Section A Group 10 40% Market Leader 30% Market Challenger 20% Market Follower 10% Market Nicher Expanding the total demand More usage Additional opportunity New ways to use Protecting market share Proactive Marketing Defensive Marketing Increasing market share Profitability rises with market share Market Leader Market Challenger Market Follower Market Nicher Competitive Positions DABUR HONEY AD 18- 4 iPod Classic Hard drive based iPod Shuffle The Ultra Compact iPod Touch the multi-touch touch screen iPod Nano compact with multi touch 18- 10 18- 11 Expanding the total demand Finding new users Encouraging greater product usage Protecting market share Many considerations Continuous innovation Expanding market share Profitability rises with market share 18- 13 Market Leader Market Challenger Market Follower Market Nicher Competitive Positions Cadbury is the market leader in Chocolate Confectionery business in India with a market share of over 70%. Cadbury Ad 18- 15 More Usage New Ways Expanding the total demand Finding new users Discovering new uses for the product Encouraging greater product usage Protecting market share Defensive Marketing Expanding market share Profitability rises with market share Market Leader Market Challenger Market Follower Market Nicher Competitive Positions Dominant firm must actively defend its current business Continuous innovation Develop new products and services, effective distribution and economical costs Comprehensive solutions increases firms competitive strength and value to customers Proactive Marketing: uses new ideas to market a product develops not as a response to a competitor's actions, but as an original creation bolder and more creative than reactive/defensive campaigns Responsive Marketing
Discovers solutions customers did not ask for but to which they enthusiastically respond.
Proactive market-driving firms. PROACTIVE MARKETING Strategies 1. Responsive Marketing 2. Anticipative Marketing 3. Creative Marketing PROACTIVE MARKETING Strategies 1. Responsive Marketing 2. Anticipative Marketing 3. Creative Marketing PROACTIVE MARKETING Strategies 1. Responsive Marketing 2. Anticipative Marketing 3. Creative Marketing Pepsico H2OH! Creative Marketing Samsung Galaxy Gear PROACTIVE MARKETING Strategies 1. Responsive Marketing 2. Anticipative Marketing 3. Creative Marketing Apple Ipod PROACTIVE MARKETING Strategies 1. Responsive Marketing 2. Anticipative Marketing 3. Creative Marketing Creative Marketing Compact SUV PROACTIVE MARKETING Strategies 1. Responsive Marketing 2. Anticipative Marketing 3. Creative Marketing Creative Marketing Toyota Prius: advanced hybrid technology PROACTIVE MARKETING Strategies 1. Responsive Marketing 2. Anticipative Marketing 3. Creative Marketing Creative Marketing iPad PROACTIVE MARKETING Strategies 1. Responsive Marketing 2. Anticipative Marketing 3. Creative Marketing Defensive Marketing: Lower the risk of attack Divert attacks to less threatened areas Weaken impact of attacks DEFENSIVE MARKETING Strategies 1. Position Defense 2. Flank Defense 3. Pre-emptive Defense 4. Counter-Offensive Defense 5. Mobile Defense 6. Contraction Defense Position Defense defend its position in the wake of attack by the market challenger. Position defence involves the defence of a fortified position. This involves setting up fortifications such as barriers to market entry around a product, brand, product line, market, or market segment. This could include increasing brand equity, customer satisfaction, customer loyalty, or repeat purchase rate. It could also include exclusive distribution contracts, patent protection, market monopoly, or government protected monopoly status. Occupying the most desirable place in consumers mind. DEFENSIVE MARKETING Strategies 1. Position Defense 2. Flank Defense 3. Pre-emptive Defense 4. Counter-Offensive Defense 5. Mobile Defense 6. Contraction Defense DEFENSIVE MARKETING Strategies 1. Position Defense 2. Flank Defense 3. Pre-emptive Defense 4. Counter-Offensive Defense 5. Mobile Defense 6. Contraction Defense Position Defense DEFENSIVE MARKETING Flank Defense
Puts up an outpost to defend the weak front or to act as a counter invasion base.
Strategies 1. Position Defense 2. Flank Defense 3. Pre-emptive Defense 4. Counter-Offensive Defense 5. Mobile Defense 6. Contraction Defense DEFENSIVE MARKETING Flank Defense HULs Clinic All Clear Antidandruff came in the market to compete with P&Gs Head and Shoulders.
