FMCG: SWOT Analysis


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FMCG: SWOT Analysis

  1. 1. FMCG: SWOT Analysis BITS Pilani Pilani Campus SAGAR KUMAR SHARMA 2012H142136P
  2. 2. Agenda What is FMCG ? FMCG @ world FMCG @ India SWOT analysis Proposed strategies BITS Pilani, Pilani Campus
  3. 3. What is FMCG − FMCG is Fast Moving Consumer Goods. − It also called the consumer packaged goods sector. Definition: Fast Moving Consumer Goods (FMCG) as “products that have a quick shelf turnover, at relatively low cost and don‟t require a lot of thought, time and financial investment to purchase. Fast Moving Consumer Goods is a classification that refers to a wide range of frequently purchased consumer products…” BITS Pilani, Pilani Campus
  4. 4. Key Segments Of FMCG Sector Household Care Personal Care Food & Beverages •Fabric wash (laundry soaps and synthetic detergents) •Household cleaners (dish/utensil cleaners, floor cleaners, toilet cleaners, air fresheners, insecticides and mosquito repellents, metal polish and furniture polish) •Oral care • Hair care • Skin care • Personal wash (soaps) •Cosmetics • Toiletries •Perfumes • Deodorants •Feminine hygiene •Health beverages •Soft drinks •Staples/cereals •Bakery products (biscuits, bread, cakes) •Snack food •Chocolates •Ice cream •Tea & Coffee •Processed fruits & vegetables •Dairy products •Bottled water •Branded flour •Branded rice •Branded sugar •Juices BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
  5. 5. Main characteristics of FMCGs From the consumers' perspective: – Frequent purchase – Low involvement (little or no effort to choose the item) – Low price From the marketers' angle: – High volumes – Low contribution margins – Extensive distribution networks – High stock turnover BITS Pilani, Pilani Campus
  6. 6. Top 10 FMCG companies in world Ranking Company Name 1 Procter & Gamble 2 Pfizer 3 Unilever 4 L'Oréal 5 Kimberly-Clark Corp. 6 Reckitt Benckiser 7 Johnson & Johnson 8 Avon Products, Inc. 9 Henkel 10 Alcon Laboratories, Inc. 2011 sales $82.6 B $67.4B $64.7 B $25.8 B $20.8 B $15 B $14.9 B $11.3 B $10 B $9.9 B Source: Hunt Executive Search, 2012 BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
  7. 7. FMCG growth in Emerging and developed Markets − Roughly 70 percent of the world‟s population in emerging-market account for only 35 percent of the world‟s GDP. − By 2020 the collective GDP of the emerging markets will overtake that of the developed economies Source: Global Growth Compass, Mckinesy analysis BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
  8. 8. FMCG in India − Fourth largest sector in the economy. − Market size US$ 13.1 billion as of the year 2012. − Expected market USD 33.4 billion by the year 2015 − Market growth rate : Rural ---40%, urban ---25% Source: 1. The Confederation of Indian Industry (CII) 2. Industry Practices | Altavis BITS Pilani, Pilani Campus
  9. 9. Top 10 FMCG companies in India: Rank Company Name 2012 sales (Rs.Cr) Rank Company Name 2012 sales (Rs.Cr) 6 PROCTER & GAMBLE INDIA 12,838 7 COLGATE-PALMOLIVE 12,764 9,842 1 India Tobacco Company (ITC) 151,078 2 HINDUSTAN UNILEVER 67,858 3 NESTLE INDIA 39,819 8 GLAXOSMITHKLINE CONSUMER HEALTHCARE (GSK) 4 DABUR INDIA 18,632 9 MARICO 9,078 5 GODREJ CONSUMER PRODUCTS 13,335 10 EMAMI 6,836 Source: AC Nielsen Report 2012 BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
  10. 10. Other FMCG companies in India • Britannia Industries Ltd. • Parle Agro • Nirma • Johnson & Johnson • Himalaya Herbal Healthcare • Amul India BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
  11. 11. SWOT analysis Strengths Weaknesses 1. Low operational costs 2. Presence of established distribution networks in both urban and rural areas 3. Presence of well-known brands in FMCG sector 4. Deep roots in local culture & great understanding of consumer needs 1. Lower scope of investing in technology and achieving economies of scale, especially in small sectors 2. Low exports levels 3. Counterfeit Products. These products narrow the scope of FMCG products in rural and semi-urban market. Opportunities Threats 1. Untapped rural market 2. Rising income levels, i.e. increase in purchasing power of consumers 3. Large domestic market- a population of over one billion. 4. Export potential 5. High consumer goods spending 1. Removal of import restrictions resulting in replacing of domestic brands 2. Slowdown in rural demand 3.Tax and regulatory structure Source: The Confederation of Indian Industry (CII) BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
