Strategic Marketing

Definition
• Strategic Marketing is the way a firm effectively differentiates itself from its
competitors by capitalising on its strengths (both current and potential) to provide
consistently better value to customers than its competitors.
• Put simply strategic marketing is what is being carried out by those businesses who
have a clear, documented marketing strategy, which is guiding all activity.  It is long-
term in its nature and is the bedrock upon which all marketing decisions are made.
• The problem with SME’s is that they are typically started by people with a passion,
an interest or a skill in whatever the company is offering as its product or service. 
They are not run by strategic marketers.  So, it is inevitable that to them marketing
is more like a checklist. Logo-check. Website – check. Social Media presence –
check.  They rush in to getting all this collateral ready because they need it, but it is
not “informed” by anything.  There is no sound rationale to what they are doing.
Definition contd..
• In strategic marketing, companies seek to differentiate themselves
from their competitors by focusing on their strengths to provide
customers with superior service and value.
• To put it simply, strategic marketing aims to use a company's positive
differentiation over its competitors to its advantage.
Difference between strategic marketing and a marketing strategy

• Often, people use strategic marketing and a marketing strategy interchangeably. It is

important to note that their meanings are different in the marketing context. For a better
understanding, here are some of the differences between the two:
• In strategic marketing, when a company seeks to differentiate itself from its competitors, it
focuses on its strengths to offer customers greater value and service. Conversely, a
marketing strategy is a method of converting people to customers with the help of a
company's products and services.
• Strategic marketing is a three-phase process whereas marketing strategy consists of
implementing a predefined plan.
• Budgets, resource allocation and product quality improvement are the major
responsibilities at the management level in strategic marketing. In contrast, developing
marketing strategies for a specific product or service does not require higher management.
It merely requires developing promotional plans, distribution plans and pricing plans.
what does Strategic Marketing cover?

