business development.pdf

NPTEL COURSE
BUSINESS DEVELOPMENT
From Start to Scale
Week 1: Lectures 1 to 5
Business Fundamentals
Lecture 1: Understanding Business Development
Prof. C Bhaktavatsala Rao, Ph.D.
Ajit Singhvi Chair Professor
Department of Management Studies
Indian Institute of Technology Madras
and
Founder – LeaderCrest Academy

About the Instructor, Prof. C Bhaktavatsala Rao…
• Received Ph.D. Degree in Industrial Management and M.Tech. Degree in Industrial
Engineering from the Indian Institute of Technology Madras, Chennai. Received B.E.
Degree in Mechanical Engineering from Sri Venkateswara University, Tirupati.
• Have over forty-eight years of diversified experience in strategic and operational
leadership of large reputed companies, including global MNCs, in India. My last
fulltime assignment was as Managing Director and Executive Chairman of Pfizer
Healthcare India Private Limited.
• Have been passionate about writing and publishing as well as teaching. Have over
170 publications in economic and business dailies and refereed journals.
• Have established LeaderCrest Academy for high quality academic publishing. Have
authored and published ten books under LeaderCrest banner over the last five years.
• Currently serving as Ajit Singhvi Chair Professor in Management Studies, DoMS, at
the Indian Institute of Technology Madras, Chennai.
• Have offered three Courses “Entrepreneurship: Perspectives of Business Strategy and
Economic Development”, “Leadership for India Inc: Practical Concepts and
Constructs”, and “Strategy and Technology: A Practical Primer” on NPTEL-Swayam
Platform. This course “Business Development: From Start to Scale” is the fourth one.

Business Development (BD)
Identifying,
defining and
shaping the
known and
unknown
customer needs
Developing
products and
services that
meet customer
needs
BD is a
partnership
process that co-
creates value
for the company
and its
customers
Shapes Mega
Trends
Leverages
Competencies
Delivers on a
Socio-Economic
Purpose

NPTEL Course – Business Development
A comprehensive
study of business
development
concepts, models,
methodologies, and
tools
A unique integration
of adjunct domains
such as strategic
marketing, business
strategy and
business models
Provides end-to-end
value chain
perspectives that
are needed for
effective business
development
Integrates several
real-life examples
and case studies
Building Blocks of
Business
Drivers of Company and
Customer Connect
Creating the Right
Business Impact
Enterprise Growth,
Economic Prosperity,
Professional Fulfilment

Business Development: Course Structure… (1/3)
Week Theme
Lectures
1 BUSINESS FUNDAMENTALS
1. Understanding Business Development
2. Marketing and Business Development
3. Markets and Marketing
4. Strategy Formulation
5. Business Development Cases
2
STRATEGIES
6. Successful Businesses
7. Industry and Market
8. Vision, Mission and Strategy
9. Goals
10. Case Studies of Business Development Excellence
3
INDUSTRY STRUCTURE AND
COMPANY ANALYSIS
11. Industry and Business
12. Porter’s Five Forces Theory
13. Industrial Transformations
14. Competitive Strategies
15. Company Analysis
4
MARKET AND COMPETITOR
ANALYSIS
16. Industry, Market and Business
17. Industry and Market Analysis
18. Market Structures
19. Demand Forecasting
20. Competitor Analysis
5
CONNECTING WITH
CUSTOMERS
21. Customer Characteristics
22. Customer Typologies
23. Market Research and Design Thinking
24. Customer bonding
25. Customer Relationship Management

Strategy and Technology: Course Structure… (2/3)
Week Theme Description
6
BUSINESS AND MARKET
SEGMENTS
26. Market and Market Descriptors
27. Market and Product Segmentation
28. Product-Market Segmentation
29. Segmentation Deep Dive
30. Market Attractiveness and Competitive Positioning
7 BRANDING AND PRICING
31. Branding
32. Brand Organisation
33. Advertising and Communication
34. Servitization
35. Pricing
8 CORPORATE DEVELOPMENT
36. A New IT Start-up
37. An FMCG Start-up
38. A Logistics Start-up
39. A Nutraceuticals Start-up
40. A Telecom Fightback
9
STRUCTURES
41. Collaborations
42. Strategic Alliances
43. Joint Ventures
44. Subsidiaries
45. Mergers and Acquisitions
10
COMPETENCIES
46. Value Chain Competencies
47. Functional Competencies
48. Negotiating Skills
49. Cultural Skills
50. Leadership Attributes

Strategy and Technology: Course Structure… (3/3)
Week Theme Description
11
STRATEGIES FOR MARKETS
AND INDUSTRIES
51. Growth Strategies
52. Growth Examples
53. Fragmented Industries and Emerging Industries
54. Mature Industries and Declining Industries
55. Global Industries and New Businesses
12
CASE STUDIES
56. A Pharma Transformation
57. Pharma Strategic Alliances
58. Business Turbulence
59. Creating Value
60. From Start to Scale
In Closing
Multiple Enriching Case Studies, across Businesses and Industries
Start-ups Companies Conglomerates

Course Delivery…
12 Week, 60
Lecture Course;
5 Lectures per
Week with end-
of-the week
assignments
Each week will
focus on one
core theme;
Each lecture will
cover specific
topics
Will provide
illustrative and
experiential
examples
throughout
Will feature a
few case studies
of BD leading to
enterprise value
creation
Around 1600 data- and
information-rich slides
Presents global as well as
local perspectives of
strategic and tactical
business development
Images from public
domain or under Creative
Commons purely for
educational purposes.
Copyrights respected.

Unique Features
Provides a detailed and integrated overview of the growth-driving domain of
business development
Lays out the strategies and tactics of business development through
multiple frameworks and models
Links up business development with strategic marketing to lead to
enterprise competitiveness, growth and sustainability.
Useful for a broad spectrum of students and working professionals to develop
and hone their strategic skills, integrating multiple technology insights.
Embeds Strategic
Marketing
Approaches
Multiple Adjunct
Areas Covered

Upon Completion of the Course, Participants are Likely to…
Develop Critical Business Development Skills
Grasp the art
and science of
formulating and
executing
business
development
approaches
Be a Development Visionary
Appreciate how
to be the
visionaries and
strategists of
business with
anticipation and
execution
Leverage Multiple Functions
Understand and
appreciate the
role of multiple
functions in
driving business
development
Personal Gravitas
Become holistic
professionals
with personal
gravitas that
translates to
positive
company image

The Domain of Business Development
Integrates the various strategies, processes and tasks to drive a
firm’s business performance.
Requires close interface with various other functions,
aligning with the vision, mission, and strategy of the firm.
Both tactical and strategic in nature, involving initiatives within
the company and between the company and its customers
Vision and
Mission
Business
Strategy
Functional
Strategies
Group
Corporate
Business
Division
Product
Short Term
Performance
Long Term
Performance
Sustainable
Performance

Two Key Streams of Enquiry
Supply-side
factors
Industry
factors
Firm factors
Product
factors
Demand-
side factors
Customer
factors
Environmental
factors
Behavioural
response
factors
Business development, with respect to a business and industry, is influenced by…
Industry
Nature
Competitors
Collaborators
Customer
Demographics
Attitudes,
Beliefs,
Preferences
Enablers
The frameworks and constructs proposed will address the above in an interconnected manner

Course Level Learning Outcomes
Understand business development as a key
component of business strategy and corporate
development
Appreciate the role of heads of business
development as partners to the CEO and other
CXOs
Analyse how different contexts require different
business development strategies
Master the tools and techniques that build long-
term value for customers and companies for
business partnerships
In addition, hone the abilities to develop and present professional analysis through
formal presentations

Differences between Sales, Marketing and Business Development
Factor Sales Marketing Business Development
Essence The process of selling a product or
service to a customer at a given
point of time
The process of addressing the total
market for a product to develop and
fulfil demand over a timeline
The process of creating partnerships
between the company and other
stakeholders for developing business
Orientation Transaction between the firm and
the customer for mutual
consideration
Experience of the customer with the
product for long term association
Creating structures and relationships
for long term value creation
Focus Company needs and targets Customer needs and trends Business synergy between the
company and its customers
Scope Sale All activities including but not limited
to market research, pilot, sale and
service
All activities related to but not
limited to analysing mutual business
needs and fulfilling the needs
Methodology Induce shoppers and customers to
buy
Create a customer-centric experience Develop a value proposition for
strategic association
Metrics Revenue and Profit Brand value Business growth
Rule Caveat Emptor Caveat Vendor Transparency
Techniques 4Ps (Product, Price, Place,
Promotion)
4 Vs (will be presented later) 4 Cs (will be presented later)
Skills required Selling and communication skills Conceptual and analytical skills Strategic business skills and Value
chain capabilities
Objective Business growth Sustainable business
growth
Sustainable strategic business growth
Sales, Marketing and Business Development are not synonymous with each other. There are important differences.

