IINSTITUTE OF MANAGEMENT SCIENCES

MARKETING STRATEGY

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PAK - AIMS
Contents
Contents...................................................................................................................2
1 ] INTRODUCTION....................................................................................................4
2 ] A SITUATION ANALYSIS.........................................................................................4
The Macro Environment............................................................................................5
DEEP-LIST analysis...............................................................................................5
An Industry Analysis................................................................................................5
Mission/Goals & Objectives.......................................................................................6
Segmentation & Target Market..................................................................................6
Marketing Mix.........................................................................................................7
PLC/CLC/ILC...........................................................................................................7
Portfolio Analysis.....................................................................................................8
KSF.......................................................................................................................8
USP.......................................................................................................................8
Market Analysis.......................................................................................................9
Market Share:......................................................................................................9
Sales:.................................................................................................................9
Growth Rates:.....................................................................................................9
Competitive Analysis.............................................................................................9
SWOT ANALYSIS...................................................................................................10
Ansoff Matrix.........................................................................................................11
Ansoff’s Product-Market Expansion Grid.................................................................12
Financial Analysis..................................................................................................12
Market Share.....................................................................................................12
Sales Analysis....................................................................................................12
Ratio Analysis....................................................................................................12
Common Ratios..................................................................................................13
Analysis of Financial Statements...........................................................................13
Example: Income Statement................................................................................14
Break Even Analysis............................................................................................14
Computing Break Even........................................................................................14
Break Even Point................................................................................................15
 Formula For Calculating BEP IN UNITS..................................................................15
Break Even Point in Dollars..................................................................................15
Break Even Plus Profits........................................................................................15
Break Even plus Profits........................................................................................16
Over All Work Sheet...............................................................................................16
3 ] Problem Identification..........................................................................................16
IDENTIFICATION OF MAIN PROBLEM........................................................................16
IDENTIFICATION OF SUB PROBLEM.........................................................................17
4 ] Alternatives to the Main Problem...........................................................................17
5 ] EVALUATION OF EACH ALTERNATIVE.....................................................................17
6 ] Selection of Best Alternative.................................................................................18
7 ] IMPLEMENTATION................................................................................................18
8 ] RECOMMENDATION/S..........................................................................................18
 1 ] INTRODUCTION
 In the introduction you will give a short synopsis of the case.
 Inform the reader what industry does the company belongs, what the time of the
case, who are the key players, what issue is at hand.
 Remember not to reveal any hard facts in the introduction part as they have to be
utilized in the upcoming steps.
 Usually an introduction would include the following:
 Time of case
 Industry of operations
 Time of establishment of company
 Key People
 Important dates if any in the case
 Size of company
 Main Line of business of the company.
 Geographic Area (e.g. Region, Country or City in which operations are being held)
 Others
 Remember: NO HARD FACTS.

2 ] A SITUATION ANALYSIS
Elements of Situational Analysis

 Macro Environmental Analysis

 DEEP-LIST Analysis
 Industry Analysis
 Mission
 Goal
 Objectives
 Segment and Target Market
 Marketing Mix
 PLC/CLC/ILC
 Portfolio Analysis
 KSF’s
 USP’s
 Market Analysis
 Market Share
 Sales
 Growth Rates
 SWOT analysis
 Ansoff Matrix
 Competitive Analysis
 Financial Analysis
 Strategic Analysis
The Macro Environment

DEEP-LIST analysis

 Demographic
 Ecological
 Economic
 Political
 Legal
 Informational
 Social
 Technological

Give the factors of the above that affect the case only

An Industry Analysis

Solutions From Porter’s 5 Forces Model.

 By analyzing this model you will have to identify either a industry is

 Attractive
 Unattractive
 Moderate.
 Remember these Five forces can have the following effects.
 Either a force e.g.
 Bargaining power of suppliers can be HIGHER OR LOWER.
 If it is Higher, then it is NEGATIVE FOR THE COMPANY.
 If it is LOWER, then it is POSITEVE FOR THE COMPANY.
 So a force that is Negative
 A Force that is Positive for the company.
 A Force can also have a Moderate (~) effect
 Analysis Continued.
 You will evaluate these five forces and see how many are positive, Negative
or Moderate.
 Then At the end, you will after looking at the positive and negative forces,
give conclusion about the ATTRACTIVENESS OF THE INDUSTRY.
 Remember that an unattractive industry does not means that profitability will also be
Negative.
 A company can make profits even in an unattractive industry and vise versa.
 e.g. Nishat Mills is making a profit, although the Textile industry of Pakistan is
UNATTRACTIVE.
 Threat Of New
Entrants

