Planning Variables Objec t ives Strategies Execution What is to be accomplished How objectives will be accomplished Detailed action plan
Strategic Planning The process of determining objectives (stating goals) and identifying strategies (ways to achieve goals) and tactic (specific action plans) that will help achieve objectives.
Business Planning Process Corporate Plan Marketing Plan Product Price Mkt. Comm. Distribution
Corporate Planning Corporate plans are long-term and broad in scope. They include an organization’s: <ul><li>Vision </li></ul><ul><li>Mission </li></ul><ul><li>Corporate Objectives </li></ul><ul><li>Corporate Strategies </li></ul>
Mission Statement “ A statement of an organization’s purpose that reflects the operating philosophy and the direction the company will take.”
Vision and Mission A vision statement defines plans for the future, defines what the company is and does, and where it is headed. If a vision statement is used, the mission statement tends to focus more on the present condition of the company.
Sample Vision and Mission Our Vision To be the best transportation company in Canada Our Mission To provide high quality, low cost passenger rail service. Via Rail
Corporate Objectives <ul><li>Typical objectives include: </li></ul><ul><li>Sales </li></ul><ul><li>Profit </li></ul><ul><li>Return on Investment </li></ul>Objectives should be quantitative in nature, growth oriented, and measurable.
Corporate Strategies The organization must allocate adequate resources to achieve the objectives <ul><li>Financial Commitment </li></ul><ul><li>Adequate Time </li></ul><ul><li>R&D Commitment </li></ul>
Corporate Strategies Strategic direction varies from one company to another <ul><li>Penetration </li></ul><ul><li>Acquisition </li></ul><ul><li>New Products </li></ul><ul><li>Vertical Integration </li></ul><ul><li>Horizontal Integration </li></ul><ul><li>Strategic Alliance </li></ul><ul><li>Divestment </li></ul>
Penetration Strategy Aggressive action to build current businesses and brands Coca-Cola Coca-Cola Diet Coke Coke Zero Dasani Fruitopia Powerade Coca-Cola wants to be the world’s leading beverage company.
Acquisition Strategy Some organizations find it cheaper and quicker to buy their way into a market. Reebok Hockey Co. Holdings (CCM, Koho, Jofa) Pepsi-Cola Quaker Oats (Gatorade)
New Product Strategy New products in new markets produce new revenues and profits. Apple Computer <ul><li>iMac </li></ul><ul><li>iBook </li></ul><ul><li>Mac mini </li></ul><ul><li>Power Mac </li></ul><ul><li>iTunes </li></ul><ul><li>iPod </li></ul>Apple is now in the entertainment business.
Vertical Integration Strategy Apple Apple Stores George Weston Loblaws Provigo Zehrs No Frills A company operates in several levels of channel.
Horizontal Integration Strategy Cara Operations Swiss Chalet Harvey’s Second Cup Kelsey’s Montana’s Outback Milestones Operates several companies at same level of channel
Strategic Alliance A relationship between two or more companies who decide to work cooperatively to achieve goals. Tim Hortons Esso Timmy’s operates 300 kiosks in 300 Esso outlets across Canada.
Divestment Strategy A company retreats to its core business by selling unprofitable divisions or products that no longer fit strategically. Molson sells off the Molson Centre and the Montreal Canadiens to focus on beer.
Marketing Planning The analysis, planning, implementation, evaluation and control of marketing initiatives in order to satisfy target market needs and achieve organizational objectives.
Marketing Planning Process Evaluation and Control Situation Analysis SWOT Analysis Marketing Plan Implementation of Plan
Situation Analysis Essential information is compiles and analyzed <ul><li>External Influences </li></ul><ul><li>Market Analysis </li></ul><ul><li>Brand analysis </li></ul><ul><li>Competitor Analysis </li></ul>The impact of past marketing strategies are evaluated.
SWOT Analysis Critical factors from the situation analysis that will influence future marketing direction are identified Strengths & Weaknesses Opportunities & Threats Internal Factors External Factors
Marketing Objectives Quantifiable statements identifying what will be accomplished in one year. Sales: To increase sales from 10,000 units to…. Market Share: To increase market share from 20% to ….
Control and Evaluation Measuring results and taking corrective action when necessary. Activity Review Actual versus plan: sales, market share, and profit. Financial Review Evaluation of sales forecasts, costs, and budgets.
Contingency Plan The identification of alternative courses of action that can be used to modify an original plan when new circumstances arise. <ul><li>Flexibility </li></ul><ul><li>Adaptability </li></ul>
Common Marketing Strategies Existing Product New Product Market Penetration Product Development Market Development Diversification Existing Market New Market
Common Marketing Strategies Penetration Pepsi-Cola versus Coca-Cola Product Development Coke Zero, Vanilla Coke, Coke C2 Market Development Home Depot opens smaller, downtown stores Diversification Apple markets music products: iTunes and iPod