Defining Business
Business is the activity of an organisation
to develop, manufacture, and/or market
products and/or services to individuals
or entities to earn revenues and profits
and generate returns to the investors

Some Types of Businesses
Business
Typologies
R&D
Businesses
Manufacturing
Businesses
Marketing
Businesses
Product
Businesses
Service
Businesses
Integrated
Businesses

Defining Business Development
Transactional
By providing
products and
services to
customers through
commercial
relationships
Reinforcing
By developing
collaborations,
alliances, and
partnerships with
business entities
Futuristic
By identifying
opportunities as per
the classic product-
market grid, also
spotting the mega-
trends of the future
Business development involves anticipating, identifying and developing opportunities for enhancing business.

Allied Functions and Processes
Business
Development
Strategy
Sales
Marketing
Sets the context and provides the direction
Helps promote the company and the brand Leads to enhanced sales and business

The Selling Process
Prospecting Initial Contact Qualifying Lead
Approaching
Product
Demonstration
Proposal and
Clarification
Sale Closing Cash Collection Repeat Contact
The Selling Process is a fairly standardised straightforward process between a seller and buyer in a marketplace
The selling process is judged by its ability to generate sustainable revenues and profits from the target groups.
Company
Product or
Service Sale
Customer

The Strategic Marketing Process
Research
Needs
Identify Trends Define Market
Segment the
Market
Create Product
Prove the
Concept
Align Business
and Market
Strategy
Position the
Company and
the Product
Execute and
Monitor the
Marketing Plan
The Strategic Marketing Process is a rigorous and customised process of discovery, development and execution.
It is an internally and externally networked process that is aligned to business strategy for the firm’s sustainable growth.
Product
Market
Business

The Business Development Process
Introspect on the
Company Value Chain
Identify Value Points
and Value Gaps
Identify Potential
Partners with
Complementary Value
Points and Gaps
Discuss the Potential
to Reinforce each
other’s Value Chain
Create a Combined
Value Proposition
Test the Strategic
Feasibility and
Economic Viability
Align Business Market
Strategy and Business
Model
Structure Partnership
Agreement
Execute and Monitor
the Partnership
Business Development is a conceptual and analytical process of fusing the company and customer value chains.
It is a networking and partnership process that is aligned to the business strategy for the firm’s sustainable growth.
Partner A
Value
Proposition
Partner B

What is Strategy?
Simply put, strategy is a plan of action to achieve certain goals. Many times, goals are also set by the strategy
process itself. Michael Porter popularized competitive strategy, rather than just strategy, as the key concept.
The study of competitive strategy is considered integral to the study of any function. That’s because, for a firm, the
competitive strategy goes beyond the sum of functional strategies. The former must drive the latter, not vice versa.
Strategic
Context
Industry
The Firm
Competition
Core
Disciplines
Industry
Analysis
Strategic
Positioning
Competitor
Analysis
Is Strategy a
Game of Mirrors?
Is Strategy one of
Analysis or
Intuition?

Strategy
Strategy is the key driver of all things a firm or a business wants to do. Every entity will have an overall strategy
while each business will have a business strategy. Each function will also have its strategy. Strategy, therefore, is not
just one grand plan but is a network of multiple plans. Strategic architecture varies across firms and industries.
While there will be a fair bit of iteration among various functions, and between functions on one hand and business
strategy on the other hand, typically business strategy leads to functional strategies.
Business
Strategy
Corporate
Strategy
Conglomerate
Strategy
Corporate
Strategy
R&D
Strategy
Operations
Strategy
Marketing
Strategy
Finance
Strategy
HR
Strategy
IT Strategy

NPTEL COURSE
From Start to Scale
Lecture 2: Marketing and Business Development
and

Marketing
27
Marketing is the activity, set of institutions,
and processes for creating, communicating,
delivering, and exchanging offerings that
have value for customers, clients, partners,
and society at large. (AMA, 2017)

Marketing Concept
28
Planning and coordination of all
company activities….
….around the primary goal of
satisfying customer needs is…
….the most effective means to
attain and sustain a competitive
advantage.
Complete
Value Chain
Around the
Customer
Sustainable
Competitive
Advantage

Market-Oriented Firms
29
Market-Oriented
Firms
All departments and personnel
are focused on customer needs
and competitive fulfilments
Develop and adapt products
and programmes to respond to
changes in the environment
Conduct intense marketing
research prior to product
development
Segment markets and position
appropriate products, with
tailored programmes
Smartphones
Galaxy S22 Series
Galaxy A Series
Galaxy M Series

Production Orientation Vs. Marketing Orientation
30
Business Activity
or Function
Production Orientation Marketing Orientation
Product offering Develop and manufacture
products as per available
competencies
Develop and manufacture products
as per customer needs
Product range Narrow Broad
Pricing Based on costs and margins Based on perceived value
Market segments Homogenous Heterogenous
Product
packaging
Product protection Customer appeal, additionally
Financing Third party Captive or networked
Promotion Technical Additionally, lifecycle value

Methods of Market Development
31
Growth predominantly from
additional markets
Growth driven by both product
expansion and market expansion
improved market penetration
product expansion
Most businesses
deploy a hybrid of
the four modes of
commerce
Existing Products New Products
Existing
Markets
New
Markets

Categories of Marketing
32
Direct to Consumer (D2C) through
company digital sites
Direct to Business (D2B) through
customer portal, auction sites and
other digital means
Layered selling to consumers
through wholesale and retail
chains
Layered selling to businesses
through intermediaries
Most businesses
deploy a hybrid of
the four categories of
commerce
Business to Consumer Business to Business
Physical
Digital

Marketing and Business Development
33
Marketing
Provides market
inputs to business
strategy
Executes based
on finalised
business strategy
Has short and
medium term
impact on
business
Business
Development
Provides strategic
inputs to business
strategy
Enhances the
scope and
effectiveness of
business strategy
Has medium and
long term impact
on business
Sales
Marketing
Business
Development
Revenues
and Profits

Marketing Functionalities
34
Marketing
Sales
Service
Spare Parts
Finance
Advertising
Sales
Promotion
Business
Strategy
Marketing
Strategy
Marketing
Operations
Revenues
and Profits

Business Development
35
Business Development is the activity, set of
institutions, and processes for identifying
medium and long term business
opportunities and creating relational
frameworks that ensure complementarity
and mutual benefit on a sustainable basis

Business Development Functionalities
36
Identify Macro-
Markets
Create Long-
Term Networks
Enhance
Business through
Alliances
Create Joint
Ventures
Manage Mergers
and Acquisitions
Business
Development
Business
Strategy
Business
Development
Integration
Revenues and
Profits

The Roots and Role of Business Development
37
Companies
Established
Improving
Business
Diversifying
Business
New
Securing the
Niche
Securing
Multiple Niches
Single business
companies
Multi-business
companies and
conglomerates
Start-up
businesses in the
initial phase
Start-up
businesses in the
ramp-up phase
Passenger Cars
Energy, Retail,
Telecom
Space Launch
Vehicles
Delivery Service
Spectrum

