 To analyse
 To evaluate
 To make strategic Decisions
 Product Development
 Launch
 Brand Position
©November 2007

Marketing environment
• Target markets
• Marketing channels
• Competitors
• Publics
• Macroenvironment forces
Marketing information system
Developing information
Marketing intelligence
Internal records
Assessing information needs
Marketing research
Information analysis
Distributing information
Marketing managers
• Analysis
• Planning
• Implementation
• Organisation
• Control
Marketing decisions and communications
Source: Kotler et al
©November 2007

 Size and Structure of Industry
©November 2007

Suppliers to industry
Industry players
Channels for communication
& distribution
Customers/ segments
Competitor a
Supplier
I
Channel
1
Customer
A
FIRM
Customer
B
Supplier
II
Channel
2
Own Label
Competitor b
Customer
C
Adapted from Porter
©November 2007

The economy
Cultural forces Suppliers
Demography
The public
Distributors
& dealers
Social factors
Competitors
Political structures
Customers
Legal structures
Technology
©November 2007

 Products
 Nature of Product
 Life Cycle
 Portfolio
©November 2007

Where value is added
Potential
Augmented
Expected
Core
What the customer buys
(functions & benefits)
©November 2007
What the customer expects

 Segmentation
 Industry
 Consumer
 DMU
©November 2007

Barriers to entry
POTENTIAL
ENTRANTS
SUPPLIERS
Bargaining power
Threat of rivalry
Bargaining power
INDUSTRY
Competitive rivalry
BUYERS
Threat of substitution
SUBSTITUTES
Source: Porter
©November 2007

 Distribution and Pricing
©November 2007

 Major Players - Coty
 Review and revise SWOT
 PIMS (Profit impact of market strategy)
©November 2007

 Minor Player – Scents of Time
 Value Chain –next slide
 Create SWOT
©November 2007

SUPPORT ACTIVITIES
FIRMS INFRASTRUCTURE - Customer focused, Marketing taken on and understood at every level, core function - strong internal communications
HR MANAGEMENT - Retain technical and knowledge based employees and recruit marketing and sales experts - Project/consulting expertise
TECHNOLOGY DEVELOPMENT - Technology leaders, continuous innovation,
R&D focused towards buyers needs, strength in R&D relationships I.e. Research institutes
PROCUREMENT - Combined buying power.
MARGIN
INBOUND
LOGISTICS
• Intranet
• JIT
OPERATIONS
• JIT
•Efficient production
(closely monitored)
OUTBOUND
LOGISTICS
•Order handling
•JIT
MARKETING
AND SALES
• Customer/ segment research
•Investment in Branding
•Relationship marketing,
Key Account management
SERVICE
• Total systems solution
•Consultancy services
•Maintenance
•Outsourcing, facilities networks
MARGIN
©November 2007
PRIMARY FUN CTIONS

Price
Marketing Technology
Sales
R&D investment
Growth
ROI
Quality
Capacity utilisation
Interpretation:
 Outside the circle = better than average
 Inside the circle = below average
Management Manufacturing
Integration
©November 2007

External
Review
Internal
Review
Opportunities
Strengths
Using existing strengths to capitalise on opportunities
Threats Use existing strengths to limit impact of
Threats
Weaknesses
Prevent weaknesses from damaging opportunities
Prevent
Weaknesses from reinforcing threats
©November 2007

 Critical Factors for Success in the
Fragrance Industry
©November 2007

 It is clear that the fragrance industry has a significant global presence and a large part of its success is due to carefully targeted marketing. Advertising continues to play a central role in driving up sales in a crowded market place, where the rate of new product launches continues to increase. The European market is currently the largest in the world, but in due course, the growing markets of AsiaPacific may eclipse Europe’s position in terms of turnover and sales. Competition is likely to intensify over the next decade and growth will be fostered by both innovative product development and intelligent marketing.
©November 2007

DEVELOPMENT
STRATEGIES
GENERIC
STRATEGIES
• Cost leadership
• Differentiation
• Focus
ALTERNATIVE
DIRECTIONS
• Do nothing
• Consolidation
• Market penetration
• Product development
• Market development
• Diversification
ALTERNATIVE
METHODS
• Internal development
• Acquisition
• Joint development
©November 2007

Evaluating strategic options
Suitability
Does it solve the problem?


Establishing the rationale
Screening options and criteria
©November 2007
Acceptability
Is it acceptable to stakeholders?



Returns
Risk
Reactions by stakeholders
Feasibility
Can we deliver?




Cash flow
Break-even
Resources
Competencies

©November 2007

 Positioning
 Perceptual map
 Associations for positioning (Kotler)
 Value proposition
 Customer benefit
 Unique
 Profitable
 Sustainable
©November 2007
 Branding
 Brand name strategies
 Brand values and personality
 Developing existing brands

How will the organisation compete in a specific market/segment?
 Strategies for pioneers –technical innovation
 Strategies for market leaders
 Strategies for market challengers-
 market knowledge
 Market Information
 Emerging Markets


Strategies for market followers - copier
Strategies for nichers – segments
©November 2007

 Spain
 Eastern Europe
 Middle East
 Latin America
 Africa
 China
 India
©November 2007

Prospects for sector profitability
Unattractive Average Attractive
Disinvest
Phased withdrawal
Double or quit
Phased withdrawal
Cash generation
Custodial growth
Growth leader
Try harder
Leader
©November 2007

