preferred commercial vehicle features in the star segment along with Safari Dicor, Manza, Winger and Magic.

With Safari, Sumo and Indigo CS being their cash cow, Nano& Zest still continues to be in question mark segment.

Distribution strategy in the Marketing strategy of Tata Motors –

With 576 car dealers across 424 cities in India, TATA Motors holds a robust dealers network in the country through it sells more than 56,000 in the month of July 2018. Brand registered a staggering growth of 64%  in its domestic sales for the first quarter (April-June 2018), FY19 at 164,579 units compared to 100,141 units over the previous year due to its strong network of dealers.

Brand equity in the Marketing strategy of Tata Motors –

TATA aims to fulfil the emerging needs of the automobile industry by coming up with a new range of products. These products are manufactured with the purpose of providing comfort, reliability, safety, capacity and value to the end customers. In order to stay ahead of the competition, the company is going for huge investments in the area of product development. TATA Nano carries an image of the cheapest car in the world, TATA Ace is being introduced in the commercial vehicle market for snatching the market share of its rivals. Another sporty vehicle Nexon with both diesel and petrol engine is also attracting customers already.

Competitive analysis in the Marketing strategy of Tata Motors –

With the Indian automotive market being overcrowded with a lot of national and international players following a red ocean strategy. Companies like Hyundai, Fiat, Maruti Suzuki, Toyota & Honda are giving a stiff competition to the brand with everyone eating each other’s market share.

Market analysis in the Marketing strategy of Tata Motors –

With a market share of 44% in commercial vehicles segment in a 2017-2018 brand is a market leader in the sector.

With an initiative Turnaround, 2.0 company is targeting to regain its market share in Passenger vehicle segment. Part of this has already put in place which has already started showing signs of improvement for the company’s PV firm.

With the focus on serviceability tapping and penetrating the growing markets will further help the company with its Turnaround 2.0 initiative in this highly competitive sector.

Customer analysis in the Marketing strategy of Tata Motors –

Customers of TATA Motors are the low, middle groups who are looking to switch to 4-wheeler from 2-wheeler who are looking to purchase a car for a family purpose at affordable prices. Customers of the brand also include youth and high-class business professional who is looking for innovative, trending vehicles with world-class safety features.

Promotional strategy in the Marketing strategy of Tata Motors –

TATA Motors carries out its promotional strategy in 2 ways:

Above the line (ATL)

• It includes: print ads (newspaper advertisements by local dealers, magazines)
• TV, Radio

Below the line (BTL) Promotions:

• It includes: exchange fair
• Rural fair
• Loan fair,
• Society activities
• Corporate display activities

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Pantene is owned by Procter & Gamble and is an American Brand of hair care products. The name Pantene is based on Panthenol which is a shampoo ingredient. To compete in the “beauty product” market, Pantene was purchased by P&G in the year 1985.

In 1986, Pantene launched its controversial advertisement campaign which had beautiful models saying “Don’t hate me because I am beautiful” and it was considered to narcissist by many critics. In the 1990’s Pantene started expanding into more countries across the world including Australia, North Africa, Latin America, Korea, Japan etc.

In 2010, Pantene collaborated with NASA, to uncover information about a molecular structure of hair. Pantene also has a Hair Research Alliance, which researches on developing stronger solutions for effective hair care.

Segmentation, targeting, positioning in the Marketing strategy of Pantene-

Pantene targets people looking for affordable hair career and has product offerings for the middle and upper-class groups. It uses psychographic segmentation to target people with a certain lifestyle and aspiration with respect to hair. It also has come up with products using behavioural segmentation with the benefits sought, for instance, they have created a product range known as “oil replacement” for those segment of people who find importance in oiling their hair and it is exclusively targeted towards the Indian market.

Also with shampoo ranges like deep cleanser, curl perfection, repair and protect have been created understanding the different buyer types. Pantene’s target audience is women in their mid-to-early 40s and who were invested and proactive in living a healthy lifestyle and also feel confident when their hair looks good.

It positions itself as a product that is the affordable alternative to salon brands. In 2006, it repositioned itself as a brand that helps women ‘shine’.  A product that helps bring out a woman’s inner shine, with the help of her outer shine that the shampoo provides.

Marketing mix – Here is the Marketing mix of Pantene.

SWOT analysis – Here is the SWOT analysis of Pantene.

Mission – “To provide reasonably priced, convenient hair shampoo. We mainly concern to attract and maintain our customers. When we adhere to this maximum, everything else will fall into place. Our services will exceed the expectations of our customers”

Vision – Not found

Tagline–“For hair so healthy it shines; Let yourself shine”

Competitive advantage in the Marketing strategy of Pantene –

1) Technological Heritage

With the discovery of the wonders of Panthenol an exclusive formula was developed and after investing countless hours the first Pantene haircare formula was created. With collaboration with NASA, Pantene uncovered new information about the molecular structure of hair and used these findings to improve the formula and is thus able to provide customized solutions all based on hair structure and quality.

The Pro-V claim is critically important to the product, P&G made sure to emphasize it in the logo and label graphics. Pantene has launched 3 min miracle range of hair conditioners with latest conditioning technology that can repair 3 months of damage in 3 minutes

2) Superior customer service.

Pantene provides one-stop service offerings for all issues relating to hair. Pantene recognizes that the hair shampoo market is crowded so it differentiates by investing in customer satisfaction by providing professional care solutions.

Every country where Pantene sales, the brand features a different product depending on the needs of that specific customer base. Pantene also guarantees to refund the money back of those customers who are not satisfied with the producBCG Matrix in the Marketing strategy of Pantene:

Pantene continues to feature in star segment for P&G over the years with its Pro-V Hair fall defence being the leader in the segment and thus a cash cow for the brand Pantene. While its hair fall defence segment continues to be a question mark way behind the market leader Head & Shoulders.

Distribution strategy in the Marketing strategy of Pantene

Pantene has its presence is more than 90 countries and has excellent distribution network across the globe due to its wide range of product portfolio and also its expertise. The Shampoos are available in the maximum number of retail outlets, modern retail and also the supermarket. Pantene sells its products online as well.

In India, from manufacturing plants like in Mandideep (Madhya Pradesh) & Baddi (Himachal Pradesh), the products go to the carrying and forwarding agents and then to retailers and finally reaching the end consumers.  The distribution channel has to be excellent to ensure that there are no stock-outs because the consumers can switch to competitor’s brands easily due to low switching cost.

Brand equity in the Marketing strategy of Pantene

Pantene’s core brand identities are quality, shiny, healthy hair. A program was designed by Pantene called Pro-Voice designed to speak to women of age 18-24 years. It was a one hour special on MTV channel where singers and songwriters submit songs and are judged by peers and a celebrity panel. It helped form a community for young women creating an image that Pantene understands them and it wasn’t just about getting the product sold. In its “Not Sorry” advertisement, Pantene chose to act beyond its product benefits and tried to communicate that with Pantene women can “shine strong”.

A challenge called “10-Day Challenge” was created by Pantene with famous celebrity stylist ‘Shahzad Raza’ who provided support to the challenger and help him/her in gaining the fit and healthy hair as claimed by Pantene in its advertisements

A recent campaign called #GoGentle featured Priyanka Chopra encouraging women to be strong minded and bold. Celebrities are often made a victim of trolls and this campaign showed that celebrities can be as vulnerable as other women and they get hurt too and are no different. Pantene also collaborated with the weather channel and ran a “Haircast” campaign to consumer’s mobile solution for the weather-based bad hair days.

Competitive analysis in the Marketing strategy of Pantene –

The shampoo and conditioner market is globally is very competitive with brands like Dove, Tresemme, L’Oreal etc. Even though consumers are brand loyal they don’t mind shifting to other brands if they get better quality at a better price.

Pricing plays a very important role and Pantene products are priced similar to its competitors. To provide the best product at the best price is the main strategy of the brand to retain old customers and also acquire new ones. Brands try to capture the market by lowering the prices as it increases demand. The brands also try to increase market share through better branding and advertising strategies.

Market analysis in the Marketing strategy of Pantene

Pantene shampoo is 20-30% cheaper than its nearest competitor Dove. The market share of P&G’s in shampoos is estimated to be more than 27%, while HUL has maintained its market share, P&G has been ceding ground in shampoos. There is a growing demand for professional shampoos in the market, thus Pantene has created the number of product categories addressing various hair related problems. Pantene has also used its website to answer to different hair related queries. The demand for natural shampoos is also increasing so the brand has come up with a new category called Nature Fusion.

Customer analysis in the Marketing strategy of Pantene

Globally Pantene serves men, women, children identifying each of their needs. In the Indian market, the customers of Pantene are mostly the women and the brand targets the middle, upper-middle-class people. The customers today are more concerned about getting quality hair shampoo but are not willing to pay exorbitant charges.

An article by UKEssays claimed that the young age group respondents of Pantene users were more satisfied with the product than the middle and old age group respondents. The report also claimed that price availability and pricing of the product plays an important role in buying of the product by consumers. The advertisement also plays an important role in the customer buying behaviour and also the switching behaviour.

Promotional Strategy in the Marketing strategy of Pantene –

To capture consumers, Pantene has been generous in offering coupons in multiple magazines and also handing out free samples to maximize its trialability and hopefully create a brand loyalty.

Pantene also posts posters at supermarkets and retailers to create visibility. To increase impulsive buying high emphasis is given on shelf spaces as well

Pantene has also come up like TV and Youtube advertisement by featuring Priyanka Chopra and the famous Youtube star Lilly Singh, to advertise about the Oil Replacement category of Products.

Using social media, Pantene invited users to challenge them with a #HairDare where they could watch celebrities like Yami Gautam, Mahie Gill and Rituparna Sengupta, take the users to dare.

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American fashion house and luxury goods manufacturer established in 1968 which specialises in leather, lifestyle accessories, home furnishings, perfumery, watches and ready to wear luxury goods.

Headquartered in Midtown Manhattan, New York city the company was founded by Calvin Klein along with his friend Barry K. Schwartz before being sold to Phillips Van Heusen (PVH) in 2002.

Segmentation targeting and positioning in the Marketing strategy of Calvin Klein

Calvin Klein adopts a flexible segmentation strategy as it offers a wide range of products in order to cater to a wide range of customer segments which varies among companies product lines.

Making good use of the market segmentation by utilizing customer needs with the main aim of building long-lasting relationships with its customers as well as attracting new customers. Under demographic segmentation, the brand mainly targets the upper-middle-class youth and business executives. Under psychographic segmentation, it has identified those customers who live a certain lifestyle and are fashion-centric and are not price sensitive when it comes to splurging on fashion.

The target audience for the brand is mostly the youth and has been using celebrities, bloggers and influencers as the part of the campaign “My Calvins” to influence the young adults to buy their products. The target customers are men and women between the ages of 15-30, most likely not married and the audience for the “My Calvins” campaign would be the explorers and aspirers.

The brand position itself as products that are rich and quality products designed for urban youth and high-end business executives who are trendy and are stylish but prefer a minimalistic look. Celebrity endorsement is a key factor in positioning products in the market, with Justin Bieber endorsing the underwear segment, it helped to attract young girls who are interested in making their boyfriends appear just like Justin Bieber. The brand used his immeasurable popularity and has targeted a number of customers.

Marketing mix – Click here to read the Marketing mix of Calvin Klein.

SWOT analysis – Click here to read the SWOT analysis of Calvin Klein

Mission in the Marketing strategy of Abercrombie and Fitch – “Not Available”

Vision in the Marketing strategy of Calvin Klein- “Become one of the first choices of consumers”.

Competitive advantage –

Presence in multiple fashion domains serves as a huge advantage for the brand which mainly offers products in the segment ready to wear fashionable clothes for men and women.

In addendum, they also offer perfumes and accessories such as watches, eyewear, shoes and jewellery for both men and women.

Major competitors for the brand includes brands like: Tommy Hilfiger, Ralph Lauren, Jockey, Hugo Boss, Donna Karen, Giorgio Armani

It remains ahead of its competitors in the terms of licenses, CK uses “licensing” to distribute products in the world. It has broadly two segments -Calvin Klein Apparel which looks after its sales of the product line in both men and women’s wear providing the company a 60% of its earnings, other is Calvin Klein licensing which takes care of its licensing agreement with third parties.

BCG matrix in the Marketing strategy of Calvin Klein –

Calvin Klein as the brand when plotted on the BCG Matrix of retail industry features in the question mark segment. The reason being the pricing of other brands like Levi’s, Tommy Hilfiger, US Polo, Puma etc. is economical thus is more preferred among customers. The company will have to work on its pricing and ultimately marketing strategy especially in the country like India to stay ahead of the competition.

1) Distribution in the Marketing strategy of Calvin Klein –

As the brand over the years has expanded across the geographies and distribution channels, it has simultaneously invested in developing an efficient supply chain taking care of its business needs.

With brand’s capabilities for worldwide procurement along with an extensive established network of worldwide sourcing partners enabling it to deliver to its customers’ needs in an efficient manner without relying on any one vendor or factory in any one country.

In the first half of 2017 through a joint venture with Arvind Limited brand made its supply chain even more dynamic and robust. This manufacturing unit in Ethiopia helps the brand to produce products at a cost advantage, which are also being sold in The United States under its heritage brand.

2) Brand equity –

With all the advisement and campaigns, the brand is perceived as a global lifestyle brand that exemplifies bold and progressive ideals with the seductive and minimalistic aesthetic.

The brand’s image is kept consistent through the brands distinctive marketing identity and strategy. People with intimate, modern, iconic and classic lifestyle imagery gets attracted to the brand. The brand describes itself as the honest, authentic and genuine brand. With continuous success since 1968, the customers view CK as a reliable fashion brand which is minimalistic and classic.