  12. 12. Strengths 1. Low operational costs 2. Presence of established distribution networks in both urban and rural areas 3. Presence of well-known brands in FMCG sector 4. Deep roots in local culture & great understanding of consumer needs BITS Pilani, Pilani Campus
  13. 13. WEAKNESSES "Me-too" products: which illegally mimic the labels of the established brands, narrow the scope of FMCG products in rural and semi-urban market.  Detention of counterfeit and pirated goods at EU borders in 2010 Source: Europa Press releases BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
  14. 14. WEAKNESSES High Advertising Costs. Increase in Ad spending, which may affect the margins BITS Pilani, Pilani Campus
  15. 15. OPPORTUNITIES 1. High consumer goods spending 15 40 10 11 8 16 Savings Others Clothings Entertainment Personal Care Grocery Source: Consumer Survey 2010 by KSA-Technopak BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
  16. 16. OPPORTUNITIES… 2. Changing Lifestyles & Rising income levels ALL INDIA URBAN % RURAL % 97.4 91.5 88.9 91.4 90.7 86.1 84.1 88.6 87.4 100 90 74.9 80 70 59.9 60 50 38 37.6 40 31.5 30 22 20 10 52.1 48.6 0 2.1 5.5 17.8 31.9 28 14.6 15.5 6.6 0.6 2.8 0 SOURCE:HLL INVESTOR MEET 2006 BITS Pilani, Pilani Campus
  17. 17. OPPORTUNITIES… 3.Large domestic market- a population of over one billion. 4. Large untapped market available, especially the rural areas. 5. Export potential- expansion of horizons towards more and more countries. 6. Opportunity in food sector. BITS Pilani, Pilani Campus
  18. 18. THREATS − Intense and increasing competition from local as well as MNC players − The standardization of packaging norms that is likely to be implemented by the Government by Jan 2013 is expected to increase cost of beverages, cereals, edible oil, detergent, flour, salt, aerated drinks and mineral water. − Steadily rising fuel costs, leading to increased distribution costs. − The declining value of rupee against other currencies may reduce margins of many companies, as Marico, Godrej Consumer Products, Colgate, Dabur, etc. who import raw materials. BITS Pilani, Pilani Campus
  19. 19. Issues in Tax Policy in India Major Threat: Tax and regulatory structure 1) Extremely high incidence of tax on certain product categories Some FMCG products such as shampoos, processed food, soft drinks and toiletries containing alcohol attract high rates of excise duty and sales tax. The total tax incidence in some cases is more than 60 per cent of the cost or more than 30 per cent of MRP. Such high tax incidence hampers growth of these product categories besides encouraging manufacture of spurious products and smuggling. Source: 1. India Policy Forum 2. "IMF lowers India's growth forecast to 6.1% for 2012". The Hindustan Times. 16 July 2012 BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
  20. 20. Issues in Tax Policy 2) Cascading effect of Special Excise Duty − In production process, raw material passes through various processes stages till a final product emerges. Thus, output of the first manufacturer becomes input for second manufacturer and so on. − In other words, the tax burden goes on increasing as raw material and final product passes from one stage to other because, each subsequent purchaser has to pay tax again and again on the material which has already suffered tax. This is called cascading effect or double taxation. Source: Business portal of India BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
  21. 21. Issues in Tax Policy in India 3) Inverted Duty structure for selected inputs Duty on certain raw materials is higher or the same as compared to finished products in which these materials are used. Such raw materials include oils and chemicals like Soda ash, caustic soda etc. In addition to customs duty, raw materials are also subject to sales tax and therefore total tax incidence and cost of local manufacture goes up. 4) High taxes on processed foods The existing tax structure and its high overall incidence, hampering the growth of the processed industry. The increase in excise duty in last year‟s budget from 8% to 16% has adversely affected the growth of processed foods industry. BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
