MARKETING MANAGEMENTPRODUCT PORTFOLIO DECISIONS GROUP MEMBERS ANURADHA MAHAJAN POOJA MISTRY MOHIT SHARMA RAJAT AGARWAL VIBHA PRASAD VIKRAM SINGH
STRATEGIC MARKET PLANNING• It involves devising the brand strategy, the product strategy, the sales strategy, sales promotion strategy, the advertising strategy• It has to be carefully formulated and implemented to ensure long term sustainability of the organization
THREE ORGANIZATIONAL LEVELS→CORPORATE LEVEL→BUSINESS UNIT LEVEL→PRODUCT LEVEL
PLANNING PROCESS – CORPORATETypes of Planning Process• Bottom-up planning• Top-down planning• Goals down/plans upMajor dimensions in planning Setting the Corporate Mission Establishing the Strategic Business Units (SBU’s) Allocating resources to each SBU Planning new business activities Downsizing existing businesses
STRATEGIC BUSINESS PLANNINGBusiness MissionSWOT AnalysisStrategiesStrategic AlliancesImplementationFeedback & Control
MARKETING PLANNING PROCESS Analyzing the Marketing Opportunities Developing Marketing Strategies Planning Marketing Programs Managing the Marketing effort
MODELS OF PORTFOLIO ANALYSIS Boston Consulting Group (BCG) ModelGeneral Electric Model
BCG MATRIXPlacing products in this matrix results in 4 categories in aportfolio of a company: STARS (High growth, High Market Share) CASH COWS (Low growth, High Market Share) DOGS (Low growth, Low Market Share) QUESTION MARKS (High growth, Low Market Share)
PITFALLS• High market share is not the only success factor• Market growth is not the only indicator for attractiveness of the market• Sometimes dogs can earn even more cash as Cash cows
GE MULTIFACTOR MODEL• Developed by McKinsey &Company in 1970’s• Also known as Spotlight Matrix• GE is a model to perform business portfolio analysis on the SBU’s• GE is rated in terms of ‘Market Attractiveness & Business Strength• It is an Enlarged & Sophisticated version of BCG• It is the management task concerned with the growth and future of business enterprise• It provides the route map for the firm and helps to take decision in the future with a greater Strategic Planning
GE MULTIFACTOR MODELMarket Attractiveness Annual market growth rate Overall market size Historical profit margin Current size of market Market structure Market rivalry Demand variability Global opportunities
GE MULTIFACTOR MODELBusiness Strengths Current market share Brand image Production capacity Corporate image Profit margins relative to competitors R & D performance Promotional effectiveness
PITFALLS• Valuation of realization of the various factors• Aggregation of the indicators is difficult• Core competencies are not represented• Interactions between Strategic Business Units are not considered
TITAN INDUSTRIES – AN OVERVIEW• Joint venture between the Tata Group, and the Tamil Nadu Industrial Development Corporation (TIDCO)• Promoted in 1984, set up in 1987• Worlds 5th largest Wrist Watch manufacturer• Brand Names - Titan, Fastrack, Sonata, Nebula, RAGA, Regalia, Octane & Xylys• Presence in around 40 countries
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