The brand’s unique selling point is their comfortable but sexy products using innovative fabrics of remarkable quality.

Marketing analysis in the Marketing strategy of Calvin Klein –

Recent research by HTF market Intelligence consulting Ltd. Suggests the in womenswear segment Calvin Klein would have a share of 17% behind only to Givenchy, Dolce Gabbana, Gucci and Burberry.

Both of PVH’s brand Calvin Klein and Tommy Hilfiger has continued to show growth over the years and has been with the company stating that around 60% of the companies earnings coming from the foreign market.

Customer analysis of Calvin Klein

Customers of Calvin Klein mostly consist of the younger generation in particular men and women between the age of 15-40. Individuals with high relatively high disposable income and the ones more conscious about the fashion and trends constitute the major chunk of customers for the brand.

Promotion strategy of Calvin Klein

In 2015, around $320 million was spent globally in connection with the advertisement, marketing and promotion of Calvin Klein brands.

With the Kardashians and Jenners family featuring in the “MyCalvins” campaign, it created a strong message highlighting the importance of family. With Justin Bieber endorsing the underwear segment helped to attract the young customers.

With the #IAMWOMEN campaign, the brand talks about women empowerment and has introduced perfume ranges, drawing inspiration from the multifaceted identity of feminity with aspirational women around the world endorsing the brand.

It also performs direct marketing by allowing consumers to sign up to the brand’s newsletter which sends them emails informing them about the brand and their promotional offers, thus ensuring consistent communication to improve the brand loyalty.

There are more than 446,029 photos on Instagram with the tag #mycalvinsand found more than 4.5 million interaction. The campaign was then displayed on billboards on prints, Ck stores etc. On the Calvin Klein website, there is a #mycalvins gallery which encourages customers to upload the photo of themselves in the social media and get a chance to be featured on their website.

The fact that the campaign has captured the desired target audience using their customers without any cost, causes it to be so successful.

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Invented in The United States as a patent medicine by Theron T. Pond in 1846 under the name “Golden Treasure”. It all started extraction of a healing tea from witch Hazel by Mr Pond which could heal small cuts and other ailments. Thus, After his demise in 1852, the brand was named as “Pond’s Extract”

By 1886 national advertisements were rolled out by the band under the name Pond’s healing until 1910. By twentieth-century company began to emphasise more on cosmetics products. Thus came “Pond’s Vanishing Cream” and “Pond’s cold cream” which marked the entrance of Pond’s in the facial care industry.

Segmentation, targeting, positioning in the Marketing strategy of Pond’s-

Brands major product offerings are for upper middle class and middle-income class groups. Also, customer groups on the basis of Gender and Age have been marked by the company so that it can target with products as per their life stage.

Products offered by Pond’s is mainly targeted at mass market and has been positioned as soft and gentle moisturizing nature products.

Marketing mix – Here is the Marketing Mix of Pond’s

SWOT analysis – Here is the SWOT Analysis of Pond’s

Mission – “We make it our business to care about the future of your skin and the added strains of modern day life, so you don’t have to worry. With this deep understanding, we are able to anticipate the future and uncover the solutions for all skin needs. We work every single day to create science and technology breakthroughs that correct the skin problems of tomorrow better than anyone else.”

Vision– “Not Available”

Tagline – “Ponds: where your real age vanishes; Ponds, for timeless beauty; The miracle is you”

Competitive advantage in the Marketing strategy of Pond’s –

1) Bouquet of products:

With a large product portfolio Pond’s caters to diverse customer segment comprising of Men, Women & Baby, this is what helps a company in increasing its Total Relationship Value (TRV) with the customers during their lifecycle ensuring repeated purchases and cross-selling their products to the existing customer base.

2) Get the expert to look after your skin:

Unilever as a parent company of the brand promotes Pond’s as a beauty brand that delivers beauty transformation through revolutionary products innovation. With its wide range of products ranging from Anti Ageing creams, Moisturizers, skin lightening creams, oil control and Pond’s Men range of face care products.

BCG Matrix in the Marketing strategy of Pond’s-

Pond’s offers products in four major segments i.e. Suncare, Anti-wrinkle (Anti-ageing), Anti-pimple creams and facewash business.

The Anti-ageing and Moisturizers products are bread and butter for the company and therefore is Stars in the BCG Matrix.

While Anti pimple cream and facewash is newly launched and suncare still needs to be strengthened to achieve a decent market share thus are positioned as the question mark in the BCG Matrix.

Distribution strategy in the Marketing strategy of Pond’s–

Internationally Pond’s started its operations in The United States with its manufacturing facility earlier located at Connecticut and sales office relocated to New York. With its products demand now in the international market and presence spreading to countries like Spain, Japan, Thailand and India.

Pond’s has used the robust distribution network of its parent company Unilever to reach the remotest of places and reach even in tier 3 and tier 4 cities. It has the good reach to customers through supermarkets, hypermarkets, convenience stores and online sales via its channel which is serviced by wholesalers, distributors retailers and warehouses.

Also, the skin care products developed by the brand are tailored to the local needs and giving due consideration to the demographic and environmental factors. It distributes its product to all the six continents i.e. North America, Australia, Asia, Europe, Africa, and America.

Brand equity in the Marketing strategy of Pond’s–

To target a larger market share, the brand has been promising to take care of the future of the skins of its customers with its wide range of offerings of its anti-ageing creams.

The Pond’s Institute’s mission stating “Future Proofing your Skin” speaks volume about their positioning and uniqueness they offer to stand out from the competitors.

‘Skinnovation’ is something which Pond’s proudly boasts to offer with technology embedded in all their products nomenclature as Gen White, Intelligent Pro cell complex for creams and Activated Carbon for its facewashes.

Competitive analysis in the Marketing strategy of Pond’s –

Pond’s compete in the market on the basis of the array of scientifically researched and developed products with its Skinnovation and offerings such Gene Deep Beauty for females to lighten dark spots with GenWhite Technology, Intelligent Ageing with Intelligent Pro cell complex again for females and Facewashes with Activated Carbon for both males and females.

This advanced used of scientific research and development and its use in its products makes it stands out from the competitors like Loreal, Lakme, Johnson & Johnson, Nivea etc.

Market analysis in the Marketing strategy of Pond’s –

With the increase in the use of technology, Social networking sites in this digital era people are more and more becoming conscious about their looks and age thus are turning more and more towards skincare and beauty care products.

In the face wash segment, Himalaya remains to be the market leader with around 24% of market share and Pond’s holds 10% of the market share.

In skin care creams segment Pond’s stands 3rd with a market share of 11% after Himalaya and  Garnier clean and clear creams.

Pond’s has been aggressively following Product development and Market development strategy to cope up with changes. Their advance of R&D in new product segment and use facial recognition technology such as “My skin advisor” makes them stand apart in terms of product and services offerings from the competitors in the market.

With its presence in over 56 countries, pond’s has cut across age groups and skin care requirements by delivering beauty products through revolutionary products innovation.

Customer analysis in the Marketing strategy of Pond’s–

Women in Middle class, Upper middle class and High-class segment who give extra care to their skin tone, face wrinkles, tanning and softening are the major customers for the brand. Majority of such customers lie in the age group of 18-50 years.

Men brand has been primarily focussing on young generation particularly college going students and working professionals ranging in the age group of 18-45 years.

Customers purchase these products with a perception that it will make their skin look younger and fresh and will make them feel confident about themselves.

Promotional Strategy in the Marketing strategy of Pond’s –

Pond’s basically targets through Above the Line and Below the Line promotional strategy by advertising in Televisions and Newspapers.

Recently Pond’s signed Disha Patani as his Brand Ambassador for Women skincare segment and also has Karishma Kapoor as her Brand Ambassador for its Age Miracle range.

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Patented in The United States by Robert Chesebroughin the year 1859 which he invented by extracting a useful product from petroleum.

Chesebrough the oil fields of Pennsylvania in 1859 where he learned about residue called “Rod Wax” which had to be periodically removed from oil rig pumps and was then used as a healer for cuts and burns. This is what made Chesebrough think of making a medicinal product using this petroleum jelly which he named Vaseline.

The brand was owned by Chesebrough Manufacturing Company until it was acquired by Unilever in the year 1987.

Segmentation, targeting, positioning in the Marketing strategy of Vaseline –

Vaseline Petroleum Jelly targets the families particularly the ones that have children. Demographics for the brand include 18-60 years old Female preferably with children, Single females who are career driven and are always on the go.

It is used by families for skin concerns especially during winters as the healer for dry rough skins. Being a skincare product it positions itself positioned as India’s largest/ biggest skin care product for the winters and one which is there for everyone from kids to professionals to housewives by reaching out to nook & corner of the country.

Marketing mix – Here is the Marketing mix of Vaseline.

SWOT analysis – Here is the SWOT analysis of Vaseline.

Mission– “Vaseline’s mission is to provide the knowledge, advice, and products that enable everyone to enjoy great, healthy looking skin every day. ”

Vision– “Not Available”

Tagline-“The Healing Power of Vaseline”

Competitive advantage in the Marketing strategy of Vaseline –

It is a Wonder jelly!

For more than 140 year Vaseline has served as a staple skincare brand for the markets of almost all major countries. With its healing powers and skin care during the winters, it has been passed as the legacy through generations especially by the mothers to daughters.

Regardless of gender, age, region etc. it has served as wonder jelly across the globe and generations which suits every skin requirements especially during winters,

2. Vaseline has over 100 uses.
3. Cure chapped lips with Vaseline’s power of healing.
   2. Keep uncontrollable eyebrows in check.
   3. Soften your cuticles with some Vaseline healing power.
   4. Remove dead skin cells with your very own body scrub: all it takes is a mix of Vaseline with sugar.
   5. Use it on your baby’s bum to prevent nappy rashes and to the lavish baby with a full body massage.
   6. Soothe sore feet with a good Vaseline foot rub.
   7. Revive tired skin after sport or a good workout.
   8. Form a Vaseline protective layer over minor burns, cuts, scabs, and rashes.
   9. Apply Vaseline on knees and elbows to soften skin.
   10. Soften hard hands with a good Vaseline hand rub.

BCG Matrix in the Marketing strategy of Vaseline –

Vaseline broadly categorizes its products in 4 segments which varying from Vaseline Jelly, Vaseline Intensive care, Vaseline Lip care and Vaseline Healthy white.

With Vaseline Jelly and Vaseline Intensive care being the star products for the brand Vaseline lip care and Vaseline Healthy white remains to feature as a question mark for the brand.

Distribution strategy in the Marketing strategy of Vaseline –

With a heritage of more than 80 years in the country HUL’sdistribution network, comprises more than 7,000 redistribution stockists, directly covers the entire urban population, and about 270 million rural consumers.

HUL’s distribution network in rural India already directly covers more than 50,000 villages with the numbers increasing rapidly, reaching about 250 million consumers, through about 6000 sub-stockists.

Brand equity in the Marketing strategy of Vaseline –

With its unique Petroleum Jelly Vaseline claims to replenish 100% of the daily skin hydration along with other essential nutrients required by our skin to make it feel vibrant and feel healthy as Vaseline projects itself as a combination of vitamins, minerals, and conditioning moisturizers.

With its key ingredients being Protein Soya & Oat extracts and Vitamin E for its creams and moisturizers it creates a perception of skin nourishing cream among the customers.

Competitive analysis in the Marketing strategy of Vaseline –

Unilever’s other brands like Pond’s and Lakme are close competitors for the brand Vaseline. With Amway and Nivea being the second and third largest brands in the industry.

Petroleum Jelly remains to be the market leader in its segment, in fact, no other product is even a close competitor of it. Nivea is a distant second in this segment. Vaseline is a step ahead of Nivea in terms as Nivea is limited in its ability as a cold cream while it has multiple uses ranging to even diaper rashes thus making it low competition market for it in this segment.

Market analysis in the Marketing strategy of Vaseline –

A report from Nielsen Retail Measurements 2016 officially recognizes Vaseline as a global bestseller in the hand and body care segment which considers sales from across 21 countries across Europe, Asia, Africa and the Americas.

Vaseline’s healing project has been one of the major initiatives in making it the bestselling brand and maintaining its position for almost 3 years now.

Emerging markets such as India, South Africa, Thailand etc. have played a major part in its growth over the years.

The brand is further aggressively targeting further penetration in emerging markets by focussing on right prices and the right sizes across its various product lines in these markets.

Customer analysis in the Marketing strategy of Vaseline –

With high on white Petrolatum and low pricing compared to competitors like Garnier, Vaseline positions itself as a body lotion in the healthcare platform and a petroleum Jelly cream.

A seasonal brand unlike Pond’s, Vaseline also has a foot care cream, has remained a niche product with limited during winters. Petroleum Jelly targets all demographics and other products like Vaseline lip care and body lotion mainly targets women both working and housewives.

Promotional analysis in the Marketing strategy of Vaseline –

With Vaseline already being a well-celebrated brand still, Unilever takes no chances and continues to invest in the product innovation and promotions.

The brand has used all the traditional, conventional and unconventional methods of marketing. With a robust marketing department Vaseline ensures that its promotion practices are smooth. The departments below are all associated with the promotions of this skin care product. These are:

• Advertising, Sales, and Promotion
• Product Innovation department
• Operation department
• Marketing & communication
• Research & development department
• Finance & Cost controlling sector

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TOWS Matrix can be defined as the tool to analyze, generate, compare, and select the business strategies to attain the overall goals and objectives of the company such as higher sales, increased profits, and enhanced brand value amongst other crucial ones. 

