Strategic Market Analysis
CDU Business School
Lesson 5: Strategic thinking and decision making: industry insights to planning &
implementation
Schedule
• Moving on with the strategic planning process
• Recap segmentation stages and strategies
• Branding and the BHT
• Final Q & A Assessment 1
Read Segmentation, targeting and positioning strategies (Chapter 5) Additional readings and research on BHT
Confirm the models you be using.
Any questions regarding each section?
Assignment 2
NB. Don’t forget the additional unit resources: • Chapters 1 to 5 of the unit text • Use the CDU library to identify journal articles reviewing the
models and strategic planning tools you plan to use
Steps in effective segmentation
1. Strategic orientation – decide / confirm organisational strategy / direction
3. Targeting & positioning – enhance understanding of the targeted segments by
investigating in detail their specific habits, attitudes and characteristics
4. Implementation & mix development – identify / develop a service / product mix
most appealing to the chosen segments that will facilitate the chosen strategic direction
2. Segment evaluation* – develop potential segment profiles & evaluate
attractiveness in terms of Distinctiveness / Size / Accessibility / Stability / Match with
orientation
* https://hbr.org/2014/07/what-you-need-to-know-about-segmentation
A classic case in segmentation (and strategic brand positioning)
We have never believed that ‘one size fits all’. Our portfolio of more than 200 brands
is based on distinct strategic segments. (BAT, 2011 Annual Report)
Describe this strategy in relation to
competitive advantage?
Targeting strategies
Undifferentiated Try to appeal to broad spectrum
Benefit from economies of scale
Differentiated Develops products for each segment
Where different needs exist
Concentrated Focus on a single segment
Often useful for smaller companies
Customised Meet the needs of individuals
Common in B2B and service firms
Brand Health Tracker components
BHT MEASURE
Loyalty / bond
Most frequent
Experience
Consideration
Familiarity
Awareness
Examples of questions asked (must start from the bottom!)
Which brand if any… is your favourite …would you
recommend… would you pay a price premium for
Which brand if any do you use most often
Which if any brands of X have you heard of (first mention /
TOM, other spontaneous, prompted)
Which if any brands have you seen or heard about
(advertised) in the past 6 months? Probe for knowledge
Which brands if any would you consider using in the next 6
months
Which brands if any have you actually used in the past 6
months / ever used
BHT pyramids & funnels
%
AWARE
%
FAMILIAR
%
CONSIDER
%
EXPER-
IENCE
%
MAIN
BRAND
%
LOYAL /
BONDED
Each level signifies a closer ‘emotional’
relationship with the consumer
Relates to the PLC / BCG matrix
For an example of the practical application of the decision making process / purchase funnel see http://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/the-consumer-decision-journey
Funnel / pyramid shapes
%
AWARE
%
FAMILIAR
% CONSIDER % USED Occ. % USE MOST
What brands do you know that match this funnel / pyramid shape?
Comparing the funnel / pyramid shapes of
competitor brands reveals key strengths &
weaknesses a brand’s market position
% FAVOURITE
What might this brand do to increase ‘consideration’?
Funnel / pyramid shapes
%
AWARE
%
FAMILIAR
% EXPERIENCE % USED Occ. % USE MOST %
FAVOURITE
What brands do you know that might match this funnel / pyramid shape?
BHT pyramids & funnels
%
AWARE
%
FAMILIAR
%
CONSIDER
%
EXPER-
IENCE
%
MAIN
BRAND
%
LOYAL /
BONDED
Construct a brand pyramid
for a new vaping brand 3 –
6 – 12 months after launch?
Suggest marketing
tactics for each
Prioritise promotional objectives 1. Gaining attention 2. Audience priming 3. Breaking through competition noise / creating noise for
competitors*
4. Raising awareness 5. Raising TOM awareness 6. Raising knowledge recall - Informing / educating 7. Changing attitudes
8. Building familiarity 9. Raising brand appeal / likeability 10.Maximising global appeal 11.Stimulate trial
12.Reinforcing and changing attitudes 13.Building loyalty / relationships 14.Risk reduction 15.Reducing cognitive dissonance
16.Recovery
BHT quarterly tracking output example - brand awareness
80 75
70 75
5 10
15 1615
412 15
3 5
0
25
50
75
100
Q1 Q2 Q3 Q4
TOM AWARENESS
%
100 100 100 100
40
80
90 95
75
65
50
35
60
100
0
25
50
75
100
Q1 Q2 Q3 Q4
B C A D
OVERALL AWARENESS
%
BHT output example – experience past year
95
90 90
95
0
25
35
10
5 3
40
25
35
10
0
10
20
30
40
50
60
70
80
90
100
Q1 Q2 Q3 Q4
B C A D
%
BHT output example – main brand
80 80
74 77
5
10
20
5
11
18
10
15 4
0
10
20
30
40
50
60
70
80
90
100
Q1 Q2 Q3 Q4
B C A D
%
BHT output example – favorite brand
80
75
70
75
3
15
25
00
25
5 1017
5
0
10
20
30
40
50
60
70
80
90
100
Q1 Q2 Q3 Q4
B C A D
%
70 70 69
35
45 50
20 15
5 1
5
0
10
20
30
40
50
60
70
80
90
100
Q2 Q3 Q4
B C A D
BHT output example – overall multi attribute brand health score
%
Brand Identity Prism
CSR, stakeholder & employee self concept https://www.facebook.com/pg/InsidePMI/photos/?ref=page_internal
Research has demonstrated that consumers identify with organizations and may perceive an overlap between organizational attributes and their individual attributes. (Ferrell 2004)
Work on planning you assignment content
1. Focus on the industry strategy evaluation section – draft out the structure for this section
2. Draft your introduction and conclusion
Assignment 2