The Greatness Within

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Market Growth Strategies

Basically there are four strategies available to expand market. Igor Ansoff has suggested a valuable framework, popularly known as Product/Market Expansion Grid to pursue market share growth. These four strategies are discussed here:

1. Market Penetration Strategy 
When there are opportunities for the current product to grow within the current or existing market. It aims to increase the market share among existing customers. Mainly, there are three approaches to increase market share of current product.

    

a. Persuade and encourage existing customers to consumer and purchase more.
b. Appeal and attract customers of competitors.
c. Encourage and influence non-users to use the product.

2. Market-Development Strategy 
Under this option, there are opportunities to develop market share by launching a current product in a new market. In general there are three ways to develop market share.

a. Increase reach to new markets or expand marketing/distribution channels.
b. Start to sell in new locations or new places.
c. Consider and recognize the new or potential users.

3. Product-Development Strategy 
This strategy aims to launch a new product or innovated product in the existing market, the growth approaches include:

a.  Include or expand new product features.
b. Enhance or develop different category of products or quality levels.
c. Use technology to improve product.

4. Diversification 
In diversification strategy, a new product is launched in a new market. This is a good option when a marketer seeks growth opportunities outside current business. The diversification strategies are of three types: 

a. Concentric Diversification: Develop new products with the use of existing technology and technological know-how for new customers

b. Conglomerate Diversification: Develop new products for new markets which have no any technological or commercial synergies with current products.
c. Horizontal Diversification: Develop new products that are technologically or commercially unrelated with current products.

Feel free to post your comments on this post.

                

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Grocery Stores with “LCBO Express”: Expanding Wine Retailing in Onratio

Charles Sousa, Finance Minister of Ontario, declared on April 1, 2014 to open LCBO locations in grocery stores.

It is planned to open initially 10 LCBO Express kiosks by the end of year 2014. These kiosks would sell Ontario craft beer and VQA (Vintners Quality Alliance) wines.

The hours of business of LCBO Express kiosks would remain same as LCBO. At the same time, there would be a separate checkout location for those buying LCBO products against grocery items. This will allow shoppers to buy groceries and wine together, making it easier and convenient for shoppers.

The LCBO has already issued a ‘Request for Proposals’ for up to seven LCBO Express kiosks. The condition is that, all retailers who are interested in must be capable to spare at least 2000 square feet of space within their stores.  Also, the proximity to rest of LCBO locations would be considered to open LCBO Express kiosks.

Please express your opinion by responding following questions. Also you can leave your comments below.

*This article originally appeared in "Canadian Grocer"

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Introduction to Marketing Planning

Hello there…! 

I have created a video lecture on ‘Introduction to Marketing Planning’. Please click below YouTube link to watch it.

Let me know your feedback on this video.  Also feel free to contact me for further discussion on it. 

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Define Key Concepts in Marketing

Needs, Wants and Demands

      Needs are basic requirements for everyone. Needs are basic things for survival. For example, food, clothing, shelter and air. Apart from above needs, people have strong needs for recreation, social interaction, and education.

      You need “food”, but you might want a Pizza Pizza’s Pizza. People want a specific item or branded item.   

     The ability and willingness to pay for a want makes it a demand. For example, many people want a BMW car, but few are able to pay for it.

Products and Brands

      All those goods, services, and offerings offered by a marketer to satisfy needs and wants of customers. For example, a computer, car repairing, and amusement park.

      A brand is simply a product or an offering from a well-known source. For example, Apple’s Iphone, Dell’s Laptop, and Kellog’s Cereal.

Value and Satisfaction

      A product’s success depends on how much satisfaction and value it can deliver. Always marketers’ goal is try to maximize value to the customers.

     The value is the ratio between perceived benefits (functional and emotional) and perceived cost (monetary and non-monetary).  For example, a customer might choose more expensive product if perceived benefits associated with product are greater.  

     Customer satisfaction is a measure of how products and services offered by a company meet or surpass customer expectation. Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals.

Marketing Environment

     The marketing environment is what surrounds and effects the organization’s marketing and business activities. The marketing environment can be dividing into 1) Macro-Environment and 2) Micro-Environment.

      The micro-environment involves factors that affect the company directly. These include target customers, suppliers, distributors and the company itself.

      
The macro-environment involves broader factors such as demographics, technology, politics and the state of the economy.

      Competition

     Competition is one of the key concepts in marketing. Competition includes any potential alternatives a buyer might consider while making a buying decision. It includes both similar products as well as substitutes. For example, as substitute for a cola drink, a consumer might consider buying a milk drink or a fruit juice.

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What is Marketing?