Strategies 1. Position Defense 2. Flank Defense 3. Pre-emptive Defense 4. Counter-Offensive Defense 5. Mobile Defense 6. Contraction Defense DEFENSIVE MARKETING Strategies 1. Position Defense 2. Flank Defense 3. Pre-emptive Defense 4. Counter-Offensive Defense 5. Mobile Defense 6. Contraction Defense Flank Defense Detergents by P & G Cheer Gain Tide Era DEFENSIVE MARKETING Strategies 1. Position Defense 2. Flank Defense 3. Pre-emptive Defense 4. Counter-Offensive Defense 5. Mobile Defense 6. Contraction Defense Flank Defense Diapers by P & G Pampers Luvs DEFENSIVE MARKETING Strategies 1. Position Defense 2. Flank Defense 3. Pre-emptive Defense 4. Counter-Offensive Defense 5. Mobile Defense 6. Contraction Defense Flank Defense Sprite by Coca-Cola DEFENSIVE MARKETING Strategies 1. Position Defense 2. Flank Defense 3. Pre-emptive Defense 4. Counter-Offensive Defense 5. Mobile Defense 6. Contraction Defense Pre-emptive Defense Be the first attacker DEFENSIVE MARKETING Strategies 1. Position Defense 2. Flank Defense 3. Pre-emptive Defense 4. Counter-Offensive Defense 5. Mobile Defense 6. Contraction Defense Pre-emptive Defense Apple Microsoft SBI DEFENSIVE MARKETING Strategies 1. Position Defense 2. Flank Defense 3. Pre-emptive Defense 4. Counter-Offensive Defense 5. Mobile Defense 6. Contraction Defense Counter-Offensive Defense Meet the attacker frontally and hit its flank
Responding to competitors head-on attack by identifying the attackers weakness and then launch a counter attack
Counteroffensive is the exercise of economic or political clout. The leader may try to crush a competitor by subsiding lower prices
DEFENSIVE MARKETING Strategies 1. Position Defense 2. Flank Defense 3. Pre-emptive Defense 4. Counter-Offensive Defense 5. Mobile Defense 6. Contraction Defense Counter-Offensive Defense Maruti faced attacks by competitors in its hatchback car segment so Maruti launched Swift that offers more value DEFENSIVE MARKETING Strategies 1. Position Defense 2. Flank Defense 3. Pre-emptive Defense 4. Counter-Offensive Defense 5. Mobile Defense 6. Contraction Defense Counter-Offensive Defense FedEx in response to UPSs attack invaded through heavy investment in ground delivery systems DEFENSIVE MARKETING Strategies 1. Position Defense 2. Flank Defense 3. Pre-emptive Defense 4. Counter-Offensive Defense 5. Mobile Defense 6. Contraction Defense Counter-Offensive Defense Toyota launched the Lexus to respond to Mercedes attack DEFENSIVE MARKETING Strategies 1. Position Defense 2. Flank Defense 3. Pre-emptive Defense 4. Counter-Offensive Defense 5. Mobile Defense 6. Contraction Defense Counter-Offensive Defense Fuji attacked Kodak in US market, Kodak retaliated by attacking Fuji in Japan market DEFENSIVE MARKETING Mobile Defense This involves constantly shifting resources and developing new strategies and tactics It is intended to create a moving target that is hard to successfully attack In business this would entail: introducing new products, introducing replacement products, modifying existing products, changing market segments, changing target markets, repositioning products, or changing promotional focus.
Strategies 1. Position Defense 2. Flank Defense 3. Pre-emptive Defense 4. Counter-Offensive Defense 5. Mobile Defense 6. Contraction Defense DEFENSIVE MARKETING Strategies 1. Position Defense 2. Flank Defense 3. Pre-emptive Defense 4. Counter-Offensive Defense 5. Mobile Defense 6. Contraction Defense Mobile Defense Leader stretches its domain over new territories through
(a) Market diversification: shifts companys focus into unrelated industries
(a) Market broadening: shifts companys focus from current product to related generic need DEFENSIVE MARKETING Strategies 1. Position Defense 2. Flank Defense 3. Pre-emptive Defense 4. Counter-Offensive Defense 5. Mobile Defense 6. Contraction Defense Mobile Defense Market diversification: Tobacco Giant ITC started focusing on consumer goods DEFENSIVE MARKETING Strategies 1. Position Defense 2. Flank Defense 3. Pre-emptive Defense 4. Counter-Offensive Defense 5. Mobile Defense 6. Contraction Defense Mobile Defense Market diversification: Mercedes Benz: (1) introduced Diesel SUV