• #1 Mission, Vision and Values

• It is critical at the onset of any business to fully understand what your
purpose is, where you ultimately want to get to and how you want to
get there.  Unless these are fully understood and appreciated by
everyone within the business, then how can they guide you to make
the right decisions for your business?
Job of the Strategist
• In essence, the job of the strategist is to understand and cope with
competition. Often, however, managers define competition too
narrowly, as if it occurred only among today’s direct competitors. Yet
competition for profits goes beyond established industry rivals to
include four other competitive forces as well: customers, suppliers,
potential entrants, and substitute products. The extended rivalry that
results from all five forces defines an industry’s structure and shapes
the nature of competitive interaction within an industry.
#Objectives
• So, you may have an ultimate vision of where you want to aspire to
reach, but in the next 12-36 months, what are your objectives for the
business.  What are the metrics against which you can effectively
measure how you are performing, and again inform decision making?
# Clearly define your product offering
• This sounds really obvious, but actually a lot of business owners can
find this difficult.  It is particularly tricky when the business has been
going a few years and evolved into offering quite a wide range of
products and services. 
• Consider how you can segment your offering.  If you can do this with
clarity it makes the customer experience much easier – which
ultimately means they will be far more likely to buy from you. 
# Target Audience
• This is probably the most common area where SMEs make their biggest
mistake. Time, energy, budget and resources are all wasted because they
don’t take the time to narrow down their ideal target audience.
• Inevitably what this means is that they end up attempting to stretch a
budget too thinly, trying to market to anyone who may have a need for
their product or service.
• What’s more is because they haven’t defined any target markets, their
communications are also very generic in nature. It is critical to
understand your target audiences and what makes them tick. Without
undertaking this element of the process, you are merely relying on pot-
luck and timing.
#Competitive Positioning
• Once you have absolute clarity on your offering and your audience
you can then consider how you want to be positioned in your chosen
marketplace. 
• No matter what anyone says, no-one operates in a sector without
competition. 
• It is true that there may not be any like-for-like direct competition, but
there are always indirect competitors (alternative things that
customers could be spending their money on).   
#Key routes to market
• Routes to market is all about which are going to be correct channels
to get your defined product and sell it to your defined audience.  For
some businesses this may be a really simple process.  For others there
may be a plethora of different options, all with different pros and
cons. 
• What’s more is that the route, or routes, to market that you choose
for your business will dramatically impact on your overall strategy,
marketing plan and activities.
#Key processes
• Don’t underestimate a good process.  You could have absolute clarity
on all of the above and, on the face of it, a really solid marketing
strategy. 
• However, if your processes let you down, it could end up a disaster. 
Think through your ideas logically.  Is, what looks good on paper,
feasible in reality with the resources that you have? 
• An average strategy with brilliant processes will always outperform a
brilliant strategy with poor processes, over a sustained period.
#Messaging
• Now, when you consider points 1-7 above, you have to wonder how
on earth a business can gets its messaging right if it hasn’t gone
through this process. 
• You need to understand your purpose, your values, your offering, your
audience, your competitive positioning and your routes to market
before you can even begin to consider your key messaging. 
• However, this is the reason that many marketing activities simply do
not work.  If the marketing messaging is not aligned with everything
else that goes into strategic marketing, then it is never going to
maximise its impact.
Why is Strategic Marketing so important?
• Firstly, unless you have a solid marketing strategy, whatever you do will never yield the maximum returns.  The basic
function of marketing is designed to generate a business a much higher uptake in profits than it costs to invest.  Return on
investment can never be maximised unless a more strategic approach to marketing has been considered.
• Secondly, how you can ever evaluate opportunities effectively if you have no guiding marketing strategy to “sense-check” it
against?  How can you possibly know if a specific activity is correct if you don’t know your values, your objective, who your
target audience is and how you want to be competitively positioned?
• Thirdly, without an overriding marketing strategy across the business, how can you ensure that all staff are pulling in the
same direction.  We all know how important a united workforce working towards a united cause is to the success of a
business.  When Leicester City won the Premiership at odds of 3000-1, it wasn’t because they had the best individual
players or the best manager.  They won the title because they were the team that worked most efficiently together.
• Finally, without the clarity of marketing strategy, the business can not run efficiently.  Resource, money and time will be
wasted on activities.  It could be a business is investing in completely the wrong activity.  It could be the right activity, but
the wrong messaging.  Alternatively, it could be the right activity but aimed at the wrong target market. 
• What deepens the problem even more is that, often a business without a strategic approach to marketing, will not even
be tracking performance accurately.  This could ultimately end up costing the businesses thousands in wasted budget, which
they could have identified much earlier with the correct tracking processes in place.
• So, before you dismiss strategic marketing as only being relevant to larger companies, with big budgets, consider some of
the points we have raised.  When you think about it, it all makes logical sense.  Marketing strategy is a crucial element to
any business that is looking to grow profitably.
Difference between Marketing and Strategic
Marketing
• The difference between marketing and strategic marketing is sort of like the difference between a
piece of cheese and using that piece of cheese to make some delicious lasagna - while the former
may be great on its own, it's nothing when compared to its use as part of an overall plan that
makes the best use possible of all the parts involved.
• A strategic marketing plan integrates selected, targeted marketing tactics all with common
goals; while marketing alone is often activity without purpose.
• Strategic marketing is ensuring that every one of your marketing efforts ( e.g., e-newsletters,
advertising in magazines, website, direct mailers and so on ) aligns with your overall plan to
connect the information you have with the audience that needs to hear it.
• The key to understanding and creating an effective strategic marketing campaign is developing a
comprehensive strategic marketing plan that allows everyone in your organization to understand
what your marketing goals are and your plan for accomplishing them.
• "To be successful and grow your business and revenues, you must match the way you market your
products with the way your prospects learn about and shop for your products."
• Marketing has become extremely complex between hundreds of channels, many software options, tons of data,
and audiences who have become numb to advertising along with short attention spans.
• This is all the more reason for your marketing to be strategic rather than reactionary or just activity to fill the
void.
• A great strategic marketing plan should provide the following:
• Clear prioritization of target industries, regions and audiences to ensure we are reaching the right people.
• Definition of both goals and KPIs ( Key Performance Indicators ) with a plan to report the most critical metrics.
• Selection of the right software platforms and tools based on your needs that have the ability to work
seamlessly together.
• Planning for resources, timeline and talent to execute across writing, design, programming, data analysis,
systems integration, marketing and the needs for channels to be leveraged.
• Organization of specific, targeted campaigns as well as general marketing tactics that lead prospects through
awareness, engagement, conversion, nurturing, and sales.
• If you ask marketers about what challenges they struggle with most, the top answers are generating traffic into
leads and proving ROI.
Understanding Terms
• Marketing strategy is the part of marketing that deals with STP, Segmentation, Targeting and Positioning. In
other words, how you; 1) break down the market; 2) which segments you go after; 3) whether you
differentiated, undifferentiated or niche targeting and; 4) how you position yourself or offerings in the chosen
segments.
• Marketing tactics on the other hand, deals with the management of the 4P's; Product; Price, Place and
Promotions.
• Strategic marketing is an approach that looks at marketing in the long term. In other words, how does the firm
best drive CLV (Customer Lifetime Value) - from the firm's installed base of customers as well as potential
customers. CLV is simply, the discounted cash flows that accrues to a firm or brand over the lifetime of a
relationship with a customer or an installed base of customers. The key drivers of CLV are; 1) customer
acquisition; 2) Customer retention; 3) Customer Growth.
• Strategic marketing also entails long term management of "market based assets" (intellectual and relational
such as brands etc.,) in order to deliver customer lifetime value in the long term
• Strategic marketing considers the long-term goals of your company such as expanding your business,
exploring new demographics, or creating a new brand. Therefore, it needs the insight of your financial
department who can analyze if you have adequate funds to realize your goals.
• Marketing Strategy is creating a marketing mix involving the 4P's of marketing - Product,
Promotion, Place (Distribution), and Price. Positioning is often the 5th "P".
• Strategic marketing is viewing where you sit in the market and taking a longer term view -
is your firm a leader, challenger, follower, or a niche specialist and therefore the basis on
how you will compete. It includes analysing your competitors and determining how you
will compete. For example see Michael Porter (five forces model)Other tools used include
a detailed SWOT analysis and PESTEL (political, economic, social, Technology,
environmental and legal) analysis, BCG model.
• On the other hand, strategic marketing is beyond the 4ps. It helps an organization to stand
out in the crowd. Organizations can position themselves in a different way if they can
apply strategic marketing. This strategic marketing helps achieve some distinctive
capabilities which might differentiate an organization from its competitors.
• Strategic marketing is a strategic direction of marketing functions in long term..
• Which one will grow your business? Strategic marketing.
• Most companies start with tactical marketing by choosing activities
such as email, pay-per-click, SEO, social media, trade shows, etc. This
is a big mistake!
• Starting with tactical marketing without first addressing strategic
marketing is like building a house without a blueprint. It's based on a
strategy of hope which is guaranteed to fail.
• To get the highest impact on your marketing spend, start with strategy,
then move to tactics. Strategy drives growth. Ignoring strategy and
starting with tactics is like burning a pile of cash in your parking lot.
• Marketing planning and the significance of mindset In his book The Mind
of the Strategist, Kenichi Ohmae (1983) claimed that successful strategy
was more to do with a particular mindset than with detailed and highly
objective analysis.
• Written in 1975 at the time of a tremendous upsurge in Japanese global
economic power, the book was translated into English in 1982 and proved
to be particularly successful and influential, since it was at this stage that
American business was being hit particularly hard by Japanese firms.
• Perceived by many to hold the secret to Japanese management thinking,
the book was in fact a warning against a belief in a ‘Made in Japan’ miracle
of business strategy.
Marketing Myopia
• The term “marketing myopia” describes when a company is so focused on
quick sales and mass production of goods they lose sight of their long-term
goals and customer needs. This shortsightedness in a marketing strategy or
business model prevents a company from achieving long-term success
• Some examples are:
• More focus on selling rather than building relationships with the customers.
• Predicting growth without conducting proper research.
• Mass production without knowing the demand.
• Giving importance to just one aspect of the marketing attributes without
focusing on what the customer actually wants.
What is the reason for marketing myopia?

• Ignoring or neglecting what your customers want or expect from

your brand is one of the top causes of marketing myopia. Not
listening to your customers' suggestions, requests, or feedback and,
as a consequence, not improving your products or services, will
gradually cause your business to develop marketing myopia
Where did the concept originate?

