241 W12 C2 Strategy

241 W12 C2 Strategy - Chapter 2 Customer Relationship...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Chapter 2 Customer Relationship Management The overall process of building and maintaining pro table customer relationships by delivering superior customer value and satisfaction Total Traditional Grab and Go Shoppers on Watching the Convenience Homes Shoppers a Budget Waistline at Home Family Focused Finest Laundry Detergent Laundry Detergent Household 52 wks ending 05-Mar-11 25.7% 36.0% 29.6% 29.3% 39.5% 33.7% 41.0% 34.4% Penetration 52 wks ending 06-Mar-10 26.7% 36.9% 30.5% 31.6% 39.7% 35.5% 42.5% 35.3% -1.0 -1.0 -0.8 -2.3 -0.1 -1.8 -1.6 -0.9 Absolute Change Households 52 wks ending 05-Mar-11 14,531,460 3,583,180 1,128,860 2,414,280 1,090,650 1,696,760 2,115,390 2,227,300 Buying 52 wks ending 06-Mar-10 14,909,970 3,655,240 1,144,050 2,609,890 1,101,600 1,774,380 2,097,910 2,209,070 -2.5% -2.0% -1.3% -7.5% -1.0% -4.4% 0.8% 0.8% 56,547,860 9,964,990 3,811,560 8,238,760 2,758,340 5,033,670 5,164,750 6,475,690 55,939,800 9,895,960 3,757,020 8,249,660 2,775,910 4,996,530 4,934,050 6,254,400 1.1% 0.7% 1.5% -0.1% -0.6% 0.7% 4.7% 3.5% % Change Selected Kroger Universe 52 wks ending 05-Mar-11 Households Buying Data Source: Dunnhumby 52 wks ending 06-Mar-10 % Change The (Right) Customer is King… “Nothing in the warehouse should be marked up more than 14- 15 percent from cost…even if the market would bear more.” “Pricing goods higher would prompt customers to lose trust.” - Jim Sinegal, Costco Founder “Learn and understand fundamental components and tools for marketing and how each relates to creating and sustaining value for customers.” Attract and retain the right customers. Pro tability Strategy is when you are out of ammunition, but keep right on ring so that the enemy won’t know. (Anonymous) It is useless to tell a river to stop running; the best thing is to learn to sail in the direction it is owing. (Anonymous) Dig a well before you are thirsty. (Chinese proverb) Plans are nothing; planning is everything (Dwight Eisenhower) “Chesire Puss,” [Alice] began…“would you please tell me which way I ought to go from here?” “That depends on where you want to get to,” said the cat. (Lewis Carroll) Failing in Business is Easy… Think Strategically. 1.  2.  3.  4.  5.  BCG Growth- Share Matrix SWOT The 4 C’s Segment, Target, PosiWon The 4 P’s Corporate Strategy What business should we be in? Beverages Salty Snacks Packaged Foods 1997: Fast food businesses were spun- off Stuffers Rumbles Toppels Strengths Internal Weaknesses SWOT OpportuniWes External Threats Strengths Leverage / Capitalize OpportuniWes Invest Internal SWOT External Weaknesses Reinforce Threats IdenWfy Strengths Internal Weaknesses SWOT OpportuniWes External Threats IDEAS? GOAL STATEMENTS? Products New ExisIng Market PenetraIon ExisIng Markets New •  Increase purchase frequency •  Increase amount per purchase occasion •  Introduce new flavor Market Development •  Geographic •  Demographic •  Usage SituaIon Product Development •  New technology •  Brand Extension •  New Brand DiversificaIon •  Create a new product for a new customer base Products New ExisIng Market PenetraIon Sell m en & erry’s ExisIng •  super ore cBream tJo ice Americans Markets New Market Development •  Sell Ben & Jerry’s ice cream in South American markets for the first Ime Product Development •  Sell children’s clothing under the Ben and Jerry’s brand to Americans DiversificaIon •  Sell children’s clothing under the Ben and Jerry’s brand in the South American markets for the first Ime •  IBM PC • Microwave food • CD’s • Diet Coke • Lean Cuisine • Macintosh computer • Super-premium ice cream • Chrysler minivan • Tartar Control Crest • Athletic footwear – Cross Trainers, etc. • USA Today • Swatch watches • Nintendo video games • SPF sunscreens • New Coke • Premier cigare^es • IBM PC jr • Yugo • LA Beer • Home banking • PonWac Fiero • Disk camera • RCA Selecta Vision • Generic products • Fab 1 Shot • Holly Farms chickens Hits • IBM PC • Microwave food • Diet Coke • Lean Cuisine • Macintosh computer • Super- premium ice cream • Chrysler minivan • Tartar Control Crest • AthleWc footwear • USA Today • Swatch watches • Nintendo video games • SPF sunscreens Misses Value • New Coke • Premier cigare^es • IBM PCjr • Yugo • LA Beer • Home banking • PonWac Fiero • Disk camera • RCA Selecta Vision • Generic products • Fab 1 Shot • Holly Farms roasted chickens Marketing creates value for the rm’s chosen customers. If there is no value, customers leave. Without customers, companies fail. Value is created by meeting customer’s functional and emotional needs. Understand Value Context “The 4 C’s” Company Consumers Segment Competitors Channel Target Position (Differentiate) Place Promotion Create Value “The MarkeIng Mix – The 4 P’s” Product Capture Value Sustain Value Price “CRM” Customer Acquisition Customer Retention Pro ts Context “The 4 C’s” Company Consumers Competitors Channel Context “The 4 C’s” Company Consumers Competitors Channel Company: What is your role? What value to you bring? 1 2 Category Growth and Market Share Potential Brand / Price Power 3 Supply Chain Considerations 4 Strategic Potential and Fit 5 Financial Performance Prioritize Selectively Invest Maintain Manage for Cash Prioritizing the Portfolio to focus and invest for Sustainable, Profitable Growth 31 1/12/12 Context “The 4 C’s” Company Consumers Competitors Channel Consumer: What can you offer that they will value? Who is the Core Target? Demographic? Psychographics? Ethnographic? Purchase Behavior? Media Usage? Context “The 4 C’s” Company Consumers Competitors Channel Competition: How can you out maneuver? Threats? Over 60% Share of Premium Pot Pies Only brand to grow Retail Volume +18% 4% 10% - 14% 13% - 13% - 15% Context “The 4 C’s” Company Consumers Competitors Channel Channel: How can you help customer grow? How will your decisions impact their store? Segment Segment Target Position (Differentiate) Target Position (Differentiate) Consumers looking for a quick, tasty meal or snack. Primary: Kids ages 3 – 12 Secondary: Moms who value a hearty, easy- to- prepare meal or snack that their kids will love. Kids: Chef Boyardee is the only meal that will saWsfy your hunger when you’re really hungry. Moms: Chef Boyardee is a kid favorite that you don’t have to feel guilty about. “The MarkeIng Mix – The 4 P’s” Product Place Promotion Price “The MarkeIng Mix – The 4 P’s” Product Place Customer soluWon Convenience Promotion CommunicaWon Price Customer cost Understand Value Context “The 4 C’s” Company Consumers Segment Competitors Channel Target Position (Differentiate) Place Promotion Create Value “The MarkeIng Mix – The 4 P’s” Product Capture Value Sustain Value Price “CRM” Customer Acquisition Customer Retention Pro ts Think Strategically. 1.  2.  3.  4.  5.  BCG Growth- Share Matrix SWOT The 4 C’s Segment, Target, PosiWon The 4 P’s ...
View Full Document

Ask a homework question - tutors are online