Anatomy of TOWS Matrix :

TOWS Matrix follows the roots of SWOT Analysis but is quite indifferent from the same as SWOT Analysis mainly focuses on the aspects of opportunities and threats whereas TOWS Matrix is the tool for strategy generation and selection.

SWOT Analysis is the tool for audit and analysis of the business and is used at the beginning of the planning process and TOWS Matrix is opted at the later part of the planning process to decide the way forward for the business.

It is the work of the trade-off between the internal and external factors of the company and the outside environment that affects the operations and overall objectives of the business.

The strengths and weaknesses are a part of the internal environment of the business that comprises of employees and staff, HR policies, work culture, nature, features, and attributes of the products and services offered to the target market, manufacturing processes and techniques, goals and objectives, core values, and fundamentals of the company. Most of the times, the internal factors are controllable in nature.

The opportunities and threats are a part of the external environment that comprises of government policies, direct and indirect competition in the market, evolving and changing tastes and preferences of the customers, dynamic nature of the market, and fluctuation rates of the raw materials required for the production along with other such extrinsic factors that are many a times not in control of the business and management of the company.

Rules of TOWS Matrix :

1. The analytical methodology and approach of TOWS Matrix are quite subjective in nature like many other tools, frameworks, models, and concepts to come up with the business strategies that are edgy and outlandish in nature to accomplish the aims and objectives of the company. Depending on the merit of the situation and all the internal and external factors affecting the business, it is as robust as the data that is being included in the model.
2. It is quite mandatory to be very specific in the overall approach and process eliminating all the grey areas so that the strategies arrived is feasible, realistic, and functional in nature.
3. It is always advisable to second the final analysis of the TOWS Matrix with the other strategic models such as Porter’s Generic Strategies and others that provide competent results.
4. It is necessary that the strategy should include the internal growth and development of the company by the way of mergers, acquisitions, new product development, capturing new markets and target audience, and joint ventures.

The 4 TOWS Matrix Strategies :

1)  Strengths and Opportunities in TOWS Matrix / SO

The first and foremost strategy of the TOWS Matrix involves the using of internal strengths of the company to make optimum use of the external opportunities available to the company. Example: If the company has developed a niche and distinct brand image in the market and minds of the consumers and there is an opportunity to tap the new market locations or coming up with the new line of products and services for the same target market, it is one of the best options for the growth of the firm.

2) Weakness and Opportunities in TOWS Matrix / WO

The second strategy in the line of TOWS Matrix indicates that the management of the company will find various options and alternatives to overcome the weaknesses and take advantage of the opportunities that are coming in the way. It is the best way to diminish the weakness and exploit the opportunities. Example: If the company is not an expert in any of the business facet that is required for the growth and success and is presented with the opportunity for an alliance with the other company that has the required expertise, it works as a win-win situation for both the parties involved.

3) Strengths and Threats in TOWS Matrix / ST

This strategy of the TOWS Matrix implies that the management of the company would exploit all the internal strengths to overcome any of the potential threats that in the way of the business to accomplish the desired goals and objectives. Example: If the company is facing the astute competition for the existing players in the market or from the new entrants that are offering the new and innovative range of the products that are similar to the ones offered by the company, the company needs to harp on the internal strengths such as quality of the offerings, authentic manufacturing techniques, customer service, and rich legacy of the brand amongst others.

4) Weaknesses and Threats in TOWS Matrix / WT

This one is the least appealing strategy of the TOWS Matrix as which company would harp on its weaknesses to overcome the external threats on the business. It is always advisable to minimize the weaknesses to avoid the possible threats.

Limitations of TOWS Matrix :

1. It doesn’t follow the real steps that are mandatory to follow and achieve the competitive advantage in the market.
2. Many a time, the analytical approach of TOWS Matrix does not consider the changing competitive environment that is one of the biggest threats to the business in attaining its objectives of higher sales, elevated profits, and enhanced brand value.
3. It doesn’t show and highlight the interrelationship amongst the internal and external factors that affect the business operations and strategies.

Example of TOWS Matrix :

1) Nokia

SO Strategies

Increase the market share and the overall presence in the country of Germany by offering the innovative and reliable range of products. Elevate the presence in Asia-Pacific regions by having a customer-driven approach.

Penetrate new markets with business alliances and new product lines.

ST Strategies

Target advertising

Reduce the cost of the products due to the factor of the high level of competition in the market

Offer customer-oriented products

WO Strategies

Work on the customer service experience and offer competitive prices

Improve the brand position in Japan with paid partnerships

Focus on the US market with a new line of products availing the joint venture opportunities

Increase profit margins by penetrating in different markets offering customer-driven products

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Brand of two German Discount supermarket chains having over 10,100 stores in as many as 20 countries accumulates a turnover of over €50 billion. Founded by brothers Theo Albert and Karl in the year 1946, the business then got split into two separate groups in the year 1960 which came to be known as Aldi Nord, headquartered in Essen, and Aldi Süd, headquartered in Mulheim.

Although introducing the name Aldi in the year 1962 both brands have been Financially and legally separate since 1966. Aldi Einkauf GmbH & Compagnie, Ohg is the formal business name which the brand use.

Segmentation targeting and positioning in the Marketing strategy of Aldi

With its thrifty practices and competitive prices, Aldi has targeted the middle-income group worldwide and positions itself as the most economical retail store which offers products at 30% cheaper prices than even Walmart with its no-frills strategy and unmatched discounts targeting both men and women in low mid-level income group and thrifty markets world over.

SWOT analysis – Click here to read the SWOT analysis of Aldi.

Mission in the Marketing strategy of Aldi –

“To provide our customers with the products they buy regularly and ensure that those products are of the highest possible quality at guaranteed low prices.”

Vision in the Marketing strategy of Aldi –

“ALDI has a clear business philosophy and a number of guiding principles. It can be summarized by following statement: “Top quality at incredibly low prices- guaranteed”. ALDI has got five main ideologies, to be precise

1. Huge savings
2. excellent Quality
3. Outstanding value
4. Superb special buys
5. Buy with confidence.

Competitive Advantage –

The German-based grocery chain has a reputation for low prices to go with its non-traditional model of doing business. From the 25-cent returnable deposit on shopping carts, the bring-your-own-bag policy and focus on private labels, Aldi has been a hit globally. Aldi keeps costs low by limiting the bulk of its merchandise to its private-label brands, keeping its selection limited, limiting store hours and keeping the stores small. Aldi’s approach to smaller retail spaces with fewer choices and lower prices is forcing competitors to respond.

Major competitors for the brand includes other retail outlets like:

1. Lidl
2. Wallmart
3. Netto
4. BI-LO
5. Kwiksave
6. Save-A-Lot
7. Penny-Market

BCG matrix in the Marketing strategy of Aldi –

Geographically German market remains to be the cash cow for the brand. Other European countries have now started to shift in the star segment along with Australia. U.S. market still is question market for Aldi as the brand holds only 5-7% of market share with the market leader there Walmart still holding more than 30% of the share.

Distribution in the Marketing strategy of Aldi –

The distribution channel is critical for organizations as it fills in as a component of customer comfort in access, information search and so forth. Regardless of whether it is Intensive or Selective distribution, truly relies upon the products that an organization provides to its consumers.

On account of Aldi, Selective distribution channel strategy has been embraced as the goods they offer can be complex and some personal assistance may be required when a customer is willing to purchase.

Working intimately with their providers, Aldi appears to be applying Push advertising procedures inside their business. Push Marketing techniques normally involve manufacturers offering impetuses to distributors/retailers, for example, Aldi, to offer the product(s) to the end consumers.

Brand equity –

Competitive pricing is a key methodology for Aldi. Aldi can offer quality items at low costs as it purchases in incredible volume. The reality that Aldi purchases such extensive amounts of these items permit extraordinary use for arranging the most ideal costs with its providers. This is called economies of scale. Purchasing substantial amounts of each item enables Aldi to pass these investment funds to its end consumers.

Thus the brand is perceived as a provider of quality goods at the very low price, in turn becoming customers go to brand.

Market analysis in the Marketing strategy of Aldi –

• In the 12 weeks coming up to the 21st of May, Aldi sales rose by 19.8%, in comparison to the big four supermarkets of the U.K., Asda, Tesco, and Morrisons.
• The rapid growth of Aldi has seen the organizations combined market share rise to 12% as a result of around 1.1 million additional customers visiting their stores.
• The reputation of Aldi is one of providing comparable quality to the leading brands at notably lower prices than any of the brand’s competitors, a reputation which presents a unique offering which resonates in the mind of the consumers.
• The brand has also been named as the best supermarket of the year for the fourth time in 2017 in The Loved By Parents Awards.

Customer analysis of Aldi –

Customers of Aldi consists of both men and women in the mid and low-level income group. As the brand is famous for its offering of quality products at low prices crowd with a thrifty mindset are the regular customers for the brand.

Promotion strategy of Aldi

Being a global brand ALDI uses various methods of communications to impact its global customer base. ALDI over the years has used both above-the-line and below-the-line marketing strategies to initiate and create interest among its customers with its campaigns like Swap & Save and Like Brands.

Like the brand, campaign benchmarked the similar product for its rival brand while Like brand Only Cheaper helped improved Brand Recognition by reinforcing that that the brand was offering a quality product at low prices.

Various humorous advertisements both on TV and Radio has been successful for the brand in building an emotional connect with the audience as well. Also to attract more customers and to maintain customer loyalty various seasonal offers, discounts have been part of promotional activities for the brand over the years as well. To make two-way communications with its consumers ALDI also uses social media platforms like Twitter and Facebook and direct e-mails to promote its seasonal offers.

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Founded by Conrad Hilton on May 31, 1919, now owned by Hilton Worldwide, As of 2017, there are more than 570 Hilton Hotels & Resorts properties in 85 different countries and territories across six continents. These Properties are either franchise owned or are operated by independent operators by Hilton.

Hilton Hotels & Resorts is Hilton’s flagship brand and is one of the largest hotel brands in the world. The brand targets both corporate employees and travelers with a property in major cities, in the vicinity to airports, convention centers, and popular vacation destinations around the world.

Segmentation, targeting, positioning in the Marketing strategy of Hilton –

Brand segments its services on basis of its unique ambience and experience, the bundle of offerings and other complementary services like Spa, Gym, Hygiene factors, pricing, and staffs.

The brand focuses on premium pricing strategy thus catering the high profile business class and upper class of the society. It uses a differentiating strategy to make it promising for its customers.

With its various brand offering Hilton positions itself in diverse portfolios :

Marketing mix – Here is the Marketing Mix of Hilton Hotels.

SWOT analysis – Here is the SWOT analysis of Hilton Hotels.

Mission – “To be the most hospitable company in the world – by creating heartfelt experiences for Guests, meaningful opportunities for Team Members, high value for Owners and a positive impact in our Communities.”

Vision – “To fill the earth with the light and warmth of hospitality –by delivering exceptional experiences – every hotel, every guest, every time.”

Tagline – “Travel should take you places”

Competitive advantage in the Marketing strategy of Hilton –

1) Strong Financial Company :

Global Hilton company generated $9.14 billion in the financial year 2017. The company reported net income of $841 million in the fourth quarter and $1,264 million for the full year including a $665 million provisional tax benefit for tax reform that occurred in the fourth quarter. The adjusted EBITDA for Q4 2017 was $498 million and $1,965 million for the full year. The brand returned a total of $1.1 billion in capital to shareholders in the year 2017.

2) Renowned Brands :

Brand recognition and brand trust are most essential for the player in the hospitality industry to flourish. Hilton as a brand over the years has been successful in making trust among its customers.

1. By making Technical innovations to improve customer experiences and Constant upgrade of business processes
2. Exceptional employee retention
3. Showcasing a strong brand presence with around 540 hotels in over 78 countries
4. Old is Gold: They have been in the industry for 93 years now making them real experts at what they do.

Use of Technology: The Hilton Honors application has been utilized 19 million times for Digital Check-in since its inception, a rate of one million times each month. Hilton keeps on scaling its Digital Key innovation, with visitors ready to utilize their cell phone as their room key at 1,000 lodgings today.

BCG Matrix in the Marketing strategy of Hilton

The brand Hilton Hotels operates in various segments such as Luxury, Lifestyle, Full Service, Focussed Service, All suites and Vacation ownership segments.

With Waldorf Astoria Hotels & Resorts and Conrad Hotels & Resorts featuring as the cash cow for the brand. Hilton Hotels & Resorts, Curio – A Collection by Hilton and Embassy Suites by Hilton appears to be stars for the brand while others continue to be the question mark Hilton group.

Distribution strategy in the Marketing strategy of Hilton

Starting at 2013, around 70% of the rooms marked under Hilton were franchised to free administrators and organizations. Amid its 2007– 2013 ownership for, Blackstone Group sought after a system of expanding the brand reach through franchise based operability, while moderately couple of new properties were really operated by Hilton.

Subsequently, the extent of franchised rooms developed altogether amid this period. This strategy of franchising is quite popular in the hospitality industry among most of the players, as the parent organization does not need to pay for the support and overhead expenses of franchised properties. Franchisees have to maintain strict brand standards to maintain a licensing agreement with the brand. Many of Hilton’s lead properties, air terminal properties, and biggest resorts, in any case, are corporately overseen.

Most of Hilton’s airport properties, other flagship properties, and resorts are however corporately managed.

Brand equity in the Marketing strategy of Hilton

Hilton features as 54^th position on Forbes top 100 brands list and at 9^th position on the top regarded company as of June 2018.