• The term was coined by the late Harvard Business School marketing
professor, Theodore Levitt, in a 1960 article by the same
name (republished in 2004).
• The “heart of the article,” according to Deighton, is Levitt’s argument
that companies are too focused on producing goods or services and
don’t spend enough time understanding what customers want or need.
• Therefore, he “encouraged executives to switch from a production
orientation to a consumer orientation.” As Levitt used to tell his
students, “People don’t want a quarter-inch drill. They want a quarter-
inch hole!”
• The other thing that made the article so significant at the time of its
publication is that it reminded CEOs that marketing is part of their
job:
• “[Levitt] tells the leader of the organization: you are in business
because you have a customer. Therefore you have to think about
marketing,” 
Cure for Marketing Myopia
• Luckily, there is a cure for marketing myopia. Levitt suggests that
leaders ask themselves: What business are we really in? 
• The best way for leaders to answer that question is by asking
themselves another: What are we really doing for the customer?
• Successful companies focus on customer needs, not their own
products and services, which can—and will—be replaced by
competitive alternatives, either ones they make themselves or those
produced by existing or potential competitors.
Publishing Industry
•  He suggests that it’s time for publishers to ask Levitt’s central
question: What business are we really in? “There seems to be a
myopic attachment to the word ‘publish’ that is a production-oriented
take on the industry.
• But what are customers really looking for?” They don’t want
newspapers or magazines, he says. “They want to be entertained,
informed, stimulated, by people more interesting than their friends
and acquaintances,” he argues. 
“The New Marketing Myopia.”
•  They posited that marketers have taken Levitt’s advice to an extreme, creating a new kind of
short sightedness, marked by a single-minded focus on the customer, a narrow definition of the
customer, and a failure to address the multiple stakeholders who have arisen out of the
“changed societal context of business”.
• There is no doubt that Levitt believed the entire corporation must be viewed as a customer-
creating and customer-satisfying organism, and Deighton admits that this is one of the potential
pitfalls of Levitt’s original idea: it “puts great trust in the consumer.”
• In his original article, Levitt acknowledged how difficult it can be to listen to customers; he
wrote: “Consumers are unpredictable, varied, fickle, stupid, shortsighted, stubborn, and
generally bothersome.”
• But Smith, Drumwright, and Gentile go even further, arguing that it’s not just about listening to
consumers but about hearing all of the stakeholders who contribute to your company’s success,
such as employees, suppliers, shareholders, competitors, media, and community members.
In Conclusion
• Levitt believed that executives couldn’t predict the future—and
shouldn’t try.
• Instead, by concentrating on meeting customer needs rather than on
selling products—by always keeping in mind the business that they’re
really in—companies could be better prepared for whatever the
future would bring.
Delta Model?

• Hax’s Delta Model is a strategic framework with a pro-consumer

approach toward the implementation of effective management and
corporate business strategies in an organization.
• The Delta Model was developed by Arnoldo Hax (of the Sloan School
of Management at MIT) and Dean Wilde. It is a relatively
modern business strategy framework that’s been receiving critical
acclaim due to its efficiency and effectiveness.
• Hax’s Delta Model is a strategic framework with a pro-consumer approach
toward the implementation of effective management and corporate
business strategies in an organization.
• Hax’s Delta Model is pro-consumer in the sense that it is a consumer-
centric strategy framework, with business strategies and managerial
frameworks catering to the needs of the consumer. 
• The workings of Hax’s Delta Model are accurately described through a
diagrammatic representation called “The Triangle,” which describes three
alternative ways to put into effect the Delta Model’s business
management strategies. The three strategic methods are Best Product
Positioning, Total Customer Solutions, and System Lock-In.
• Since most existing business management models are more
competitor-focused and product-focused, catering to the needs of the
market prior to the increased dependency on the internet, they are
now considered outdated by many. As a result, Hax and Wilde
advocate for a more consumer-focused approach to business
management strategies to cater to the current consumer-focused
market. Hax’s Delta Model emphasizes the fact that “Customer
bonding is the driving force in strategy.”
The triangle basically describes three alternative ways
to accomplish customer bonding, to put into effect
the Delta Model’s business management strategies. 
1. Best Product Positioning
The strategic option present at the right side of the Triangle, called Best
Product Positioning, focuses on total consumer satisfaction through
effective and efficient product development. There are two ways of
achieving the objective: either through cost minimization or through
product differentiation.

2. Total Customer Solutions

The strategic option present on the left-hand side of the Triangle, called
Total Customer Solutions, is completely different from its right-hand
counterpart. The largest difference here is that, in spite of selling
standardized and isolated products to maximize consumer satisfaction,
it instead advocates focusing on providing solutions to consumers,
customizing products and services in accordance with their unique
needs.

3. System Lock-In
The strategic option present on the top of the Triangle, called System
Lock-In, emphasizes system economics as being the driving force for a
business. The complements of the business play a vital role and are
considered to be the basis for the system lock-in strategic option. The
strategy claims to gain of the complements’ share as the ultimate
objective, eventually resulting in a win-win situation of market
dominance – which not only ensures a customer base lock-in but also a
competitor lock-out.
• 1. Best Product Positioning
• The strategic option present at the right side of the Triangle, called Best Product
Positioning, focuses on total consumer satisfaction through effective and
efficient product development. There are two ways of achieving the objective:
either through cost minimization or through product differentiation.
• The process involves developing an efficient supply chain (to ensure cost
minimization), coming up with innovative ideas and techniques for product
development (which ensures product renewal), and securing efficient
distribution channels (which help distribute the product to all target markets).
Hence, it basically advocates selling standardized and characterized products in
order to maximize total consumer satisfaction and beat the competition.
• 2. Total Customer Solutions
• The strategic option present on the left-hand side of the Triangle, called Total
Customer Solutions, is completely different from its right-hand counterpart. The
largest difference here is that, in spite of selling standardized and isolated
products to maximize consumer satisfaction, it instead advocates focusing on
providing solutions to consumers, customizing products and services in
accordance with their unique needs.
• It basically emphasizes building customer bonding through total cooperation
with their unique needs, instead of selling products and services with a focus on
just beating the competition. Such a strategic option advocates focus on full
consumer satisfaction in a way that gives utility to customers’ financial capacity.
• 3. System Lock-In
• The strategic option present on the top of the Triangle, called System
Lock-In, emphasizes system economics as being the driving force for a
business. The complements of the business play a vital role and are
considered to be the basis for the system lock-in strategic option. The
strategy claims to gain of the complements’ share as the ultimate
objective, eventually resulting in a win-win situation of market
dominance – which not only ensures a customer base lock-in but also
a competitor lock-out.
Illustrative Case Study Examples

