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1、2. Strategy BasicsSaatchi & Saatchi TrainingDefinitions: StrategyStratagem:An artifice or trick designed to outwit and surprise the enemyA device or scheme for gaining advantageStrategy:The art of a commander-in-chief; projecting and directing the larger military movements and operations of a campai

2、gnGeneralship or the art of conducting a campaign; artifice or finesse generallyTactics:The science or art of maneuvering in presence of the enemy; purposeful procedureDefinitions: TacticsStrategy differs materially from tactics; the latter belonging only to the mechanical movement of bodies set in

3、motion by the formerWhats the difference?Shang chang ru zhan changMarketing as WarfareThe 36 StrategiesNot a new idea in ChinaBing Fa:Sun TzuTei Wang GungWu TzuSun Bin(And a couple of hundred others)Not a new idea in ChinaKnow when to fight, and when not toObtain the wholehearted support of your tro

4、opsBe prepared to seize favourable opportunitiesFree yourself from interference by superiorsWhen the time is right, act decisively and swiftlySun Tzu: Five Essential Components of VictorySome Chinese Ideas on StrategyThe highest form of victory is to conquer by strategyThe opportunity for victory is

5、 provided by the enemyBasic elements combine into unique strategiesKeep plans as dark as night, move like a thunderboltAttack when (& where) the enemy is least preparedSun Tzu:Some Chinese Ideas on StrategyKnow yourself, Know your enemy.100 battles, 100 victoriesSun Tzu:Some Chinese Ideas on Strateg

6、yStrategy starts with a MapBrand BBrand CBrand DBrand EWhere we are nowWhere we want to beThe strategic process consists of:Defining where we areIdentifying where we could goSelecting where we want to goIdentifying how to get thereMaps help show this simply, and point the wayGetting the map right is

7、 a great startYou can map anythingStrategy starts with a Map Great brands are slanted in the minds of consumers Giving them unique territory to own & defend :either rational or emotional Leadership is perceptual; advertising helps create enduring advantages for brandsBrand BBrand CBrand DBrand EWher

8、e we are nowWhere we want to bePositioning is StrategyThe Business Model An Umbrella or Tent broad enough to cover everything the company wants to do Too often a wish list Based on me-too?thinkingTacticsTacticsStrategyTop DownTacticsStrategyThe Military ModelMuch more hard-nosedBased on what is like

9、ly to succeedCore elements: surprise / focussed forceTacticStrategyStrategyBottom UpAfter Michael Porter STRATEGIC ADVANTAGECost / Productivity LeadershipFocus / Niche LeadershipProduct / Service Leadership Low Cost PositionParticular Segment(s) Only Market-wideUniqueness Perceived by Customer Three

10、 Generic Business StrategiesPRO-ACTIVE STRATEGIESFocus / Niche LeadershipProduct / Service LeadershipMarket LeaderREACTIVE STRATEGIESChallenger or FollowerCompetition AvoiderStrategies for Competitive AdvantagePRO-ACTIVE STRATEGIESFocus / Niche LeadershipProduct / Service LeadershipMarket LeaderREAC

11、TIVE STRATEGIESChallenger or FollowerCompetition AvoiderMarket ExpansionShare ProtectionPre-emptive ActionStrategies for Competitive AdvantagePRO-ACTIVE STRATEGIESFocus / Niche LeadershipProduct / Service LeadershipMarket LeaderREACTIVE STRATEGIESChallenger or FollowerCompetition AvoiderMarket Expan

12、sionShare ProtectionPre-emptive Action Cover / block competitive movesStrategies for Competitive AdvantagePRO-ACTIVE STRATEGIESFocus / Niche LeadershipProduct / Service LeadershipMarket LeaderREACTIVE STRATEGIESChallenger or FollowerCompetition AvoiderMarket ExpansionShare ProtectionPre-emptive Acti

13、onHead to HeadFlanking StrategiesEncirclement Cover / block competitive movesStrategies for Competitive AdvantagePRO-ACTIVE STRATEGIESFocus / Niche LeadershipProduct / Service LeadershipMarket LeaderREACTIVE STRATEGIESChallenger or FollowerCompetition AvoiderMarket ExpansionShare ProtectionPre-empti