  22. 22. Issues in Tax Policy in India 5) Irrational domestic tax structure encouraging imports − Significant reduction in custom duty rates of consumer goods has made imported product cheaper as compared to local manufactured products. − For instance, goods manufactured in India suffer from cascading effects of taxes on inputs as additional cost compared to imports. BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
  23. 23. Proposed strategies The main objective is to generate a competitive advantage, increase the loyalty of customers and to beat competitors. 1. Expansion Strategies 2. Distribution Strategies 3. Innovation Strategies 4. Promotional Strategies 5. Pricing Strategies 6. Digital Strategies 7. Sustainable Growth Strategies BITS Pilani, Pilani Campus
  24. 24. 1. Expansion strategies 1.1 Expansion through Concentration 1.2 Expansion through integration 1.3 Expansion through diversification BITS Pilani, Pilani Campus
  25. 25. CONCENTRATION STRATEGIES • When an organisation focuses on intensifying its core businesses with a view on expanding through either acquiring a new customer base or diversifying its product portfolio, it is having a concentration strategy BITS Pilani, Pilani Campus
  26. 26. TYPES OF CONCENTRATION STRATEGIES MARKET PENETRATION – Selling more products in the same market MARKET DEVELOPMENT – Selling same products to new markets PRODUCT DEVELOPMENT – Selling new products to the same market Example: Bajaj Auto has undertaken all the above mentioned strategies BITS Pilani, Pilani Campus
  27. 27. INTEGRATION STRATEGIES • Integration means combining activities related to the present activity of a company • Integration is part of the diversification strategy • It widens the scope for a company as far is the market penetration is concerned. BITS Pilani, Pilani Campus
  28. 28. TYPES OF INTEGRATION STRATEGIES Horizontal Integration Vertical Integration BITS Pilani, Pilani Campus
  29. 29. HORIZONTAL INTEGRATION Horizontal Integration: When an organization takes up the same types of products at the same level of production or marketing process, it is said to follow a strategy of Horizontal Integration (Also known as Merger/Acquisition) Example: Takeover of Satyam by Mahindra BITS Pilani, Pilani Campus
  30. 30. VERTICAL INTEGRATION Vertical Integration: Expansion to serve its own needs. Vertical Integration is of two types, namely Backward and Forward Integration - Backward Integration means going back to the source of raw materials (Example: A Thermal power company may do coal-mining) - Forward Integration implies moving closer to the finished product (example: A car spare parts manufacturer would start manufacturing passenger cars) BITS Pilani, Pilani Campus
  31. 31. 2. Distribution Strategies • A plan created by the management of a manufacturing business that specifies how the firm intends to transfer its products to intermediaries, retailers and end consumers. • Larger companies involved in making products will usually also put together a detailed production distribution strategy to guide its entry into its intended market. BITS Pilani, Pilani Campus
  32. 32. Basic Channels of Distribution Manufacturers/products Agents/brokers Wholesalers/distributors Retailers Retailers Consumers and organizational end users BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
  33. 33. Distribution Strategies  Exclusive Distribution • Limiting the distribution to only one intermediary in the territory  Intensive distribution • Distribute from as many outlets as possible to provide location convenience  Selective distribution • Appoint several but not all retailers 33 BITS Pilani, Pilani Campus
  34. 34. Exclusive Distribution • It is a situation where suppliers and distributors enter into an exclusive agreement that only allows the named distributor to sell a specific product • Means that the producer selects only very few intermediaries. • Exclusive distribution is often characterised by exclusive dealing where the reseller carries only that producer's products to the exclusion of all others 34 BITS Pilani, Pilani Campus
  35. 35. Exclusive Distribution: Advantages • Maximize control over service level/output • Enhance product‟s image & allow higher markups • Promotes dealers loyalty, better forecasting, better inventory and merchandising control • Restricts resellers from carrying competing brands 35 BITS Pilani, Pilani Campus
  36. 36. Exclusive Distribution: Disadvantages • Betting on one dealer in each market • Only suitable for high price, high margin, and low volume products 36 BITS Pilani, Pilani Campus
