Marketing strategy

1. COMPETITIVE
STRATEGIES FOR
MARKET LEADERS

2. EXPANDING TOTAL MARKET DEMAND
 New Customers
 More Usage
1) Additional Opportunities to use the Brand
2) New Ways to use the Brand
Eg : Procter & Gamble

3. PROTECTING MARKET SHARE
 Proactive Marketing
 Defensive Marketing
1) Position Defense
2) Flank Defense
3) Preemptive Defense
4) Counteroffensive Defense
5) Mobile Defense
6) Contraction Defense

4.  1) Position Defense :
The position defense or fortress, relies on the apparent
impregnability of a fixed position.
E.g. : Toyota, Suzuki, Prestige, LIC
 2) Flank Defense : Weak Territory
It has long been recognized that the flank of an
organization, be it an army or a company, is often less well
protected than other parts.

5. 3) Preemptive Defense :
Preemptive behavior has been fundamental element of
their strategy for the past few decades and takes the form of
consistent and broad-ranging product development, heavy
advertising.
4) Counteroffensive Defense :
This defense tends to come into play once an attack has
taken place.

6. 5) Mobile Defense :
The rationale for this is to cover new territories that
might in the future serve as focal points both for offence
and defense.
6) Contraction Defense :
It opts for a withdrawal from those segments and
geographical areas in which it is most vulnerable or in which
it feels there is the least potential.
E.g. : Reliance closed down Petrol Pump

7. INCREASING MARKET SHARE
 The possibility of attracting legal action for
violating the competition act or Antitrust Law.
 Economic Cost
 The danger of pursuing the wrong marketing
activities.
 The effect of increased market share on actual
and perceived quality.

8. OTHER COMPETITIVE STRATEGIES
 Market – Challenger Strategies
1. Defining the Strategic Objective and
Opponent(s)
2. Choosing a general attack Strategy
3. Choosing a Specific Attack Strategy
 Market Follower Strategies
 Market Nicher Strategies

9. HYPOTHETICAL MARKET STRUCTURE
10%
Market
Nichers
20%
Market
Follower
30%
Market
Challenger
40%
Market
Leader

10. MARKET – CHALLENGER STRATEGIES
1. Defining the Strategic Objective and
Opponent(s)
 It can attack the market leader.
 It can attack firms its own size that are not
doing the job and are underfinanced.
 It can attack small local and regional firms.

11. MARKET – CHALLENGER STRATEGIES
2. Choosing a general attack Strategy
 Frontal Attack
 Flank Attack
 Encirclement Attack
 Bypass Attack
 Guerrilla Attacks

12.  Frontal Attack :
In launching a frontal attack, a market challenger
can opt for
 Either the pure frontal attack (by matching the
leader product for product, price for price, and so on)
OR
 A rather more limited frontal attack (by attracting
away selected customers).

13. Pepsi is an
example of
market
challenger
that has
chosen to use
a full frontal
attack

14.  Flank Attack :
A flanking attack translates into an attack on
those areas where the leader is geographically weak
and in market segments or areas of technology that
have been neglected.
 Encirclement Attack :
Encirclement has parallels with a blitzkrieg in
that it involves launching an attack on as many
fronts as possible in order to overwhelm the
competitor’s defenses.

15.  Bypass Attack :
A bypass attack, is (in the short-term at least) the
most indirect of assaults in that it avoids any
aggressive move against the defender’s existing
products or markets.
 Guerrilla Attacks :
This typically involves drastic short-term price
cuts, sudden and intensive bursts of advertising,
product comparisons, damaging public relations
activity, poaching a competitor’s key staff, legislative
moves, and geographically concentrated campaigns.

16. MARKET FOLLOWER STRATEGIES
 Counterfeiter : E.g. Software, CDs, Battery
 Cloner : Look alike
Spell alike
E.g. Vaslin & Vasleen
 Imitator : Copy Features & Attributes of
other market Leader
 Adaptive : Same Idea with some Innovation

17. Dial Corporation
successfully
uses a market
follower strategy

18. MARKET NICHER STRATEGIES
• 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
E.g. Sugar Free (In Small Market)

19. PRODUCT LIFE-CYCLE (PLC) MARKETING
STRATEGIES
4 Stages:
 Introduction
 Growth
 Maturity
 Decline

23. MARKETING IN AN ECONOMIC DOWNTURN
 Explore the Upside of Increasing Investment
 Get Closer to Customers
 Review Budget Allocations
 Put Forth the most Compelling Value Proposition
 Fine-tune Brand and Product Offerings.

24. THANK YOU!