14、ve ActionHead to HeadFlanking StrategiesEncirclement Cover / block competitive moves Follow the leaderStrategies for Competitive AdvantagePRO-ACTIVE STRATEGIESFocus / Niche LeadershipProduct / Service LeadershipMarket LeaderREACTIVE STRATEGIESChallenger or FollowerCompetition AvoiderMarket Expansion

15、Share ProtectionPre-emptive ActionHead to HeadFlanking StrategiesEncirclementMarket NicheBy-Pass Competition Cover / block competitive moves Follow the leaderStrategies for Competitive AdvantagePRO-ACTIVE STRATEGIESFocus / Niche LeadershipProduct / Service LeadershipMarket LeaderREACTIVE STRATEGIESC

16、hallenger or FollowerCompetition AvoiderMarket ExpansionShare ProtectionPre-emptive ActionHead to HeadFlanking StrategiesEncirclementMarket NicheBy-Pass Competition Cover / block competitive moves Follow the leaderMaintain Status QuoStrategies for Competitive AdvantageLeaderStrategies versus the Lea

17、derCompetitorLeaderStrategies versus the LeaderCompetitorHead to Head By-Pass LeaderStrategies versus the LeaderCompetitorHead to Head By-Pass LeaderFlanking Strategies versus the LeaderCompetitorHead to Head By-Pass LeaderEncircling Strategies versus the LeaderCompetitorHead to Head Flanking By-Pas

18、s LeaderNiching Strategies versus the LeaderCompetitorHead to Head Flanking Encircling Sources of Volume SalesCurrent UsesCurrent UsersCurrent BrandFranchise Current users,New UsesNew Users,New UsesHow to Grow a BrandNew UsersNew UsesNew users,Current UsesSources of Volume SalesCurrent UsesCurrent U

19、sersCurrent BrandFranchise Current users,New UsesNew Users,New UsesHow to Grow a BrandNew UsersNew UsesNew users,Current UsesCategory Users: less than 50%of potentialBrand Users: less than 50%TARGETSources of Volume SalesCurrent UsesCurrent UsersCurrent BrandFranchise Current users,New UsesNew Users

20、,New UsesHow to Grow a BrandNew UsersNew UsesNew users,Current UsesTARGETCategory Users: At or near peak potentialBrand Users: more than 50%Sources of Volume SalesCurrent UsesCurrent UsersCurrent BrandFranchise Current users,New UsesNew Users,New UsesHow to Grow a BrandNew UsersNew UsesNew users,Cur

21、rent UsesAn Impossible Task:Cant go diagonally!Unless theres a major breakthroughin the brandIn which case, it should be a new brandBrand Loyalty & Usage Rate LoyaltyIndifferenceLight usageHeavy usageBrand Loyal, Light usersBrand Loyal,Heavy usersBrand Indifferent,Light usersBrand Indifferent,Heavy

22、usersStrategies Built on Brand BehaviourBrand Loyalty & Usage Rate LoyaltyIndifferenceLight usageHeavy usageBrand Loyal, Light usersBrand Loyal,Heavy usersBrand Indifferent,Light usersBrand Indifferent,Heavy usersStrategies Built on Brand BehaviourUsage extensions:new ways to use productBrand Loyalt

23、y & Usage Rate LoyaltyIndifferenceLight usageHeavy usageBrand Loyal, Light usersBrand Loyal,Heavy usersBrand Indifferent,Light usersBrand Indifferent,Heavy usersStrategies Built on Brand BehaviourStrong comparative approach to switch /defend Usage extensions:new ways to use productBrand Loyalty & Us

24、age Rate LoyaltyIndifferenceLight usageHeavy usageBrand Loyal, Light usersBrand Loyal,Heavy usersBrand Indifferent,Light usersBrand Indifferent,Heavy usersStrategies Built on Brand BehaviourUsage extensions:new ways to use productSeek salient advantage, if segment is large enoughStrong comparative app

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