Addressing Competition and Driving Growth. Presentation Sebagai kelengkapan pengerjaan Tugas Besar satu, mata kuliah Strategic Marketing. Universitas Mercu Buana Program Studi Magister Management. Kampus Warung Buncit

1. ADDRESSING COMPETITION AND
DRIVING GROWTH
COMPETITIVE STRATEGIES FOR MARKET (MARKET LEADERS,
FOLLOWER AND NICHER)
CHAPTER 12
NAMA DOSEN:
Prof. Dr. Hapzi Ali, Ir, MM, CMA, MPM
PROGRAM STUDI MAGISTER MANAGEMENT

2. CASE DISCUSSION
1) How can market leaders expand the total market and defend
market share?
2) How should market challengers attack market leaders?
3) How can market followers or niches compete effectively?
4) How should marketers adjust their strategies and tactics for an
economic downturn or recession?

3. DEFINITION
Competitive Advantage
Is an advantage over competitors gained by
offering consumer greater value than
competitors offer
Competitive Analysis
The process of identifying key competitors; assessing
their objectives, strategies, strengths and
weaknesses, and reaction patterns; and selecting
which competitors to attack or avoid.

4. STEP IN ANALYZING COMPETITORS
Identifying the
company’s
competitors
Assessing competitor’s objectives,
strategies, strength and
weaknesses, and reaction patterns
Selecting which
competitors to
attack or avoid

5. COMPETITOR ANALYSIS
1. Identifying Competitors
o Firms face a wide range of competition
o Be careful to avoid “competitor myopia”
o Methods of identifying competitors:
 Industry point-of-view
 Market point-of-view
 Competitor maps can help

6. COMPETITOR ANALYSIS
Competitor Map

7. COMPETITOR ANALYSIS
2. Assessing Competitors
o Determining competitors’ objectives
o Identifying competitors’ strategies
 Strategic groups
o Assessing competitors’ strengths and weaknesses
 Benchmarking
o Estimating competitors’ reactions

8. COMPETITOR ANALYSIS
3. Selecting Competitors to attack or avoid
o Strong or weak competitors
 Customer value analysis
o Close or distant competitors
 Most companies compete against close competitors
o “Good” or “Bad” competitors
 The existence of competitors offers several strategic benefits

9. COMPETITIVE STRATEGY
COMPETITIVE POSITION
1. Market Leader
2. Market Challenger
3. Market Follower
4. Market Nicher

10. COMPETITIVE STRATEGY
1. Market Leader
o Expanding the total demand
 Finding new users
 Discovering and promoting new product uses
 Encouraging greater product usage
o Protecting market share
 Many considerations
 Continuous innovation
o Expanding market share
 Profitability rises with market share

11. COMPETITIVE STRATEGY
Expanding total demand: Find new User
Toyota release new product under Corolla Family name “Corolla Cross” this
variant is to response fat market in Indonesia for cross-over type vehicle also to
fill the SUV class between Toyota Rush and Toyota Fortuner.

12. COMPETITIVE STRATEGY
Protecting Market Share
Toyota Rush has release they new update model to encounter competition in
SUV low end class, this release new update has successful to bring back their
selling rate in the market.

13. COMPETITIVE STRATEGY
2. Market Challenger
Is the party that challenge and provide resistance to the
domination of market leader. In other words, its existence is a
threat to market leaders to dominate the market
Characteristic Market Challenger is
• Have market share and a position under the market leader
• Conduct attacks on market leaders, either directly or indirectly
• Enlarge yourself by acquiring a smaller business

14. COMPETITIVE STRATEGY
3. Market Follower
o Follow the market leader
 Focus is on improving profit instead of market
share
 Many advantages:
 Learn from the market leader’s experience
 Copy or improve on the leader’s offerings
 Strong profitability

15. COMPETITIVE STRATEGY - MARKET FOLLOWER
THREE QUITE DISTINCT POSTURES FOR MARKET
FOLLOWERS
• Following closely, with as similar a marketing mix and market
segmentation combination as possible
• Following at a distance, so that, although there are obvious similarities,
there are also areas of differentiation between the two
• Following selectively, both in product and market terms, so that the
likelihood of direct competition is minimized