Hilton topped Brand Finance’s 2018 list of top 10 Most Valuable Brands list for the third year in a row and recorded a BSI score of 82.39 and an overall brand value of 6,330.

Competitive analysis in the Marketing strategy of Hilton

With the hospitality industry having competitors from various ends varying from local players to international competitors, Hotel chains, private property holders or short rent home providers such as HomeAway/Airbnb etc.

Top Hilton Competitors across the world

Top 14 Hilton Competitors.

1. Marriott.
2. Hyatt.
3. Peninsula
4. Four Seasons
5. Four Seasons
6. Mandarin Oriental.
7. Aman
8. Ritz Carlton.
9. Intercontinental.
10. Rosewood Hotels & Resorts
11. Fairmont Hotels & Resorts
12. Shangri-La Hotel and Resort
13. Regis Hotels & Resorts
14. Taj Hotels by ITC
15. Oberoi

The brand competes on factors such as brand name, its quality services, and accommodation. The Hilton competes on the factor such as brand name, services, pricing, accommodation quality, cordial staff behavior, and strategic locations of the hotels.

Market analysis in the Marketing strategy of Hilton

The Hotel business has turned out to be imperative in the previous years because of tourism business opportunities growing across borders. The industry not just assumes an essential part in the life of individuals however and in addition the economy of the nation. Industry over the years has also seen tremendous development and advancement of technology, thus it is important for every player in the industry to be promptly keeping up to date.

Hilton Hotels over the years has been tremendous in development and different parts of the business, such as Leadership, Teamwork (Employee turnover), Motivation (Customer maintenance and fulfillment), Goals and objectives.

With more than one out of five in rooms under development globally being created under a Hilton mark, and in addition almost 310,000 rooms in the pipeline, the brand has maintained its reputation as the fastest growing in the hospitality industry. The best-performing arrangement of brands in the business keeps on growing its worldwide impression – opening almost one lodging for every day and including five new nations in 2016 – while conveying industry-leading innovations which provides an exceptional experience to its guest.

Customer analysis in the Marketing strategy of Hilton

Hilton Hotel mainly focuses on building hotels on locations popular with the target customer segment.

The brand targets customer who are middle and senior aged professionals in the age bracket of 26-60 years with high level of income and coming from the upper social class. Also, the brand also targets individuals who enjoy living a luxury lifestyle, accordingly, the company charges premium prices for its products and services which are perceived to be of a relevant qualification.

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The 5 P’s of Strategy model was developed by the Canadian management scientist Henry Mintzberg with an objective to develop five distinguished strategic visions for the organizations. The Five strategic visions are Plan, Pattern, Position, Perspective, and Ploy. All the five components allow the organizations to implement the strategy in a more effective manner.

Anatomy of the 5 P’s of Strategy :

As per the theory of Mintzberg, it is very difficult for the organizations to develop a good and an effective strategy. And with the help of his 5 P’s of Strategy model, you include and consider various aspects and possible approaches to the strategy from different angles and perspectives.

The strategy should have a long-term and futuristic approach considering the various facets and business operations of the organization. The factor competition should be considered whilst formulating the strategy, but it will be totally wrong if the entire strategy is based and developed to beat the competition in the market.

In fact, the strategy should consider the culture of the organization and the various possibilities of the development within the organization.

Strategy as Plan

In this case, the entire strategy and its planning are done in much in advance with the long-term and a futuristic approach in mind. Aftermath, the process is followed by the actual implementation and development of the strategy.

Strategy as Ploy

Here, the strategy is planned and executed with a specific intention to beat and outperform the competition in the market gaining the competitive edge and advantage.

Strategy as Pattern

In this case, the overall strategy is emerged as a pattern considering the various internal and external situations rather than being pre-planned in nature.

Strategy as Position

Here, the organizations formulated the strategy to carve a distinctive niche or an identity in the market through exclusive products or services gaining a competitive edge in the market and in the minds of the consumers.

Strategy as Perspective

In this case, the strategy is formulated as per the organizational culture and the way organization views itself.

In-depth analysis of the 5 P’s of Strategy by Mintzberg:

1) Plan

It is always better for the organizations to have a plan of action much in advance to be prepared for any unforeseen internal and external situations. And a well-planned strategy is a plan to deal with such situations. A plan needs to be made with a long-term and a futuristic approach in mind with its execution and development followed up in a detailed and intricate manner.

The business goals and objectives can be attained with a good plan plus it enables the management and the key employees of the company with a clear vision and mission in hand.

2) Ploy

The facet of ploy is also one of the strategic options to beat the competition in the market and gain the advantage. In this scenario, the organizations can come up with something very outlandish and unexpected and surprise the market environment that also creates the waves of the ruckus within the minds of the competitors.

It can be a well placed promotional tool or a feature in the product or service that is sure to outsmart and beat the competitors as a ploy.

3) Pattern

As mentioned earlier, the aspect is the plan in the 5 P’s of Strategy model by Mintzberg focuses on the intended strategy but the aspect of pattern comes into the picture where the strategies have already been implemented before.

The earlier patterns that have worked wonders for the organization before are an integral part of developing the new strategy. The regular pattern that has been quite successful in nature is used in the decision making flow and process. The strengths of such patterns are included in the future strategies as intentionally or unintentionally, there is a consistent positive behavior of employees and internal teams is displayed towards these patterns and are well accepted without any prejudice and issues.

4) Position

The aspect of position in formulating the organizational strategy needs to be carefully understood, designed, planned, and executed as it will define the overall position of the organization in the market considering all the internal and external factors.

It focuses on how the organization wants to portray itself in the market and in the minds of the consumers that will gain it a competitive advantage. What will be the core values, unique selling propositions, nature and attributes of the offerings of products and services, and the overall brand strength and value proposition? Working on all these factors in a detailed manner will help the organization carve a distinctive position in the market with an edge over others.

5) Perspective

The facet of perspective in the model of 5 P’s of Strategy is quite indifferent to all of the above-mentioned paths this one draws a larger perspective keeping the organization at the focal point.

The organization formulates the strategy by dwelling on the crucial and important details such as how does the target audience think about the organization? How do employees of the company perceive the management and the brand as a whole? What is the perspective of the investors and other stakeholders of the organization? The culmination and thought patterns of all these individual perspectives work as the valuable source of information for the company and help it to make a strategic choice.

The process of planning and the 5 P’s of Strategy :

The 5 P’s of Strategy model by Mintzberg should be an integral part of the organization’s culture but it is also very important to look at all these 5 P’s on an individual level for developing a successful and strong strategy.

They provide all the relevant information and helps with the aspects of testing, evaluation, market information, and internal company information. They can be used as a final check at the end of the planning process of a developed strategy to check if there are any discrepancies or loopholes. It can save a lot of money, efforts, and resources of the organization.

Example of 5 P’s of Strategy :

1)  Apple

Plan: The technology giant continues to plan and come up with the consumer electronics that offer operational excellence and are easy to use. They also plan and come up with the various software updates expanding their ecosystem.

Ploy: The Company is highly renowned for offering the products that are innovative, unique, and outlandish in nature that gives them a competitive edge in the market. They threaten to sue their competitors that copy their technology or features of the company’s products.

Pattern: Apple uses the previous innovations that have been quite successful in the past and follows the same pattern to challenge the competition in the market.

Position: Apple has successfully carved a niche for itself in the market and in the consumers’ minds as a niche and premium brand that offers only high-end products that are difficult to compete against in terms of both hardware and software capabilities.

Perspective: The core values of Apple are innovation and to think differently and they work as an integral part of their company culture. And their product offerings to stand as a testimony to the same.

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Dynamic Capability can be defined as the inherent capability of the organization to optimally and purposefully adapt and catapult the organization’s resource base. This management theory was defined by David Teece, Gary Pisano, and Amy Shuen in their 1997 paper Dynamic Capabilities and Strategic Management.

It focuses on the company’s ability to build, integrate, and reconfigure the internal and external competencies to address the rapidly market environment that is always dynamic and volatile in nature.

Breaking Down Dynamic Capabilities :

The main aim and objective of the theory are to provide impetus to the firm’s to achieve and sustain the competitive advantage and carve a distinguished identity in the industry giving a tough competition to its arch rivals in the market.

The goal is to identify the various factors and dimensions of the firm’s centric capabilities that can optimally utilize and work as a source of advantage and to explain how the myriad combinations of competences and resource can be developed, deployed, and protected having a long-term approach and vision in mind.

It helps in formulating the path of strategic management and planning the company strategy that helps in gaining the competitive advantage. The concept of Dynamic Capabilities and Strategic Management mainly focuses on the internal strengths of the organization such as workforce and capital investments rather than harping on the external forces such as government policies and market trends to sustain the dynamic nature of the market and gain the competitive advantage.

In the year 1995, Barney highlighted on how the management should harp on the internal resources and suggested to answer the below-mentioned questions as a part of the evaluation process to gain the competitive advantage in the market:

Value: Do the firm’s available resources and the inherent capabilities are strong enough to add value in exploiting the various growth opportunities available and to neutralize the threats that are hovering on the overall growth of the business owing to the volatility of the market?

Rareness: The firm has to check and analyze the external competitive environment by figuring out that how many of the competitive firms possess the same values and capabilities to fight the dynamic changes in the market and can give a tough competition to the firm.

Imitability: The firm also has to find and figure that the other firms without the optimal resources and capabilities go through the cost disadvantage by undergoing the process of acquiring the same as compared to the firms that already possess the same.

What are the benefits of Dynamic Capabilities in Strategic Management?

1. By opting and following the concept of Dynamic Capabilities and Strategic Management, the firm is able to expand its business operations on the national and international levels through the ways such as business alliances, mergers, and joint ventures.
2. On an internal level, the firm is able to come up with the new and innovative line of products and services as per the latest market trends and satiating the needs and demands of the customers. The new product line can be launched for the existing set of loyal customers and to attract the customers in the new target market.

The process of Dynamic Capabilities and Strategic Management :

1) Learning

The first and foremost stage in the process of Dynamic Capabilities and Strategic Management involves the key staff members and managers along with the management to learn and analyze their basic routines leading healthy interactions that lead to the effective ways of problem-solving. It also involves finding out and avoiding the strategic blind spots and any dysfunctional activities that are posing as a threat to the growth of the business. It also involves making the optimum and appropriate use of the strategic alliance and acquisitions to bring in new and novel strategic assets to the firm through the external resources.

2) Acquiring New Assets

The high level of competitive advantage also requires acquiring new assets by the way of integrating technological factors and external activities through the alliances and partnerships formed.

3) Transforming the existing line of assets

To attain the rapid internal and external transformation adhering to the changing market dynamics and growing competition in the market, it is important for the firm to reconfigure the firm’s current asset structure. It is imperative for the firms to develop the processes to make the changes in an inexpensive manner whilst attaining the reconfiguration of the assets before the dawn of the competition. The entire procedure can be supported by decentralization, strategic alliances, and local autonomy.

4) Co-specialization

Another facet of the Dynamic Capabilities and Strategic Management is the aspect of Co-specialization that involves the strategic combination of physical assets, human resources, and intellectual properties of the firm that are developed over a period of time that work more valuable in a combination rather than using them individually or separately. It helps in giving a firm a sustainable competitive advantage in the market.

Example of Dynamic Capabilities and Strategic Management :

Both the technological giants Apple and IBM are the perfect examples of Dynamic Capabilities and Strategic Management. They are the tow dynamically competent and technologically advanced companies whose dynamic capabilities have enabled and empowered them to grow and evolve with dynamic change in the market facing the competition head one and generating high levels of profits plus retaining the loyal base of customers.

The firm Apple is one of a kind and a unique case as the company is not a technological leader but has successfully proven itself as a master at marketing technologically-based products to consumers and developing the unique and enticing features that people value and pay the premium for.

Whereas IBM is a true and bonafide technological innovator in its home ground as well in the external markets where it operates. The Firm has successfully transitioned from electromechanical tabulating machines to mainframe computers, and today stand as a successful and highly renowned brand in the market offering high-end IT-based services, software’s and cloud computing business.

As per the researchers, the part of the success of Apple and IBM’s is because of their ability to overcome the downside of “path dependence” — the factor that the past experience and history play in what a company is proficient of doing and what it chooses to do. Companies with high path dependence have quite a difficult time changing what they do, even when the world around them is changing and evolving at a very fast pace. They astutely follow the same path over and over again despite what is going on in the external environment.

For both Apple and IBM, Fortunately for Apple and IBM, path dependence has not been as strong as it has been for their contemporaries. Both the firms possess different levels of strengths and are managed in a different manner, they have both been able to successfully enter new businesses and markets and have been reinventing themselves in a profound and inspirational manner.

The aspect of leadership has enabled them to adapt to the changing market environments and face the competition.

Conclusion

There is no such concept as a generic ability to adapt to the changing market environment. The companies that develop specific, dynamic capabilities allows them to move more agilely in times of rapid change, and the odds are better that they will succeed.

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Founded in 1983 as a joint venture between Government of India and Suzuki Motor Corporation, Japan, with a motto of motorizing India, Maruti Suzuki India (MSI) is currently a leading manufacturer of four-wheelers in India.

Initially, the company started with Government of India holding major stakes of the company. As of present Government has disinvested its stakes in the company completely handing it over to Suzuki Motor Corporation. With its two manufacturing units located at Gurugram and Manesar, both south of Delhi Maruti Suzuki employs more than 75,000 employees.