There are many different definitions of marketing. I have mentioned some of the definitions of marketing:

"Marketing is the action or business of promoting and selling products or services. It is all about the achievement of corporate goals through meeting and exceeding customer needs better than the competition."

“Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offer
ings that have value for customers, clients, partners, and society at large.” - American Marketing Association

“Marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.” - Philip Kotler

“Marketing is “The management process responsible for identifying, anticipating and satisfying customer requirements profitably.” - The Chartered Institute of Marketing

“Marketing is not only much broader than selling; it is not a specialized activity at all. It encompasses the entire business. It is the whole business seen from the point of view of the final result, that is, from the customer’s point of view. Concern and responsibility for marketing must therefore permeate all areas of the enterprise.” - Peter Drucker

To sum up, marketing is all about identifying customers’ needs, creating value for customers, and meeting needs profitably.

Dr. Kotler abbreviated definition of marketing as C C D V T P: C – Creating, C – Communicating, D – Delivering, V – Value, to a T – Target Audience, at a P – Profit

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Channel Conflict Management…

Hello students and fellow friends…! 

Greeting of the New Year form Dr. Dalwadi!

I have created a video lecture on ‘Channel Conflict Management’ which is addressing four learning objectives: a) what is channel conflict? b) what are the levels of conflicts? c) why channel conflict occurs? and d) how to manage channel conflict?

Click on the below video link to view the lecture. Wish you happy learning!

Let me know your feedback on this video.  Also feel free to contact me for further discussion on it. 

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7 Cs of Effective Vision Statements...

The well written vision statements include following seven characteristics.

1. Conciseness:  The effective vision statements are brief enough, making it easier for entrepreneurs and leaders to communicate to the stakeholders.  Vision statements become less effective when they are too short or too long.  Therefore, the natural questions pops up is: how long or how short a vision statement should be?  The effective vision statements generally include about 35 to 40 words or 3 to 4 sentences.  It should be long enough to visibly describe the vision. Make sure it is not too long to be remembered and understood by all stake holders.    

2. Clearness:  The well written vision statements are unambiguous.  The clarity aspect of vision statements provides a constant and superior goal. Remember to not use any jargons and buzz words and to use simple terminology.  Vision statements can be more clarified by keeping enough short. 
   
3. Challenging and Abstract:  The challenge and abstractness are inevitable parts of good vision statements.  The challenge part instill inspires and motivates employees. It also provides a kind of guideline to employees to their routine practices and decisions. The abstractness part offers flexibility.  The future goals should not be described too specific but instead at a greater level of abstractness.        

4. Cover the Drive: The drive means, what is the purpose of an organization? Why it exists? The sound vision statements should describe what an organization anticipates to accomplish. Effective vision statements answers: a) what difference it intends to create in the market? and b) How impacts it aims to have? 

5. Concentrate on Future:  The good vision statements focus on what you want your company to be for life-long.  They will also describe the on-going actions taken by organization to achieve its end state of existence.   

6. Create Desirable Goal:  The well-defined vision statements include mutually desired goals by followers.  The emphasis could be given on combination of: a) Core values, b) Collective identity, c) Distinctiveness, and d) Emphasis on human assets   

7. Comparable to the Success Measures:  The sense of accomplishment and association would also be the elements of excellently crafted vision statements.

Please, feel free to post your comments.

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Niche Marketing: An Example...

Last week I was observing the business concepts presented by women entrepreneurs at Microskills Employment Services, Brampton, Canada. One of the presentations was on the distinctive service concept. It was all about ‘I Love Organizing’. Through this concept, she is targeting the clients who are busy and/or high or medium income people in living GTA. She is trying to differentiate her services from simple cleaning services. The service offering mainly include, organizing house, office, kitchen, etc. The punch line is: ‘I Love Organizing!’ Her aim is to provide unique organizing services and not just simple cleaning.

I found an interesting example for my students to teach them the concept of ‘Niche Marketing’. After listening her business concept, I thought that the punch line needs to be focusing on the difference between simple cleaning and organizing. I suggested her punch line: “Not Cleaning, I Love Organizing!” What should be her punch line? Post your comments here now.

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Entry of Foreign Retailers: A Challenge to Understand Rural Consumers...

The Indian government allowed up to 51% FDI in multi-brand retail and 100% in single-brand retail, news released on September 15, 2012. Now the global retailers would be able to sell their products directly to Indian consumers for the first time. India’s $450 billion market is passing though a vital change.

To me this will have a positive impact on Indian retail market to the great extent. From the view point of consumers, they will be benefited specially by:

a) Wide range of products, and b) Global service standards

But if we consider the rural consumers then there are few concerns:

1. Will foreign retailers be able to cater Indian consumers’ taste and preferences (like, fresh  vegetables, fruits, food items)?

