Assignment-1

C.N.SUDHEER
2018APRB06006

BUILDING BRAND’S COMPETITIVE ADVANTAGE THROUGH VALUE

CREATION AND DELIVERY

Introduction of Branding:
Brand is important component in marketing that determine the
success of organisation, which also distinguish the product service or
concept from other

Branding is the never ending process and which will expressed in

terms of logo, graphic representation

The purpose of brand building is not to gain the customer, most

important to retain them

The brand strategy is how, where and when you communicate your
message to your customer
This may achieve through any means like Logo , tagline ,brand
ambassador
What is a Competitive Advantage?

A company’s ability to perform in one or more ways that competitors

cannot or will not match---- Philips Kotler

Your competitive advantage is thing you do better than you do

differently than any of your competitors. This is the key
differentiators that defines your brand against all other

The three major factor which defines competitive advantage

1) Value
2) Customer
3) Competition

1) value: your product or service may have several feature ,

what value your product or service deliver to your customer
2) customer : what exactly customer truly need
3) Competition: how differently you deliver to your customer
Competitive advantage

The main strategy of business is to achieve competitive

advantage

The two basic type of competitive advantage are

1) Cost advantage

2) Differentiate advantage

Cost advantage: the product or service by the company

deliver the same benefits to the customer at lower cost than
the competitor (mass production which will help to grab the
maximum market share, similar product at lower cost)

Differentiate advantage: the product or service which deliver

the extra benefit to the customer than the competitor
(which will deliver value to customer with maximum profit
to the company, unique product at higher price)

Cost and differentiate advantage will describe the

positioning of the company in the industry as a leader in cost
or differentiate (value)

Depend on the product and market the company will decide

the competitive advantage weather company should adopt
cost or differentiate advantage
Model of competitive advantage

Resources

Distinctive Cost Advantage

Value
Competencies or
Creation
Differentiation Advantage

Capabilities

By the above model the company should be

have brief idea about their resources and the
operating market, so that company can
decide the weather they can adopt cost
advantage or differentiate advantage so that
the company can deliver the value to their
customer.
The following analysis has to made by the company before they
adopt the competitive advantage

The competition between existing sellers

The threat by new entry as competitor
The substitute product availability in market
The bargaining capacity of customer
The bargaining capacity with supplier

Competitive advantage strategy

Cost leadership: the company mainly become low cost
production or mass production. The company will be above
average or average performer in the industry (example Mc
donalds)

Differentiation: the company focus on the production or

servicing the customer by unique attributes, which will
provide more profit to the customer (example louis Vuitton)

Cost focus firm which seeks the cost advantage in the

targeted segment
Differentiate focus firm which seeks differentiate in its target
advantage

Value creation

The activity which deliver more value to the customer as well

as share holders

The value to the customer (value proposition) : it is the main

reason why prospect( customer ) should buy your product or
services from you rather than any competitor.
Sometimes small changes against competitor can offer value added
services (boosters)
Example: Free shipping, fast shipping after sales services, etc….

Can be deliver value to shareholders by merging and acquisitions

Example: Havells India ltd, a electrical goods manufacture acquires

Sylvania of USA a lighting manufacture
It helps Havells to not only to expand the product basket in India and
also to enter to usa and other countries through the brand name of
Sylvania.
Through which they enhanced customer base and revenue to share
holders

Source of value creation in M& A

There are four main source which create value

1) ANSOFF’S PRODUCT MARKET MATRIX

2) BCG MATRIX

3) GRAND MATRIX

4) PRODUCT LIFE CYCLE

1) ANSOFF’S PRODUCT MATRIX

MARKET PENETRATION: It focus on increasing sales by existing

product in existing market
PRODUCT DEVELOPMENT: New product for existing market
MARKET DEVELOPMENT: Covering new market with existing market
DIVERSIFICATION: New market with new product

2) BCG MATRIX
This BCG matrix will help us to invest money wisely, so that we can
keep share holder happy.

3) GRAND MATRIX

Grand matrix will help us to focus on market development and

product development which will help us to increase revenue and
market share
4) PRODUCT LIFECYCLE

Every product have four stages like introduction, growth, maturity

and Decline which is directly proportional to revenue or profit.

The right combination of competitive advantage and value creation

can lead to better Brand management.

Refrence taken from Philips Kotler and Google.