16. COMPETITIVE STRATEGY - MARKET FOLLOWER
Mie Sedap Product is
launch on 2003 to
penetrate Mie Instant
market, face to face
with Indomie product
that already exist since
1970
Resources: https://www.topbrand-award.com/top-brand-
index/?tbi_find=indomie

17. COMPETITIVE STRATEGY
4. Market Niche
Unlike some marketing strategies that target a broad range of potential
customers, niche marketing focuses on a specific segment of
consumers that are most likely to connect with your business. (Carter,
Emily. 2020.)
o Serving market niches means targeting sub segments
o Good strategy for small firms with limited resources
o Offers high margins
o Specialization is key
 By market, customer, product, or marketing mix lines

18. COMPETITIVE STRATEGY - MARKET NICHE
THE ATTRACTIVENESS OF A MARKET NICHE IS
TYPICALLY INFLUENCED BY SEVERAL FACTORS
• It needs to be of sufficient size and purchasing power to be
profitable
• There is scope for market growth
• The niche is of little immediate interest to the major competitors
• The firm has the abilities and resources to be able to serve the
niche effectively
• The firm is capable of defending itself against an attack through
areas such as customer loyalty

19. COMPETITIVE STRATEGY - MARKET NICHE
MARKET NICHE OPERATE
• Specializing geographically
• Specializing by the type of end-user
• Specializing by product or product line
• Specializing on a quality/price spectrum

20. COMPETITIVE STRATEGY - MARKET NICHE
Conscious Consumer
Chia seed, Quinoa, Rice Bran Oil, Heirloom Vegetables, Gula Semut, Sorgum, Beras Hitam, Kale is the latest and the
most popular food currently.
The rise of the conscious consumer has paved the way for vegan, eco-friendly, and cruelty-
free variations of conventional products. If there is a product that is frequently purchased by
the mass market, there is likely a niche of conscious consumers that will embrace a greener
alternative.
In Indonesia The Ministry of Agriculture has release standard for organic regulations, including
SNI 6729-2016 regarding organic farming systems, MOA 64/2013 concerning organic farming
systems and Regulation of the Head of BPOM No.1 of 2017 concerning the supervision of
organic processed food.

21. COMPETITIVE STRATEGY - MARKET NICHE
Traveler
Even the way consumers approach traveling is evolving. In fact, travelers are becoming more
environmentally conscious. According to Booking.com, more than half seek sustainable options but
have difficulty finding them.
This gap represents a massive opportunity for brands to step up to the plate and support eco-friendly
initiatives through sustainable products. And travelers are seeking more than just green options. They
also look for authentic local experiences, convenience, and long-term trips.
Online sales in the travel industry
increased by more than 10% in
2018, amounting to $694.41
billion spent. Coupled with the
declining cost of air travel over
the last three decades, a more
mobile consumer means tons of
niche audiences to tap into, from
the frequent business traveler to
the remote worker struck with
wanderlust.

22. REFERENCE
• Craven David W. and Piercy Nigel F. 2013. Strategic Marketing, 8th edition, McGraw
hill.
• Kotler, Philip and Keller Kevin L. 2016. Marketing Management. 15th Edition Pearson.
• Gurbuz, Esen.2018.Theory of New Product Development and Its Applications.
• Berita Radar.2020.Duel Seru Mie Instan: Indomie VS Mie Sedap.
https://beritaradar.com/2020/05/16/duel-seru-mie-instan-indomie-vs-mie-sedaap/
• Kompas.com.2014.Gagal Kuliah, Jodi Sukses Bisnis Kue Beromzet Ratusan Juta.
https://money.kompas.com/read/2014/07/02/0846210/Gagal.Kuliah.Jodi.Sukses.Bisnis.
Kue.Beromzet.Ratusan.Juta?page=all

23. THE TEAM
Andreas Prasetia, ST, CSCA (NIM: 55120110096)
THANK YOU