BD by Established Single Business Companies
38
Single
Business
Companies
Expand markets for the new
product variants
Add new product variants in
the current product family
for the current markets
Expand markets for the
current product line
Improve market share for
the current product line in
the current markets
Strong strategic marketing
capabilities
Strong sales and marketing
capabilities
Strong marketing
capabilities
Strong sales and sales
promotion capabilities
BD by Established Single Business Companies
Increasing
Role
of
Business
Development
All the above require multi-functional support – from R&D to Quality and from Finance to Strategy, for example

Established Single Business Company
39
Idli Batter
in Chennai
and
Bengaluru
Coverage of
most Indian
metros and
top Tier 1
cities with
batter
products
Multiple
convenience
food
products
such as
paneer,
parota and
coffee
decoction
2005
2021
International
markets,
with
presence in
cities of USA
and Middle
East
2010
2015

BD by Established Diversifying Business Companies
40
Diversifying
Business
Companies Innovate to create new
mega trends and new
businesses
Spot emerging mega trends
and prepare for product-
market transformations
Create new product-market
niches
Improve current product-
market depth and breadth
in every business
Strong visionary,
missionary and strategic
capabilities
Strong business strategy
and strategic marketing
capabilities
Strong strategic marketing
capabilities
capabilities
Increasing
Role
of
Business
Development

Established Diversifying Business Companies
41
Operational
excellence and
Product
excellence
Globalisation of
businesses:
Beverages, Steel,
Automobiles,
Hotels etc.
Product-market
diversification
alongside business
consolidation for
growth
1990s
Electric Vehicles
Electric Batteries
Renewable Power
Hydrogen Power
Super Apps
2000s
2010s
2020s

BD by Start-ups in the Initial Phase
42
Business
Start-up
Companies
Establish sustainable
competitive advantage
Achieve market breadth
and depth
Commercial launch and
initial sale
Launch test and pilot
marketing
Strong strategic business
skills
Strong sales and strategic
marketing capabilities
capabilities
Strong technical selling
skills
Increasing
Role
of
Business
Development

A Start-up in the Initial Phase
43
• Indiegogo
• Market to Fund
2018: Test
Marketing
• Social media
marketing
• Word of mouth
2019: Commercial
Launch • Pandemic
management
• B2C plus B2B
2020: Market Depth
and Breadth
• Operating System (OS)
as the competitive
advantage
• Unbundling of the OS
2022:Competitive
Advantage

BD by Start-ups in the Ramp-up Phase
44
Business
Ramping-up
Start-
up
Companies
Become a pan-market
phenomenon
Achieve market
breadth and depth
Create multiple
product-market niches
Improve the breadth
and depth of the niche
Strong strategic business
skills
Strong sales, sales
promotion and strategic
marketing capabilities
Strong business strategy
skills
Strong technical selling
skills
Increasing
Role
of
Business
Development

A Start-up in the Ramp-up Phase
45
Operating in
500 plus
Indian cities,
Pan India
Food
Delivery
Package
Delivery
Instant
Groceries
2022
Rapid
growth and
penetration
in food
delivery
Aided by
Covid-19
pandemic
2020
Expanded
offerings
Enhanced
restaurant
relationships
Reinforced
delivery
organisation
2018
Reinforced
digital App
Integrated
payment and
order
tracking
systems
2016

Markets and People
46
Point of Sale
Retail Store
Retail Mall
Digital Universe
Individual
Customer
Customer
Groups
Market
Segment
Customer
Universe

Synergy of
Sales,
Marketing
and Business
Development
47
• Earns revenue for the company in
exchange for product or service for
the customer
Sales
• Seeks customer clusters who have
homogeneity of needs
Marketing
• Prospects and develops relationships
with major customer groups for
current or future products
Business Development

Three Approaches to Business Development
48
• Product fulfils a novel need
• Product creates appeal
Product
Driven
• Customer has choices
• Customer evaluates
Customer
Driven
• A dynamic product-market
match
• Adaptive business development
Context
Driven
Digital Watch
Automobiles
Mutual Funds

Marketing – BD Gradation: A Pharma Example
49
Markets
Patients
Doctor Clinic Hospital Pharmacy -
Physical
Pharmacy -
Digital
GPOs -
Private
GPOs -
Govnmnts
Cardiac
Pulmonary
Vascular
Gastro
Endocrin
Oncology
Nephro
O&G
Paediatrics
Derma
Others
Sales and Marketing Business Development

NPTEL COURSE
From Start to Scale
Lecture 3: Markets and Marketing
and

Marketing Strategy
Marketing strategy is the planning and execution of how a firm can exchange its products and services with
individuals or organizations for a consideration. The consideration can be cash in respect of for-profit companies
and goodwill or just a service motive in respect of not-for-profit organizations. Virtually anything can be marketed.
Marketplace is a nebulous concept that is core and central to marketing strategy. Marketplace is part physical and
part virtual – and in both cases very real. Marketplaces can be focused (limited) and pervasive (universal).
Goods Services Events Experiences Persons
Places Properties Entities Information Ideas
The Firm The Marketplace The Customers
Supply Fulfilment Demand

Traditional Marketplaces
A marketplace is one in which an interaction or cash-consideration exchange takes place between the
sellers and buyers. Along with the evolution of trade-based economy, the marketplaces evolved over the
centuries, each of the formats supplementing rather than eliminating the established ones, and all physical.
The marketplaces range from institutional platforms to self-entrepreneurial ones. Each has its intrinsic features
and characteristics. Marketing makes the marketplace effective in fulfilling the buyer-seller motivations.

Digital Marketplaces
One of the pathbreaking changes that has occurred over the last two decades has been a radical
redefinition of the marketplace, thanks to creative business models that are aided by digital technologies.
The marketplace transformations have moved from ‘aggregation and disintermediation’ model to value-added
solution models that bring together multiple processes for greater customer experience. Digital needs Physical.

Demand Types
A good marketing strategy identifies different types of demand and comes up with matched solutions.
• Consumers dislike the
product or service
• Consumers may even pay to
avoid the product or service
Negative
Demand
• Consumers unaware of the
demand
• Consumers disbelieve the
need or the product
Non-existent
Demand
• Consumers feel the need
but cannot express
• Consumers think demand
cannot be fulfilled
Latent
Demand
• Consumers lose interest in
the product
• The need itself becomes less
relevant
Declining
Demand
•Demand is seasonal, cyclical in
a predictable manner
•Demand is random and quite
unpredictable
Irregular
Demand
•Consumers certainly need and
consume the product in full
•Consumers encourage
extensions and variants
Full Demand
• Consumers keep asking for
more than can be provided
• Overflowing demand masks
megatrends that could arise
Overfull
Demand
• Consumers chase incorrect
product prescriptions
• Consumers drawn towards
‘sin products’
Deviant
Demand

Understanding Marketing
The following is a conceptual framework of markets. Flow of products/services and money is the key characteristic.
The important aspect in the modern economy is that every market transaction has a tax contribution to the government.
Government
Markets
Consumer Markets
Manufacturer
Markets
Intermediary
Markets
Resource Markets
Resources Resources
Money Money
Taxes,
goods
Taxes, goods
Services,
money
Services,
money
Taxes
Services,
money
Taxes,
goods
Money Money
Services
Goods and services Goods and services
Structure of Flows in Modern Exchange Economy

Core Marketing Interactions
In a simple and common marketing system, the focus on the interactions between the industry characterized
by several sellers and the markets, characterized by number of buyers (individuals or institutions).
In today’s times, information has become an overwhelmingly important factor in any marketing interaction.
Considering that any interaction is a marketing interaction, information influences both supply and demand.
Industry
(a collection of sellers)
Market
(a collection of buyers)
Goods/Services
Communication
Money
Information
A Simple Marketing System