Segmentation, targeting, positioning in the Marketing strategy of Maruti Suzuki –

Having the wide range of models in almost every segment of the automobile market. Maruti Suzuki offers 16 brands and 150 variants spanning across all segments consisting of Maruti 800, Maruti Zen EstiloMaruti Omni, Maruti Alto, Maruti Versa, Maruti Gypsy, Maruti A Star, Maruti Wagon R, Maruti Swift, Maruti SX4, Maruti Kizashi, Maruti Eeco, Maruti Ertiga, Maruti Grand Vitara. Thus serving the diverse range of customers. Brand product strategy focuses on catering to the needs of almost all the segments from the middle class to high class.

With cars in the economy segment, mid-range segment luxury and super premium segment Target group for the brand includes anyone above 4 Lakh p.a. salary, people looking to switch from 2-wheeler to 4-wheeler, millennials employed as professionals and managers. The middle class, Upper middle class, High class, and Affluent class the age bracket of 21-65 years comprises of its target group.

MSI positions all its16 brands in almost as many ways to serve different wants and desires of consumers such as:

Alto– Let’s go- Positioned as India’s most fuel efficient car which can be afforded by lower income groups as well.

Wagon R– Inspired Engineering- Positioned as a brand which goes well with people who want to lead economic and interesting lifestyle, reflect confidence and have the multifaceted personality.

Swift– You’re the fuel– Positioned as the car with style, modern looks, and young attitude.

Swift Dzire– The heart car- Positioned as an entry-level sedan for the aspirational class.

SX4– Men are Back– Positioned as the powerful car for men.

Ertiga– “A Feeling called LUV” – Life Utility Vehicle– Positioned as a compact seven-seater, one which will have a small footprint and a tight turning radius.

Marketing mix – Here is the Marketing Mix of Maruti Suzuki

SWOT analysis – Here is the SWOT Analysis of Maruti Suzuki

Mission –With no mission statement mentioned as such, still brands mission since its inception has been “To motorize the country”.

Vision– “The Leader in the Indian Automobile Industry, creating customer Delight and Shareholder’s wealth; A pride of India” Core Values of MUL

• Customer Obsession
• Fast, Flexible and First Mover
• Innovation and Creativity
• Networking and Partnership
• Openness and Learning

Tagline-“Way of Life”

Competitive advantage in the Marketing strategy of Maruti Suzuki –

With over 30 years of presence in the country, there’s a brand trust among the customers. Also With two manufacturing unit in the country, one in Gurugram and Manesar gives the brand edge over its competitors.

Factors which sets apart Maruti Suzuki from its competitors include

• The Quality Advantage
• Brand Trust- A Buying Experience Like No other
• Quality Service Across 1036 Cities
• The Low cost of Maintenance Advantage
• Lowest Cost of Ownership
• Technological Advantage

MSF continues its strong domination both in Indian market and in exports as well with the company selling over 1.64 million vehicles to bring its  market share close to 50% in the domestic market and exporting 4-wheelers to over 125 countries globally to become the largest passenger cars exporter from India last year, dethroning Hyundai Motors India Ltd. which now stands fourth after Volkswagen and General Motors.

The company exported 57,300 units in the April-September period last year with a growth of 6% from 54,008 unit a year ago. MSI has also not only managed to sustain its huge sales numbers but has also increased its market share both in the urban and rural market.

BCG Matrix in the Marketing strategy of Maruti Suzuki –

With most of the brands of MSI are popular among customers and are preferred over the rivals in the same segment because of low maintenance cost thus Brands like Celerio, Alto, Alto K10, Eeco, Vitara Brezza, Baleno, Ignis, S-Cross, Ertiga

The brand continues to hold high market share in their segments and thus feature as Stars for the company.

While Swift, Swift Dzire and Wagon R have been the Cash Cow for the company in their respective segment. While Ciaz as a brand hasn’t been able to make a mark in Sedan segment and Gypsy along with Omni have lost their market share over the years thus all three continues to a question mark for the company.

Some of the brands like Zen Estilo, Versa, SX4, A-Star over the years started to appear in Dog segment and has thus been discontinued by the company in the last couple of years.

Distribution strategy in the Marketing strategy of Maruti Suzuki –

With its two manufacturing units having a combined production capacity of 14,50,000 vehicles annually Maruti Suzuki has a strong dealer network as well to complement with. Maruti Suzuki, in fact, has been one of the very first company in the country to realize the importance of after-sales service in high involvement product like cars.

The company has the largest distribution and after-sales service network comprising of over 400 sales showrooms, 1900 Authorized Service Stations spanning across over 1190 cities, 30 Express Service Stations on 30 National Highways across 1,314 cities and over 600 dealer workshops which are unparalleled in the country.

The company also has 280 Nexa showrooms exclusively for premium car segment. To increase customer touch points in the rural parts of the country where setting up of the complete dealership was very difficult company has opened extension counters which are operated by some dealer in the city.

Brand equity in the Marketing strategy of Maruti Suzuki –

Maruti Suzuki has managed to break into global Top 10 brand chart for the auto sector, where it stands at 9^th most valuable auto brand in the world just ahead of Volkswagen and behind Tesla.

In addition to this Maruti Suzuki India is ranked 99^th  and 71^st on Forbes World’s Most Innovative Companies list and Top Regarded Companies list of 2018. The brand also features at 366 on Global 2000 companies of Forbes 2018.

Competitive analysis in the Marketing strategy of Maruti Suzuki –

With the Automotive market in India appears to be a red ocean market with the present lot of National and International players companies like Hyundai, Fiat, Tata Motors, Mahindra, Honda & Toyota are giving a stiff competition to the brand with everyone biting upon each other’s market share.

Maruti Suzuki over the years has very strongly been associated with small cars which have helped its competitors take a massive edge in the premium car segment. People buying entry-level cars are very different from the ones preferring premium vehicles as Premium is not just price but also feel and features for the customers.

Maruti Suzuki is a company with such a widespread product portfolio in 2015 decided to launch Nexa to keep its premium brands which in past have failed to reach the deserved heights like Kizashi, SX4, Baleno etc. The launch of Nexa for the company is a step to increase market share in premium car segment through re-branding. Nexa now has 280 showrooms in the country and has already sold 3,00,000 vehicles and is expecting to sell 3,00,000 more vehicles this fiscal year.

Market analysis in the Marketing strategy of Maruti Suzuki –

Maruti Suzuki achieved a market share of 50%in the passenger vehicles segment for the first time ever in 2017-18 with its utility vehicle sales outpacing that of its rivals. Company for the first time in its over three decades of history sold more than 1.5 million units with the figures reaching 1.65 million sales were 14% more than it was a year before.

With Hyundai Motors deciding to stop selling Santro and customers dwindling preference for TATA Nano has also helped the company in small-car space. Maruti Suzuki India hopes to retain the top spot in utility vehicles segment for the fiscal year 2019 with the company planning to launch its all-new Ertiga this year andBrezzawith its popularity among consumers continues to drive sales in volumes.

Customer analysis in the Marketing strategy of Maruti Suzuki –

Customer profile for the brand includes middle to high-income groups ranging from the ones who are looking to switch from 4-wheeler to 2- wheeler to those who are planning to buy the second car or a luxury car for their family. Thus, it includes customers in the age bracket of 22-60 year and also high business professionals who are looking for low maintenance or innovative and trending world-class vehicles with advanced safety features.

Promotional strategy in the Marketing strategy of Maruti Suzuki –

Maruti Suzuki carries out its promotional strategy in 2 ways:

Above the line (ATL)

• TV, Radio
• Newspaper print ads (advertisements in newspapers by local dealers)
• Advertisements in magazines

Below the line (BTL) Promotions includes:

• Corporate display activities
• Exchange fair or Melas
• Loan and Rural Fair,
• Rural fair

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The Bowman’s Strategy Clock was developed by the two famous economists Cliff Bowman and David Faulkner. The main focus of the model is to make the companies aware of their position in the market as compared to their competitors.

It is purely a marketing model that helps the companies to analyze their position in the market. As per Bowman, the factor of competitive advantage is then the factor of cost advantage as it works as a distinctive element for the company and harps on the strategic positioning and the overall positioning of the product in the market.

The two dimensions of the Bowman’s Strategy Clock :

The Bowman’s Strategy Clock highlights the aspects on how a company can position its products or service offerings in the market based on the two dimensions. First is about the price whereas the second is about the perceived value of the product, service, and the overall brand.

Harping on both the dimensions and its various combinations with the Bowman’s Strategy Clock, there are eight possible and effective strategies that a company can opt and all these eight strategies are divided over the four quadrants. All these eight strategies are displayed in a clock format adhering to the name of the model.

The management of the company can choose its position from the Bowman’s Strategy Clock that offers it the most competitive advantage in the market as compared to its competitors and results in its growth and overall development and attainment of its business objectives.

And if the management of the company is able to understand these eight crucial and fundamental strategic positions of the model, it will enable them to analyze and evaluate the current strategy in a better and optimal manner. As a result, the model can help them to make the necessary changes and improve the competitive position in the market and in the minds of the customers.

The eight positions of the Bowman’s Strategy Clock :

1) Low price and low added value

In this strategy position, keeping the price relatively low is the only means of the competitive method that the company can use to compete with its contemporaries in the market. The price of the product or service offerings is very low and the product or service is not distinguished and the customer perceives very little value. It is not the most competitive position within the framework of the Bowman’s Strategy Clock.

2) Low Price

The companies following this strategy of the Bowman’s Strategy Clock often produce large quantities of the products plus their products are valued in the target market. The various and possible price wars are fought between the competitive brands in this position.

The products are often sold at a low price leading to the low-profit margins on the individual products but the high volume of the output can still generate the high amount of profits for the company. This position in the strategy clock regards the cheaper market leaders who have their main focus on the cost minimizations with the means of cheap and quick production using the facet of economies of scale.

3) Hybrid

This strategy in the Bowman’s Strategy Clock is very effective if the added value of the products is consistent in nature and is well applied and offered on the regular basis.

On one hand, this strategic position involves the companies focusing on the aspect of product differentiation which makes their products highly valued in the market and in the minds of the customers and on the other hand the company’s focus is on the low price making it a hybrid model. The customer is convinced that the good value product at a low price is offered to them that benefits them in a genuine way.

4) Differentiation

The companies opting for the differentiation strategy of the Bowman’s Strategy Clock tries there level best to offer the products that high on the realms of quality at an average price and wish to offer their customers the highest level of the perceived added value that makes them curate a distinctive identity in the market.

Apart from focusing on the product quality, they put significant efforts on the branding making their brand a reliable one to retain the loyal set of customers. The customers are even ready to pay more for these products as they are sensitive to the high-quality products of a renowned brand in the market.

5) Focused Differentiation

This strategy from the Bowman’s Strategy Clock is mainly applicable to the brands that focus on the luxury and exclusive products that are high on quality and are sold at a high price. The higher profit margins are attained by such companies as they use targeted promotions, marketing, distribution, and segmentation strategies. Their competitors are in the similar market segment and there is a tussle by keeping the prices of products high than the other.

6) Risky High Margins

The companies using this strategy from the model charge high prices for the products that are perceived as mediocre in value by the customers. It is the very risky strategy to opt for and the position of the company is most likely to fail in the long-term. The customers will look for the better quality product in the similar price range or a similar type of product at a lower price to cut their costs with an objective of value for money.

7) Monopoly Pricing

In this position of the strategy clock the company’s position themselves as the monopoly leader in the market as they are the only ones offering the specific type of product in the market. And as a result, there is no fear of the competition and they are the only one determining the price of the product.

The customers are left with the two choices to buy the product or not to buy the product as they are totally dependent on the products or services offered by the monopolistic brand. Usually, in most of the countries, the authorities regulate the monopolistic market to prevent the companies from increasing the prices and offering faulty products and services.

8) Loss of Market Share

This strategic position in the Bowman’s Strategy Clock is not a very desirable one for any company as it basically means that the company is not able to offer the products or services that the customers value. The customers do not indulge in the purchase as the price is too high. The companies in this segment opt for the standard prices of their product offerings to stay relevant and competitive in the market and in the minds of the customers.

The outlook of the Bowman’s Strategy Clock :

The main and basic intention of the Bowman’s Strategy Clock is for the companies to analyze and understand that how the products should be positioned in the market to gain the competitive advantage.

Looking and understanding the above mentioned eight strategies, you would be able to view that the three strategic positions no’s 6, 7, and 8 are uncompetitive in nature and approach as these are the one where product price is greater than the perceived value in the minds of the customers. Considering that the market always operates on the highly competitive level, there will be competitors that will offer a higher perceived value of the product for the same price or the lower price of the product for the same perceived value.

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Define Disruptive Innovation

The term Disruptive Innovation was coined by Clayton Christensen that describes the process of a product or service that takes root and form in simple applications in the market and then eventually elevates up in the market and displaces the established competitors in the market carving a niche for itself gaining a competitive advantage.    

Anatomy of Disruptive Innovation :

As companies make moves to come up with the innovative products at the much faster pace than the evolving needs of the customers, most of the companies end up offering the products or services that are too expensive, sophisticated, and complicated in nature for many customers to understand and except in the market.

The companies offer such sustaining and sophisticated innovations at the higher tiers of the markets as this strategy help them to succeed by charging high prices to their customers who are always in the demand of such products and result in the high revenue generations and profits.

However, this also results in the companies paving the way of the Disruptive Innovations at the bottom levels of the market. And such aspect of Disruptive Innovation allows the new segment of customers at the bottom level of the market to access the product or service offered that was only accessible to the customers having a lot of money or skill to purchase the same.

At the initial stages, the characteristics of the disruptive business include low gross margins of the products, small target markets, and the simple products and services may not appear to be as attractive as the existing solutions in comparison to the traditional performance metrics.

