This presentation covers the following points: • Market Leader Strategies • Market Challenger Strategies • Market Follower Strategies • Market Nicher Strategies • Industry Life Cycle • Challenges of A Mature Market • Opportunities of A Mature Market • Routes to revitalize a stagnant market

1. COURSE:
MARKETING STRATEGY
Course Code:408MKT
Unit 3 :Offensive and Defensive Competitive Strategies
Session 1

2. Offensive & defensive
strategies

3. OFFENSIVE & DEFENSIVE STRATEGIES
• Market Leader Strategies
• Market Challenger Strategies
• Market Follower Strategies
• Market Nicher Strategies

4. Market Leader Strategies
• Who is the market Leader?
- Largest market share of relevant product market
- Leads in price changes, new product introduction,
Distribution Coverage, Promotional intensity.
•Microsoft (Computer Software)
Coca cola( Soft drinks)
Mc Donalds( Fast foods)
Gillette( Razor Blades)
Market Leader Strategies
•Motorola Analog model /Digital Model by Nokia
Levis Strauss/Diesal- Jeans (Newer pepier rivals)

9. DEFENSE STRATEGIES
• Position defense
• Flank Defense
• Pre emptive Defense
• Counteroffensive Defense
• Mobile defense
• Contraction Defense

10. Defense Strategies

11. POSITION DEFENSE

16. COURSE:
MARKETING STRATEGY
Course Code:408MKT
Unit 3 :Offensive and Defensive Competitive Strategies
Session 2

17. • MARKET CHALLENGER STRATEGIES
A market challenger is a runner-up firm in an industry which is fighting hard to increase
its market share. Usually, aggressive competitive tactics are used for this, aimed at the
market leader.
Market challengers may not be the most powerful ones in an industry, but can still be the most
dangerous ones due to their aggressiveness.

19. Choose a General Attack Strategy
• Frontal Attack
• Flank Attack
• Encirclement Attack
• By pass Attack
• Guerilla warfare

20. Attack Strategies

29. COURSE:
MARKETING STRATEGY
Course Code:408MKT
Unit 3 :Offensive and Defensive Competitive Strategies
Session 3

30. • MARKET FOLLOWER AND NICHER STRATEGIES

45. COURSE:
MARKETING STRATEGY
Course Code:408MKT
Unit 3 :Offensive and Defensive Competitive Strategies
Session 3

46. • NICHER STRATEGIES

47. • NICHER STRATEGY
1. End User Specialist
2. Specific Customer Specialist
3. Geographic
4. Product or product line Specialist
5. Job Shop Specialist
6. Quality Price Specialist
7. Service Specialist
8. Product feature specialist

53. COURSE:
MARKETING STRATEGY
Course Code:408MKT
Unit 3 :Offensive and Defensive Competitive Strategies
Session 5

54. MARKETING STRATEGIES FOR MATURE MARKETS

55. SESSION OUTCOME
1. INDUSTRY LIFE CYCLE
2. WHAT IS MATURE MARKET?
3. DOMINANT ISSUES IN MATURE MARKET
4. FUNDAMENTAL CHANGES
5. CHALLENGES OF A MATURE MARKET
6. OPPORTUNITIES OF A MATURE MARKET
7. STRATEGY OPTIONS
8. RECAP

57. What is Mature Market?
• Reached a state of equilibrium due to lack of innovation and growth
• Demand and supply in equilibrium.
• New variant/ extension of the product
• Aim of the companies would be to control the decline rate by reducing
cost

59. Maturing Market
• Understand the meaning and nature of a maturing industry.
• Growth slackens significantly
• Saturation
• Thompson and strickland, a maturing industry is an industry that is
moving from rapid growth to significantly lower growth

60. DOMINANT ISSUES IN MATURE MARKET
1. Nearly all potential buyers are already users
2. Market demand consists mainly of replacement sales to existing
users
3. Growth in the industry depends ability to attract new buyers and
motivate existing buyers to increase their use of products.

61. FUNDAMENTAL CHANGES
1.Growth in buyer demand slows down.
2. Buyers become more sophisticated.
3.Competition produces a greater emphasis on cost and service.
4.The industry experiences a slowdown in capacity expansion because of
slow growth.
5.It becomes difficult for the producers to create new product innovations
6. International competition increases
7.Industry profitability falls temporarily or permanently.
8.Competition becomes very stiff.

