Before 1960s, was the time when international market was nearly monopolistic or with negligible competition. LPG was only as an embryo in the mind of management acumen.
“You can get any color in cars as long as it’s black”- Henry ford.
Increasing pocket size of consumers has attracted competition from direct and indirect market. System got more and more inclined towards competition and in order to sustain market share, they opted to differentiate now. But what to differentiate was the major issue. They all were practicing market share and market growth on BCG for their products.
The time changed; plug and play of common sense in business strategies give rise to some thing emotional about the product-brand. A name which psychological defines the image of a product. The emotional side of brand was discovered but they missed some thing.
………………… WHAT? --AGAIN BCG
Time of GE Matrix
Market share or market growth rate was awesome for products but is this good for emotional side of product. When it comes to brands there are lot of factors for instance: brands loyalty, brand equity, brand perseverance, brand position, brand imagery.
Now the time came of GE and they invented GE Matrix. They were closer to reality by including the in-house factors too with the other out of house factors.
But GE also forgot to consider some thing to keep pace with the time.
I designed a matrix appreciated by Mr. Philip Kotler and Mr. Jack Trout.
Let’s see how closer you guess to my matrix before I disclose it.
Chief Operations
http://www.internsindia.com/
A Strategic Unit of Sylloge Corporation, INDIA
All articles are Copy Right© Protected – 2007-2009
Reproduction of any article with out the prior permission of www.internsindia.com for any use will violate the international laws.
Friday, May 4, 2007
What lacks in BCG/GE Matrix
Before 1960s, was the time when international market was nearly monopolistic or with negligible competition. LPG was only as an embryo in the mind of management acumen.
“You can get any color in cars as long as it’s black”- Henry ford.
Increasing pocket size of consumers has attracted competition from direct and indirect market. System got more and more inclined towards competition and in order to sustain market share, they opted to differentiate now. But what to differentiate was the major issue. They all were practicing market share and market growth on BCG for their products.
The time changed; plug and play of common sense in business strategies give rise to some thing emotional about the product-brand. A name which psychological defines the image of a product. The emotional side of brand was discovered but they missed some thing.
………………… WHAT? --AGAIN BCG
Time of GE Matrix
Market share or market growth rate was awesome for products but is this good for emotional side of product. When it comes to brands there are lot of factors for instance: brands loyalty, brand equity, brand perseverance, brand position, brand imagery.
Now the time came of GE and they invented GE Matrix. They were closer to reality by including the in-house factors too with the other out of house factors.
But GE also forgot to consider some thing to keep pace with the time.
I designed a matrix appreciated by Mr. Philip Kotler and Mr. Jack Trout.
Let’s see how closer you guess to my matrix before I disclose it.
Chief Operations
www.internsindia.com
A Strategic Unit of Sylloge Corporation, INDIA
All articles are Copy Right© Protected – 2007-2009
Reproduction of any article with out the prior permission of www.internsindia.com for any use will violate the international laws.
“You can get any color in cars as long as it’s black”- Henry ford.
Increasing pocket size of consumers has attracted competition from direct and indirect market. System got more and more inclined towards competition and in order to sustain market share, they opted to differentiate now. But what to differentiate was the major issue. They all were practicing market share and market growth on BCG for their products.
The time changed; plug and play of common sense in business strategies give rise to some thing emotional about the product-brand. A name which psychological defines the image of a product. The emotional side of brand was discovered but they missed some thing.
………………… WHAT? --AGAIN BCG
Time of GE Matrix
Market share or market growth rate was awesome for products but is this good for emotional side of product. When it comes to brands there are lot of factors for instance: brands loyalty, brand equity, brand perseverance, brand position, brand imagery.
Now the time came of GE and they invented GE Matrix. They were closer to reality by including the in-house factors too with the other out of house factors.
But GE also forgot to consider some thing to keep pace with the time.
I designed a matrix appreciated by Mr. Philip Kotler and Mr. Jack Trout.
