Everything you to know about strategy on one page (Red Bull strategic example)

1. Imperatives = 1)(advisory)Determine and Recommend Markets to Address, 2)(decision role)Identify target segments, 3) Set strategic direction and
Models positioning, 4) Design the marketing offer, 5) Secure support from other functions and 6) Monitor and control execution and performance
BCG – Relative Market Share = Stars, Question Marks, Market Growth Rate = Cash Cows and Dogs (LHHL)
Growth path-M&P ExiRelNe AMarket pen,Product=BExtension-CExpansion,EBusExtension,IConglomeration&DMarketExtension,GMarketExpansionRISK
Vision, Mission, GP Timing of entry – metoo Cusquena (intro Pioneer), Red Bull (Early growth Follow the leader) & Sports pages (Late grow Segmenter)
Life Cycle Scenarios = 1)Introduction,2)Early growth leader/3)follower,[Chasm]4)Late growth,[Tornado]/[Bowling Alley] 5)Maturity but not Really!
/6)Concentrated Leader7)Concentrated Follower, 8)Fragmented Markets [Mainstreet] 9) Decline (B&H infants, stars,?,Cash cows, Dogs, war horses, Dodos)
Market Opportunity Analysis 5-step process,rationale BEHAVIOURAL segments 1) DRAW Market-Attractiveness and Competitive-Position PEST&7forces2)
Weight factors 3) Rate segments on each factor -bus strength 4) Project future position of factors (3-5yr) 5) Choose Segments to target, allocate resources
Market attractiveness comp pos matrix = Comp Position Weak Build selectively, Limited expansion, Divest, Medium, Invest to build, Manage for earnings,
Manage for earnings Strong, Protect position, Build selective, Protect and refocus and Market attractiveness Low,Med,High
Useful segments = Match business strength – 5 criteria = Differentiated, Identifiable, Stable, Measurable, Appropriate Size and Accessible (white space)
Miles&Snow 78 – generic strategy BL– Prospector (attaining growth aggressively), Analyzer (seeking to expand Markets) {Reactor and defender}
Porter Generic BL– Comp ad=Lowcost,Differentation (Leadership=Cost & Differentiation) Comp scope=Broad,Narrow (Focus=Cost & Differentiation)
Ansoff Matrix IL– Products Existing/New = Market penetration, Product development, Markets New/Existing = Market development and Diversification
Brand Identity – Externalisation/Internalisation-Source, personality, Culture, Con Mentalisation, Receiver, Reflected Con, Relationship and Physical facet
Early growth leader Markets = 1st Energy (Leader 41% cash cow 5yrs) 2nd Sport (Challenger more growth) 3rd Mass (Challenger 4%)DRAW
BCG = Behind core brand Star, Star, Star, ? and Dog (Leaders-Confrontation pro/reactive, contraction/withdrawal, fortress, expansion)
AM = 1st Buzz Marketing (Market dev), 2nd Larger cans (Market pen), 3rd Sugar free & shots (Product dev) and 4th Cola (Diversification)
Red Bull segmentation – 1st The Athlete Invest to build and protect position (Sustainability, Maximum hydration, Short boost and Overall
performance). 2nd The Worker Build selectively (Overworked, Improve productivity, Social and Refreshment). 3rd The Clubber Protect and
refocus (Home drinker, Binge drinker, Show off and Connoisseur) Attractiveness Mass Market Strategy (qualitative) Dietrich Matesclitz
Develop new product unsatisfied/latent needs, Multi attack resources/attention, Holes in offering & Considerable resources and prolonged
Ideas draw– Ogilvy&Mather Red Bull = energy x any activity = 1st Reactive Flanker (All) Athlete 50/50, 2nd Encirclement (Product&Div)
Worker 500ml tourine free 473ml same price, 3rd Leapfrog (Product&Div) Clubber cocktail/health mixer (soft drinks £6bn & water £1.2bn)
Competitor – 1st Athlete Lucozade Sport 36%/59%, 2nd Worker Coffee/mass market and 3rd Clubber Schweppes/Smirnoff ~Carbonate 28%
Invest 1] Markets = 1st Premium (growth 10% 08-15), 2nd ‘Super Premium’ (growth) and 3rd Mass Market Beer(decline 10% 04-09)draw
BCG Cusquena/Chilli Marketing = Market penetration (Same stuff – same people) (Leader Super) [330ml/620ml] Super premium Peruvian
larger with German heritage, Glacial meltwater from Andies, stocked by Gordon Ramsey restaurants (complement food), Floridita, Mojo
bars, Majestic and Top3 supermarkets. Fastest growing imported beer in the UK. USPs Taste, Quality and authenticity.
