Strategic Marketing EBMA 3715 Unit 14 (Chapter 14)

Unit 14: Marketing Planning

Management

functions

Planning

Organising

Leading

Control

Ch 1, 3 & 12

Ch 4Ch 6, 7 & 13

Ch 9Ch 10 &

11

Ch 8

Ch 2

Ch 5

Ch 14 & 15

Chapter 2 (Environment –PAST)Chapter 5 (Research)Chapter 15 (Metrics)

Step 1: Historical Evaluation

Page 7

Chapter 2

Step 2: Environmental Analysis

SWOT ANALYSIS

+POSITIVE

Helpful to achieving the objectives

-NEGATIVE

Harmful to achieving the

objectivesMICRO-ENVIRONMENTInternal (controllable)

Attributes of the organization

STRENGTHS (to build on)

WEAKNESSES (to

overcome)MACRO-ENVIRONMENT

External (uncontrollable)Attributes of the

environment

OPPORTUNITIES (to take

advantage of)

THREATS (to avoid)

Step 3: Assumptions

Step 4: Marketing Goals

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A high rate of return on investment

An increase in sales

An increase in market

share

Continued growth

Four secondary market and

market objectives pursued:

Step 5: Formulate Strategy

Page 11

Stra

tegi

c co

mpe

titiv

e po

sitio

ns:

Market leader

Market challenger

Market follower

Market specialist (Nicher)

Budget {Planning and Control}Monitoring and Control methodsProvision for contingency plans

Step 6: Rest of the Plan

Page 18-19

Step 7: Reviewing plans

Page 20-22

BCG matrix Market attractiveness-enterprise

model

Planning Models

Measures SBU’s relative largest competitors : • Annual growth rate • Market share

The NIVEA brand now extends to eight product ranges worldwide from suncare to facial moisturisers,

deodorant and shower products. NIVEA’s traditional Body Care, Face Care and Nivea Cream range has

dominated the market share in the industry over the years, but has recently been associated with low growth rates. On the other hand, Nivea’s newer

offerings, including their Shower Care, Men’s Care and Sun Care lines has caught the industry’s attention,

with reports indicating high rates of growth and market share success. The company believes in

continuous innovation and this sparked the introduction of their Deodorants and Nivea Soft lines, which have not yet dominated the market, but market

growth is on the rise.

STARS 

PROBLEM CHILD

CASH COWS

DOGS

{Market SHARE}

{Mar

ket

GRO

WTH

}

High

Low

High Low

NIVEA’s traditional Body Care, Face Care and Nivea Cream

range has dominated the market share in the industry over the years, but has recently been

associated with low growth rates. On the other hand, Nivea’s newer offerings, including their Shower

Care, Men’s Care and Sun Care lines has caught the industry’s

attention, with reports indicating high rates of growth and market

share success. The company believes in

continuous innovation and this sparked the introduction of their Deodorants and Nivea Soft

lines, which have not yet dominated the market, but

market growth is on the rise.

STARS- Shower Care- Mens Care- Sun Care

PROBLEM CHILD- NIVEA Soft- Deodorants

CASH COWS

 - Body Care- Face Care

- NIVEA Creme 

DOGS

{Market SHARE}

{Mar

ket

GRO

WTH

}

High

Low

High Low

{Appeal of market}

{Bus

ines

s Po

wer

}

Market attractiveness-enterprise strength model

Market-attractiveness

position variables:Market segment

Market growth rateProfit marginCompetitors

Economic conditionsTechnological changes Socio-cultural changesAction by authorities

Enterprise strength

variables:Market share ProfitabilityTechnology

Product qualityResources

Knowledge of the market

{Appeal of market}

{Bus

ines

s Po

wer

}

Organizational

Structure

Organisational

leadership

Organisational Culture

Page 16

Page 16

Page 7

• 5% of work force understand the strategy

Vision Barrier

• ONLY 25% of Managers have objectives and incentives that links to strategy

People Barrier

• Budget vs Strategic plan

Resource Barrier

• 85% of Manager spend LESS than 1 hour per month discussing strategy

Management Barrier

Barriers to Strategy

Implementation

EVALUATION

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