Market/segment attractiveness
Unattractive Average Attractive
Strongly Avoid Possibilities avoid
Avoid Possibilities Secondary targets
Possibilities Secondary Prime targets targets
©November 2007

4 Future Goals
What drives the competitor?
1 Current Strategy
How it is currently competing?
3 Assumptions
About itself and industry
COMPETITOR’S RESPONSE
PROFILE
• Likely response point?
• Satisfied with current position?
• How expansionist?
• Likely moves or strategy shifts?
• Where most vulnerable?
• What will provoke retaliation?
2 Capabilities
Strengths, weaknesses & level of awareness
©November 2007

 Corporate and Marketing
©November 2007

 Type and Range
 Branding
 Packaging
 Design
 Portfolio management
©November 2007

 New Scents Sources p41 and p 43+
 Technical innovation


Seasonal
Style – ie Light
 Product extensions
 Licensing to Names
 Fragrance extension
©November 2007

 Comms Mix p47+ 50
 Celebrity
 Positioning
 Timing
©November 2007

 Premium
 Mass market price
 Promotional offers on new products- gift packs etc. (Airport duty free)
 Lower prices for light perfumes e.g. Dolce
& Gabbana (blue packaging)
©November 2007

 Online
 Offline
 Agents, distributors
 Retail companies
 Large supermarket chains- Walmart,
Tesco
 Airports, cruise ships
©November 2007

How do we look to stakeholders?
Goal Measure
Customer perspective
Goal Measure
Internal perspective
Goal Measure
Innovation & learning perspective
Goal Measure
Source:
Harvard Business Review
How can we continue to improve and create value?
©November 2007

Marketing environment
• Target markets
• Marketing channels
• Competitors
• Publics
• Macroenvironment forces
Marketing information system
Developing information
Marketing intelligence
Internal records
Assessing information needs
Marketing research
Information analysis
Distributing information
Marketing managers
• Analysis
• Planning
• Implementation
• Organisation
• Control
Marketing decisions and communications
Source: Kotler et al
©November 2007

-
-
-
-
-
-
-
-
-



Control: Monitors and corrects current performance. Import for the
Marketing department to monitor and control the effort.
Performance can be monitored:
1. Market performance:
Sales :
Using the Mkis system to identify Key performance indicators:
Measure Sales targets for each agent sales team have to generate X sales and measuring the retention rates for repeat business generated by the account management team.
Measuring sales V targets
Market share: against objectives set customer attitudes: Satisfaction surveys
Loyalty:
Need to Monitor changes in these over a specific time period e.g every month/ 6 months/ 12 months and relate these back to our original objectives.
©November 2007

-
-
-
 2. Financial Performance
Turnover Targets
Profit Targets
Return on Investment
 Must be careful that our marketing objectives and financial objectives do not conflict. For example our longer term Marketing objectives are not to the detriment of short term financial performance may arise.


3. Efficiency of Strategy can be monitored through a detailed evaluation of the elements of the Marketing Mix .
We would benefit from regular, independent Marketing audited (McDonald, 1984,
Brownlie, 1996).
Should provide an objective, external evaluation of both the effectiveness and efficiency of our marketing operations.
©November 2007

 4. Contingency Planning




Responses to competitor product launches:
Poor Investment performances: if The company does not meet its performance targets: Marketing and financial what are the fall back options.
Forecasting competitive reactions
Scenario planning
-
-
-
-
 How do we know we have got there?
Implement a control system to measure and monitor CRM
Programme
Targeted marketing campaigns: PR and email marketing etc..
Measured by customer enquiries, and use of the web site
Account managers and sales staff to be measured by sales performance
Any control process should include a mechanism for taking corrective action.
©November 2007

Marketing Control systems
Adjust Mktg
Objectives
Set Marketing Objectives
Adjust
Targets
Set specific targets
Assign responsibility
Management action
Measure Performance
Evaluate performance against standards
Review and take action as required
Control systems can operate simple feedback loops. These pre-empt problems by anticipating the effect of inputs on overall performance e.g our objective to reinvest 12% of turnover on R&D would be assigned to the MD and performance would be evaluated against actual performance. The system can be adjusted by the relevant management action and objectives altered to reflect this, keeping the system flexible.
©November 2007

Control of Marketing activity
Product
Market Share
Sales
Sales by market
NPD
ROI
Repeat purchases
Price
Profit margin
Price comparisons
Market very price sensitive ?
Place
Channel costs
Channel volume
Channel growth
Delivery time
Stock levels
©November 2007
Promotion
Media Coverage: PR, exhibitions
Sales per person/agent
Awareness levels
Visits to the website and enquiries

Effective Control systems
 Involvement : Encouraging all members of staff to contribute in target setting. E.g getting the sales teams and account management teams and finance teams to aid in the setting of targets.
 Target Setting: Target material should be measurable and achievable, this needs to be communicated internally throughout the company:
Internal briefings and newsletters.
 Effectiveness: Measurement should be accurate, valid and consistent
 Management by exception: Attention from management needs to be directed to areas of need if targets are not met.
 Action: Good control systems promote action and solve problems, therefore extra resources should be made available-contingency plans.
©November 2007

Benchmarking


 Need to compare SoT UK ltd. Performance against competitors to maintain current position against forecasted position and implement continuous improvement (Learning organisation).
Best Practice
Performance standards
©November 2007