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. LEARNING OBJECTIVES
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) What marketing strategies are appropriate at each stage of the
product life cycle?
5) How should marketers adjust their strategies and tactics for an
economic downturn or recession?

3. GROWTH STRATEGIES
 Building your Market
 Developng committed customers and stakeholder
 Building a powerful brand
 Innovating new products, services, and experiences
 International expansion
 Acquisitions, mergers, and alliances
 Building and outstanding reputation for social responsibility
 Partnering with government and NGOs

4. Growing The Core
Make the core of the brand as
distinctive as possible
Drive distribution though both existing
and new channels
Offer the core product in new formats
or version

5. DEFINITION
Competitive Advantage
Competitive advantages are attributed to a variety of factors
including cost structure, branding, the quality of product
offerings, the distribution network, intellectual property, and
customer service.
Competitive Analysis
A competitive analysis covers five key topics:
1.Your company’s competitors
2.Competitor product summaries
3.Competitor strengths and weaknesses
4.The strategies used by each competitor to achieve their
objectives

6. 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

7. 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

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

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

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

11. Competitive Strategies for Market Leaders
 Expanding total market
demans
 Protecting market share
 Increasing market
share
40 %
30 %
20%
10%
Market
leader
Market
challenger
Market
follower
Market
nichers

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

13. Expanding Total Market Demand
 New customers
 More usage

14. COMPETITIVE STRATEGY
Expanding total demand: Find new User
The most successful companies developing new users are Johnson & Johnson baby shampoos. At
first they were confused because the birth rate had decreased, but they observed that other family
members also used baby shampoo. Johnson & Johnson management decided to undertake an ad
campaign aimed at adults. This shampoo is the number one brand in the whole shampoo market.

15. Protecting market share
 Proactive marketing
- Responsive anticipation
- Creative anticipation

16. Protecting market share
 Defensive market
ATTACKER
(3) Preemptive
(4) Counter offensive
DEFENDER
((1)
Position
6. Contraction
(3) Flank
(5)
Mobile

17. COMPETITIVE STRATEGY
Protecting Market Share
Mitsubishi all New Xpander 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.

18. Increasing marker share
Possibility of provoking
antitrust action
Pursuing wrong
marketing activities
Economic cost
Increased maret share
affect on quality
 The cost of buying higher market share through
acqisitio may far exceed its revenue value

19. Market-challenger strategies
Defining the strategies objective and opponent (s)
A market challenger can attack :
 The market leader
 Underfunded firms its own size
 Small local and regional firms
 The status quo

20. COMPETITIVE STRATEGY
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

21. Market-Challenger Strategies
 Choosing a general acttack strategies
Markeet Challenger
(1) Frontal
Attack
Market Leader
Strategic
Objective
(3) Flank Attack
(6) Guerrilla
(4) Bypass Attack
(1)
Encirclemen
t Attack

22. Market-Follower Strategies
Cloner
Imitator
Adapter

23. COMPETITIVE STRATEGY
Market Follower
 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

24. 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

25. COMPETITIVE STRATEGY - MARKET FOLLOWER
Star Mild Cigarette Product is launch on
1996 to penetrate Mild Cigarettes
market, face to face with A Mild product
that already exist since 1989.
The main strategy they offer is usually a
lower price. They play in value
marketing. An easy example that we've
seen is Star Mild coming to the market.
This cigarette brand succeeded in
"robbing" the market share in the mild
class with a sizable percentage because
it offered a lower price than A Mild, the
brand that existed earlier.

26. Market-Nicher Strategies
 To be a leader in a small market
 Firms with low shares of the total market can
become highly profitable through smart miching

27. COMPETITIVE STRATEGY
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.)
 Serving market niches means targeting sub segments
 Good strategy for small firms with limited resources
 Offers high margins
 Specialization is key
 By market, customer, product, or marketing mix lines

28. 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

29. 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

30. COMPETITIVE STRATEGY - MARKET NICHE
Conscious Consumer
The food and beverage business is a business sector that has many niche markets. For example Lemonilo,
which is eyeing the market for healthy, preservative-free and organic foods, is a niche market that focuses on
people who care about health.
Then in the retail industry there is also a market niche consisting of various trends, styles and demographics.
For example, a niche market for pregnant women, or Muslim children's clothing.
A niche market is also found in various online businesses such as blogs, Youtube channels, online courses and
so on. For example, IDNtrepreneur itself targets a niche market for MSME entrepreneurs, online businesses and
aspiring Indonesian entrepreneurs.

31. COMPETITIVE STRATEGY - MARKET NICHE
Conscious Consumer
For example, Nike, a manufacturer of sports shoes, is constantly creating new niches by
designing special shoes for sports and various activities such as mountaineering, cycling,
etc. Then Nike Expand by designing different versions and brands. Ultimately Nike had to
protect its leadership when new competitors entered the niche.

32. REFERENCE
• Kotler, Philip and Keller Kevin L. 2016. Marketing Management. 15th Edition Pearson.
• Craven David W. and Piercy Nigel F. 2013. Strategic Marketing, 8th edition, McGraw
hilll
• Gurbuz, Esen.2018.Theory of New Product Development and Its Applications.
• IDN Trepreneur, Firman, Maret 13, 2020, Definisi dan Pengertian Niche Market atau
Ceruk Pasar
• Investopedia, Alexandra Twin, Jul 7, 2020, Competitive Advantage
• Top Brand Brand award, Band Follower, 23 Desember 2019

33. THE TEAM
Ir. Rizal Agung W, IPU (NIM: 55120110187)
THANK YOU