Core Marketing Concepts
Listed below are the marketing concepts that are an essential part of any marketer’s lexicon and practice.
Marketing management covers all of the above so that firms can do business with customers who fulfil their needs.
Core Marketing Concepts
Needs, Wants and Demands
Target Markets, Positioning and Segmentation
Offerings and Brands
Marketing Channels
Paid, Owned and Earned Media
Impressions and Engagement
Value and Satisfaction
Supply Chain
Competition
Cooperation and Collaboration
Marketing Environment

Marketing Universe
Marketing universes are created based on exploration. Global trading had its origins based on such explorations.
Global supply chains based on outsourcing and offshoring have created new marketing universes for
companies. Similarly, government policies enabled companies explore global markets ahead of local markets.
Global
Markets
Local
Markets
State
Markets
National
Markets
Regional
Markets
Local
Companies
National
Companies
Export Oriented
Companies
SEZ Companies

Marketing Chain
In many products and many markets, cooperatives and government intermediaries help push the marketplace canvas.
The actual supply chain tends to be more involved and complex than the above. Resource sufficiency and
conversion efficiency determine the evolution of a product’s or company’s supply chain.
Ethiopian farmers
grow and harvest
coffee beans
Farmers sell the
beans to Fair Trade
Cooperative
Coffee is washed,
dried and packaged
for shipment
Alternative Trading
Organisation
transports beans to
the developed world
Coffee is sold directly
or via retail channels
The Supply Chain For Coffee

Holistic Marketing
As with other functions, the holism in marketing may be clouded by the association an individual has with a facet.
The job of the marketing manager will be effective when the employees see it more than as a just functional task.
Holistic
Marketing
Internal
Marketing
Integrated
Marketing
Relationship
Marketing
Performance
Marketing
Marketing
Department
Senior
Management
Other
Departments Communications
Channels
Product & Services
Price
Sales Revenue
Brand & Customer
Equity
Legal
Environment
Ethics
Social
Customers
Employees
Financial Community
Partners

The 4 Ps of Marketing Mix
Marketing Mix has been one of the earliest foundations of marketing theory and practice. The 4 Ps are still relevant.
Any marketing strategy requires the components of the marketing mix to be fully checked out and finalised.
Marketing Mix
PRODUCT
Product Variety
Quality
Design
Features
Brand Name
Packaging
Sizes
Services
Warranties
Returns
PRICE
List Price
Discounts
Allowances
Payment Period
Credit Terms
Cashbacks
PROMOTION
Sales Promotion
Advertising
Sales Force
Public Relations
Direct Marketing
Trade-in
Exchanges
Loyalty points
PLACE
Channels
Coverage
Assortments
Locations
Inventory
Transport

Additional 4 Vs of New Age Marketing
There is a clear rationale for considering the additional 4 Vs as a value addition for the current 4 Ps.
New age marketing requires both the traditional 4 Ps and the 4 Vs suggested above.
Marketing Mix
Four Ps
Product
Place
Promotion
Price
New Age Marketing Mix
Additional Four Vs
Validated experience
Velocity
Vendor’s Responsibility
Value over lifetime
The Evolution of Marketing Management
Rationale for the
Additional Four Vs
Customers need validated experience
more than functionality
PoS is more widespread than a dealer
point
In the circular economy, production and
consumption must be responsible
Purchase cost plus lifecycle operating
cost minus trade-in price at NPV

Internal Marketing Environment
Internal marketing environment is no longer purely internal; it is now a networked ecosystem related to the firm.
The study of internal and external environment is very much in the scope of structural analysis of the industry.
The Firm’s
Internal
Environment
The Firm
Suppliers
Distributors
Dealers
Customers
Financiers
Seeking Growth;
Infrastructure-driven
Business-related
Multi-channel
Alliance-based
Need-driven; Also,
constitute the
demographic
environment
Return-seeking on
investments made

External Marketing Environment
External marketing environment is a key driver of marketing opportunity and change. It drives marketing strategy.
Strategic marketing requires a thorough understanding of how the external environment will shape
and how the internal environment can be shaped to respond to the external environment.
External
Marketing
Environment
Demographic
Environment
Economic
Environment
Socio-cultural
Environment
Natural
Environment
Technological
Environment
Politico-Legal
Environment
Known; Predictable; Also, a
key driver of customer
needs
Historical; Aspirational;
Globally-linked
Native; National
Resource based
Transformative
Susceptible to
change

Conceptual Evolution
Marketing harmony is a process of blending the internal firm environment with the external marketing
environment seamlessly. This requires marketing to partner corporate/business strategy as well as other
functional strategies. The five evolutionary phases of marketing approach, as viewed by firms, is as below.
The Production Concept (The Oldest, from the Ford Model T Days)
Standardised
products at the
lowest costs.
Mass distribution.
Feature Diversification Concept (The GM Model)
Diversify features
and enhance
quality.
The beginning of
market
segmentation.
The Selling Concept
Firm needs to
push itself to sell
more to its
consumers.
Enhanced sales
will lead to better
economics.
The Marketing Concept
The Strategic
Marketing Concept
Customer-
oriented
influencing
approach.
Builds loyalty to
the brand and
the company by
serving the
customer
effectively.
Predicting or
shaping mega-
trends of the
future to co-
create novel
customer
experiences.
Seamless
strategic fit,
internal and
external.

Strategic Marketing
Strategic marketing is the process of aligning the marketing function of an organization with the long term vision and
mission of the organization such that the firm secures competitive advantage in the short, medium and long term.
Strategic Marketing has to work alongside Strategic Planning to lead the company on long term sustainable growth.
Long Term
Medium Term
Short Term
• Futuristic Business
• Value Creation
• Emerging Business
• Market Share and
Revenue Share
• Current Business
• Revenue and Profit
Maximization

Customer-Centricity
An inverted organisation pyramid with customers on the top and the frontline people being next to them, with
customer interface across all the organisational levels reflects the new customer-centric organisation.
In fact, customer centricity must percolate and permeate all organisational levels and roles. It is a cultural anchor.
Top
Manage
-ment
Middle Management
Frontline People
CUSTOMERS
CUSTOMERS
Frontline People
Middle Management
Top
Manage
-ment
C
U
S
T
O
M
E
R
S
C
U
S
T
O
M
E
R
S
Traditional Organisation Pyramid Customer-Oriented Organisation Pyramid

Culture of Customer Centricity – 1
The culture of customer centricity requires that every department and individual of the firm must be customer-centric.
While Marketing is the department of direct interface, various other functions can learn a lot with customer-centricity.
Assessing Which Company Departments Are Customer-Minded
R&D
• They spend time meeting customers and listening to their problems
• They welcome the involvement of marketing, manufacturing and other departments to each new project
• They benchmark competitor's products and seek “best of class” solutions
• They solicit customer reactions and suggestions as the project progresses
• They continuously improve and refine the product on the basis of market feedback
Purchasing
• They proactively search for the best suppliers
• They build long-term relationships with fewer but more reliable, high-quality suppliers
• They don’t compromise quality for price savings
Manufacturing
• They invite customers to visit and tour their plants
• They visit customer plants and working spaces
• They willingly work over-time to meet promised delivery schedules
• They continuously search for ways to produce goods faster and/or at lower cost
• They continuously improve product quality, aiming for zero defects
• They meet customer requirements for “customization” where possible
• Marketing
• They study customer needs and wants in well-defined market segments
• They allocate marketing effort in relation to the long-run profit potential of the targeted segments
• They develop winning offers for each target segment
• They measure company image and customer satisfaction on a continuous basis
• They continuously gather and evaluate ideas for new products, product improvements, and services
• They urge all company departments and employees to be customer-centered