Bargaining Industry Bargaining

Power Of Competitors Power Of
Suppliers Internal Buyer
Rivalry

Threat Of
Substitutes

 Analysis Continued.
 You will evaluate these five forces and see how many are positive, Negative
or Moderate.
 Then At the end, you will after looking at the positive and negative forces,
give conclusion about the ATTRACTIVENESS OF THE INDUSTRY.
 Remember that an unattractive industry does not means that profitability will also be
Negative.
 A company can make profits even in an unattractive industry and vise versa.
 e.g. Nishat Mills is making a profit, although the Textile industry of Pakistan is
UNATTRACTIVE.

Mission/Goals & Objectives

 Find any explicit or implicit statement of the firms mission.

 Goals and Objectives:
 Look for the expressed or implied goals and objectives of the firm
 The importance of this is that after your analysis you can have a good picture
of either the company is really achieving/following its mission/goals and
objectives or not.

Segmentation & Target Market

 Segments Dealing in:

  Demographics
 Geographic
 Psychographics
 Media Graphics
 Define the appropriate Target market that the firm seeks to pursue.
 Customer Profiling

Marketing Mix

 Here you have to give details of the Marketing Mix.

 Use the 7 P’s Model.
 The 4 Hard P’s
 The 3 Soft P’s are:
 People
 Processes
 Physical Evidence

PLC/CLC/ILC

 ILC: Industry Life Cycle

 CLC: Company Life Cycle
 PLC: Product Life Cycle
Portfolio Analysis

 The BCG Matrix

 Though this is a portfolio analysis that is meant to analyze different
businesses in the entire portfolio, but we will use this model for our product
analysis.
 Identify where the Product/ Products of the company fall in this matrix.

KSF

 This part will identify the KSF’s of the business or in other words the KEY SUCCESS
FACTORS
 KSF’s are thing that are important while operating in an industry. Remember you
have to list the factors for the industry and NOT the internal company factors.
 These are the Key Factors for Success for any business operations in an INDUSTRY.

USP

 The Unique Selling Preposition helps identify the main differentiation upon which the
company is banking upon.
 The USP’s have to be identified so that the Positioning strategy of the company can
be analyzed.
Market Analysis

Market Share:

Look at Quantitative or Qualitative information that describes the past and current market
Share position

Sales:

Sales Growth rates or Sales figures will be plugged here. This will help you to analyze the
next point.

Growth Rates:

You will analyze the TRENDS in the patterns of Growth or Decline of the above two factors.

Competitive Analysis

 Here you can analyze the Share Analysis of different competitors or the Product
Attribute Analysis

Competitive Analysis

Market Share, Mind Share, and Heart Share

Market Share Mind Share Heart Share

2000 2001 2002 2000 2001 2002 2000 2001 2002

Competitor A 50% 47% 44% 60% 58% 54% 45% 42% 39%

Competitor B 30 34 37 30 31 35 44 47 53
Competitor C 20 19 19 10 11 11 11 11 8
Product Attribute Analysis

Competitor A.

Attribute Importance Rating Impact

( L/M/H ) (1-5)
Price

Quality

Features

Benefits

Style

Overall Rating:

Remarks:

SWOT ANALYSIS

 Here look at the strengths/weaknesses/opportunities/threats

 Remember
 Opportunities and Threats are External
 Strengths and Weaknesses are Internal.
THE SWOT MATRIX
Quantitative Assessment of Elements within the SWOT Matrix

Ansoff Matrix
Ansoff’s Product-Market Expansion Grid

Financial Analysis.

 Financial Analysis includes analysis like

 Market Share
 Sales Analysis and Trends.
 Ratio Analysis
 Break Even Analysis
 Analysis of Financial Statements

Market Share

 Previously you have computed the Market Share of the Firm and also in the
competitive analysis the Shares of competitors
 Now you have to give a comparative situation by merging the both the previously
done analysis.
 Use a Tabular form to do this.