  37. 37. Intensive Distribution • The producer's products are stocked in the majority of outlets. • It is a strategy under which a company sells its product through as many outlets as possible so that the customers encounter the product virtually everywhere they go. 37 BITS Pilani, Pilani Campus
  38. 38. Intensive Distribution  Advantages:  Increased sales, wider customer recognition, and impulse buying  Disadvantages:  Characteristically low price and low-margin products that require a fast turnover  Difficult to control large number of retailers 38 BITS Pilani, Pilani Campus
  39. 39. Example of Intensive Distribution • Newspapers, soft drinks • Most of the fast moving consumer goods 39 BITS Pilani, Pilani Campus
  40. 40. Selective Distribution • Selective Distribution is a type of distribution that lies between intensive and exclusive distribution. • This basically involves using more than one, but lesser than all the intermediaries who carry the company‟s products 40 BITS Pilani, Pilani Campus
  41. 41. Selective Distribution • Advantages: • Better market coverage than exclusive distribution • More control and less cost than intensive distribution • Concentrate effort on few productive outlets • Selected firms capable of carrying full product line and provide the required service 41 BITS Pilani, Pilani Campus
  42. 42. Selective Distribution (cont’d) Disadvantages: – May not cover the market adequately – Difficult to select dealers (retailers) that can match your requirement and goals 42 BITS Pilani, Pilani Campus
  43. 43. Multiple-Channel Strategy Using two or more different channels to distribute goods and services  Why?  Permits optimal access to each market segment  Increase market coverage, lower channel cost and provide more customized selling  What to look out for?  More channels usually means more conflict and control problems 43 BITS Pilani, Pilani Campus
  44. 44. Complementary Channels Each channel handles a product or segment that is different or non-competing e.g. • Toyota Lexus • MPH online portals • Magazine distributions 44 BITS Pilani, Pilani Campus
  45. 45. Competitive Channels The same product is sold through two different and competing channels e.g. • Non-prescriptive drugs • Electronic goods • Why? To increase sales • What to look out for? • Over extending yourself • Dealers‟ resentment • Control problems 45 BITS Pilani, Pilani Campus
  46. 46. Modifying Distribution Strategies Modify when the following changes occur: • Consumer markets and buying habits • Customer needs • Competitor‟s perspectives • Relative importance of outlet types • Manufacturer‟s financial strength • Sales volume level of existing products, and • The marketing mix 46 BITS Pilani, Pilani Campus
  47. 47. E-Commerce: Online Distribution • One of the importance of any website or business is to bring the products or services to the right people and to reach the target audience. • There are a number of different distribution channels available on the Internet which could be utilised efficiently to the benefits of any company 47 BITS Pilani, Pilani Campus
  48. 48. Selecting Channels of Distribution  In either the presence or the absence of a traditional channel, a primary constraint is that of the availability of various types of middlemen  Selecting a channel of distribution can hinge on one of these factors     Distribution coverage required Degree of control desired Total distribution cost Channel flexibility BITS Pilani, Pilani Campus
  49. 49. Selecting Channels of Distribution  Distribution coverage – Channel selection may depend upon the nature of market coverage desired  Intensive distribution – Using as many wholesalers and retailers as possible  Selective distribution – Using only the best available per geographic area  Exclusive distribution – Selected intermediaries are given exclusive rights within a particular territory BITS Pilani, Pilani Campus
  50. 50. Selecting Channels of Distribution  Degree of control desired – Achieved by the seller is proportionate to the directness of channel  Total distribution cost – Channel should be viewed as a total system composed of interdependent subsystems  Objective should be to optimize total system performance  Generally assumed that the total system should be designed to minimize costs, other things being equal  Channel flexibility – Ability of the manufacturer to adapt to changing conditions BITS Pilani, Pilani Campus