Culture of Customer Centricity – 2
Sales is one department that has direct and perpetual interface with customers. Typically, in the short term, sales
executes what marketing conceptualises and develops.
A firm benefits when even staff and service functions consider the customers and their needs in their operations.
Source: Philip Kotler, Kotler on Marketing (New York: Free Press, 1999), pp 21-22. Reprinted with
permission of The Free Press, a Division of Simon & Schuster Adult Publishing Group
Sales
• They have direct experience of fulfilling the customer needs
• They understand and execute on customer contracts
• They are responsible for meeting the company’s sales targets
• They acts as the transactional and translational arm of Marketing
• They serve the same customers for a long period of time
Logistics
• They set a high standard for service delivery time and meet this standard consistency
• They operate a knowledgeable and friendly customer service department that can answer questions, handle complaints, and
resolve problems in a satisfactory and timely manner
Accounting
• They prepare periodic “profitability” reports by product, market segment , geographic areas (regions, sales, territories), order
sizes, channels and individual customers
• They prepare invoices tailored to customer needs and answer customer queries courteously and quickly
Finance
• They understand and support marketing expenditures (e.g., image advertising) that produce long-term customer preference and
loyalty
• They tailor the financial package to the customer’s financial requirements
• They make quick decisions on customer creditworthiness
Public Relations
• They send out favorable news about the company and “damage control” unfavorable news
• They act as an internal customer and public advocate for better company policies and practices

Strategic Marketing Options
Strategic marketing has several options to accomplish its mission which may look strikingly similar to marketing as is
usually carried out. The difference lies in strategic marketing looking beyond the current to capture the future.
All the above are great examples of Marketing establishing a brand or growing a company and its business.
However, the companies are also vulnerable to similar marketing strategies deployed by competition.
Product: Features, Specs, Utility, Novelty, Quality etc.,
Market: Customers, Segments, Needs and Wants etc.,
Pricing: Gross price, net price etc.,
Promotion: Information, Communication, Influencing etc.,
People: Founders, Management, Salesforce
Place: The distribution, delivery and service network etc.,

NPTEL COURSE
From Start to Scale
Lecture 4: Strategy Formulation
and

Strategy Formulation
Strategy formulation is a process that begins with setting the vision for the company, developing the
strategy and executing it as per a timeline. The major building blocks are presented below.
There are many aspects of strategy formulation that are linked to the context of the firm’s business and
industry. While strategy is holistic, it has many components – divisional or functional, for example.
• Vision
• Mission
• Goals
Vision
• Where to compete
• How to compete
• What resources to
deploy
• How to organise
Strategy • Milestones
• Metrics
• Monitoring
• Feedback
Execution

Strategy Hierarchy
Depending on whether the entity is a conglomerate, company or business, strategy tends to be multi-layered.
Conglomerate
Company B Company C
Company A
Business A1 Business A2 Business B1 Business B2 Business C1 Business C2
R&D
Operations
Marketing
Finance
HR
Others
Lines shown
illustratively

The Strategy Process
Strategy has three interconnected processes of planning, implementing and control, conducted periodically.
Strategic planning process is usually annual with a five-year framework and the first year is usually the firm
budget. However, given the dynamic nature of the environment, projects get evaluated constantly.
Corporate Planning
Division Planning
Business Planning
Product Planning
Organizing
Resourcing
Implementing
Measuring Results
Evaluating Results
Taking Corrective
Action
Planning Implementing Controlling

Strategic Management: Practices and Outcomes
Strategic management covers several concepts, theories, frameworks and models that are available for
companies to formulate strategy and execute to accomplish the desired outcomes.
Collaboration Alliance
Joint Venture
Merger and
Acquisition
External
Analysis
Internal
Analysis
Strategy
Formulation
Strategy
Execution
Revenue Profit
Market Share
Market
Capitalisation
Expansion Integration
Diversification Restructuring
Illustrative

The Comprehensive Strategy Framework
Vision and
Mission
•Reason for
existence
Objectives •Results to
accomplish
Strategies
•Plans to
achieve the
mission and
objectives
Policies
EXTERNAL
Nature
Society
Economy
Industry
INTERNAL
Values
Culture
Structure
Resources
Programmes and
Tactics
Budgets
Procedures
Performance/Results
Environmental
Scanning
Strategy Formulation
Strategy
Implementation
Evaluation
and Control
Feedback/Learning: Make Corrections as Needed
Decision making
guidelines

Leaders Label Strategies
Leaders generally tend to look at strategies as ‘labelled process-outcomes’ that propel their firms towards the
desired results. They see strategies as ones that transform their companies in terms of certain key themes.
Whichever way strategy is viewed, its linkages with external environment and internal capabilities cannot be
ignored. Great leaders build internal capabilities that can proactively cope with environmental dynamics.
Strategy practice has evolved to appeal to
leaders in terms of three broad categories.
Competitive Strategies
Cost leadership, Differentiation,
Niche positioning
Corporate Strategies
Integration, Diversification,
Venturing, Merger, Acquisition,
Globalization
Functional Strategies
Market share building, Product
portfolio development,
Operational excellence, etc.

The Essential Business Platform
Every business within a corporation and the corporation itself requires a combination of vision, mission
and values, strategy, structure and execution. This applies irrespective of the type and scale of the
business, the nature of the industry, and the scale and scope of the company.
Within these, vision and mission stay for long, though they may be reviewed and reconfirmed
periodically. Great values stay on for perpetuity. In contrast, strategy, structure and execution constitute
the core triad to which the leaders must accord continuous attention.
Vision,
Mission,
and Values
Strategy
Structure Execution
A view of what the business or
company should be a over 5-
year or 10-year frame, and how
it should conduct itself
A series of approaches and
steps to convert the vision and
mission into reality
A platform for the business and
the related organization to
execute the strategy
Undertaking, through the
structure, of various acts and
activities required to convert
the strategy into reality

Vision and Mission
The vision and mission statements of leading global pharmaceutical makers are as below:
Pfizer
•We apply science and our global resources to
bring therapies to people that extend and
significantly improve their lives.
Merck
•We aspire to be the premier research-intensive
biopharmaceutical company in the world
Novartis
•Our mission is to discover new ways to improve
and extend people's lives. Our vision is to be a
trusted leader in changing the practice of
medicine.
Abbott
•Live your best life, now and in the future.
AstraZeneca
•We push the boundaries of science to deliver life-
changing medicines.
GlaxoSmithKline
•We are a science-led global healthcare company
with a special purpose: to help people do more,
feel better, live longer.
Bristol-Myers-Squibb
•To discover, develop, and deliver innovative
medicines that help patients prevail over serious
diseases.
Amgen
•Amgen strives to serve patients by transforming the promise
of science and biotechnology into therapies that have the
power to restore health or save lives. In everything we do, we
aim to fulfill our mission to serve patients.
Roche
•Doing now what patients need next
Allergan
•To continue as an innovative, technology driven, global
health care company focused on pharmaceuticals in specialty
markets that deliver value to customers, satisfy unmet
medical needs and improve patients' lives.

Crafting a Mission Statement
A clear thoughtful mission statement, developed collaboratively, provides a shared sense of purpose,
direction and ownership at levels of the firm. A good mission statement will have six major characteristics.
Business history has many examples of leadership missions enabling game-changing products and businesses.
• Limited goals
• Meaningful
Concise
• Reflects values
• Ensures integrity
Values
• Defines future
• Provides timeline
Clarity
• Usually 5 to 10 years
• Sustainable
Long
Term
• Motivates the people
• Creates ownership
Inspiring
• Follows the vision
• Guides the strategy
Bridge

Strategic Growth Framework: Hospira
• Ensure agile execution
on multiple fronts, with
cultural transformation
• Own/create world-class
Manufacturing and
R&D facilities in India
with network
collaboration
• Drive growth and
competitiveness with
investments in India,
for expansion,
integration and
diversification
• Keep patients first,
with the world’s largest
range of sterile
injectable products and
medical devices
Vision
with
Mission
Strategy
Execution
Structure

Strategy Panned Out as a Set of Programmes
Strategy is usually implemented in a project or program mode, the synchronized culmination of which
results in competitive advantage for a firm. An example from Hospira’s India strategy 2010-15.
The India strategy resulted in enhanced capacity, lower costs, and increased global business for Hospira.
SN Project or Program
1 Acquire Orchid’s sterile antibiotics injectables business, both Manufacturing and R&D.
2 Double the acquired antibiotics Manufacturing and R&D capacity.
3 Establish biologics R&D facility.
4 Establish medical device R&D facility.
5 Establish non-antibiotics sterile injectables facility.
6 Acquire antibiotics API business, sterile and non-sterile, Manufacturing and R&D.
7 Establish global centres of excellence in Medical Affairs and Regulatory Affairs.
8 Conduct product and technology transfers to Indian sites.
9 Rationalise global development and manufacturing footprint.
10 Enhance commitment to Oncology joint venture.