There is space created for the new Disruptive Innovations in the market to emerge as the lower tiers of the market offer low gross margins and they are not so attractive to the other firms elevating in the upward direction.

The technology and means of the Disruptive Innovation affect the functioning of the market and the industry as a whole in a significant manner. It is differentiated from the disruptive technology as the latter aims its focus on the use of technology rather than the realms of the technology itself.

The idea of Disruptive Innovation was popularized by Clayton Christensen in the book ‘The Innovators Solution’ that was a follow up to his ‘The Innovators Dilemma’ that was published in the year of 1997. The theory harps on the two types of technologies that the businesses deal with Sustainable Technologies and Disruptive Technologies.

Sustainable technologies allow the businesses to improve their operations in a predictable timeframe on an incremental level. These technologies are incorporated in the business to primarily design to remain the status quo or to allow the companies to remain competitive in the business.

Disruptive technologies are the disruptive innovations are way less easy to plan plus are potentially more devastating to the companies that did not pay the required attention to them. It offers the lower performance in comparison to what the mainstream market has always demanded.

But at the same time, it also offers some new and novel value attributes that makes it prosper in the different market. With the passing time as it improves along with the traditional parameters, it displaces the former technology that is no longer relevant.

The factors that constitute Disruptive Innovation :

The main bone of contention is that what makes the technology disruptive in nature. The term disruptive may be used to describe the variants of technology that are really not disruptive. For example, the internet was disruptive as it was not a repetition of any previous technology and it was totally new and novel in nature that created various unique and innovative models for making money and profits that never existed before.

The implication of the Disruptive Innovation in the market for the investors :

It can be very complicated for an investor to invest is company following Disruptive Innovation as his focus will always be on whom the company will adopt the disruptive technology rather than having a strong focus on developing the technology itself. Technology giants such as Google and Facebook are the leading examples of the companies that have been hugely focused on the internet as a disruptive technology as the internet has become an integral part of the modern lifestyle that the companies who have failed to embrace this technology have been pushed aside by the competitors.

The concept of Artificial Intelligence is also one of the Disruptive Innovation and can be the threat to the job market as the companies will not depend on their employees for the work-related tasks failing to recognize their potential.

The process of Disruptive Innovation:

The model of Disruptive Innovation highlights that with the changing time and the evolving tastes of the customers, their needs and demands also increase over the time that pushes the company to come up with something that is path-breaking and novel in terms of the ideation. And this demands a shift in the trajectory of the technological developments.

With the new set of products and services planned, designed, and executed for the changing needs and demands of the customers have a new set of features and value attributes that is far much better than the existing technology of the products and services.

Disruption and commoditization always go hand in hand and the company that overshoots cannot win and go further in the longer run. Either the commoditization will steal its profits or it will lose its market share with the high levels of disruption.

Limitations of the Disruptive Innovation :

1. The theory of Disruptive Innovation requires a separate strategy for the company to be highly successful in the market. The strategy and the process have to be focused on the unexpected problems, opportunities, and the success ratio rather than being intended and focused on the understanding that what works and what doesn’t.
2. To figure out the futuristic market and what people really need is very difficult to judge and figure out. And hence, many a time, the innovations fail in the market.
3. Due to the nature of the Disruptive Innovation such as addressing new markets that are either high end or low end, huge profits and revenues cannot be attained very fast. And the venture capitalists tend to get very impatient for the businesses to deliver the profits very fast.

Example of Disruptive Innovation :

1) Netflix

Netflix is one of the best and leading examples of the Disruptive Innovation. It is a DVD by mail model that turned the video rental business market upside down and pushed the industry veteran Blockbuster into bankruptcy. As a third party and an innovative startup, Netflix was able to witness that Blockbuster underserved many clients and hence it came up with the business model that offered extended affordability, accessibility, and availability of the huge movie and series content to these underserved clients.

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Definition of Strategic Alliances

The concept of Strategic Alliances can be defined as an arrangement between the two companies with an intention to share the resources and undertake a specific project that is mutually beneficial to both the parties involved. In the process of Strategic Alliance, each of the company maintains its autonomous position whilst gaining and exploring the new opportunities for growth and development.

The process has relatively less binding as compared to the joint venture where both the companies pool the resources to create a separate business entity.

The main benefits of Strategic Alliances include developing more effective and efficient business processes in the company, expansion into the new markets, and gaining a competitive advantage in the market.  

The main purpose of Strategic Alliances :

Strategic Alliances allows the two involve organizations or entities to work towards the common goal with the correlated objectives with an aim to benefit on a short-term as well long-term basis.

The roles and responsibilities of each of parties are clear irrespective of the agreement made is formal or informal in nature. Depending on the nature of the goals and needs of both the parties involved, the agreement made is either short term or long term in nature and working.

The organizations getting into Strategic Alliances are able to attain their goals and make use of the opportunities at a faster rate as compared to the organization functioning alone. One of the biggest purpose and advantage of the arrangement of Strategic Alliance is that allows both the organization to share the resources and knowledge that works as a learning curve for both the parties and is quite beneficial on a long-term basis.

It saves on the factors of time and expenses as all the costs are shared. It is more flexible as compared to the growth strategy of the joint venture as the parties involved do not need to merge their assets or funds in order to proceed with the objective of goal accomplishment.

In fact, as both, the parties involved work on an autonomous basis and it helps in easing out the overall functioning of the agreement when the business practices of both the parties are varied in nature.

The risks involved in Strategic Alliances:

1. There can be differences between both the parties on the processes and operations of the business activities even after the arrangement is clear and crisp for both the organizations.
2. If there is a term in the agreement of the Strategic Alliance that the parties need to inform each other of their proprietary information that it requires a high level of trust between both the entities.
3. The parties may become mutually dependent on each other in case of the long-term Strategic Alliances.
4. Partners may misrepresent or lie about their competencies or other crucial factors.
5. One party may be able to stand to the commitment of resources and capabilities to the other party involved.
6. In the alliance, one of the parties may commit heavily whilst the other may not be that serious about the accomplishment of the common goals and objectives.
7. It can be the case that the partners may fail to utilize their complementary resources in an effective manner.

Types of Strategic Alliances:

1) Joint Venture

A joint venture can be defined as an alliance in which the parent companies build and establish a new company. For example, companies A and B can form a joint venture together and create a new company by the name of C. The partnership can be either 50-50 percentage or as per the terms decided in the agreement.

2) Equity Strategic Alliance

An equity strategic alliance is formed when one company purchases the certain percentage of the equity of the other company. For example, if company A purchases 45% of the equity in the company B, then equity strategic alliance is created.

3) Non-Equity Strategic Alliance

When two companies get into a contractual relationship or an agreement to pool their resources and capabilities to attain the common goal and objective, a non-equity strategic alliance is created.

Reasons for the Strategic Alliances:

1)  Slow Cycle of the business

When the business cycle is slow in nature owing to the various external and internal factors, the company’s competitive advantage is relatively shielded for a relatively long time period. Even the company doesn’t come up with the new and latest offerings for the target market.

In this case, Strategic Alliances can be formed to explore the new and restricted markets and gain stability in the market by sharing and competencies through the alliance.

2) Standard Cycle of the Business

During the standard cycle of the business, the company launches the new line of products every few years and in regular intervals but may or may not be able to maintain its leading and top as a market leader.

In this case scenario, Strategic Alliances as formulated to gain higher market share, gain access to the complementary resources, generate economies of scale, beat other competitive companies, and pool resources for the projects that require a large number of funds and capital investments.

3) Fast Cycle of the Business

In the fast cycle of the business, the company needs to come up with an offer the new range of products on a constant and continuous basis to survive in the market. The company’s competitive advantages are not protected.

In this case scenario, Strategic Alliances are formed in order to speed up with the development of new products, overcome the factor of uncertainty, share the expenses of research and development, and align the process of market penetration.

Value Creations in Strategic Alliances :

Strategic Alliances creates value

By improving the current business operations:

Changing the competitive environment by giving a competitive edge to the organization

By giving an ease of entry and exit in the market to the organization

Improvement in current operations:

Successful Strategic Alliance create successful economies of scale that helps the organization to grow by gaining huge market share

It is a learning curve for the organization

The factors of risks and costs get shared between both the parties involved

Changes in the competitive environment:

A tacit collusion is created giving a competitive edge to the company.

The company is able to set new and high technological standards in the market, beating its arch rivals.

Easing of exit and entry of the company:

The company can easily enter into the new market or an industry through the formation of a Strategic Alliance

The new entrant in the market can create a strategic alliance with the company that is already a part of the industry and can gradually take over that company, allowing the company to take an easy exit from the market.

The importance of Strategic Alliances:

1. It is very critical and significant for the success of the organization and helps to attain the overall goals and objectives of the business.
2. It blocks the competitive threat for the company gaining a competitive advantage.
3. It helps to make strategic decisions and choices.
4. It is crucial for the development and maintenance of the core competencies of the business.
5. It helps to mitigate the significant risks to the business.

Example of Strategic Alliances:

Apple Pay and MasterCard

The technology giant Apple formed a strategic alliance with the one of the second largest credit card provider in the world, MasterCard, in order to attain the credibility in the area of processing field and merchant services, even though it would seem that both the companies are competing against each other.

MasterCard gets the advantage to be the first authorized option for Apple Pay; Apple Pay gets to cache on the repute of MasterCard. The rich experience of MasterCard helps Apple to work out the potential bugs and other related issues with the growing prevalence of Apple Pay.

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The Triple Bottom Line Concept broadens the focus of business on the financial bottom line to include social and environmental factors as the vital considerations. The triple bottom line measures a company’s degree of economic value, social responsibility and its impact on the environment.

The phrase was coined and introduced in the year of 1994 by John Elkington and later used in his 1997 book “Cannibals with Forks: The Triple Bottom Line of 21st Century Business.

One of the key challenges with the Triple Bottom Line Concept is the difficulty of measuring the social and environmental bottom lines, which necessitates the three separate accounts being evaluated on their own merits and related factors affecting them.

Anatomy of the Triple Bottom Line Concept :

Normally, a company’s bottom line on its income statement is its net income, i.e., its profits but in the case of Triple Bottom Line Concept it is intended to advance the objective of sustainability in the overall business practices, in which the focus of companies is extended beyond just higher sales and profits and includes social and environmental issues to measure the total cost of doing business.

The company that intends to pursue the Triple Bottom Line Concept must consciously consider the social and environmental factors, in addition to the economic bottom line, in making investment and business decisions.

Deploying money and other resources, such as labor to a project or an investment can either contribute to all these three goals or focus on profit at the expense of one or both of the other two.

Some of the repercussions that have come about from ignoring the concept in the name of profits include the destruction of the rainforest, exploitation of labor, and damage to the ozone layer amongst other such crucial effects on the environment and human resources.

The concept has actually changed the way businesses, nonprofits, and government organizations measure the factors of sustainability and the performance of projects or policies. Beyond the foundation of measuring sustainability on three fronts—people, planet and profits—the flexibility of the concept allows the organizations to apply the concept in a manner suitable to their specific needs and requirements and as per the merit of the case.

Though there are certain challenges to putting the Triple Bottom Line Concept into the actual practice. The challenges include measuring each of the three categories, finding applicable data, and calculating a project or contribution to sustainability. However, keeping these challenges aside, the framework allows organizations to evaluate the consequences of their decisions from a truly long-term perspective.

Measuring the Triple Bottom Line Concept :

The triple bottom line can be quite difficult to measure because while the issue of profitability is in the aspects of black and white, what constitutes social and environmental responsibility is quite subjective in nature.

The upside of this obstacle of standardized measurement is that the various other metrics can be adopted that make the most sense for organization, project or location. For example, a fine dining restaurant could measure and report on how much it reduces its waste by switching to environmentally friendly packaging and serving leftover food to a local homeless shelter that would otherwise be thrown out.

Other key factors to report on, depending on the organization, might include job creation, turnover of the company, fossil fuel consumption, management of hazardous waste material, percentage of women and minorities employed in the overall management positions, charity contributions by the company, how employee income and benefits compare with a living wage, and number of employees taking advantage of workplace benefits for pursuing higher education as a learning curve for their career graph.

Federal, state and local governments, as well as non-profit organizations, have also implemented the Triple Bottom Line Concept. For example, Grand Rapids, MI, has applied the concept to creating a sustainable local economy through focused efforts related to environmental quality, economic prosperity, and equity.

The measures of Triple Bottom Line Concept :

1) Economic Measures

Economic measures work on the bottom line and the flow of money within the organization. It looks at factors such as income or expenditures, taxes, business climate factors, employment, and business diversity factors.

• Personal income
• Cost of underemployment
• Establishment churn
• Establishment sizes
• Job growth and future prospects
• Employment distribution by sector
• Percentage of firms in each sector

2) Environmental Measures

Environmental variables in the concept represent measurements of natural resources and reflect potential influences to its overall viability. It could incorporate air and water quality, natural resources, solid and toxic waste, and land use/land cover energy consumption. Ideally, having long-range trends available for each of the environmental variables would help organizations identify the impacts a project would have on the operational business area.

• Sulfur dioxide concentration
• The concentration of nitrogen oxides
• Selected priority pollutants
• Excessive nutrients
• Electricity consumption
• Fossil fuel consumption
• Solid waste management
• Hazardous waste management
• Change in land use/land cover

3) Social Measures

Social measures refer to the social dimensions of a community or region and could include measurements of education, equity, and access to social resources, health and well-being, quality of life, and social capital.