  51. 51. 3. INNOVATION STRATEGIES  Innovation is introducing something new in the economy, that can be new means of sources of raw materials, new methods of production, etc..  Advantages: • Use open innovation to reduce R&D costs • Use process innovation to reduce operating costs • Use innovation to match supply and demand • Solve your customers‟ pain • Use innovation to improve your suppliers‟ business BITS Pilani, Pilani Campus
  52. 52. Types Of Innovative Strategies 1. INVENTIVE (First to market) 2. ADAPTIVE (Second but “best”) 3. ECONOMIC (Low cost producer) BITS Pilani, Pilani Campus
  53. 53. Ways Of Innovation Strategies Radical Open source • (Explore new technology) • A problem shared is problem solved Sustainable • Sustaining innovation for a longer time Incremental • Exploring the Existing Technology BITS Pilani, Pilani Campus
  54. 54. 4. Promotional Strategy steps 1. Identify and analyze the target market 2. Define advertising objectives A. Specific, obtainable, measurable B. Communication and sales 3. Create the advertising platform 4. Determine the advertising appropriation 5. Develop the media plan A. Type of media B. Specific vehicles C. Reach and frequency D. Message content BITS Pilani, Pilani Campus
  55. 55. 4. Promotional Strategy steps 6. Create the advertising message A. Consider type of media and platform B. Copy and artwork 7. Execute the advertising campaign 8. Evaluate the effectiveness of the advertising A. Extent of reaching objectives B. Testing procedures BITS Pilani, Pilani Campus
  56. 56. 5. Pricing Strategies Market-penetration pricing - setting the price as low as possible to win a large market share, then cut price further as falling costs are experienced (Ex: IKEA Home Furnishings) May be adopted under the following conditions: a. the market is highly price sensitive and a low price stimulates market growth; b. production and distribution costs fall with accumulated production experience; c. a low price discourages actual and potential competition. BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
  57. 57. 5. Pricing Strategies Mark-up pricing - the most elementary pricing method which adds a standard mark-up to the product‟s cost - the most popular pricing strategy Advantages of mark-up pricing: a. sellers can determine costs much more easily than they can estimate demand b. where all firms in the industry use this pricing method, prices tend to be similar and price competition is minimized c. many people feel that cost-plus pricing is fairer to both buyers and sellers BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
  58. 58. 5. Pricing Strategies Target-return pricing - determining the price that would yield its target return on investment (ROI) (Ex. General Motors priced its automobiles 15%-20% ROI) - tends to ignore price elasticity and competitors‟ prices BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
  59. 59. Pricing Strategies Perceived-value pricing - made up of several elements, such as the buyers‟ image of the product performance, the warranty quality, customer support, and softer attributes such as the suppliers‟ reputation, trustworthiness, and esteem. - firms use the other marketing mix elements, such as advertising and sales force, to communicate and enhance perceived value in buyers‟ minds. BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
  60. 60. Pricing Strategies Value pricing - charging a fairly low price for a high-quality offering - reengineering the company‟s operations to become a low-cost producer without sacrificing quality, to attract a large number of valueconscious customers Practitioners of value pricing: IKEA Home Furnishings, Procter & Gamble BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
  61. 61. Pricing Strategies Going-rate pricing - the firm bases its price largely on competitors‟ prices, charging the same, more or less than major competitors - smaller firms “follow the leader” when the market leader‟s prices change rather than when their own demand or costs change - where costs are difficult to measure or competitive response is uncertain, firms feel the going price is a good solution because it is thought to reflect the industry‟s collective wisdom BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