(2) JV with Swatch for Micro Compact Car AG DEFENSIVE MARKETING Strategies 1. Position Defense 2. Flank Defense 3. Pre-emptive Defense 4. Counter-Offensive Defense 5. Mobile Defense 6. Contraction Defense Mobile Defense Market diversification: Eastman Kodak Co. moved from film sales and consumer photo development to printing technology for corporate customer, touch screen sensor components for smartphones DEFENSIVE MARKETING Strategies 1. Position Defense 2. Flank Defense 3. Pre-emptive Defense 4. Counter-Offensive Defense 5. Mobile Defense 6. Contraction Defense Mobile Defense Market broadening: Petroleum Companies DEFENSIVE MARKETING Strategies 1. Position Defense 2. Flank Defense 3. Pre-emptive Defense 4. Counter-Offensive Defense 5. Mobile Defense 6. Contraction Defense Mobile Defense Market broadening: Paramount Pictures
Blue Star DEFENSIVE MARKETING Strategies 1. Position Defense 2. Flank Defense 3. Pre-emptive Defense 4. Counter-Offensive Defense 5. Mobile Defense 6. Contraction Defense Mobile Defense Market broadening: Encyclopedia Britannica
Give up weaker markets and reassign resources to stronger ones DEFENSIVE MARKETING Strategies 1. Position Defense 2. Flank Defense 3. Pre-emptive Defense 4. Counter-Offensive Defense 5. Mobile Defense 6. Contraction Defense Contraction Defense Ford retires T-birds and Probe and focuses on Contour & Taurus DEFENSIVE MARKETING Strategies 1. Position Defense 2. Flank Defense 3. Pre-emptive Defense 4. Counter-Offensive Defense 5. Mobile Defense 6. Contraction Defense Contraction Defense HUL A market challenger is a firm in a strong, but not dominant position that is following an aggressive strategy of tryi ng to gain market share Market Leader Market Challenger Market Follower Market Nicher Competitive Positions Market challengers strategic objective is to gain market share and to become the leader eventually by By attacking the market leader By attacking other firms of the same size By attacking smaller firms
In Frontal attack the competitor attacks the opponents strengths rather than its weaknesses.
The outcome depends on who has the more strength and endurance Frontal Attack Flank Attack Encirclement Attack Bypass Attack Guerrilla Attack Following are the types of frontal attack A pure frontal attack: It involves matching a competitors product in all areas of marketing . Limited frontal attack: A limited frontal attack focuses on specific customers. Price based frontal attack: In priced based frontal attack, Every product characteristic is matched.
Frontal Attack Flank Attack Encirclement Attack Bypass Attack Guerrilla Attack Frontal Attack Flank Attack Encirclement Attack Bypass Attack Guerrilla Attack HUL's Clinic All Clear Shampoo spoofed P&G's Head & Shoulders, when it showed Bollywood actress Bipasha Basu searching for a girl with zero dandruff. One girl who does have dandruff mentions the name of her shampoo, making a muted reference to Head & Shoulders. Frontal Attack Flank Attack Encirclement Attack Bypass Attack Guerrilla Attack HUL's Rin commercial, a pack of Tide Natural, the brand owned by rival Procter & Gamble, was prominently displayed with a voiceover Tide se kahin behtar safedi de Rin. Frontal Attack Flank Attack Encirclement Attack Bypass Attack Guerrilla Attack BMW and Mercedes led the United States luxury car market with most sales in 2011, Audi maintains a solid foothold with an aggressive ad campaign that continually makes its way into the big arena: the Super Bowl. In 2011, Audi capitalized on the following Super Bowl ran video by Mercedes, which gathers its classic vehicles to bless the new line of Mercedes automobiles with the greeting, "Welcome to the Family.
AD Frontal Attack Flank Attack Encirclement Attack Bypass Attack Guerrilla Attack In response to what Audi perceives as Mercedes representing "old luxury," the company developed the following video that paints the tradition of Mercedes ownership as a prison of luxury that must be escaped, as owning an Audi allows one to "escape the confines of old luxury."
AD
Frontal Attack Flank Attack Encirclement Attack Bypass Attack Guerrilla Attack IBM Vs APPLE
Frontal Attack Flank Attack Encirclement Attack Bypass Attack Guerrilla Attack Frontal Attack Flank Attack Encirclement Attack Bypass Attack Guerrilla Attack In a flanking strategy, a company focuses its forces on the weaker sides of its competitor.
Three principles of flank attack are: A good flanking move must be in an uncontested area. Tactical surprise ought to be important of the plan, The pursuit is as critical as attack itself.
Usually this offensive strategy is used by a company that does not have overwhelming superiority, but have an advantage in one particular area.
