2. 20-2
Chapter GoalsChapter Goals
.
• Planning and the management process
• Similarities and differences among mission, objectives,
strategies, and tactics
• Differences between company planning and strategic
marketing planning
• The steps comprising strategic marketing planning
• The purpose and contents of an annual marketing plan
• Similarities and differences as well as weaknesses strengths
across several models used in strategic planning
3. 20-3
Planning as Part of ManagementPlanning as Part of Management
Compare
performance
with goals.
4. 20-4
PlanningPlanning
Matching an organization’s resources with its
marketing opportunities over the long-run
Matching an organization’s resources with its
marketing opportunities over the long-run
Limited amount of time in which a firm’s
resources coincide with a particular market
opportunity
Limited amount of time in which a firm’s
resources coincide with a particular market
opportunity
Strategic
Planning
Strategic
Window
5. 20-5
MissionMission
An organization’s mission states
what customers it serves,
what needs it satisfies,
what types of products it offers,
the boundaries for activities
An organization’s mission states
what customers it serves,
what needs it satisfies,
what types of products it offers,
the boundaries for activities
Stated in customer-oriented terms
reflecting the needs the firm is striving to
satisfy and the benefits it is providing
Stated in customer-oriented terms
reflecting the needs the firm is striving to
satisfy and the benefits it is providing
6. 20-6
Objectives and GoalsObjectives and Goals
Clear,
Specific
Ambitious,
Realistic
In Writing
Consistent
Quantitatively
measurable
Time
Period
Desired Outcomes
7. 20-7
StrategiesStrategies
Broad plan of action
by which an organization
intends to reach its objectives
and
fulfill its mission
Broad plan of action
by which an organization
intends to reach its objectives
and
fulfill its mission
Strategies
9. 20-9
Key QuestionsKey Questions
Mission: What business are we in?Mission: What business are we in?
Objectives: What do we want to accomplish?Objectives: What do we want to accomplish?
Strategies: Generally
How are we going to get the job done?
Strategies: Generally
How are we going to get the job done?
Tactics: Specifically
How are we going to get the job done?
Tactics: Specifically
How are we going to get the job done?
11. 20-11
Annual Marketing PlanAnnual Marketing Plan
1. Executive Summary. In this one- or two-page section, the thrust of the plan is described and explained. It is
intended for executives who desire an overview of the plan but need not be knowledgeable about the details.
2. Situation Analysis. Essentially, the marketing program for a major division of a company (called a strategic
business unit) or product covered by the plan is examined within the context of pertinent past, present, and
future conditions. Much of this section might be derived from the results of strategic marketing planning.
Additional information of particular relevance to a one-year planning period may be included in this section.
3. Objectives. The objectives in an annual plan are more specific than those produced by strategic marketing
planning. However, annual objectives must help achieve organizational goals and strategic marketing goals.
4. Strategies. As in strategic marketing planning, the strategies in an annual plan should indicate which target
markets are going to be satisfied through a combination of product, price, distribution, and promotion.
5. Tactics. Specific activities, sometimes called action plans, are devised for carrying out each major strategy
included in the preceding section. For ease of understanding, strategies and tactics may be covered together.
Tactics specifically answer the question of what, who, and how for the company’s marketing efforts.
6. Financial Schedules. This section normally includes two kinds of financial information: projected sales,
expenses, and profits in what’s called a pro forma financial statement; and the amounts of resources dedicated
to different activities in one or more budgets
7. Timetable. This section, often including a diagram, answers the question of when various marketing activities
will be carried out during the upcoming year.
8. Evaluation Procedures. This section addresses the questions of what, who, how, and when connected with
measuring performance against goals, both during and at the end of the year. The results of evaluations during
the year may lead to adjustment in the plan’s strategies and/or tactics or even the objectives to be achieved.
12. 20-12
Strategic Business Unit (SBU)Strategic Business Unit (SBU)
Separately
defined business
Own competitors
Own team
profit responsibility
Distinct mission
14. 20-14
Market Penetration:Market Penetration:
When marketers try to sell the existing product to the
existing customers, they engage in penetration
strategy. It can be achieved in multiple ways. For
example, by changing pricing, by adding minor
features (new and improved!), changing the
packaging (shampoo sachets), or highlighting
alternative uses. In this commercial, we get to how
Cadbury India is pushing for chocolates to be used as
small gifts instead of more traditional sweets used
during Diwali festival.
http://www.youtube.com/watch?v=LLh7MO8M4GA
15. 20-15
Product Development:Product Development:
McDonald's introduced salads in their outlets
in order to retain its existing customers, many
of whom were becoming more health
conscious. Salads are exactly opposite of what
McDonald's is known for! However,
regulatory pressures, changing consumer
behavior, and negative media coverage forced
them to introduce more healthy choices on the
menu.
16. 20-16
Market Development:Market Development:
Introducing an existing product in different markets is perhaps
one of the most used strategies to extract full benefit of a
successful product. A very common example is entering
different geographical areas nationally and internationally
Just like Godrej ChotooKool..
https://www.youtube.com/watch?v=IUADltOgj3w
18. 20-18
Diversification:Diversification:
When marketers introduce a totally new product to a
completely new market, they engage in diversification. I think
that iPod was perhaps one of the most successful
diversification ever.
A classic diversification….
21. 20-21
Business Mix (Cont’d)Business Mix (Cont’d)
Agri - Business
• Agri-Exports
• e-Choupal
• Leaf Tobacco
Hotels
Group Companies
• ITC Infotech; etc.
22. 20-22
Business wise Sales dataBusiness wise Sales data
Business/ Year Value (Rs in Crore)
2005 2004
FMCG-Cigarettes 10002.54 9230.27
FMCG-Others 563.39 304.16
Hotels 577.25 257.53
Agribusiness 1780.07 1708.77
Paper & pkg. 1565.31 1253.29
Net revenue 13349.58 11815.04
23. 20-23
CAGR during FY 2005-2008CAGR during FY 2005-2008
Category CAGR
Cigarettes 10.9 %
Hotels 22.7%
Paper 17.2 %
Agri business 34.3 %
FMCG-Others 60.2 %
24. 20-24
Segment Dominance Contribution %
Revenue PBIT
Cigarettes 70% share 77.0% 87.7%
Paper &
Packg.
Packaging board – No.
1 in Asia
7.3% 10.7%
Agri
business
1of the largest xporters
from India
7.0% 3.7%
Hotels ITC Group ranks No.2 4.3% 5.4%
FMCG
(Others)
20% share of greeting
cards market,
'Aashirvaad' atta is
No.1 in branded
segment
4.4% -7.5%
29. 20-29
- Action-- Action- Learning points andLearning points and
conclusionsconclusions
• ? - To be handled with care.
• Strategic forays into emerging high growth
markets.
• E-Choupal is a transformational strategy.
• Strong brand building capability will be
tested.
30. 20-30
Learning points (Cont’d)Learning points (Cont’d)
• Corporate strategy of creating multiple
drivers of growth anchored on its core
competencies and distribution reach.
• Embracing difficult and challenging
corporate strategy. (Ex: Paperboards).
• EHS philosophy: Contribution to the triple
bottom line- Economic, Environment and
social capital.
39. 20-39
Assessment of the Planning ModelAssessment of the Planning Model
LimitationsLimitations
OversimplificationOversimplification
Choosing strategy
without relevant
information
Choosing strategy
without relevant
information
Model overrides
manager’s decisions
Model overrides
manager’s decisions
BenefitsBenefits
Careful consistent
assessment
Careful consistent
assessment
Straightforward
classification
Straightforward
classification
Points to attractive
opportunities
Points to attractive
opportunities
