Strategic Marketing Planning
The marketing plan directions of Just Click for the next 3 years would be determined based on the following analysis;
• Ansoff Analysis of Just Click business
• BCG Matrix showing the growth strategies versus market share
Ansoff Analysis
The Ansoff Analysis is basically a strategic planning tool which helps the senior management and marketing team to develop strategies for the future. This is also known as the Product or Market Expansion Grid. It was developed by Russian American H.Igor Ansoff. (Gianos 2013)
The above matrix shows the four strategies one can use to grow and analyze the risks related to it.
Market Penetration Strategy
Using this strategy, the company can further penetrate the existing market
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This strategy however has its own risks because the technology may be copied by others and imitated.
Diversification involving development of new product in a new market is not advisable for Just Click at present as it is still in the initial period of growth. So, it is better it consolidates its position in Kuwait and grow more before taking risky growth strategies.
Boston Consulting Group (BCG) Matrix
The BCG matrix analysis would help a company in its long term strategic planning and deploy its resources accordingly. It helps the company to consider the various growth opportunities by making a review of the existing portfolio of products and decide whether to invest more or discontinue or develop products. The BCG Matrix is also known as the Growth or Share Matrix. (Zhao & Lu 2006) The BCG matrix helps to identify the high growth prospects by classifying the firm products as per the growth rate and market share. It evaluates the strategic position of the company product and its potential. The classification is divided into 4 quadrants as follows; (Ionescu 2011)
Quadrant Market Share Market Growth
Ansoff Matrix is formulated on the basis of four market factors that directly affect the business of the company. It helps the company to determine these four factors and formulate their market and business strategies that further help them to increase their product line and business in the market place. Therefore, it is important for Tesco to focus on Ansoff Matrix to increase their working effectiveness (Taylor, 2011). These factors include,
The Boston Matrix is a tool used by marketing managers to make decisions on which products within their portfolio that they should market and under what category on the
Firms must consider many strategies when attempting to realize growth. Depending upon the stage of
This marketing plan will also engulf vision of the company, its mission statement, product and services, and underlying factor of the business. The plans will also contain a vivid description of the company in terms of its business product as well as SWOT analysis to demonstrate its strengths, weaknesses, opportunities, and threats. A market target segmentation of customers, strategic mission, and its foreign expansion
* Updating the website to incorporate some of the marketing ideas found to be relevant in the recent research analysis project.
It is used to measure the position of a firm in relation to its relative market share as well as its market growth. Based on this the situation where in all of the given four divisions of the firm are at different levels of performance can be evaluated in order to formulate a 5 year strategy plan. This can help in the creation of a portfolio
The business portfolio analysis uses quantified performance measures and market growth to analyze a firm’s strategic business units as though they were a collection of separate investments. The BCG advises clients to locate the position of each of its SBUs on a growth share matrix. The vertical axis is the market growth rate, which is the annual rate of growth of the specific market or industry in which a given SBU is competing. The horizontal axis is the relative market share, defined as the sales of the SBU divided by the sales of the largest firm in the industry. Each of the quadrants are given a specific name and description based on the amount of cash they generate. Cash cows; are SBUs that typically generate large amounts of cash, far more than they can invest profitability in their own product line. They have a dominant share of slow-growth market and provide cash to pay large amounts of company overhead and to invest in other SBUs. Stars; are SBUs with a high share of high-growth markets that mat need extra cash to finance their own rapid future growth. When their growth slows, they are likely to become cash cows. Question marks or problem children; are SBUs with a low share of high growth markets. They require large injections of cash just to maintain their
Ansoff was known best for developing a strategies he Identified as the four categories for growing and the categories are market penetration, marketing development, product development and diversification.
The BCG matrix portrays the perspective of the product portfolio, which is the growth-share matrix. This framework of tool categorizes products within a company's portfolio or within the business units as stars, cash cows, dogs, or question marks according to growth rate, market share, and positively or negative cash flow. By using positive cash flows a company can capitalize on growth opportunities. From this analysis, it can be seen that the products that is growing
The Nine –Cell industry attractiveness/business strength matrix graph will have the industry attractiveness on the vertical axis while the competitive strength is depicted on the horizontal axis; to the far left corner will be a large bubble representing U.S. grocery and the U.S. snacks, indicating that the U.S. Grocery and the U.S. snacks have both favorable industry attractiveness and competitive strength and thus warrants priority attention. In addition, the U.S. beverage, U.S. cheese and the U.S. convenient meals seem to huddle in the 3 diagonal cells stretching from the lower left to upper, indicating they merit intermediate attention by the Kraft incorporated. However, these segments of the company can be profitable if the company
According to the result in the figure, the directional vector was located in the lower right or competitive quadrant of the SPACE Matrix. . The higher IP rating showed that Adolph Coors are in the attractive industry and has competitive advantage over its rivals. However, this company has week financially statement that resulted in the FP in stability environment. The competitive quadrant shown that Adolph Coors are in the high growth industry and possess a major competitive advantage. This result indicted that Adolph Coors was recommended to implement the competitive strategies. Competitive strategies that suitable for Adolph Coors include backward, forward, and horizontal integration; market penetration; market development; and product development.
Companies often use a (CPM) – Competitive Profile Matrix to better understand their external environment as well as their competition within the industry they operate. The matrix identifies a company’s key competitors and draws a comparison using the industry’s critical success factors. The analysis also reveals a company’s strengths and weaknesses against its competition, making them aware of problematic areas needing improvement and also areas that are doing well and need to be protected (See Appendix F).
It has also been referred as the Product/Market Expansion Grid, the matrix (see Figure 1 below). The figure below shows four ways in which a business can grow, and help people to think about the risks associated with each option.
Boston Consulting Group (BCG) Matrix: is a four celled matrix (a 2 * 2 matrix) developed by BCG, USA. It is the most renowned corporate portfolio analysis tool. It provides a graphic representation for an organization to examine different businesses in its portfolio on the basis of their related market share and industry growth rates. It is a two dimensional analysis on management of SBU’s