  62. 62. Pricing Strategies Auction-type pricing - usually done using the Internet (Ex. Ebay) to dispose of excess inventories or used goods. 3 major types of auctions: 1. English auctions (ascending bids) where there is one seller and many buyers 2. Dutch auctions (descending bids) where there is one buyer and many sellers. The buyer announces what he/she wants to buy and potential sellers compete by offering the lowest price 3. Sealed-bid auctions – would-be suppliers can submit only one bid and cannot know the other bids BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
  63. 63. Pricing Strategies Geographical pricing - the company decides how to price its products to different customers in different locations and countries - company may charge higher prices to distant customers to cover the higher shipping costs BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
  64. 64. Pricing Strategies Geographical pricing Pricing options for geographical pricing: Barter – the buyer and seller directly exchange goods, with no money and no third party involved Compensation deal– the seller receives some percentage of the payment in cash and the rest in products Buyback arrangement – the seller sells a plant, equipment, or technology to another country and agrees to accept as partial payment products manufactured with the supplied equipment Offset – the seller receives full payment in cash but agrees to spend a substantial amount of the money in that country within a stated time period BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
  65. 65. Pricing Strategies Promotional pricing - companies use several pricing techniques to stimulate early purchase Techniques:  Loss-leader pricing  Special-event pricing  Cash rebates  Low-interest financing  Longer payment terms  Warranties and service contracts  Psychological discounting BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
  66. 66. Pricing Strategies Differentiated pricing - companies often adjust their basic price to accommodate differences in customers, products, locations, and so on       Customer-segment pricing Product-form pricing Image pricing Channel pricing Location pricing Time pricing BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956
  67. 67. 6. Digital marketing “Digital marketing is marketing that makes use of electronic devices such as computers, tablets, smartphones, cellphones, digital billboards, and game consoles to engage with consumers and other business partners. Internet Marketing is a major component of digital marketing.” BITS Pilani, Pilani Campus
  68. 68. 6. Digital marketing Why is digital marketing so important? • It‟s targeted, scalable and trackable • Consumers search products/services online • 86% of mobile internet users are using their devices while watching TV BITS Pilani, Pilani Campus
  69. 69. Types of digital marketing efforts • Facebook Advertising • Paid Search • Mobile Marketing • Your Website BITS Pilani, Pilani Campus
  70. 70. Facebook Advertising • • • • • Two Types of FBA - Ads & Sponsored Stories Drives engagement to page and posts Supports branding, showcasing product & events Target based on location, age, status, etc. Only pay for click throughs, which are a fairly engaged consumer. BITS Pilani, Pilani Campus
  71. 71. Paid Search • Nearly all consumers (97 percent) now use online media when researching products or services in their local area BIA/Kelsey and ConStat. • Among consumers surveyed, 90 percent use search engines with 67% being Google BITS Pilani, Pilani Campus
  72. 72. Paid Search Inches More than just keywords Broad match Eg. women's jewelry: our ad may show if a search term contains your keyword terms in any order, possibly along with others buy ladies jewelry BITS Pilani, Pilani Campus
  73. 73. Mobile Marketing • Smartphone ownership has surpassed 50 percent and growing. • 70 percent of mobile searches lead to action within an hour, in comparison to 30 percent from desktop searches. (Mobile Marketer 2012) • 61 percent of smartphone users perform local searches on their device. (ComScore, January 2012) BITS Pilani, Pilani Campus
  74. 74. Types of Mobile Marketing Pay Per Call Mobile - A form of mobile marketing where a potential customer can directly tap or click a phone number placed in the mobile ad Mobile Banner Ads - Like a standard banner ad but now customized to fit and cater to mobile websites. Mobile Applications - A from of mobile marketing that involves placing ads inside of an application design. Text/SMS Marketing - Advertisers can send relevant marketing messages in form of texts. Barcodes/QR (quick-response barcodes) - allows mobile users to easily obtain information via the use of their mobile. BITS Pilani, Pilani Campus
