Collaborator Analysis

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Collaborator Analysis
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Wheres the Text???

• The is none!
• These notes are taken from multiple sources, but
  no single textbook (that I have identified) gives
  a concise overview of how and why we analyze
  collaborators.
• Yes! These notes are fair game for your exam.

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What Do We Do, Here?

• We analyze collaborators (including channel
  partners) in the situation analysis
• Collaborator Channel goals are set next
• Then, we develop our place (a.k.a.
  distribution) strategies based on the information
  collected in the analysis

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Types of Collaborators to Consider

• Channel Members
• Financial Partners (e.g. shareholders, banks)
• Advertising Agencies
• Government Agencies (e.g. small business
  association, industry regulators)
• Professional Service (e.g. Web designers)
• Other specific outsiders who help us create
  value for customers (e.g. international
  alliances)

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Information to Collect Analyze

• Name of Potential Collaborator's Organization
• Name of Their Product/Service
• Common Market(s) That We Serve
• Similarities Between Their Product/Service and
  Ours
• Advantages of Collaboration
• Disadvantages of Collaboration

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Channels and Marketing Decisions
Pull strategy
Push strategy
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Lets Consider an Example

• The Context
• Last week, we discussed strategic planning
  customer analysis.
• Today, we discussed company analysis
  collaborator analysis.
• These analyses are part of strategic market
  planning.
• Now, lets consider Toyota and its creation
  introduction of the Prius.

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Positioning Prius

• The G21 project, which eventually led to the
  modern day Toyota Prius, began in 1993 (total
  cost of development, approximately 1 billion).
• In 2005, Prius global sales were over 160,000
  vehicles (U.S. sales were almost 120,000).
• U.S. sales have more than doubled for the last 2
  years (2004 2005).

Fortune, Mar. 06, 2006
UCF EMBA
9
Nay Saying Nissan

• Some of our competitors say they are doing
  things for the benefit of humanity. Well we are
  in a business, and we have a mission of creating
  value (p. 124) Carlos Ghosn, Nissan CEO
• " positioning is not what you do to a product.
  Positioning is what you do to the mind of the
  prospect. That is, you position the product in
  the mind of the prospect."- Al Ries and Jack
  Trout, authors of Positioning The Battle for
  your Mind (1981)

Fortune, Mar. 06, 2006
UCF EMBA
10
Does it Save Enough Money to Pay for Itself?

• Critics said, the 3,000 or more the technology
  adds to the cost of the vehicle cant be recouped
  with gas mileage. (p. 122).
• Prius marketers replied, Thats not the idea.
  Whats the true cost of a gallon of gas, if you
  factor in foreign aid, Middle Eastern wars, and
  so on? The truth is on our side. (p. 124).

Fortune, Mar. 06, 2006
UCF EMBA
11
In the Beginning

• I was trying to come up with the future
  direction of the company. I didnt have a very
  specific idea about the vehicle. -
  Katsuaki Watanabe, corporate planner 1993.
  Current top Toyota executive.
• He set two goals in 1993
• Develop new production methods
• Get more fuel economy out of traditional
  internal combustion engines.

Fortune, Mar. 06, 2006
UCF EMBA
12
From Fast Follower to Innovator

• Toyotas previous strategic position was as a
  fast follower.
• Executive V.P., Akihiro Wada, said in 1994, It
  was not enough to be a simple extension of
  existing technology. (p. 114)
• As for Toyotas position in the consumers mind,
  it did not want to be remembered for producing
  another Japanese econobox.

Fortune, Mar. 06, 2006
UCF EMBA
13
Engineering VS. Sales

• Sales executives feared that premium prices
  required for a hybrid car would make it
  impossible to sell.
• Engineers firmly believed a hybrid was the best
  route to achieving corporate goals.
• They focused on oil depletion, emissions, and
  long-term future of the automobile society

Fortune, Mar. 06, 2006
UCF EMBA
14
6 Years, 625 Sales Growth

• Toyota expects global sales of hybrids to grow
  to 1 million by early next decade.
• Its current strategic goals include
• Improve production engineering
• Develop better technology in batteries, motors,
  and inverters.
• Begin to improve hybrid model vehicles quickly
  and cheaply in the near future.

Fortune, Mar. 06, 2006
UCF EMBA
15
Problems Positioning in U.S.

• Consumers would have to be taught that the car
  didnt come with an extension cord (p. 118)
• Difficult to build consumer technology awareness
• Early consumer complaints
• Dont like the feel of the breaks. Interior
  looked cheap. Arm rest too low. Rear seats
  dont fold down. It was a Japan car.

Fortune, Mar. 06, 2006
UCF EMBA
16
No for Advertising!!!

• So, how does one position radical technology
  when margins are too low to support extensive
  advertising?
• Toyotas approach (Prius U.S. debut 2000)
• Special internet ordering (helped I.D. hotspots
  for cars hurt some dealer relations)
• Funded grass roots marketing public relations
  events

Fortune, Mar. 06, 2006
UCF EMBA
17
And the Award goes to

• In 2001
• Leonardo DiCaprio and Cameron Diaz each buy a
  Prius and are photographed with car..by the
  press, not in a commercial shoot!
• Chauffeur-driven Prius delivers celebrities to
  2003 Academy Awards.
• From 2003 2004, U.S. sales double
• From 2004 2005, U.S. sales double

Fortune, Mar. 06, 2006
UCF EMBA
18
The New Fast Followers

• After dismissing hybrids in 2004, GM vice
  chairman Bob Lutz now admits The manifest
  success of the Prius has caused a rethink on
  everybodys part. (p. 124)
• Ford licenses Toyotas technology promises
  capacity to build 250,000 hybrids by 2010.
• Nissan is now building hybrids.

Fortune, Mar. 06, 2006
UCF EMBA
19
Marketing Take - Aways

• Good ideas dont always come from marketers
  (Toyota engineers pushed for the Prius). But
  marketers are responsible for positioning good
  ideas. (Company Customer Analysis)
• Effective positioning does not always require
  mass-advertising. (Collaborator Analysis)
• Proper positioning can support margins that seem
  counter-intuitive. (Math..2 weeks!)

Fortune, Mar. 06, 2006
UCF EMBA