Structural Barriers
There exist several ways in which a firm can raise structural barriers to strengthen the position of the
firm against forays by competition. These can be raised only through clear strategies and execution.
Raising the structural barriers, including entry/mobility barriers, is the most defensive play for a firm.
Difficult to replicate
products
Own/ dominate
channel access
Build brand equity
Ensure purchase
stickiness
Increase scale and
scope economics
Create patent estate
proactively
Judiciously
integrate/ diversify
Ensure preferred
supplier access
Co-own, Co-share
facilities
Maintain hard-to-
imitate EHS and ESG

Business is All About Delivering Results
Leaders of corporations achieve results by deploying products/services, facilities, people and capital for
the marketplace. The purpose is to serve people, businesses, markets and ecosystems.
Facilities and
Vendors
Products and
Services
Capital Resources Human Resources
Companies
People
Businesses
Markets
Strategic leadership is also about its own distinct process alchemy—one that makes ideas take shape
as plans and get executed to deliver the desired results.
Ecosystems

Core Purpose Doesn’t Change
While the previously considered shifts in operating models and structures are dramatic, the underlying core
value – customer centricity – does not change. The greater the customer centricity, the easier the transition.
Leaders should not look at industry restructuring only in terms of structural and strategic factors. Instead, they
should appreciate each and every change to strengthen how customers are served. Leadership’s primary
engagement should be with the customer. Ways of serving could vary but the ways are not the primary purpose –
the customer is the primary purpose. The locus must change from firm-customer to product-customer experience.
Customer
Service
as the
Core
Purpose
Digital
personalization
in Banking
Autonomous/
Connected
Automobiles
Pharmaceuticals
Renewables
Farm
Modernization
Omnichannel
Marketing
Financial Empowerment
Mobility as a Service
Healthcare as Patient Right
Concern for the Planet
Aligning Farm
Productivity and Farmer
Security
Better Customer Service

Organization Redesign – Electric Vehicle Example
There are six principles of organizational redesign that are easy to implement and effective in terms of
organizational transformation if planned and executed methodically as per the construct below.
While a leader and the managers may be able to undertake all of the organization redesign activities
by themselves, it will make sense to seek external advice in certain areas because the company will
be venturing out into new domains for the first time.
1
•Review external and internal ecosystems
•Review roles, performance and performance
2
•Identify new growth drivers at three levels
•Departmental, new hires, Reskilling
3
•Determine current state and future state
•Prioritize transformation
4
•Determine new leadership requirements
•On-board new leaders
5
•Create organization transformation team
•Make the CHRO the executor
6
•Roll out the pilots in the identified areas
•Extend organization-wide after feedback
Internal and
External
Stakeholders
Organization
Consultants
Search
Agencies
Board of
Directors
Partners

Step 1: Review of Internal and External Ecosystems
Organizational redesign principles for mono-product companies are simpler compared to others. That said,
roles, processes, people and performance management system need to be reviewed every few years.
These reviews help the company identify the gaps and take steps to redesign the organization structure and
redefine the roles. Thereafter, the structure needs to be redesigned based on appropriate principles.
Identify the
internal
change
triggers
Product, component,
vendors
Review the
development
and
manufacturing
ecosystem
Identify the
external
change
triggers
Customers, dealers,
regulatory and usage
norms
Review the
demand and
marketing
ecosystem
Identify the
people
skills
End-to-end value chain
Review the
talent
ecosystem in
the industry

Step 2: Identify New Growth Drivers
There are six principles of organizational redesign that are easy to implement if the pre-work is carried out
diligently as considered earlier in Step 1. The example of mono-product firm transforming itself from petrol
engine car to electric car business is considered below to demonstrate the second principle.
Review of external and internal ecosystems leads to identification of three types of gaps: (i) need for entirely new
departments, (ii) need for new skilled hires in existing departments, and (iii) need for reskilling existing employees.
New departments/
Expanded departments
New R&D Skills, Hybrid and
Electric Development Units,
Vendor Development for New
Electric and Electronic
Components, Technology
Sourcing, Vendor Investment,
Testing & Homologation etc.,
New Hybrid
Organization
New Ecosystem Coordinators
for Charging Stations, Battery
Swapping, Government
Incentives, Vehicle Financing,
Dealer Development etc.,

Step 3: Current and Future State
The third principle is to establish the current state and the future state. Defining the future state in respect of
key in-house and external competencies helps determine the expansiveness of the redesigned organization.
In respect of electric transformation of automobiles, it will be a virtual reinvention of the entire component and
vehicle infrastructure. Gaps can be bridged in the usual course but such transformations require total reinvention.
Domain Current State Future State
R&D IC engine and transmission Electric powerpack and
transmission technology
Procurement Routine mechanical and
electricals
New electrical and electronics
Vendor
development
Part of procurement process New vendor development and
qualification department
Technology
sourcing
Part of regular R&D New technology scanning and
sourcing department
On-road
Operation
Regular servicing New department for battery
charging and swapping
Start-up
development
Required only minimally New department for
evaluating and investing in EV
start-ups
Testing Routine certifications EV and component
certifications
EV Charging
EV Battery
Start-ups
Electric Vehicle

Step 4: Create New Leadership Nucleus
An organization under transformation to new technologies and new business models will require a nucleus of new
leaders (or transformed leaders) who can guide and execute the redesign and transformation processes.
Apart from strengthening the organization through the above construct, selective one-time
consultancy support can also be taken to avoid too much of fixed cost to the organization.
Team Leads
CXO Level
Apex Leader CEO
Current R&D
Head
Current
Reskill
New Skilled
New EV
Development
Head
New
Departments
Current
Operations
Head
Current
Reskill
New EV
Operations
Head
New
Departments
Upskilling New skill Hires
Whole New
Departments
New Leaders

Step 5: Create the Organization Transformation Team
An organizational approach to create such a nucleus is illustrated below, with a three-tier approach
that takes care of governance, transformation and execution.
A three-level team structure comprising the Senior Leadership Team (SLT), select SLT team members,
and executing team would be helpful for well-aligned and accountable execution.
Organization
Transformation
Team
Governance Team (CEO, CXOs)
Transformation Team (Select
CXOS and CHRO)
Execution Team (CHRO and
Departmental Heads)
Support
Sponsorship
Accountability

Step 6: Pilot Rollout and Organization Expansion
Each business transformation requires a distinctive organizational execution to suit the priorities. While there are some
advantages of holistic execution, a pilot rollout could be practical in terms of optimizing costs and course-correcting.
A three-phase execution plan starting from acquisition of core technologies, core components and development and
manufacturing of electric vehicle would ensure progressive (pilot and regular) organizational and business rollout.
Phase 1
Hybrid and Electric
R&D
Battery Vendor
Development
Technology Sourcing
Phase 2
Start-up Evaluation
and Investment
Full-scale Vendor
Development
Testing &
Homologation
Phase 3
External Network
(charging etc.,)
Dealer Development
Pilot and Full-scale
Organization Rollout
Acquire New Core
Competencies
Develop New
Components and EVs
Roll out pilots to
demonstrate the new
range
Standardize
Commercial EV
Range

Missions that Made History
Sony’s founder, Akio Morita, wanted everyone to have access to “personal portable sound”, so his company created
the Walkman and portable CD player. Fred Smith wanted to deliver mail anywhere in the United States before 10.30
AM, the next day, so he created FedEx. Steve Jobs’ mission and its imprint on Apple needs no introduction.
Strategic management in the overall and strategic marketing, in particular, get a significant
inspirational guidance from a well-crafted mission.