• Unemployment rate
• Female labor force participation rate
• Median household income
• Relative poverty
• The percentage level of the population with the post-secondary degree or certificate to get a good job in hand
• Average commute time
• Violent crimes per capita
• Health-adjusted life expectancy

People + Planet = Social + Environmental Responsibility

• It can be quite challenging for the organization to maximize financial returns and profits while also doing the greatest deeds for the society and the environment. Consider the example of the clothing manufacturer whose best way to maximize the profits for his firm might be to hire the least expensive labor possible and to dispose of manufacturing waste in the cheapest possible way. This might result in the high amount of profits for the company but miserable working and living conditions for laborers, and damage to the natural environment and the people who live in that environment. In the previous times, such practices were socially acceptable, but today with the growing awareness and knowledge many customers are willing to pay more for clothing and other products even if it means that workers are paid a living wage and the environment is not affected at all. Many consumers want companies to be transparent about their practices and to be considerate of all the stakeholders and doing business in an ethical manner.
• Adding the element of people to social responsibility to corporate bottom lines shifts the focus to the fair treatment of employees and labor, as well as enacting favorable practices in the communities where companies conduct business.
• The bottom line referred to as the planet that represents the implementation of sustainable practices and the reduction of environmental impact. These measures range in scope from green initiatives such as recycling programs within the companies dedicated to manufacturing products using only sustainable materials and practices.

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The process of Turnaround Management can be defined as the process of reviving a company that is struggling from the financial problems to keep up with competition in the market and there comes a time when the management of the company needs to put the process and strategic approach of Turnaround Management plan in place.

The main and crucial key elements of the Turnaround Management include analyzing, planning, and then implementing the plan to save the company from all the bottlenecks and obstacles that it is facing. However, the realities of turnaround management are that it is quite slow, complex, and difficult process in nature and its overall implementation.

Turnaround Management is all about the restricting and renewal of the business. Often, this strategy is employed when the business is under financial stress.  However, it is not necessary to wait till the situation becomes too complicated to commence the turnaround Management strategy.

5 Steps of Turnaround Management :

Step 1 – Define & Analyse

During the first and foremost stage, the definition of performance problems within the business are clearly defined and outlined.  It is particularly important during this step that any areas of financial stress within the business are identified through the intricate analysis and in-depth study. The main aim and objective of this are to stop any further decline in the business while continuing to trade and avoid insolvency of the business.

Step 2 – Scope & Strategy

Once the business is stabilized, now is the time to start with the strategic planning process.  The first part of this is to scope the strengths, weaknesses, opportunities, and threats of the business.

It is important during this stage to not only look internally (strengths and weaknesses) but to strategically analyze the external environment (opportunities and threats) in a dedicated manner. Through the process of the SWOT analysis, long-term vision, mission, core values and objectives for the business can be defined in a better way.  Knowing where the business is heading allows the development of a strategic plan and its overall implementation in an effective fashion.

Step 3 – Link & Action

Next step in the line is to take the strategic plan and develop into an action plan.  This is a list of actions and tasks that are to be completed within the stipulated time frames that must be undertaken to attain the business goals and objectives. The tasks are divided on the basis of the daily, weekly, and monthly activities that are to be completed and with this strategic planning process, each one will be contributing to the overall mission of the organization.

Step 4 – Implement

This step is not just about implementing the action plan, but also ensuring all the required coaching and support of all staff and employees of the organization. Without this critical step, all the planning can go to waste and down in dumps. It is quite crucial that employees are aligned with the overall vision and mission of the business.  This is achieved through clear communication, dedicated consultation, and coaching on a regular basis to all the employees.

Step 5 – Review

With all the planning and implementation in place, the next step of the Turnaround Management demands to conduct regular reviews.  This ensures not only that continual improvement is achieved but also helps to identify any corrective actions that may be needed within the overall process and operations of the business.

The process of Turnaround Management is quite similar to the strategic planning process; however, the first step in identifying areas of stress in the business is very critical to figure out.  For any business where this stress is already occurring, applying the turnaround process, in consultation with a Turnaround Management experts, will not only ensure the business turnaround but also the opportunity to improve and grow in the future with the learning curve and streak of success.

The 3 Stages of Turnaround Management :

1) Assess Viability

The first stage comprises a high level and detailed investigation of the business and its problematic situation and can take around 2-4 weeks of time.

The investigation acquires a wide range of information to be figured out that includes:

• Current and historical financials (P&L, balance sheet, cash flow and verification these accounting and costing systems, if they are reliable in nature or not)
• List of the Stakeholders and debtors
• Management capability
• Cause of situation or the problem
• Potential solutions to solve the problem
• Assess if business issues are controllable or not
• Assess if the ongoing business is viable or not
• Develop a SWOT analysis to provide clarity on all the given options.

2) Stabilize and Develop Strategy

Once the issues and priorities have been identified and agreed to by all the key members of the management and the company, stage 2 involves on focusing on the aspect of stabilizing the business and planning the recovery strategy from all the issues and problems. The timeframe can vary widely depending on the business situation, problems and their nature of complexity and can take from 4 weeks to 3 months time to complete the same. The turnaround strategy consists of the following factors, and may occur concurrently and in any given order depending on the merit of the case:

• Crisis stabilization that encompasses taking control, management of cash, short-term financing options, first step cost reduction.
• New team for leadership – owing to inadequate skills of the current team, instability in management, need for fresh and creative ideas.
• Stakeholder focus – advising and engaging stakeholders dependent on the outcome and includes financiers, creditors, employees, customers, industry associations and even government officers as well for various reasons. The benefit of this aspect is often underestimated and often provides the greatest source of solutions and support to solve the problems of the business and an effective Turnaround Management.
• Strategic focus – redefining the core business, restructuring, M&A, divestment, values, and fundamentals.
• Organizational change – engaging the key staff, improving the levels of communication, and improving the morale of the employees.
• Process improvements – operational improvements that provide low hanging fruit, and focus on key issues that require instant attention.
• Financial restructuring – implementing tighter control and monitoring of cash, equity injection, asset reduction or selling under-utilized assets to generate cash or use as security for short-term funding that will be quite beneficial for the organization.

3) Implementation and Monitoring

Once Stage 2 is underway and under process, the focus will be the detailed implementation and monitoring of the finalized strategy. This may include setting up an advisory board to assist the owners, directors, or board to maintain its focus on the implementation of the strategy. The business may bring on board a Chief Restructuring Officer whose main and principle role is to implement the Turnaround Management strategy

Signs of a Troubled Business that requires Turnaround Management:

1) Market conditions and low market share

Fluctuations in the marketplace and its dynamic nature have evaded a company, leaving it with low sales and losing market share as compared to the competitors. For some companies, there is a lack of technological advancement as the current ones have become quite outdated. In other companies, the problem lies in the areas of sales and marketing; their products or services slide into the mundane rut as the company has not kept the thorough pace with the needs of the marketplace.

2) Lack of operating controls

Managing a company without adequate reporting mechanisms can be very problematic. If management is making decisions on the traditional and incorrect information, the company can easily go in the wrong direction of the decision making and strategy processes.

3) Over-diversification

In a contemporary situation of the market and the overall industry, many businesses feel the pressure to diversify in order to lessen the risk of finances and other factors. However, too much of diversification may cause them to spread themselves too thin making them exposed to the competition.

4) Explosive growth

Companies are sometimes very much desirous to add value by engineering a growth spurt. And many a time, the company cannot expand its way out of trouble. Growth often carries a very high price tag with it and leveraging a company to such a degree means that management must operate with little or no margins.

5) Family vs. business matters

It has been observed that there is rivalry among many privately held companies and family runs businesses. Deciding which relative or which of their offspring should run the business after retirement or death for the main head of the business can be one of the most difficult challenges for a privately held business. If the decision is based on emotions instead of good business judgment, the company can be in troubled waters very soon.

6) Operating without a business plan and strategy

There are numerous progressive companies operate without a business plan in the market. Their plan may change overnight because it is based on their own instinct or feel for the market.

7) Ineffective management style

The CEO or the founder of a company may be unable to give proper guidance and authority and the rest of the key management staff is without the solid experience in the industry and the feeling of ownership.

8) Poor lender relationships

Some companies develop an adversary relationship with their financial lending institutions that lead to financial and cash flow issues within the company.

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Starting its operation in the year 1920, Qantas Airlines has become the flag carrier of Australia and countries largest fleet size, international flights and destinations. Being the third oldest airline in the world after KLM and Avianca it began its international passenger flights in May 1935. The name QANTAS is an acronym for Queensland and Northern Territory Aerial Services and nicknamed as “The Flying Kangaroo”.

Segmentation, targeting, positioning in the Marketing strategy of QANTAS Airlines –

In order to serve its customers, QANTAS airlines use a mix of Geographic, Demographic and Psychographic variables. Segmentation helps the brand in understanding various groups of customers based on distinctive population variable.

Undifferentiated targeting strategy is what the brand uses to cater to the growing needs of the customers.

QANTAS positions itself in a way how their image relates to its competitors. To market its brand name the company uses a variety of positioning strategies. To position itself in relation to its competition the brand has launched Jetstar, its own no-frills carrier.

Marketing Mix of QANTAS Airlines – Click here to read the Marketing Mix of Qantas Airlines.

SWOT analysis – Here is the SWOT analysis of QANTAS Airlines.

Mission – “We are Australia’s leading premium airline and we are dedicated to being the best. We aim to meet your expectations every time you fly and so we continue to invest in our business and will always strive to provide you with an exceptional level of service”

Vision – “Qantas long-term vision is to operate the worlds best premium airline”

Tagline – “Spirit of Australia”

Competitive advantage in the Marketing strategy of QANTAS Airlines –

1) Strong Domestic Presence :

QANTAS Airlines has more than 65% of Australian domestic market share and about 15% of international travel made by the passengers in the country.

Some of its competitors in Australia include :

1. Virgin Australia
2. Pel-Air
3. Eastern Australia Airlines
4. Fly Corporate

2) Focus on Passenger business :

About $64mn of the $1.53bn profit of the firm comes from freight division i.e. QANTAS Freight QANTAS domestic and Jetstar group constitutes another billion dollars of profit for the brand.

BCG Matrix in the Marketing strategy Qantas Airlines –

QANTAS Airlines operates in three Strategic business units (SBU) i.e. Domestic Passenger, International Passenger, and Freight segments.

Since both Domestic and International passenger business segments contribute around 35-37% of the operating revenue for the brand and therefore Stars in the BCG matrix for the company and thus the freight segment appears to be a question mark in the BCG matrix.

Distribution strategy in the Marketing strategy of QANTAS Airlines –

With over 2000 flights operating each week the regional airline of QANTAS Group operates in 56 metropolitan and regional destinations across Australia.

The QANTAS covers 20 domestic destinations, 21 International destinations in around 14 countries across all continents.

Brand equity in the Marketing strategy Qantas Airlines –

QANTAS Airlines has been ranked as the Best Domestic Class airline. The brand also won the award for the Best Catering Services and Best Lounges which sets an industry benchmark for the other brand’s world over.

Competitive analysis in the Marketing strategy of QANTAS Airlines –

On its domestic flights, it faces competition from one or sometimes more than one airline such United Airlines, Singapore Airlines, Delta Airlines, American Airlines, Southwest Airlines, and Malaysia Airlines.

In cargo segment, its major competitor includes Virgin which has Toll Holdings’ Toll Air Express is the designated freight provider for its mainline domestic services and Virgin Atlantic which assists with its international long-haul freight.

Market analysis in the Marketing strategy of QANTAS Airlines –

The aviation industry is full of competition with Regional, National and International Players operating in the country. Not only this market faces several other constraints as well such as low fares, government regulations, unsold inventories, customer loyalty, price wars among competitors, high entry and exit barriers for the companies and the rising cost of fuel globally.

Customer analysis in the Marketing strategy of QANTAS Airlines –

Customers for the brand include the passengers who travel in distant places both in Australian domestic and internationally. It majorly includes corporates who serves as a frequent flyer for their work purposes.

Its freight segment includes mainly corporates and industries which use transportation services for their goods.

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The Value Curve Model was introduced by academics W Chan Kim and Renee Mauborgne in the Harvard Business Review article from the year 1997 in the month of January titles “Value Innovation: The Strategic Logic of High Growth”. The concept was further expanded in their bestselling book of 2005, “Blue Ocean Strategy”.

The Value Curve Model can be used to instantly show where the aspect of value is created within the organization’s offerings of products and services. It is one of the most powerful and resourceful tools to create new market spaces and graphically showcases the way company configures its offerings to the target consumers. 

Anatomy of the Value Curve Model:

The main purpose of the Value Curve Model is that shows the current and existent competition in the marketplace and how it is going to affect the company. It allows the company to study the position of the competitors on where are they investing their funds and resources and what are the nature and features of their product offerings plus their unique selling propositions.

The second purpose of the Value Curve Model is to allow the company to make use of this information to create new and innovative offerings formulating new markets and new demands which do not compete with the existing competitors.

The model graphically shows where the different product offerings compete within the same and particular marketplace. And this information can be used to significantly differentiate your products from that of your competitor’s offerings with an objective to make them irrelevant in the minds of the consumers and you are competing in an entirely new market for the different set of customers.

It is necessary that the Value Curve Model is understood by each and every key member of the organization and the project is not started without any strategy in hand. It is important to examine the value curve and make sure that things are getting done in the right order.

The diagram of the value curve effectively compares the products on a variety of factors rating them on a scale from high to low. The various factors range from features, benefits, and attributes of the products to the way they are distributed or consumed by the target market.