• Sony Wega – Adopted the Best Products positioning strategy by offering

unique, differentiated products and found success.
• Nucor Steel – Adopted the cost minimization aspect of Best Products
positioning and achieved incremental success.
• Saturn Corp. – Adopted the Total Customer Solutions strategy very efficiently
and completely redefined the purchasing experience of a car in the US.
• Fidelity – Adopted the Total Customer Solutions strategy and focused entirely
on maximizing financial utility for their consumers by providing full coverage
of financial services to their customers.
• Intel – Successfully followed the System Lock-In strategy, much like Microsoft.
Example
• Hax and Wilde cite the example of Bill Gates, claiming that he’s the
richest man in the world not only because he developed Microsoft, but
also because of his complements (as an army of people who are
working for him but are not on his payroll) – creating an entire network
that caters to his business needs, locking in a wide customer base,
locking out competitors, and achieving total market dominance.
• Gates was able to create an entire networking circle to his benefit in
the form of consumers wanting to buy a computer with access to the
largest set of applications and software developers (the complements)
wanting to write applications for the computers with the largest
installed base.
Strategic Marketing – Week 2
• Earlier the annual strategic plan guided the firm
• Today the markets are not only dynamic but risky, complex and
cluttered owing to multiple forces feeding these changes like digital
technologies, new products, product modifications, market niches,
segments are emerging faster than ever
• This makes Strategy creating and implementation more challenging
• How do you develop a successful strategy in a dynamic market?
• How do you stay ahead of competition?
• How to you stay relevant to the customer?
Therefore Strategists need new competencies in around six
management tasks

• Strategic Analysis
• Innovation
• Getting control of multiple business units
• Developing sustainable competitive advantages
• Developing growth platforms
Strategic Analysis

• Info about customers and competitors

• Trends affecting markets
• Info needs to be continuous for timely detection of threats and
opportunities
• Ability to predict trends, project their impact
• Competency In getting information, filtering it and converting it into
actionable analysis
Customer Value
• Creating value for the customers and ensuring that company profits
from it overtime are central tasks in strategy
Innovation
• New sources of value since old sources will be imitated or copied by
the competitors
• Ability to innovate is the key to winning dynamic markets
• Creating organizations that supports innovation
• Innovation must fit in among current offerings
• Mix of innovation must include incremental to transformational
• Winning the execution challenge to turn innovations into offering in
the marketplace
Multiple businesses
• Most businesses are now operating multiple units
• Decentralization provides for accountability, deep understanding of
product or service, being close to the customer, fast response
• However, autonomous business units can lead to misallocation of
resources, redundancies, a failure to capture cross business potential
synergies and confused brands.
Creating Sustainable Competitive Advantages
• Competitors can too quickly copy product and service improvements that are valued by customers
• Therefore better focus on:

• Customer relationships
• Brands and distribution channel
• Digital marketing skills
• Marketing analytics expertise
• Leveraging organizational synergy created by multiple units
• Customer centricity

Now the above things are more difficult to copy than a single new product or service
Developing growth platforms
• Revitalize core businesses to make them growth platforms
• Create new business platforms
• A firms must identify, select, implement, and adapt market driven
business strategies that will enjoy a sustainable advantage in dynamic
markets, as well as create synergy and set priorities among business
units.
• A firm must identify current, emerging and latent motivations and
unmet needs of customers to influence strategies.
• Therefore every strategy needs to have a value proposition that is
meaningful and relevant to customers.
Four dimensions define an effective business
strategy
• The product market investment strategy
• The customer value proposition
• The assets and competencies
• Functional strategies and programs
• A company’s action must offer value to customers
• Value must not be confused with low price or bundled price
• Customer value is the difference between the benefits customers
perceive they are getting from an offer minus the perceived cost of
obtaining these benefits adjusted
• Photo Copier – machine up time, speed, print quality, customer
service
• Video Game – Fun, excitement, Escape
• Strategic Market Management is a process designed to help
management team to create, change, or retains business srategy
Value Propositions
Group 1: Companies that compete on Performance Value
Group 2: Companies that compete on Price Value
Group 3: Companies that compete on Relational Value
Performance Value
• Best product or service offering usually at price premium
• Customers buying such products value this exceptional quality and are willing to pay for it
• Companies must ensure that its products or services exceed customer expectations on
valued performance attributes or benefits
• Five key types of performance value that dominate markets are:
• Functional quality – caterpillar, BMW cars, Darn Tough Socks
• Innovation quality – offers novel sources of value not currently available in market place – Medtronic
23andme, tesla etc
• Design and Fashion Quality – outstanding aesthetic or style – Hermen Bikin, Muji No handbag,
• Service quality – Exceptional service quality which is collection of tangible and intangible sources of
value – Singapore Airlines: Ferragamo toiletries, Givenchy blankets, Lobster Thermidor meals, ensuite
cabins, polite attendants
• Social Responsibility quality – larget societal outcomes, Dove Real beauty campaign, Toms shoes,
Price Value
• Reliable products and services positioned in the middle of the market
space at best price
• Ikea, Walmart,
1. Product Reliability
2. Reliable Service
3. Convenience and ability
4. Disciplined cost management
5. Superior pricing acumen
Relational value
• These companies offer their customers more customized set of solutions via
personalization or customer collaboration
• They have tight relationship with customers
• Mutual trust based on shared understanding and commitments
• Broadened offerings far beyond their core peoduct
• Compete on scope rather than scale
• Products tailored to needs
• This is not one size fits all approach of price value
• Texas instruments customized its chip to Nokia’s cell phone software which enabled
fast processing / tailored light processing chop that helped Samsung enter large
screen hifi TV market
Branding
• Brewing a Successful Brand: Analyzing the Story of Karan Bilimoria and Cobra
Beer Lori Jarvis / Lori Jarvis / Research Recruiting Coordinator at AnswerLab
• The article from the Harvard Business Review tells the true story of an Indian
entrepreneur that has built a truly global brand from scratch. His story is amazing
and inspiring. It also matches perfectly with what we are studying in class,
regarding global management strategies, and especially global entrepreneurship.
• STEP 1: Read the article carefully. \ STEP 2: Study Chapters 12 and 13 of your
textbook.\ STEP 3: Once you have read the article and the chapters, discuss the
following questions with your classmates:
• 1- Summarize the story of the article in couple of paragraphs. What is Cobra
Beer and how did it get started? Provide some key background and context.
• 2- Name the three crises that Karan Bilimoria identifies. Briefly explain each
crisis and why they were important. What lessons did he learn from each one?
• 3- Name the key elements of success the Mr. Bilimoria mentions. Explain each
one and how they contributed to his company's success.
Lord Karan Bilimoria