Core Marketing Processes
The firm’s success depends on core marketing processes that are holistic in terms of meeting customer requirements.
Marketing processes, focused on products and customers, have to be fully end-to-end connected as depicted above.
Market
Sensing
New Offering
Realization
Customer
Acquisition
Customer
Relationship
Management
Fulfilment
Management
Gathering and acting upon
information about the market
Researching,
developing, and
launching new
high-quality
offerings quickly
and within
budget
Defining target
markets and
prospecting for
new customers
Building deeper
understanding,
relationships
and offerings to
individual
customers
Receiving and
approving
orders, shipping
goods on time
and collecting
payment
Core
Marketing
Processes

International Organization Structures
Global companies typically would have multiple stages of development. Not all companies that carry
out international businesses are global multi-national corporations (MNCs).
Multinational
corporation
with global
emphasis and
networking
Stage 5
Multinational
corporation
with
multidomestic
emphasis
Stage 4
Primarily
domestic
company with
international
division
Stage 3
Domestic
company with
export
division
Stage 2
Domestic
company
Stage 1
1945-2020

NPTEL COURSE
From Start to Scale
Lecture 5: Business Development Cases
and

Business Development by Companies
This lecture considers in a brief manner how the business development journey of different companies
can be understood based on a structured template.
Each of the components will vary in terms of the characteristics based on the nature of the industry and the company.
Product or
Service
Customer
Pricing
Promotion
Organisation
Place
Product or
Service includes
technology
ToP
MoP
BoP
Level vis-à-vis
competition
Business Marketing
Finance Operations
Core
Strategies
Ownership
Income profile
Means of
communication
The marketplace

Nirma
The 1970s were the era of Nirma (founded in 1969 by Karsanbhai Patel) – the story of an indigenous product that
succeeded against an established MNC through a mix of entrepreneurial passion and business strategy.
Nirma captured the mind share of the customers through its affordable product and strong promotion.
Product
Customer
Pricing
Promotion
Organisation
Place
Indigenous
Detergent
ToP
MoP
BoP
Highly
affordable
Business Marketing
Finance Operations
Core
Strategies
Indian
Startup

Reliance Jio
When Reliance Industries set out on its Jio Telecom mission in 2007, it moved with a completely integrated
strategy, including but not limited to product, technology, infrastructure, people, service and marketing plan.
Jio’s marketing was strategic because it aimed at fulfilling the vision of dominating the Indian telecom space.
Reliance Jio illustrates that business development is driven by business strategy which is again driven by the vision
and mission of the company. The various elements of Jio marketing make for a complete strategic plan.
Service
Customer
Pricing
Promotion
Organisation
Place
4G Technology Data and VoLTE;
Fibre to Home service, offering home
broadband, television, and telephone services
Strategic Market
Capture Plans
Intense
Omnichannel
Business Marketing
Finance Operations
Core
Strategies

Zydus Wellness
Zydus Wellness was established in 1994 by Cadila Healthcare Group in nutritional products field. The business
was built by the sugar substitutes marketed under the Sugar Free Gold and Natura brands.
Zydus Wellness strategically positioned itself as a Wellness FMCG company, with a strong initial focus on diabetics.
Product
Customer
Pricing
Promotion
Organisation
Place
Import-competitive
Advertising
ToP
MoP
?
Business Marketing
Finance Operations
Core
Strategies
Public Limited,
Zydus Promoted

Vini
Vini Cosmetics, established in 2010, is a deodorant company that achieved market dominance through multiple
initiatives. It commands three times the market share that the closest MNC rival, once a market leader, currently has.
When the flagship product range becomes the most dominant revenue earner for the company (in this
case as much as 75 percent), it represents a huge success of business development.
Product
Customer
Pricing
Promotion
Organisation
Place
Market-competitive
Visual Media,
3X over rivals
ToP
MoP
BoP
India Startup
Business Marketing
Finance Operations
Core
Strategies

L&T Construction
How does a construction company market itself, particularly when the projects are related to big infrastructure projects
funded by the governments and large public and private sector corporations, including global funding agencies?
L&T’s rapid growth and leading position, since its establishment in 1946, is a reflection of the
organisation deploying technology and execution for business development through project delivery.
Service
Customer
Pricing
Promotion
Organisation
Place
Lower in Price,
Higher in Quality
Iconic Projects
Governments,
Public Sector,
Private Sector
Business Marketing
Finance Operations
Core
Strategies
Division of Indian
Public Limited
Conglomerate

The Happiest Minds
The Happiest Minds was established in 2011 by the serial entrepreneur Ashok Soota after L&T acquired his
company, MindTree. Although in a similar category as MindTree, the company won clients and grew rapidly.
The Happiest Minds is an interesting case study of core relationships sustaining across time and corporate formats.
Service
Customer
Pricing
Promotion
Organisation
Place
IT Services
Big US
Technology
companies
Similar pricing
as the rivals’
but with better
delivery
Cross-selling
and Up-selling
Business Marketing
Finance Operations
Core
Strategies
Indian IT
Startup, Public
Limited

Paytm
Paytm has been a pioneer for little over a decade (from 2010) in the field of digital payments in India. Notwithstanding
the great push from demonetisation, Paytm has been a success story of dedicated business development strategy.
Paytm is a leading case in India’s fintech startup story and has interesting verticals that show different levels of success.
Product
Customer
Pricing
Promotion
Organisation
Place
Wallet Payments
Digital Financial Marketplace
Presumably
lower than
Fully
Accounted
Costing
Intense
Omnichannel
Business Marketing
Finance Operations
Core
Strategies
ToP
MoP
BoP
Indian Unicorn
Startup; now a
listed firm

Adani Green
Adani Green has been an early mover in 2015 in the renewable energy industry in India, and is the largest producer of
green energy in India. The going is challenging given the bargaining strength and financial weakness of Discoms.
With the Government of India going the whole hog to promote renewables and Reliance Industries deciding to move
aggressively into green energy, Adani will have both tailwinds and headwinds in its push for industry leadership.
Product
Customer
Pricing
Promotion
Organisation
Place
Renewable Energy
Set by
governments
and tenders
Contractual
Relationships
Business Marketing
Finance Operations
Core
Strategies
Part of Indian
Conglomerate;
Listed
Company

SBI Yono
SBI Yono, established in 2017, is an interesting case of a standalone yet fully connected digital initiative of
State Bank of India becoming a great value creator for the company, with many future possibilities.
Despite the image of a sober public sector enterprise, SBI has been able to position Yono differently based on a
digitally-skilled youthful organisation, and an equally youthful communication and branding.
Product
Customer
Pricing
Promotion
Organisation
Place
Super app for banking,
investments and e-
commerce
Opaque due to
captive
customer base
SBI co-
promotion
Business Marketing
Finance Operations
Core
Strategies
SBI’s vast
customer
base
ToP
MoP
BoP
Division of
SBI

Hyundai India
Hyundai has been the only foreign car manufacturer (apart from Suzuki) that enjoyed sustainable rapid growth with
scale and competitiveness in India, from its inception in 1996. Relatively unknown initially, the Company grew its brand.
Marketing of automobiles has been perfected by several automotive majors over decades globally. Yet, India did
represent a huge arcane market for Hyundai. Hyundai deployed marketing and business development successfully.
Product
Customer
Pricing
Promotion
Organisation
Place
Cars and Utility Vehicles
Competitive to
Maruti
Celebrity
promotion
Business Marketing
Finance Operations
Core
Strategies
MoP
WoS
of Hyundai,
S Korea

iD Fresh Food
The Indian middle class became busier with work. Yet it retained its taste for tradition. To meet this gap,
iD developed a new category, from 2005, in terms of ready to cook batter and other food items.
Category marketing is an important component of business development. Product technology, however, is crucial for a
category to be established and grown. Product-driven strategic marketing has led many a start-up firm to scale up.
Product
Customer
Pricing
Promotion
Organisation
Place
All-natural, preservative-free
batter
Premium
PoS and
Advertisement
Business Marketing
Finance Operations
Core
Strategies
MoP
Indian Startup;
Private Ltd