It is imperative to draw multiple value curves to allow the visual comparison within the various competitive products and to identify the possible gaps in the market. Aftermath the investigation of these gaps along with their feasibility, the company is able to identify the changes to be done in the features and attributes of the product that can significantly alter its value proposition.

How to draw the Value Curve Model :

In the graphical representation of the Value Curve Model, the vertical axis represents the product offerings available to the customer at the marketplace. The horizontal axis represents the various factors on which the industry competes on. It can also be considered as the range of varied factors on which the industry invests in. The high score represents that the customer is being offered more and hence, we can conclude that the company is investing more in this area.

Aftermath the Value Curve Model is made :

The Value Curve Model suggests the 4 ways to alter the product whether you are working on a new product development or refining the existing one:

1. Raise : Can any of the existing elements or attributes of the product be enhanced or elevated in a better way to serve the customers better?
2. Reduce : Over the flip-side, are there any elements in the product that can be reduced that is not adding any relative value or addition justifying the cost?
3. Create : Is there any kind of product or any specific feature or attribute in the product that can be introduced in the market that has not been available till date? The feature that makes the product more efficient and effective in solving the problems of the customers
4. Eliminate : Are there any elements or features of the product that can be eliminated as they do not add any real value to the price that customers pay and are simply there as a part of the status quo?

How to put Value Curve Model into Practice?

In the process of attaining the ideal Value Curve, the product has to relevant in nature and compelling for the customers to indulge in its purchase. And very importantly, the features and attributes of the product have to be distinct from that of the competitors for the company to gain a competitive advantage.

At times, the Value Curve Model is criticized for being simplistic and academic in its approach and its aspect of overlooking the less tangible factors such as brand personality and image in the market.

Whilst using the model, there is also the risk as it assumes that all customers want the same thing whereas there are multiple segments in the market and different set of customers have the different set of tastes and preferences.

However, the tool is quite easy to use and anyone can understand it easily by looking at it.

It is important to note that if your value curve closely follows that of your rival’s value curve, you have a tough time differentiating your product offerings.

Hence, it is vital to spend additional time in identifying the values, attributes, and features that your targeted customers are looking for in your product and you will be able to tweak your product accordingly to make it more relevant and compelling to the customers.

Example of Value Curve Model:

1) Apple

Post understanding the working and mechanics of the Value Curve Model, let’s consider the example of Apple introducing the iPad in the market. Apple astutely analyzed the competitive landscape and analyzed the market in a dedicated manner before the launch of iPad. At that point in time, there are mainly computer systems that were used by people and there were no tablet PC’s in the market at all.

Apple invested heavily in creating a great user experience with features such as fast internet access and long battery life. But the real key to the success of the product was keeping the price point low with the limited technology features in the device. The device had no such competition in the market and this enables the company to create a new marketplace altogether, working as an example of the Blue Sky Strategy.

Apple did not try to cater to each and every segment of the market and in fact, created a distinctive niche for itself in the market and this strategy worked very well for the product as well as for the brand as a whole.

Value Curve Model and Marketing Strategy :

Creating a value curve in the product that helps the company to curate a distinct identity in the market. And if it is backed by the lucrative marketing strategy, it can work wonders for the company:

1. Target Audience: It is very important to figure out, filter, and segment the target customers. It is the first and foremost strategy of the marketing plan.
2. Knowledge of the value attributes and propositions of your product: Letting the customers know the value of your product is always difficult and expensive plus the attention span of the customers is limited in nature. Hence, it is very important to know the value attributes and unique selling points of your product to create assertive and affirmative advertising creative’s.
3. Competitive Edge: To get the competitive edge in the market, the product has to be novel and innovative in nature as it attracts the attention of the customers.
4. New Media: By creating a novel and innovative product, you also use the media channels and platforms that are not yet used by the competition. This strategy puts your product in the spotlight and generates cost savings.
5. Cost Reduction: If the product is novel and innovative in nature, the positive word of mouth spreads quickly amongst the target audience. This results in your dependence on the paid media channels reducing your marketing costs.

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The process of Procurement Management can be defined as the method by which items are purchased from external suppliers in the market. The process involves managing the ordering of the goods, receipt, review, and approval of items procured from the suppliers.

The entire process also specifies how the relationships with the various suppliers are to be managed in an efficient manner ensuring that high levels of services are received. It is one of the most critical tasks in Procurement Management. The main essence of the overall process lies in the fact that you get what you have paid for.

It helps the company to save money spent when purchasing goods and services from various external parties in the market along with the various other benefits.

The working of the Procurement Management process :

Not all goods and services required by the company are required to be purchased from the outside parties in the market. It is very imperative to gauge the pros and cons of purchasing or renting the required goods and from the outside market. The management of the firm needs to check if the purchase decision will be cost effective in the long run basis and prove to be quite beneficial for the company.

It is very important to understand and figure out on the exact requirements and then search and consider upon the various options and alternatives available. There are quite many suppliers in the market catering to the needs and requirements but there has to be a clear yardstick on which one to select on the basis of thorough market research and understanding. There is an option of calling for some kind of bidding for the product or goods requirement by the vendors in the market and use selection criteria to select the best one from the lot.

The next step involves calling for bids and the different suppliers will provide their respective quotes. This stage is quite similar to choosing projects, as the company needs to consider various and different criteria’s, apart from just the cost, to finally select the supplier for the requirement of the goods and products.

Aftermath the evaluation process, the company management is able to select and shortlist the best supplier followed the next step of discussing the exact nature of the requirements and the related terms and conditions such as payments, delivery timelines, and other crucial ones to avoid any sort of discrepancies in the future.

It is very much important to maintain a good relationship with the supplier and formulate the agreement that meets the requirements and the satisfaction levels of both the parties involved. This step helps in the sustainability factor of the businesses of both the parties involved.

How to make Procurement Management Work Efficiently?

In order to ensure that everything goes quite well in the entire process, one has to keep a track record of the progress of the procurement of the goods required. It involves checking on the suppliers in order to ensure that they are adhering to the terms of the contract and will be able to supply as per the delivery timelines.

In case of any sort of discrepancies or issues, the supplier needs to be addressed by the method of communication decided at the time of signing the contract and the final purchase order.

The company must have a flexible approach and should be willing and open to change as per the current market scenario. This factor involves all the changes required to ensure the efficiency of the entire procurement process. The changes could be in the form of technological advancements in the industry and even changes in the nature of the workforce amongst the other crucial and required changes.

In terms of the technology advancements, any new type of equipment and machinery introduced in the market required to handle the goods purchased in an efficient manner may need to be purchased for the proper flow of work and business operations.

The same case applies to the nature of the workforce as well, the company would need to employ workers that are highly skilled, efficient, and trained.

It is always better for the company to have a different set of teams within the hierarchy who are specialized in different fields and various business operations. This approach would make procurement management quite more easy and efficient.

Each team will deal with the relevant areas of purchasing and will also possess the expertise required.

Stages of Procurement Management :

1. Identification of the needs and requirements – When the company figures out the needs and requirements of the goods, the vendor’s needs must be identified in order to choose which type of product will fit best as per the business operation. Then the company needs to shortlist the vendor as per the quality of the goods for the best price also making sure the supplier is able to deliver the consignment on time.
2. Finding and qualifying the suppliers – Using the power of the internet or the various supplier databases, one needs to assemble a list of all potential product suppliers.
3. Requesting proposals – It is important to ask for the proposals from the various suppliers to make sure to buy the goods of the best quality and at the best prevailing price. Aftermath, the negotiation process starts considering the current market scenario and budgets of the organization.
4. Negotiating with the suppliers – To achieve the best prices, terms, and the final delivery, it is necessary to negotiate with the selected suppliers. This aspect helps to evaluate their trustworthiness and other vital business factors.
5. Contracting – If both parties agree on all terms such as pricing, delivery, quality, etc the company enters into the final d=business deal by signing the official contract.
6. Delivery – Throughout the entire delivery process of the goods, it is important to evaluate the products delivered to ensure they are what you had planned to buy and meet the quality standards plus they arrive well on time.
7. Analyzing results – Once the project is complete and the goods have arrived and delivered, it is important to analyze the overall process and evaluate its success as well as record observations for future projects with the same vendor.

Benefits of Procurement Management :

1. Helping meet business goals and stakeholder expectations

Procurement Management helps the company to meet the expectations of the stakeholders’. It helps to perform the business operations on the higher level and attain the long term and short term objectives of the business.

2. Savings

Savings can be achieved by the variety of methods such as reducing the delivery errors or increasing the quality of products and services. The measurement of the direct cost and the team timesaving is accomplished through better Procurement Management process.

3. Higher value and lower supply chain risks

Building close and fruitful relations with the strategic partners help to minimize the risks of the supply chain.

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Founded in 1806, State Bank of India (SBI) is an Indian multinational, public sector bank and financial service company headquartered in Mumbai, Maharashtra. The bank descends from Bank of Calcutta making it the oldest commercial bank of the subcontinent.

The merger of Bank of Madras with two presidency banks of British India, the Bank of Bombay and the Bank of Calcutta leading to the formation of the Imperial Bank of India which eventually became State Bank of India when Reserve Bank of India (RBI)holding 60% stake renamed it to State Bank of India. Later in 2008, the government took over the stakes held by RBI taking full control over the Public Sector Bank.

Segmentation, targeting, positioning in the Marketing strategy of State Bank of India –

SBI segments the market on the basis of geographic, demographic, behavioral psychographic variables like people from Rural, Urban and Metropolitan who are self-employed, students, corporate or government employed also behavioral and psychography includes people who trusted banking system and frequently used bank and its value-added services.

It targets students, the lower class who are deprived of banking services, the tech-savvy business class for whom time is more important.

Positioned as peoples most trusted bank, it has high accessibility with over 25,000 branches, it finds relevance to young customers with its value-added services like net banking, telebanking etc.

Marketing mix – Click the article to read the Marketing mix of SBI

SWOT analysis – Click the article to read the SWOT Analysis of SBI

Mission –“Committed to providing Simple, Responsive and Innovative Financial solutions.”

Vision– “Be the bank of choice A Transforming India”

Tagline – “With you all the way, Pure Banking Nothing Else, The Nation’s banks on us.”

Competitive advantage in the Marketing strategy of SBI –

Ranked 216^th on the Fortune Global 500 list of the world’s biggest corporations 2017, SBI is India’s largest bank with a 23% market share of assets and a quarter of the share of loan and deposit market of the country.

SBI over the years has attained the leadership status in digital banking space by offering a pool of seamless and secured services like, SBI YONO- an omnichannel banking and lifestyle platform which has close to 10 million downloads already for which SBI has Tied up Reliance JIO, State Bank Buddy- a wallet service, State Bank Anywhere- Mobile banking platform.

With the set up 60 digital branches referred to as sbiINTOUCH, the bank aims to offer advanced services like instant loan approvals, access to the latest mutual funds, assistance in choosing investment portfolios and other financial services.

Equipped with the latest technology these creates an instant connection with the customers in real-time with an audio-visual experience and an ability to print, scan, and share the document using touchscreen controls ensuring the bank doesn’t lose a potential customer. Thus these digital branches provide SBI an edge over its competitors and aim to help SBI expand its reach with increasing profitability.

Distribution in the Marketing strategy of SBI –

SBI has a large footprint over 25,000 domestic branches (including extension counters) and 59,000+ ATM’s after its merger with Bhartiya Mahila Bank and its five associate Banks on 1^st April 2017. The overseas operations of the bank are spread over its 195 international offices with branches spread across 36 countries. 

Brand equity in the Marketing strategy of SBI –

A Fortune 500 company, with a balance sheet size of over Rs. 30 lakh crore  SBI entered into the league of top 50 global banks. Ranked 35^th in the Brand Equity’s Most Trusted Brand survey of 2015 SBI is the only bank to be featured in the Nielsen surveyed top 100 brands.

SBI also stands at 381^st on Forbes 2000 World’s Best Employers of 2018 and 489^th on Global 2000 list of 2018.

Competitive analysis in the Marketing strategy of SBI –

The advent of technology in Banking industry has provided for the immense opportunity to the players which has stagnated or has been marred by Non Performing Assets in recent years. Governments push by infusing in funds into the public sector banks has given the industry some breathing space which has been struggling in recent years. SBI seems to have already taken a head start in Digital Banking when it comes to its competitors with its bouquet of Digital services.

Major Competitors of SBI includes:

• Punjab National Bank
• ICICI Bank
• Allahabad Bank
• HDFC Bank
• Bank Of Baroda
• Axis Bank

Market analysis in the Marketing strategy of SBI –

The banking industry in the recent past has been in a turnaround phase where PSU’s, Private Banks are fighting neck to neck in order to re-establish itself in the competitive market. Private Banks like ICICI Bank, AXIS Bank, HDFC revenue and profitability has seen the rise by 3^rd party products whereas PSUs revenue and profitability has been more driven by retail lending and CASA share.

Market share for SBI customers Saving Bank and Current Account Deposits as of March 2018 stood at 26.55% and 16.83% respectively. Market share for home loans stood at 13% and 67.65% share in Government business showing its dominance in the Government sector. Market share for customers using the Debit card for the bank is as high as 30.5% and a share of 31.79% for customers opening PM Jan Dhan Accounts.

Customer analysis in the Marketing strategy of SBI –

Customers of SBI includes farmers and workers in rural, students, early jobbers, both Public and private sector working professionals, businessmen, young entrepreneurs. Customers of SBI doesn’t cant be put in a specific income group bracket and thus ranges from lower class looking to open zero balance account for government benefits transfer through Direct Benefit transfers to high-class individuals seeking loans for their business.

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