  75. 75. Our website and its importance • • • Is now the first exposure to YOUR brand Content is more important than ever Web responsive design BITS Pilani, Pilani Campus
  76. 76. Budgeting for digital marketing • Within the next few years digital media spends will account for 25% or more of overall marketing budget. (ComScore, February 2013) BITS Pilani, Pilani Campus
  77. 77. 7. Sustainable Growth Strategies • SGS provides strategic, analytic and executive management services to for-profit, non-profit and entrepreneurial organizations. SGS focuses on longterm, sustainable business strategies through the multifunctional integration of corporate strategy, business development, marketing, multi-channel sales, operations, financeand competitive and industry research. BITS Pilani, Pilani Campus
  78. 78. Developing a Sustainability Strategy Step 1 - Determine Business Drivers Identify the pressures that are driving your business to become more sustainable. They may include: • Potential to improve the bottom line through increased efficiencies; • Demonstrating leadership and improving your image and reputation; • Compliance and risk management; • Personal passion and commitment to making a difference. BITS Pilani, Pilani Campus
  79. 79. Developing a Sustainability Strategy Step 2 - Set a Vision • A vision statement announces your future goals – it is your „compass‟ to show the outside world where your organisation is heading. The best vision statements are short, clear and concise, realistic and have measurable outcomes. • You may choose to draft a sustainability policy that formalizes your company‟s commitment to the vision, and display it prominently in your workplace. BITS Pilani, Pilani Campus
  80. 80. Developing a Sustainability Strategy Step 3 - Set Objectives • Your objectives relate to your sustainability goals. They are more specific than your goals as they contain numbers and dates. Step 4 - Establish Current Position • In order for you to reach your goals, you will need to develop a good understanding of the current position of your business – which includes an understanding of its key impacts. Use the Sustainability Self Assessment tool to establish benchmarks and raise awareness about what sustainability means in the context of running your business. BITS Pilani, Pilani Campus
  81. 81. Developing a Sustainability Strategy Step 5 - Analyse Gaps • Identify the areas of your business that have the greatest impacts - these areas are likely to reap the greatest potential benefits. Step 6 - Develop Strategies • Now it‟s time to develop appropriate strategies to address the most significant impacts of your business. A strategy describes how you will reach your objectives and should be aligned to the business drivers identified in Step 1. BITS Pilani, Pilani Campus
  82. 82. Developing a Sustainability Strategy Step 7 - Develop Action Plan The action plan is the key planning document that describes what actions you will undertake to achieve your objectives. It identifies aspects required for implementation including: • Cost/benefit calculations and payback periods • Targets, milestones and target dates • Budgets • Other resources, including staff, technical expertise, external agencies • Monitoring, evaluation and reporting processes BITS Pilani, Pilani Campus
  83. 83. Developing a Sustainability Strategy Step 8 - Implementation • After all this planning, it‟s now time for the doing! Integrate actions into core business processes and regular reporting cycles. This is also where you may need to develop or adjust policies and procedures for the various aspects of your business to ensure that each staff member understands their role in the business. Step 9 - Monitoring and Review • This is critical to gauge your progress towards your overall objectives. Regularly monitor using graphs and diagrams to help with the communication process. You can use your Sustainability Self Assessment tool to track and monitor your progress. BITS Pilani, Pilani Campus
  84. 84. Developing a Sustainability Strategy Step 10 - Improve Incorporate this process into the company‟s overall continuous improvement process. Tips • Gain senior management support at every step • Be realistic about the time and effort required for implementation • Involve others • Display simple reports in staff room • Acknowledge & reward outcomes • Share your successes with others BITS Pilani, Pilani Campus
  85. 85. BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956