Business Plan Strategy and Implementation Summary

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Business PlanStrategy and Implementation Summary

• Patricia SALGUERO
• Departemen Teknik Informatika
• Institut Teknologi Bandung

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STRATEGY AND IMPLEMENTATION SUMMARY
Armies fight to win terrain, kill or disable
adversary combatants...
Companies fight to capture market share, generate
sales revenues, enhance profits...
Both armies and business enterprises try to
achieve their objectives through strategies
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STRATEGY AND IMPLEMENTATION SUMMARY
Strategic Pyramid
Main focus
Implement Strategies
Specific business activities, each of which has
concrete dates and responsibilities, and probably
a budget.
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STRATEGY AND IMPLEMENTATION SUMMARY
Value Proposition
A value proposition define how product and
service features are assembled and offered to
meet customer needs in other words, how a
company gives value to customers.
A value proposition define the benefit
offered the target market group and the
relative pricing.
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STRATEGY AND IMPLEMENTATION SUMMARY
Competitive Edge
products, services, retail locations, prices,
exclusivity, intellectual property rights,
licenses, franchise agreements...
Is this a key competitive edge?
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STRATEGY AND IMPLEMENTATION SUMMARY
INNOVATION
ability to outwit, outsmart, outsell and
otherwise outperform your competition.
Key Competitive Edge
driving force behind successful small businesses
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STRATEGY AND IMPLEMENTATION SUMMARY
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STRATEGY AND IMPLEMENTATION SUMMARY
MARKETING STRATEGY

• Every business owner should develop a written
  guideline that sets forth the business's
  marketing strategy.
• This document is used to judge the
  appropriateness of each action that the business
  takes.
• If a company has to take an action that is
  off-strategy, it may indicate a temporary
  emergency action prompted by competition or other
  factors beyond normal management control. Or it
  may indicate the need to change or revise the
  company's marketing strategy.

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Marketing Strategy
Involves introducing a single version of a
product that is designed to appeal to a single,
particular market segment.

• Concentrated Marketing

• Differentiated Marketing

Involves introducing a number of different
versions of a product, each designed to appeal to
a different market segment.

• Undifferentiated Marketing

Involves introducing only a single version of the
product in the hope that it will appeal to an
entire universe of consumers, an appeal to the
lowest common denominator.
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Positioning Statements
Unique features that have obvious value

• Positioning on specific product features

Product features----gt Customer

• Positioning on benefits

• Positioning for user category

Used by models ---gtcustomer identify
Implicit to explicit comparison

• Positioning against another product

New product that differs from traditional products

• Product class disassociation

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PRICING STRATEGY
With this method you simply set prices to cover
your fixed and variable costs, and leave enough
room for profits. 

• Cost-Plus Pricing

Compares alternative products and services and
sets prices accordingly

• Competitive pricing strategy

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Pricing Strategy
Competitive pricing strategy/ Sample
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Pricing Strategy

• Customers must perceive the value of your premium
  service
• Be willing to pay for it
• It must cost you less that the price you receive.
• To the last point, "do not offer gold plated
  service if you are only going to receive silver
  plated prices."

• Premium price strategy

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Pricing Strategy
This option involves charging a high price
relative to other brands within the product
class.

• Cream skimming pricing

• Market penetration pricing

This is the strategy of setting prices low, or
below the competition, initially to attract new
customers.
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Promotion Strategy
PROMOTION STRATEGY
Promotion involves communication of product
attributes and corporate image in the most
favorable light possible to intermediary sellers
and to end users.
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Promotion strategy
The Pulling Promotional Strategy
Intermediary
Originator
End User
The Pushing Promotional Strategy
Intermediary
Originator
End User
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Promotion strategy
Dimensions of Advertising Effectiveness

• Demographic

What type(s) of people do we want to influence?

• Geographic

Where are the people we want to influence?

• Impact

Is the desired message well communicated and hard
hitting enough to be memorable? Generally,
advertising is designed to address the AIR
concerns.

• Reach

How many individuals or householders will
experience one exposure of the message?
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Promotion strategy
Dimensions of Advertising Effectiveness

• Frequency

How many times will these people experience the
message?

• Duration

How long is the message?
When will the message be experienced?

• Timing

How much does it cost to reach 1,000 people or
households with a single exposure?

• Cost

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DISTRIBUTION STRATEGY
How the product is convoyed from the producer to
the end user. Its functions include
manufacturing, transportation, warehousing,
wholesaling, and retailing.
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Distribution Strategy
There are essentially three distribution options,
as follows
Aims for limited exposure. The product is sold by
a single dealer within each treading region.

• Selective

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Sales Strategy
Sales is asking the people what they do, how
they do it, when they do it, where they do it,
why they do it, and who they do it with-and then
help them to do it better. Stephan Schiffman
Consultative model
Models

• A for Attention
• I for Interest
• D for Desire
• A for Action

AIDA model
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Sales Strategy
Sales Promotion Tools and Activities

• Discounts
• Premiums
• Twofers
• Coupons
• Samples
• Contests
• Sweepstakes
• Incentives
• Product publicity

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Sales Strategy
Sales Forecast
Use the text to summarize and highlight the Sales
Forecast in a detailed sales forecast table. Try
to emphasize important points and explain
assumptions to the sales forecast. The monthly
sales forecast chart and annual sales forecast
chart should be drafted