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Marketing Strategy

Marketing Strategy. Strategy Formulation. Marketing Strategy : Key Questions. Who should we serve ? Which segments What differentiates us ? Product Life Cycle stage Issue ? Enter / Exit decisions Competitor Reactions ?. Market Definition Framework. Functions. Customers. Technologies.

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Marketing Strategy

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  1. Marketing Strategy Strategy Formulation

  2. Marketing Strategy : Key Questions • Who should we serve ? • Which segments • What differentiates us ? • Product Life Cycle stage Issue ? • Enter / Exit decisions • Competitor Reactions ?

  3. Market Definition Framework Functions Customers Technologies

  4. Product Life Cycle Focus • Market Development • Reduce uncertainity • Rapid Growth • Make it available at competitive prices • Maturity • Differentiate beyond product • Decline • Look for Niche / Reduce Investment

  5. Market Entry / Exit Analysis Model Risk High Low High Company Advantage Medium Low High Medium Low Market Attractiveness

  6. Flexibility and Focus Perennial Renaissance Lockstep High Focus Paralysis Chaos Low Low High Flexibility

  7. Case Study Acer’s Growth Strategy

  8. Acer In Inda • Rs 12 bn in 2007 • Aims for Rs 18 bn in 2008 • 50% growth • Market growth = 20%

  9. What has Acer been focusing on in 2007 ? • Brand Building • Hrithik Roshan as Ambassador • Brand recall • Improving quality image • Retail Expansion • 225 retail outlets to 350 by 2008 • Notebooks, desktops and Home Theatre solutions • Channel Communication and relationship Management was key

  10. What are the focus areas for Acer in 2008 • Education (students) • Fit budget of students • Youth • Retail • Tie up with large format retail stores eg Croma, Next

  11. What questions is Acer tackling ! • Intensifying Competition • Entry into smaller cities and towns • Service Infrastructure in smaller cities

  12. What are the Strategic Options for Acer

  13. What do we know about the computer market ? • 2007 • Acer = Rs 12 bn • Acer share in notebook market = 10% (significant) • Share in overall PC market • 4th ( < 10%) • Market Size (7% to 8% share) • Rs 150 to 170 bn

  14. What do we know about the computer market ? • 2007 • Notebooks = 27% of market • Rs 40 to 45 bn • HP = 17 bn • Lenovo = 7 bn • Acer = 4.5 bn

  15. What do we know about the computer market ? • Growth = 20% CAGR till 2012 • 2012 Total Market • Rs 400 bn • 2012 Notebook Market • @ 25% CAGR :Rs 140 bn • @ 30% CAGR : Rs 170 bn Half of the market growth will be in Notebooks

  16. What do we know about the computer market ? • Segments for Growth • Large Enterprises • Education • Government Automation • Consumer Market

  17. What is your recommendation

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