2] Cusquena segmentation – (Men18-34) 1st Affluent and Prosperous (Connoisseur, Show off, Branders and Premium give it a goes)–Invest
to build and protect (women) 2nd Young Endeavours (Quality seekers, Lifestyle Stimulated, Herd mentalities and Chic to Drinkers) – Build
selectively, (35+) 3rd Foreign Authenticities (Brand knowledgeable, Taste/Quality searchers, Broad tasters and Jetsetters) – Protect and
refocus - double men than women drinkers [focus on-trade then off-trade] Attractiveness Growth Market Strategy (new appealing seg)
Multi attack resources/attention, Develop new product unsatisfied/latent needs, Holes in offering & Considerable resources and prolonged
3] Market Challenger Future Strategies – 1) Encirclement, 2) By-pass/leapfrog, 3) Flanking (pro/reactive) and 4) Frontal attack
AM Ideas draw – Leapfrog (Diversification) FA/YE Portfolio mix Backus and Johnston Diversification bottled water and Pisco ‘Peruvian
grape liquor’ drinking sets ‘complement heritage and demographic spread’ Market expansion, Proactive Flanker (Market development)
A&P/YE Gold Peru Libra (Gold flakes) ‘The Gold of the Incas’ LE SALIENCE ‘Super Premium’, Esperanza Charity (Spanish ‘Hope’).
M-CRM Support – TRACK Artois le bar Guide/Brand relationship find the gold “Champagne of all beers” – “The Krug of all bottled lagers”.
Competition/Seg = 44% market share of all alcoholic purchasing, higher comp and tax, Big4<50 Market worth £18bn 09 falling-05
(obesity/health and economy) Beer 10% decline-Fosters, Carling & Carlsberg, Premium larger (most comp) 77% 2008 predicted 88% 2015 –
#1Stella family 4&5% (+£14million spent on advertising double Carling), Export, Heineken, Becks, Grolsch, Peroni, Corona, Tiger, Sol, Asahi,
Staropramen, Budvar, Amstel, Pilsner, Viru, Lucky and San Miguel “Super Premium” Cerveza Luchador and Mass market Cider and wine
competition increasing, Cider ‘over ice’/Flavoured alcohol beverages and extra cold versions, Health drinks and mixed drinks
Building a strong brand = FLANKER BRAND Brand identity, Brand awareness, Brand association and Brand image, Brand quality and Value perceptions,
Brand loyalty and Brand broadening (On-trade 85% by 2013 volume will be most off-trade) £15bn Home drink market (Standard 1-4.2%, Prem 4.3-7.5%)
st nd rd
Invest/Divest 1] Markets = 1 Memorabilia, 2 Corporate buyers and 3 Sport collectors (Behavioural/Economic barrier) – challenger
BCG Sports pages = Market Development (existing products – new users) maturity phase of lifecycle - (superior quality and service
required). (Treacey & Wiersema, 2001) Stress operational service value; and customer intimacy Sports Pages = Value Disciplines
Model/customer intimacy. 5,000 regulars and 5,000 occasional buyers, Customer base growth aim from 10,000 to 25,000 by end of 2010 &
£1.2m sales to £5m by 2015. Double corporate from 20% - 40% income. (80% estimated Fake – market driven specialising)
2] Sports Pages segmentation – (Blue Chips) 1st Corporate Collectors (Big money spenders, Got to have its, Rarer the better and Image
reflectors) – Invest to build, (Men 35+) 2nd Individual Hobbyists (Hunt down and finds, interest specifics, Information leads and time at
hands) – Protect and refocus, (Men 35+) 3rd Intrigued Sports Fans (Historic reminiscences, Present receivers, Personal need recognitions &
intriguers) – Manage for earnings [On-line 70% sales but face to face deals 60% of income] Attractive Niche Market Strategy CA-LT
Avoid investment/reduce expenditure, Maintain share short term, Increase share/exit weak comp and Strengthen niche position
3] Market Mature and Declining Future Strategies – 1) Harvesting, 2) Maintenance, 3) Profitable survivor and 4) Niche strategy
AM Ideas – Build online community = Maintenance (Market pene) IH&ISF market appeal =Fortress defence stock wider e-commerce,
Profitable Survivor (Diversification) CC Sport Art/Corporate gifs/Atmospherics/Auction (stadia/UGC paintings), Niche strategy (Market
dev) All Serviceability new/old customers members clubs (& off-line stock presentation) personal touch ‘post purchase
growth’/Differentiated interested GLOBAL stock differentiation (Kotler and Armstrong pricing mix through strategies Premium – Economy)
Competition/Seg – Auction houses Huggins & Scott, Invaluable, Christies, Mass Market sellers E-bay, Bid4sport.com, spiritofsport.co.uk
Sports specific sellers cricshop.com, cricket-books.com, soccerbid.com, Icons.com, Cut out the middle man, Specialist Corporate gifts and
Events management (in all cases On-line and/or offline) (Corporate gifts up 5% 10-11 under £50, Art Sales up 10% 08 - 10)
Social Media Marketing (B2B) – 1) Monitor conversation, 2) Identify and engage with influencers, 3) Maximise distribution over platform, 4) Empower
constitute Advocacy and 5) Measure Impact (On-line 70% sales 40% income). Online B2B marketing spend 8% 2010 – 14% 2014 (Social media 21%, Lead
generation 17%, Marketing services 15%) Aim: Customer Intimacy through segments (Events, SP Club, Gifts and Atmosphere)FB opening API (Olympics)
Strategy for growth, Venture portfolio, Screening criteria (Objectives, Compatibility, Competence, synergy) & Implementation (Internal dev, In sourcing)