Frontal Attack Flank Attack Encirclement Attack Bypass Attack Guerrilla Attack There are two types of flanking strategy:
1) Geographical flanking: occurs when a firm attacks different areas within the world or country where competitors are nonexistent or not very strong. The Coca-Cola Company uses this type of marketing strategy
1) Segmental flanking: potentially can be more powerful than geographical flanking attacks because they satisfy market needs the competitor has ignored Frontal Attack Flank Attack Encirclement Attack Bypass Attack Guerrilla Attack Facebook v/s Orkut
Frontal Attack Flank Attack Encirclement Attack Bypass Attack Guerrilla Attack Intel introduced Centrino line of processors to protect its flagship Pentium brand when competitors were gearing up to launch lesser- priced alternatives. Frontal Attack Flank Attack Encirclement Attack Bypass Attack Guerrilla Attack LG identified the geographical and launched its small town and rural market colour television SAMPOORNA Frontal Attack Flank Attack Encirclement Attack Bypass Attack Guerrilla Attack When Titan was the market leader for watches in India, Timex Watches launched a complete range of Plastic watches that offered a refreshing product alternative to the market particularly to the youth market ( 18 to 35 age group) and was able to achieve a staggering sales volume of 2 million watches in just two years, a figure that Titan took more than five years to reach. Frontal Attack Flank Attack Encirclement Attack Bypass Attack Guerrilla Attack
P&G (worldwide) Tide is an extremely successful laundry detergent. In order to appeal to consumers who desired a lower-cost detergent, P&G introduced Cheer, which is a slightly lower quality product offered at a value price. While Tides sales dropped slightly with the introduction of the new brand, the combined sales of Cheer and Tide were higher than Tides original sales alone, allowing P&G to gain a greater market share. Frontal Attack Flank Attack Encirclement Attack Bypass Attack Guerrilla Attack When iPhone was launched, Samsung launched Galaxy Note II which has a feature of both smart phone and tablet to give users a new experience Frontal Attack Flank Attack Encirclement Attack Bypass Attack Guerrilla Attack The basic idea of encirclement is to force the competitor to protect their product from all sides. When using this type of strategy a company must have superiority in all areas. Encirclement attacks the competitor from all sides simultaneously.
The strategic objective of encirclement strategies is long term dominance.
Frontal Attack Flank Attack Encirclemen t Attack Bypass Attack Guerrilla Attack There are two types of Encirclement strategy:
1. Product encirclement: It introduces products with many different qualities, styles, and features that overwhelm the competition's product line.
2. Market encirclement: It goes beyond the end user, and focuses on the distribution channels.
Frontal Attack Flank Attack Encirclemen t Attack Bypass Attack Guerrilla Attack Frontal Attack Flank Attack Encirclemen t Attack Bypass Attack Guerrilla Attack Biscuits Parle Britannia Sunfeast Range Cream Cream Gold
Cream Treat Sunfeast Special, Dream Cream Rs. 10, Rs.10-13 Milk Milk Shakti Milk Bikis Milky Magic Rs. 10 Butter Cookies 20-20 GoodDay Butter Cookies Rs. 10 11 Dry Fruits & Nuts Cashew, Badam, Pista Golden Bakery Rs. 15-16 Snacks Krackjack , Monaco Timepass Sweet n Salt, Snacky Rs. 6 - 7 Glucose Parle-G Tiger Sunfeast Glucose Rs. 4-5 Marie Marie Marie Gold Marie Light, Marie Light Oats Rs. 10-12 Premium Hide & Seek Milano Pure Magic Dark Fantasy Rs. 25-30 It is an indirect attack strategy where the market challenger bypasses the leader and attacks easier markets to broaden its resource base.
Frontal Attack Flank Attack Encirclement Attack Bypass Attack Guerrilla Attack For example, if a company produces a new product, the company basically moves the new product to a new level with in the same product market area. Moving into digital and electronic watches may bypass the mechanical watch market. However, the company is still fighting for a position within the watch industry.
Frontal Attack Flank Attack Encirclement Attack Bypass Attack Guerrilla Attack Guerilla warfare basically involves winning small victories that can over time amount to a large gain in market share.
Frontal Attack Flank Attack Encirclement Attack Bypass Attack Guerrilla Attack Guerilla warfare basically involves winning small victories that can over time amount to a large gain in market share. Guerrilla Warfare consists of waging small, intermittent attacks to harass and demoralize the opponent and eventually secure permanent footholds. These include selective price cuts, intense promotional blitzes, and occasional legal action.
The cloner takes the most common features and characteristics of the product and reproduces it legally
Counterfeiter Cloner Imitator Adapter Counterfeiter Cloner Imitator Adapter Ralcorp holdings sell their products at $! Less than Kelloggs , which boosted its sales Counterfeiter Cloner Imitator Adapter The imitator copies some things from the leader but differentiates on packaging, advertising, pricing or location
Intent is to avoid direct confrontation with the Market Leader
Counterfeiter Cloner Imitator Adapter Counterfeiter Cloner Imitator Adapter Chrysler 300c Bentley Mulsanne Counterfeiter Cloner Imitator Adapter Counterfeiter Cloner Imitator Adapter Counterfeiter Cloner Imitator Adapter The adapter takes the leaders products and adapts or improves them
The adapter may choose to sell in different markets , but it often grows into a future challenger
Counterfeiter Cloner Imitator Adapter Counterfeiter Cloner Imitator Adapter Leadership in a small market or niche