Sales Analysis

 Here you can use Tables or Graphs to present the sales analysis of the company and
its competitors or substitutes.
 Be Creative over here

Ratio Analysis

 Financial Ratios determine the relationship between two variables, and with the help
of company ratios and industry ratios we can undergo a comparative analysis for the
operating of our firms.
Common Ratios

Ratio Formula

Current Ratio Current Assets

Current Liabilities
Acid Test Ration or Quick Current Assets- Inventory
Ratio Current Liabilities
Inventory Turn Over Cost of Goods Sold
Average Inventory
Total Asset Utilization Net Sales
ROA Total Assets
Profit Margin On Sales EBIT
Sales
ROI EAT
Total Assets
ROE Net Income
Shareholders Equity

Analysis of Financial Statements

 Most commonly three statements are analyzed:

 Balance Sheet
 Income statement
 Cash Flow Statement
Example: Income Statement.

Sales 3,600

Cost of goods sold 2,700

Gross Profit 900

Less operating expense:
Selling expenses 40

General & Administrative 60 100

Gross Operating revenue 800

Less Depreciation 250

Net operating income 550

Less other expenses 50

EBIT 500

Less Interest expenses 200

Earning Before Tax 300

Less federal and state income tax (40%) 120

Earnings After Taxes (EAT) 180

Break Even Analysis

 Break even point is that level of sales in either units or sales dollars at which a firm
covers all the costs of investing in a project.
 It is the level at which total sales revenue just equals the total costs necessary to
achieve these sales.

Computing Break Even

 Three values are required to calculate the BEP.

 Selling price per unit
 Level of Fixed Cost (TFC)
 Variable cost per unit produced (VC)
Break Even Point.

Formula For Calculating BEP IN UNITS

Fixed Costs
Contribution Margin
FC
SP-VC
Break Even Point in Dollars

FC
1 – VC
SP

Break Even Plus Profits.

FC + Profit
SP- VC

In terms of Sales Dollars

Break Even plus Profits.

FC + P
1 – VC
SP
Over All Work Sheet

Case Impact Case

Relevant Importance
Environment (Favorable/Un
Issues
fav) Imp/ Un imp
General Envt
Social ___________ ____________ ____________
Economic ___________ ____________ ____________
Political ___________ ____________ ____________
Legal ___________ ____________ ____________
Technological ___________ ____________ ____________
Operating Envt
International ___________ ____________ ____________
Suppliers ___________ ____________ ____________
Competition ___________ ____________ ____________
Customers ___________ ____________ ____________
Labor ___________ ____________ ____________
Internal Envt
Organizational ___________ ____________ ____________
Marketing ___________ ____________ ____________
Financial ___________ ____________ ____________
Personnel ___________ ____________ ____________
Production. ___________ ____________ ____________

3 ] Problem Identification
IDENTIFICATION OF MAIN PROBLEM

 Remember to distinguish the Symptoms from the problem!

 Problems are identified in terms of
 Time
 Impact.
  i.e. if the time to solve the problem is less, and if not solved the
impact will be very high, it is the Main Problem

IDENTIFICATION OF SUB PROBLEM

 Sub Problems have to be identified, so you will only list them over here.
 The treatment to the sub problems will be dealt at the last stage of case analysis.
 List a maximum of three (3) sub problems over here.

Analyze & Record the Problems & Core Element.

Major Problem Or Issue

Description f Problem or Issue:

Evidence that this is a major problem:

Facts:
Symbols or other effects:
Opinions:
Assumptions:

4 ] Alternatives to the Main Problem

 Give at least three (3) viable alternatives over here that can solve the main problem
 These alternatives can also be your strategies that you wish to implement.

5 ] EVALUATION OF EACH ALTERNATIVE

 Here you have to evaluate each individual alternative separately.
 You will look at the Cost and Benefits of each alternative, or in other words
the Pro’s and Con’s.
 To do this you will use the following Table.
 Alternative #1: ____________________

Pro’s Con’s
1. . 4. .
2. . 5. .
3. . 6. .

6 ] Selection of Best Alternative

 This is the solution to your problem.
 Here you will after having performed an analysis on all the alternatives, select one
alternative that:
 Has more Pro’s then Con’s
 Solves the problem completely
 Is your final Solution for the case

7 ] IMPLEMENTATION
 Implementation means to bring the best suited alternative to the practical form.
 Here you will give details in how will you implement the alternative.
 Basically you will answer the following:
 What to do?
 When to do it?
 How to do it?
 Who will be responsible for the implementation?
 Costs (if you can give the implementation costs)?

8 ] RECOMMENDATION/S
 These usually help or rectify all the sub problems that you have solved.
 Recommendations can be given in bullet form or they can be given in
paragraph form as well.
 You might want to give recommendations to each of the sub problems that
the company is facing.