62. CHALLENGES OF A MATURE MARKET
Growth in market share can be expensive
There is one business which has a monopoly-like hold on the market
Customers who already have expectations in place with regards to
price

63. OPPORTUNITIES OF A MATURE MARKET
Target Marketing
Product innovation
Service innovation
New Channel Creation

64. STRATEGY OPTIONS
1. PRUNING THE PRODUCT LINE- Eliminating unprofitable or
very-less profitable product-items from the product line
2. GREATER EMPHASIS ON VALUE CHAIN INNOVATION
3. COST REDUCTION
4. STRENGTHENING RESOURCES AND CAPABILITIES
5. INCREASING SALES TO EXISTING CUSTOMERS
6. ACQUISITION STRATEGY
7. MULTINATIONAL STRATEGY

67. COURSE:
MARKETING STRATEGY
Course Code:408MKT
Unit 3 :Offensive and Defensive Competitive Strategies
Session 6

68. MARKETING STRATEGIES FOR DECLINING MARKETS

69. SESSION OUTCOME
1. CHARACTERISTICS OF DECLINING MARKET
2. ROUTES TO REVITALISE A STAGNANT MARKET
3. STRATEGIC ALTERNATIVES

70. Introduction
• Strategic Planning is associated with search for healthy ,growing
Markets and development of strategy
• Decline Market can represent a real strategy
• Decline markets are not to be avoided always

71. CHARACTERISTICS OF DECLINE MARKET
• Fall in Demand
• Caused by external event
• Change in customers need
• Shift in Govt policy
• Obtain SCA and compete Successfully
• Market is characterised by zero or negative
• Milking or exiting is considered

72. CREATING GROWTH IN DECLINING INDUSTRIES
• Full Exploitation of the Market potential of the declining Market is
done
• If untrue- dramatic opportunity exist
• REVITALIZING THE INDUSTRY

73. ROUTES TO REVITALISE A STAGNANT MARKET

74. STRATEGIC ALTERNATIVES
1. Create a Growth context by revitalizing the industry
2. Be a profitable survivor in the industry
3. Milk or harvest
4. Exit or liquidate

75. MILK OR HARVEST
1. Aim is to generate cash flow by reducing investment and operating
expenses, even if that causes sales and market share to decrease.
2. Harvesting calls for gradually reducing a product or business's costs while
trying to maintain sales.
3. The first step is to cut R&D costs and plant and equipment investment.
The company might also reduce product quality, sales force size, marginal
services, and advertising expenditures.
4. Harvesting is difficult to execute. Yet many mature products warrant this
strategy. Harvesting can substantially increase the company's current cash
flow

76. CONDITIONS FAVORING A MILKING STRATEGY
1. Decline rate is pronounced, but not excessively steep.
2. Stable price structure is profitable for efficient firms.
3. Business position is weak, but customer loyalty will still produce
sales and profit.
4. Business is not central to strategic direction.
5. A milking strategy can be successfully managed.

78. MARKETING STRATEGIES FOR HOSTILE MARKETS

79. HOSTILE MARKETS
• Usually associated with:
Overcapacity
Low Margins
Intense Competition
Management in Turmoil
Most industries are hostile or are becoming hostile.

80. SIX PHASES OF HOSTILITY
• Phase 1 -Margin pressure
• Phase 2 -Share shifts – 1- 5% annually
• Phase 3 - Product proliferation
• Phase 4 - Self-defeating cost reduction
• Phase 5 - Consolidation and shakeout
• 1. Internal Reductions
• 2. Mergers & Acquisitions
• 3. Global Players Combining
• Phase 6 - Rescue

81. SIX PHASES OF HOSTILITY
• Phase 1 -Margin pressure
• Phase 2 -Share shifts – 1- 5% annually
• Phase 3 - Product proliferation
• Phase 4 - Self-defeating cost reduction
• Phase 5 - Consolidation and shakeout
• 1. Internal Reductions
• 2. Mergers & Acquisitions
• 3. Global Players Combining
• Phase 6 - Rescue

82. STRATEGIES THAT WIN IN HOSTILE MARKETS
• Focus on large customers
• Differentiate on reliability
• Cover broad spectrum of price points
• Turn price into a commodity
• Have an effective cost structure

83. COURSE:
MARKETING STRATEGY
Course Code:408MKT
Unit 3 :Offensive and Defensive Competitive Strategies
Session 6

84. MARKETING STRATEGIES FOR HOSTILE MARKETS

85. HOSTILE MARKETS
• Usually associated with:
Overcapacity
Low Margins
Intense Competition
Management in Turmoil
Most industries are hostile or are becoming hostile.

86. SIX PHASES OF HOSTILITY
Windmere
• Phase 1 -Margin pressure
• Phase 2 -Share shifts – 1- 5% annually
• Phase 3 - Product proliferation
• Phase 4 - Self-defeating cost reduction
• Phase 5 - Consolidation and shakeout
• 1. Internal Reductions
• 2. Mergers & Acquisitions
• 3. Global Players Combining
• Phase 6 - Rescue

87. STRATEGIES THAT WIN IN HOSTILE MARKETS
• Focus on large customers
• Differentiate on reliability
• Cover broad spectrum of price points
• Turn price into a commodity
• Have an effective cost structure

88. Conclusion
• Hostile Markets are caused by too many competitors as well as
declining demand, typically goes through 6 phases
• Strategies to gain above average returns are
• Gold: Number :one or two firm with Economies of scale
• Silver: Three or four firm focus on Smaller Market