• Each entrepreneur may be said to have their own story—the why and how of their decisions to enter a specific
industry might be different than others—yet this story may also influence their perceptions of the business world and
their place in it.
• Karan Bilimoria, who is the chairman of the global brand Cobra Beer, said that he wanted to have a beer with the
right balances—he may have wanted something that not only could be enjoyed with different types of food, but also
by different audiences—yet, to him, most brands seemingly swayed to one end of the taste spectrum or another or
were seemingly geared to a niche population.
• After he came up with and developed the prototype for his brand of beer, Karan Bilimoria said that he and his
partner, Arjun Reddy, needed a way to enter the business world, so he, according to the article “How I Did It: Cobra’s
Chairman on Turning an Indian Beer into a Global Brand,” turned to selling polo sticks from companies in India to
consumers in the United Kingdom. This venture, according to Karan Bilimoria, eventually led to them meeting India’s
largest independent brewer in Bangalore.
• Although Karan Bilimoria and Arjun Reddy had their prototype and the brewers may have been willing to collaborate
with them on bringing their product to market, the sticking point for them (and for their consumers) may have been
their initial name of Panther.
• According to Karan Bilimoria, however, they, once they changed their brand name to Cobra, were eventually take
their brand to a global level (“How I Did It: Cobra’s Chairman on Turning an Indian Beer into a Global Brand”).
• Although an entrepreneur’s background may provide people with a context for their story—it may give them an idea of the driving force behind a
company’s mission and purpose—how an entrepreneur builds their brand may add to people’s perceptions of that legacy. Some people may think
that Cobra’s success could be attributed to Karan Bilimoria being in the right place at the right time.
• Karan Bilimoria, according to “How I Did It: Cobra’s Chairman on Turning an Indian Beer into a Global Brand,” may have tried find opportunities to
establish himself as a businessman—he said that he had anticipated a shift in India’s economy when he started selling polo sticks, which may have
opened doors for him to sell his products to consumers in the United Kingdom—whereas he, when he was trying to Cobra to a global audience,
seemingly may have found a good financing source shortly before the collapse of Lehman Brothers. Some people may think that a successful
entrepreneur is someone who believes in the vision of their company. Karan Bilimoria may have had an idea of how he wanted to build Cobra, but
he may have had to rely on his background to help him enter the beer industry—he and Arjun Reddy may have needed to build their brand from
scratch, so Karan Bilimoria may have relied on his background in accounting and legal studies and on the example of his great-grandfather—and he
may have needed to align himself with people who believed could help him and Arjun Reddy grow their brand. Karan Bilimoria, when he was
creating Cobra, also may have needed to see the value of his company to persuade others about it, so he may have had to stick with it during
challenging times and, in his words, to remain consistent in his values. Some people may also say that the road to creating a successful brand is not
without difficulties.
• Karan Bilimoria may have felt that one factor that contributed to Cobra’s success was its resiliency—he may have needed to persuade consumers to
return after a seemingly scathing magazine article was published under in a trade magazine with his name under its masthead—as well as its
adaptation, such as determining a plan to find an investor that would allow him and Arjun Reddy to maintain their stake in the company or
convincing Molson Coors to change their negotiation terms for them to enter as a joint bid before he sold Cobra (“How I Did It: Cobra’s
Transformation on Turning an Indian Beer into a Global Brand”).
• Entrepreneurs and their brands may have their own stories, but these stories may also seemingly be the guiding force behind their businesses and
may play a role in determining how an entrepreneur will guide their brand in the present moment and how they will take their company into the
future (“How I Did It: Cobra’s Transformation on Turning an Indian Beer into a Global Brand”).
Puma-s-challenge-to-maintain-leadership in
India
• Global Business Case Study | Authors :: Sandeep Puri, Sanchita Krishna
• Case Study Description
• In 2015, Puma became the market leader in sportswear sales in India, leaving Adidas, Reebok, and
Nike behind for the first time since Puma entered the market. Puma's success in India was primarily
attributed to its marketing techniques, judicious expansion, and customer acquisition strategy. Indian
consumers had been embracing lifestyle changes associated with increased health concerns and the
popularity of fitness programs.
• As a result, the sportswear segment grew, presenting an opportunity for companies to maximize their
return on investments. While Puma moved ahead of Adidas to become the leading sportswear brand
in India, the market evolved and became competitive. Puma needed to continue innovating its
marketing strategies to hold onto its leadership position. Meanwhile, domestic footwear brands were
expanding their retail footprints and distribution networks beyond their regional presence in order to
gain a substantial market share. Could Puma strengthen its branding and hold its market position
despite continuing competition from established brands and new competition from domestic
companies?
10 Steps] Case Study Analysis & Solution
• Step 1 - Reading up Harvard Business Review Fundamentals on the Global Business
•
Even before you start reading a business case study just make sure that you have brushed up the Harvard Business Review (HBR) fundamentals on the Global Business. Brushing
up HBR fundamentals will provide a strong base for investigative reading. Often readers scan through the business case study without having a clear map in mind. This leads to
unstructured learning process resulting in missed details and at worse wrong conclusions. Reading up the HBR fundamentals helps in sketching out business case study analysis
and solution roadmap even before you start reading the case study. It also provides starting ideas as fundamentals often provide insight into some of the aspects that may not be
covered in the business case study itself.