2. How will rural consumers be benefited (as rural consumers have a totally different life style     and buying behaviour)?

3. To what extent will foreign retailers be able to personalize services for rural consumers (viz., credit, delivery, and personal relationship)?

4. What are your comments and thoughts about above concerns?

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Training through Management Games...

Hi Friends ….!

Last week I was invited at PERF India Institute of Management, Ahamedabad as an Expert Speaker. It was a seminar on ‘Understanding Consumers through Management Games’.  There were participants from various backgrounds and with varying experience at different capacity. Few of them were entrepreneurs of Ahmedabad, some of the participants were from the reputed organizations like, Sintex Industries Limited, Task Staffing Solutions Pvt Ltd, Cadila Pharmaceuticals Ltd., Dr. Reddy's Laboratories Ltd., and management students from different institutes of Ahmedabad.It was incredible experience for me. I have been part of many such programs but this was special as my role was of an expert. 

I had planned the program in to two parts. The first, I started with the practical examples (of cricketers, kitchen of Gujaratis, male-female involvements, milk-man, and use of two-wheelers). I also covered some facts about Indian market, why study consumers?, changing Indian Consumers (the shopping habits of young and old, shifting spending patterns, consumers’ expectations, lifestyle, changing attitude, increased rural prosperity, changing role of women, consumers’ trait in larger cities), and current business trends. With these all discussions, I established a perfect platform to play a management game ‘Shopping Trip’ which was the second part. It was a simple game I have devised that helps understanding consumers’ psychology. This game is very helpful to retail store manager, corporate consultants, business entrepreneurs, sales professionals, management teachers and students.  Participants enjoyed the game a lot along with gaining many aspects of consumer shopping behavior. The participants’ interactions and involvement made quite interesting for me and value adding experience.

Please feel free to give your feedback.

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Major Retail Forms: Organized Versus Unorganized Retailing

In a sharp contrast to the organized retail, the unorganized retail is also in existence with the large size and it is highly fragmented and unorganized; with the huge number of retail densities worldwide. Still in many developing countries unorganized retailing has the major share of the retailing business. There are no any clear definitions of organized retailing and unorganized retailing.

It can be expressed “Unorganized retailing”, as an outlet run locally by the owner or caretaker of a shop that lacks technical and accounting standardization. The supply chain and sourcing are also done locally to meet local needs. Its organized counterpart may not obtain its supplies from local sources.The major difference between organized and unorganized retailing lie in its number (chain) of store operations. The unorganized outlet may be just stand alone or can have maximum of 2-3 outlets in different areas city where as the organized outlets are "any retail chain (more than two outlets) which is professionally managed (even if its family run), has a accounting transparency (with proper usage of MIS and accounting standards) and organized supply chain management with centralized quality control and sourcing (certain parts can be locally made) can be termed as an "organized retailing".Organized retailing is based on the principle of unity and unorganized retailing is based on the principle of singularity. Both organized and unorganized retailing is found in most countries throughout the world. India andChina are strong examples of countries in which unorganized retailing dominated their markets. Today these countries have a growing economy because of the influx of organized retailers into their markets. Migration from unorganized to organized retail has been visible with economic development in most countries.

Table: [A] Distinction between Organized Retailing and Unorganized Retailing

Parameters of Difference	Organized Retailing	Unorganized Retailing
Scale of Operations	Large	Small
Scope of Operations	Nationwide  or Worldwide	Local or Regional
Operation System	Highly Organized (Professionally managed)	Highly Unorganized (managed ordinarily)
Prevailing	Largely in Developed nations	Largely in developing and under developed nations
Business Management	Done by Owner	Professional Managers
No. of stores	Chain of Stores	Maximum 2-3 stand alone shops
Business Principle	Principle of Unity	Principle of Singularity
Employees	Skilled , Professionally trained, and qualified	Unskilled , Untrained , and less qualified
Sopping experience	Excellent or Good	Poor or Fair
Range of Products	Wide range of products	Relatively narrow range of products
Physical Ambience	Pleasurable	Lacking graciousness
Parking Facility	Adequately available and properly managed	Inadequate and unmanaged
Convenience of choosing products	Can walk around the product shelves and see it	Cannot walk around the product shelves and  cannot see it
Pricing	Never depend on relationship	Sometimes depend on the relationship
Bargaining	Not possible	Possible to some extent
Sourcing Merchandise	Mostly direct from the manufacturer	Mostly from  C & F agents,  Distributors, or Wholesalers
Varity & Styles of Merchandise	According to  national or global demands	According to local or regional demands
Examples	Wal-Mart, McDonald's, Sears	Counter stores, kiosks, street markets and vendors,

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