Let’s see how closer you guess to my matrix before I disclose it.
Chief Operations
www.internsindia.com
A Strategic Unit of Sylloge Corporation, INDIA
All articles are Copy Right© Protected – 2007-2009
Reproduction of any article with out the prior permission of www.internsindia.com for any use will violate the international laws.
Thursday, May 3, 2007
How to do Retail Audit
How to do Retail Audit
Retail boom in
EDLP or in more simpler term pricing strategy could be a competitive advantage for any retail but as per the Nash equilibrium, price as a competitive advantage is most easily available option but highly fickle for a long term brand image. It hits the revenue stream like worms to living beings. In case of Wal-Mart, their core competency is product availability and value proliferation with IT and supply chain as competitive advantage. EDLP is a just an extra value they deliver by affect of their competitive advantage.
Let’s take value as a hypothetical position.
“VALUE” is something which can reduce the cost to consumer during the entire process of shopping. Retail audit is a tool which will help a marketer to get that value. Every retail audit will check the retail shops on the following questions:
What our consumers are looking for?
What we have which can be offered?
How efficiently and easily we can offer them?
What is Retail Audit?
It is a tool that opens up new option for strategic move in the market. It helps every Marketer to find an optimum Brand/Product portfolio for target segment with finest communication vehicle and the flexible interiors for high product accessibility.
How to perform a Retail Audit?
To perform a retail audit the marketer should keep the following views in mind.
- Psychographics of consumers- To Draft Retail value chain
- Brand Portfolio –To fill retail value chain draft with brands and products
- Retail Format- To fill the retail value chain draft with resources.
- Service blue prints- Connect the resources and brand/products in a retail value chain.
Psychographic of consumers: The value chain blue prints of retail must be design with consumer psychographic in mind. The following questions must be answered while designing the value chain blue prints.
ü What is life style of your consumers?
ü How much time they plan for shopping?
ü What is the key driver for shopping (passing time, Money)?
ü What vehicle they use usually to travel?
ü What is their disposable income?
ü Are they brand, Price or value conscious or a subset of it (BPV Analysis)?
The POC (Psychographic of consumers) helps to draft the value chain blue print for a retail business. Moving further will serve the purpose to check what brands /product mix we have to fill the draft of value chain.
Brand Portfolio: It defines the brand /product span that we have to click the consumers. Every retail product line must have a combination of products for serving the two basic strategic purposes.
- Penetration builders
- Profit builders
Most of brand/product retail portfolio is based on proliferation but if you see the effects in the long term it will cause PRODUCT PLACEMENT INSUFFICIENCY. The symptoms can be concluded by the increasing footfall but stagnation of conversion rate.
Just ask one question to yourself.
Are my products placed at the right placed inside my shop?
There is a complete psychological process starts when a consumer enters in side the shop and till he buys and leave the shop. Your products and brand are in a phase of advertisement for that time. In the first two minutes consumer view a bunch of products and the combine brand position will creates a mind set of consumers. For instance in a show room display Rado and Omega’s latest wrist watch at the gate side (Guess the brand image your shop).
The second thing comes in mind of a marketer is what should be the retail product mix of
Penetration builders and profit builders.
Whom to target?
If you believe in buzz marketing then I suggest you to target those consumers for penetration who can create a tipping point in your footfall. J
Retail Format: It has to fill the value chain of retail by resources. The main objective of retail format should be to make consumers process of shopping very cozy. The factors which affect the process are:
- People involved
- System Involved
- Infrastructure (Show Room space, Parking space, interiors, sitting arrangement)
Service Blue Prints: It connects the brand or product with the resources for accessibility to consumers. Service is not only inside the show room but also outside (parking facilitating and others).
How to analyze your performance of retail audit?
The end result of RETAIL AUDIT must be to increase the profit /square feet. Behind this figure enhancement, you can guess the mechanism of each unit and factor under a system.
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