• Step 2 - Reading the Puma's Challenge to Maintain Leadership in India HBR Case Study

• To write an emphatic case study analysis and provide pragmatic and actionable solutions, you must have a strong grasps of the facts and the central problem of the HBR case
study. Begin slowly - underline the details and sketch out the business case study description map. In some cases you will able to find the central problem in the beginning itself
while in others it may be in the end in form of questions. Business case study paragraph by paragraph mapping will help you in organizing the information correctly and provide a
clear guide to go back to the case study if you need further information.
My case study strategy involves -
• Marking out the protagonist and key players in the case study from the very start.
• Drawing a motivation chart of the key players and their priorities from the case study description.
• Refine the central problem the protagonist is facing in the case and how it relates to the HBR fundamentals on the topic.
• Evaluate each detail in the case study in light of the HBR case study analysis core ideas.
• Step 3 - Puma's Challenge to Maintain Leadership in India Case Study Analysis
• Once you are comfortable with the details and objective of the business case study proceed forward to put some details into the analysis template. You can do business case study
analysis by following Fern Fort University step by step instructions -
• Company history is provided in the first half of the case. You can use this history to draw a growth path and illustrate vision, mission and strategic objectives of the organization.
Often history is provided in the case not only to provide a background to the problem but also provide the scope of the solution that you can write for the case study.
• HBR case studies provide anecdotal instances from managers and employees in the organization to give a feel of real situation on the ground. Use these instances and opinions to
mark out the organization's culture, its people priorities & inhibitions.
• Make a time line of the events and issues in the case study. Time line can provide the clue for the next step in organization's journey. Time line also provides an insight into the
progressive challenges the company is facing in the case study.
Steps.. Contd…
• Step 4 - SWOT Analysis of Puma's Challenge to Maintain Leadership in India

• Once you finished the case analysis, time line of the events and other critical details. Focus on the following -
• Zero down on the central problem and two to five related problems in the case study.
• Do the SWOT analysis of the Puma's Challenge to Maintain Leadership in India . SWOT analysis is a strategic tool to map out the strengths,
weakness, opportunities and threats that a firm is facing.
• SWOT analysis and SWOT Matrix will help you to clearly mark out - Strengths Weakness Opportunities & Threats that the organization or manager
is facing in the Puma's Challenge to Maintain Leadership in India
• SWOT analysis will also provide a priority list of problem to be solved.
• You can also do a weighted SWOT analysis of Puma's Challenge to Maintain Leadership in India HBR case study.
• Step 5 - Porter 5 Forces / Strategic Analysis of Industry Analysis Puma's Challenge to Maintain Leadership in India

• In our live classes we often come across business managers who pinpoint one problem in the case and build a case study analysis and solution
around that singular point. Business environments are often complex and require holistic solutions. You should try to understand not only the
organization but also the industry which the business operates in. Porter Five Forces is a strategic analysis tool that will help you in understanding
the relative powers of the key players in the business case study and what sort of pragmatic and actionable case study solution is viable in the light
of given facts.
• Step 6 - PESTEL, PEST / STEP Analysis of Puma's Challenge to Maintain Leadership in India

• Another way of understanding the external environment of the firm in Puma's Challenge to Maintain Leadership in India is to do a PESTEL - Political,
Economic, Social, Technological, Environmental & Legal analysis of the environment the firm operates in. You should make a list of factors that have
significant impact on the organization and factors that drive growth in the industry. You can even identify the source of firm's competitive
advantage based on PESTEL analysis and Organization's Core Competencies.
Steps.. Contd..
• Step 7 - Organizing & Prioritizing the Analysis into Puma's Challenge to Maintain Leadership in India Case Study Solution

• Once you have developed multipronged approach and work out various suggestions based on the strategic tools. The next step is organizing the solution based on the requirement of the case.
You can use the following strategy to organize the findings and suggestions.
• Build a corporate level strategy - organizing your findings and recommendations in a way to answer the larger strategic objective of the firm. It include using the analysis to answer the
company's vision, mission and key objectives , and how your suggestions will take the company to next level in achieving those goals.
• Business Unit Level Solution - The case study may put you in a position of a marketing manager of a small brand. So instead of providing recommendations for overall company you need to
specify the marketing objectives of that particular brand. You have to recommend business unit level recommendations. The scope of the recommendations will be limited to the particular unit
but you have to take care of the fact that your recommendations are don't directly contradict the company's overall strategy. For example you can recommend a low cost strategy but the
company core competency is design differentiation.
• Case study solutions can also provide recommendation for the business manager or leader described in the business case study.
• Step 8 -Implementation Framework

• The goal of the business case study is not only to identify problems and recommend solutions but also to provide a framework to implement those case study solutions. Implementation
framework differentiates good case study solutions from great case study solutions. If you able to provide a detailed implementation framework then you have successfully achieved the
following objectives -
• Detailed understanding of the case,
• Clarity of HBR case study fundamentals,
• Analyzed case details based on those fundamentals and
• Developed an ability to prioritize recommendations based on probability of their successful implementation.
• Implementation framework helps in weeding out non actionable recommendations, resulting in awesome Puma's Challenge to Maintain Leadership in India case study solution.
• Step 9 - Take a Break

• Once you finished the case study implementation framework. Take a small break, grab a cup of coffee or whatever you like, go for a walk or just shoot some hoops.
• Step 10 - Critically Examine Puma's Challenge to Maintain Leadership in India case study solution