Mankind Pharma
The Indian pharmaceutical industry is one of the most competed, with hundreds of manufacturers. In such an industry,
Mankind, established in 1995, became a large pharma company, focusing on multiple therapies and domestic market.
Pharmaceutical marketing is popularly considered a tactical effort in India. Yet, without a strategic
approach, a new entrant such as Mankind could not have reached a Top 10 status in the industry.
Product
Customer
Pricing
Promotion
Organisation
Place
Multiple products in multiple
therapies
Low Cost
Celebrity
corporate
brand building
Business Marketing
Finance Operations
Core
Strategies
ToP
MoP
BoP
Company
C&F
Retail
Digital
Indian Startup;
Private Ltd

Nazara Technologies
While India has been strong on digital services, digital product space has not been looked at seriously. Nazara
Technologies, founded in 1999, focused on products and services related to games and learning.
Technology-driven business development requires the company to focus on adopting advanced technology platforms.
Product
Customer
Pricing
Promotion
Organisation
Place
Games, Gamified Early
Learning and Sports Media
Platform Company
Benchmark
Word of the
Mouth,
Internet
Business Marketing
Finance Operations
Core
Strategies
Kids, Families,
Schools, Institutions
Indian Startup,
Listed

Sudarshan Chemicals
The Indian chemical industry is recognised for its chemistry and chemical engineering capabilities. With China Plus One
taking shape globally, the Indian specialty chemicals firms such as Sudarshan, founded in 1952, will scale global heights.
Marketing of chemicals falls in the B2B category. Alignment with the strategic business and sourcing
plans of the customers is vital for the strategic success of Indian chemical firms on a global basis.
Product
Customer
Pricing
Promotion
Organisation
Place
Specialty chemicals
Higher than
China, lower
than others
B2B
communication
Business Marketing
Finance Operations
Core
Strategies
Global chemical and
pharmaceutical firms
Indian Public
Limited
Company

Kaleesuwari Refinery
Edible Oils constitute a kitchen essential item. It is to the credit of the humble founders of Kaleesuwari Refinery that
starting with just an edible oil shop in 1973, they grew it into an integrated manufacturing and marketing business.
Kaleesuwari’s masterstroke was its promotion of sunflower oil as a heart-healthy cooking oil, with
intensive marketing to promote its Gold Winner brand of sunflower oil.
Product
Customer
Pricing
Promotion
Organisation
Place
Edible Oils, with focus on
sunflower oil
Premium,
compared to
peers
Strong TV
communication
Business Marketing
Finance Operations
Core
Strategies
Homemakers, Hotels
and Restaurants
Indian Private
Limited
Company

Glenmark Pharma
Pharmaceuticals is a therapeutically diversified business. However, Glenmark, founded in 1977, found its niche in
dermatological products, and upon consolidation became a multi-therapeutic diversified company, with a global spread.
Glenmark gained with its singular focus on dermatology, a space neglected by most other pharmaceutical makers.
Product
Customer
Pricing
Promotion
Organisation
Place
Pharmaceuticals, initial core
of dermatology
Competitive
Doctor-focused
medical
detailing
Business Marketing
Finance Operations
Core
Strategies
Patients, Hospitals
and Clinics
Indian Public
Limited
Company

Apollo Hospitals
Starting with a clinic in Chennai, Dr Pratap Reddy broke new ground by setting up the first corporate hospital in
Chennai by name Apollo Hospitals in 1983 and went on to develop it into a reputed pan-India hospital chain.
Apollo Hospitals created its core and brand by bringing to India the Western model of healthcare practice, with top-
class doctors, paramedics, diagnostics and pharmacies. It became one of the most reputed brands in India.
Product
Customer
Pricing
Promotion
Organisation
Place
Multi-specialty Healthcare with
comprehensive diagnostic and
pharmacy services
Premium
Word-of-mouth
and flexis,
banner ads
Business Marketing
Finance Operations
Core
Strategies
Patients
Indian Public
Limited
Company

GRT Jewellers
Starting with a small jewellery shop in Chennai in 1964, G Rajendran broke new ground from the 1970s by
setting up large-format jewellery shops in Chennai and other cities. GRT further diversified into hotels business.
GRT demonstrated a seamless transition from small format stores to large format stores with exchange
and savings schemes as well as modernisation of designs and manufacturing.
Product
Customer
Pricing
Promotion
Organisation
Place
Jewellery and accessories
Competitive
Aggressive
advertisement
Business Marketing
Finance Operations
Core
Strategies
Individuals and
families across
segments
Indian Private
Limited
Company
Metros and
Tier 1 cities

Hatsun
Hatsun started in 1970 as a milk supply unit and grew rapidly into a highly diversified dairy products company with a
coverage extending to lakhs of dairy farmers and by leveraging technology and transparency in a big way.
Hatsun created its core business and brand by adopting scientific and responsible processes in milk
collection, processing and distribution, backed by intensive marketing in focused markets.
Product
Customer
Pricing
Promotion
Organisation
Place
Dairy products
Competitive
Comprehensive
ATL and BTL
advertising
Business Marketing
Finance Operations
Core
Strategies
Households and
Businesses
Indian Public
Limited
Company

Groz Engineering Products
Initially starting in 1976 as a manufacturer and supplier of bicycle parts, Groz evolved as a major manufacturer of
diversified hand tools that are supplied globally. The company grew with a balance of organic and inorganic growth.
Although a private limited company, Groz grew because of its focus on design thinking and customer satisfaction.
Product
Customer
Pricing
Promotion
Organisation
Place
Hand Tools
Competitive
Direct
relationships
Business Marketing
Finance Operations
Core
Strategies
Global businesses
and hand tool users
Indian Private
Limited
Company

Notion Press
Notion Press started in 2012 as a self-publishing medium for budding authors and has evolved into a leading self-
publishing house bringing out the works of thousands of authors from India and other parts of the world.
Notion Press is a successful start-up that caught the writer’s fancy with its concept and digital publishing execution.
Service
Customer
Pricing
Promotion
Organisation
Place
Self-publishing of books
Multi-tier
pricing
Intensive digital
social media
promotion
Business Marketing
Finance Operations
Core
Strategies
Budding and
established writers
and authors
Indian Private
Limited
Company

1mg
Established in 2015 to disintermediate the supply of medicines to patients through digital technology, 1mg grew rapidly
to become a successful online pharmacy, now also into diagnostic services and online medical consultations.
The skill in forging relationships with distributors and chemists and a dynamic digital platform drive 1mg success.
Product
Customer
Pricing
Promotion
Organisation
Place
Online medicine supplies, lab
services and medical
consultations
Discounted
Pricing
Digital and
social media
and print
promotion
Business Marketing
Finance Operations
Core
Strategies
Individuals and
Families
An Indian
Private Limited
Company; now
a Tata Group
Company

Zomato
Starting as a food and review entity in 2008, Zomato was quick to see the potential for food delivery and established
itself as a leading food supply company, operating all over India. Its technology platform has been its USP.
Ability to develop a pan-India delivery force and forge relationships with hotels & restaurants drove Zomato’s success.
Service
Customer
Pricing
Promotion
Organisation
Place
Online food ordering and
delivery
Discounted
Pricing
Digital and
social media
and print
promotion
Business Marketing
Finance Operations
Core
Strategies
Individuals, Families
and Businesses
A successful
Indian start-up,
now is a Public
Limited
Company

Business Development by Companies
This lecture considered in a brief manner how the business development journey of different companies
could be understood based on a structured template.
Each of these components did vary in terms of the characteristics based on the nature of the industry and the company.
Product or
Service
Customer
Pricing
Promotion
Organisation
Place
Product or
Service includes
technology
ToP
MoP
BoP
Level vis-à-vis
competition
Business Marketing
Finance Operations
Core
Strategies
Ownership
Income profile
Means of
communication
The marketplace

business development.pdf

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