• After refreshing your mind, read your case study solution critically. When we are writing case study solution we often have details on our screen as well as in our head. This leads to either
missing details or poor sentence structures. Once refreshed go through the case solution again - improve sentence structures and grammar, double check the numbers provided in your analysis
and question your recommendations. Be very slow with this process as rushing through it leads to missing key details. Once done it is time to hit the attach button.
• Strengths - Puma's Challenge to Maintain Leadership in India
•
Strengths are the Puma Sportswear capabilities and resources that it can leverage to build a sustainable competitive advantage in the marketplace. Strengths come
from positive aspects of five key resources & capabilities - human resources, physical resources such as land, building, financial resources, past experiences and
successes, and activities & processes .
•
- Intellectual Property Rights – Puma Sportswear has garnered a wide array of patents and copyrights through innovation and buying those rights from the creators.
This can help Puma Sportswear in thwarting the challenges of competitors in various industries Emerging markets.
• - High Margins – Puma Sportswear charges a premium compare to its competitors. According to Sandeep Puri, Sanchita Krishna of Puma's Challenge to Maintain
Leadership in India case study, this has provided Puma Sportswear resources to not only thwart competitive pressures but also to invest into research and
development.
• - Superior product and services quality can help Puma Sportswear to further increase its market share as the current customer are extremely loyal to it. According to
Sandeep Puri, Sanchita Krishna in Puma's Challenge to Maintain Leadership in India study – there are enough evidences that with such a high quality of products and
services, Puma Sportswear can compete with other global players in international market.
• - Managing Regulations and Business Environment – Puma Sportswear operates in an environment where it faces numerous regulations and government diktats. In
Emerging markets areas, the firm needs to navigate environment by building strong relationship with lobby groups and political network.
• - Strong Brand Equity and Brand Awareness – Puma Sportswear has some of the most recognized brands in the domestic market it operates in. According to Sandeep
Puri, Sanchita Krishna , brand recognition plays a significant role in attracting new customers looking for solutions in Emerging markets adjacent industries.
• - Successful Go To Market Track Record – Puma Sportswear has a highly successful track record of both launching new products in the domestic market but also
catering to the various market based on the insights from local consumers. According to Sandeep Puri, Sanchita Krishna , Puma Sportswear has tested various
concepts in different markets and come up with successful Global Business solutions.
• - Strong Balance Sheet and Financial Statement of Puma Sportswear can help it to invest in new and diverse projects that can further diversify the revenue stream
and increase Return on Sales (RoS) & other metrics.
• What are Weakness in SWOT Analysis
• Weakness- Puma's Challenge to Maintain Leadership in India
•
Weaknesses are the areas, capabilities or skills in which Puma Sportswear lacks. It limits the ability of the firm to build a sustainable competitive advantage. Weaknesses come
from lack or absence of five key resources & capabilities - activities & processes, past experiences and successes, financial resources, physical resources such as land, building,
and human resources .
•
- Implementation of Technology in Processes – Even though Puma Sportswear has integrated technology in the backend processes it has still not able to harness the power of
technology in the front end processes.
• - Organization Culture – It seems that organization culture of Puma Sportswear is still dominated by turf wars within various divisions, leading to managers keeping
information close to their chests. According to Sandeep Puri, Sanchita Krishna of Puma's Challenge to Maintain Leadership in India case study, this can lead to serious road
blocks in future growth as information in silos can result can lead to missed opportunities in market place.
• - Lack of Work force diversity – I believe that Puma Sportswear is not diverse enough given that most of its growth so far is in its domestic market. According to Sandeep Puri,
Sanchita Krishna , this can reduce the potential of success of Puma Sportswear in the international market.
• - Track record on environment consideration is not very encouraging – Puma Sportswear track record on environmental issues is not very encouraging. According to Sandeep
Puri, Sanchita Krishna , this can lead to consumer backlash as customers are now considering environmental protections as integral to part of doing business.
• - Customer Dissatisfaction – Even though the demand for products have not gone down but there is a simmering sense of dissatisfaction among the customers of Puma
Sportswear . It is reflected on the reviews on various on-line platforms. Puma Sportswear should focus on areas where it can improve the customer purchase and post
purchase experience.
• - Puma Sportswear business model can be easily replicated even with the number of patents and copyrights the company possess. The intellectual property rights are very
difficult to implement in the industry that Puma Sportswear operates in. According to Sandeep Puri, Sanchita Krishna , Intellectual Property Rights are effective in thwarting
same size competition but it is difficult to stop start ups disrupting markets at various other levels.
What are Opportunities in SWOT Analysis
• Opportunities- Puma's Challenge to Maintain Leadership in India
•
Opportunities are macro environment factors and developments that Puma Sportswear can leverage either to consolidate existing market position or use them for further expansion.
Opportunities can emerge from various factors such as - economic growth, changes in consumer preferences, political developments & policy changes, technological innovations, and
increase in consumer disposable income .
•
- Growing Market Size and Evolving Preferences of Consumers – Over the last decade and half the market size has grown at brisk pace. The influx of new customers has also led to evolution
of consumer preferences and tastes. This presents Puma Sportswear two big challenges – how to maintain loyal customers and how to cater to the new customers. Puma Sportswear has
tried to diversify first using different brands and then by adding various features based on customer preferences.
• - E-Commerce and Social Media Oriented Business Models – E-commerce business model can help Puma Sportswear to tie up with local suppliers and logistics provider in international
market. Social media growth can help Puma Sportswear to reduce the cost of entering new market and reaching to customers at a significantly lower marketing budget. It can also lead to
crowd sourcing various services and consumer oriented marketing based on the data and purchase behavior.
• - Access to International Talent in Global Market – One of the challenges Puma Sportswear facing right now is limited access to high level talent market because of limited budget. Expansion
into international market can help Puma Sportswear to tap into international talent market. According to Sandeep Puri, Sanchita Krishna , it can also help in bringing the talent into domestic
market and expanding into new areas Emerging markets.
• - Lucrative Opportunities in International Markets – Globalization has led to opportunities in the international market. Puma Sportswear is in prime position to tap on those opportunities
and grow the market share. According to Sandeep Puri, Sanchita Krishna , growth in international market can also help Puma Sportswear to diversify the risk as it will be less dependent on
the domestic market for revenue.
• - Increasing Standardization – Puma Sportswear can leverage this trend to reduce the number of offerings in the market and focus the marketing efforts on only the most successful
products.
• - Increase in Consumer Disposable Income – Puma Sportswear can use the increasing disposable income to build a new business model where customers start paying progressively for using
its products. According to Sandeep Puri, Sanchita Krishna of Puma's Challenge to Maintain Leadership in India case study, Puma Sportswear can use this trend to expand in adjacent areas
Emerging markets.
What are Threats in SWOT Analysis

• Threats- Puma's Challenge to Maintain Leadership in India

•
Threats are macro environment factors and developments that can derail business model of Puma Sportswear. Threats can emerge from various factors
such as - economic growth, political developments & policy changes, changes in consumer preferences, technological innovations, and increase in
consumer disposable income . - International Geo-Political Factors – Since the Trump election, geo-political factors have taken a turn for growing
protectionism. Developments such as Brexit, Russian sanctions, foreign exchange crisis & inflation in Venezuela, lower oil prices etc are impacting
international business environment. Puma Sportswear should closely focus on these events and make them integral to strategy making.
• - Squeezing Middle Class in Developed and Developing World – The growing inequality is one of the biggest threat to not only globalization but also to
capitalism. Puma Sportswear first hand witnessed the impact of it where it has seen lower demand of its products from middle class customers in US and
EU market.
• - Government Regulations and Bureaucracy – Puma Sportswear should keep a close eye on the fast changing government regulations under the growing
pressure from protest groups and non government organization especially regarding to environmental and labor safety aspects.
• - Threats of New Entrants because of Reducing Costs and Increasing Efficiencies – As Puma Sportswear can leverage low cost of reaching customers using
social media and e-commerce, so can the competitors – both local and international competitors.
• - Increasing bargaining power of buyers – Over the years the bargaining power of customers of Puma Sportswear has increased significantly that is putting
downward pressure on prices. The company can pursue horizontal integration to consolidate and bring efficiencies but I believe it will be a short term
relief. According to Sandeep Puri, Sanchita Krishna , Puma Sportswear needs fundamental changes to business model rather than cosmetic changes.
• - Growing Protectionism - Puma Sportswear should hedge the risk against growing protectionism ranging from – storing data into international market to
diversifying risk by operating into countries at different economic cycle.
• https://www.essay48.com/case/33413-COBRA-S-CHAIRMAN-ON-
TURNING-AN-INDIAN-BEER-INTO-A-GLOBAL-BRAND-Case-Solution
Strategic Product Development
Product Development
• Product development strategy relies on developing new products or
modifying existing products so they appear new, and offering those
products to current or new markets.
• When executed successfully, it can lead to growth in sales and market
share.
• Typically, businesses may look at product development if they've run
out of opportunities for growth with their current product or within
their current markets.
Growth through product development

• With product development, a business usually has one of three choices. You can:
• create an entirely new product
• evolve your existing product for its existing market
• enhance your existing product to introduce it to new markets
• Steps to create a new product or enhance an existing one are likely to include thorough
research and development, a detailed assessment of customer needs, product design and
analysis, design documentation, prototyping and production.
• Each company approaches its product development strategy differently. Some businesses
outsource product development and buy-in another product to sell it under their own brand.
Others acquire the rights to sell someone else's product or work with another business to
jointly develop new products. 
• The key to a successful new product development process is continuous research, as well as
the ongoing assessment of customer needs.
Brand extension strategies

• Brand extension, or brand stretching, is a useful tactic in product development. It involves using your
established brand name for a new product or new product category.
• You can extend your brand in many ways, including:
• offering the original product in a new form
• combining two well-known products into one
• applying the existing brand to a different product category
• creating complementary products
• Brand extension is a popular strategy within product development because it is usually easier to achieve than
creating entirely new products.
• It allows you to leverage your reputation and popularity of an existing product to launch a new one. The costs
are also generally lower than they would be for introducing a new product without any brand identity.
• However, to work, the brand extension must provide a logical link between the original product and the new
item. If there is a mismatch, or the new product creates a negative association, this can lead to brand dilution.
• Keep in mind that product development is only one of four key business growth strategies. You should
consider it alongside the other options, including market penetration, market
development and diversification.
New product development process

• New product development (NPD) is a process of taking a product or

service from conception to market.
• The process sets out a series of stages that new products typically go
through, beginning with ideation and concept generation, and ending
with the product's introduction to the market.
• Occasionally, some of the stages overlap or vary depending on the
nature of the business.
Key stages in the process of new product or service development

• The NPD process involves eight key stages:

1. Idea generation - brainstorming and coming up with innovative new ideas.

2. Idea evaluation - filtering out any ideas not worth taking forward.
3. Concept definition - considering specifications such as technical feasibility, product design and market
potential..
4. Strategic analysis - ensuring your ideas fit into your business' strategic plans and determining the
demand, the costs and the profit margin.
5. Product development and testing - creating a prototype product or pilot service.
6. Market testing - modifying the product or service according to customer, manufacturer and support
organisations' feedback. This involves deciding the best timing and process for piloting your new product
or service.
7. Commercialisation - determining the pricing for your product or service and finalising marketing plans.
8. Product launch - a detailed launch plan can help ensure a smooth introduction to market.
Researching new product and service ideas

• The key to successful research and development

(R&D) is conducting extensive market research.
• This is essential as it helps you to identify and
understand the needs of your customers and,
ultimately, develop better products or services.
How to identify market need?

• To determine if there is a market or demand for your product or service, ask yourself
the following questions:
• Does it satisfy or create a market need?
• Will it outlive passing trends or capitalise on the trend before it dies away?
• Is it unique, distinct or superior to those offered by competitors?
• What competition will it face - direct or indirect, local, national or global?
• Will the market want your product or service at a realistic price?
• Can you identify potential customers?
• Will your product be safe for public use and comply with relevant laws and regulations?
• Market research plays an important role in answering many of these questions and
increasing your chances of success.
How to carry out market research?
• Be as thorough in your research as possible, as mistakes made at this
stage of development could prove costly later on. The more
information you have, the better you will be able to understand your
potential customers, the marketplace and how your product fits in.
• When conducting market research, remember to consider not only
the needs of your customers, but also the needs of other parties such
as retailers or distributors.
Develop your USP

• As well as meeting your customers' needs, your new product or service should
have a unique selling proposition (USP) - a feature or property that makes it stand
out in the marketplace.
• Before entering the market, you should assess your competition and determine:
• how they meet their customer needs
• what will differentiate your product or service from your competitors - this will be
your USP
• why would the customers choose your product or service over your competitors',
both now and in the future
• what risks you are prepared to take to launch your product or service into this
market