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Positioning innovation brands for
sustainable competitive advantage in high
growth markets
Just like us, industries go
   through life cycles
they begin, they grow and
they eventually mature and
decline.
5
there are five stages in an industry's life cycle.
Blank




        the development stage
                                1
Blank




        the growth stage
                               2
                      you are here
Blank




        the shakeout stage
                             3
Blank




        the maturity stage
                             4
Blank




        the decline stage
                            5
12 34 5
 these lifecycle stages are often plotted on a
 industry life cycle graph.
A typical Industry Life
Cycle curve looks like
        this.....
The consumer LED lighting market
in currently in a growth phase,
characterised by high growth &
low barriers to market entry.
growth markets
High growth markets, like the current consumer LED
lighting market, are characterised by relatively low rivalry
and plenty of market opportunity for everyone.
growth markets
Buyers in high growth markets are often keen to secure
products due to external drivers (like high electricity prices)
but lack sophistication about what they are buying, so
diminishing their buying power.
growth markets
The marketing goal in high growth markets is all about
growing market share and building a strong brand ready for
the onslaught of competition that will arrive in the late
growth stage and into the shakeout stage.
growth markets
In this high growth markets, traditional broadcast
media channels like TV, radio and direct marketing
work well because of the abundance of buyers and
limited competition.




                                         TV + PRICE
growth markets
On the downside, high growth markets have low barriers to
entry, meaning new competitors can easily enter and pick up
market share quickly, This is because existing competitors
may not have built scale, experience or customer loyalty.
growth markets
In a typical growth market, competition is
present but there is more than enough
business for everyone. The aim of the growth
phase is to build market share.
shakeout stage
After the growth stage an industry moves
into the shakeout stage.
growth markets
In the shakeout stage there is much higher
levels of competition, the growth rate starts to
decline and increased rivalry forces the
weakest players and brands out of the
business.
shakeout stage
In the shakeout stage broadcast promotion and
big budgets won't ensure success as there will
be many companies vying for a share of the
consumers mind. At this point, brand strength
is critical.




                              TV + PRICE
Similar to the way brands like Canon means
something in printer and photocopier markets, and a
're-seller' brands like Aussie home loans means
something in the mortgage market, Brands in high
growth markets needs to develop a strong brand that
is different from competitors in a way that matters to
me.
At Aussie they'll save me!
...and Bunnings means much more to me than just lower prices
So why should I remembering your brand?
why does it matter to me?
How is your brand different in a way that matters?
Being a strong brand that is different and valuable
doesn't mean so much in a high growth market.
but it means everything when things get crowded and you
don't want to get caught up competing on price alone.
..to win, build a brand that matters
..or it's LED lights out.
the end

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Innovation brands in high growth markets

  • 1. Positioning innovation brands for sustainable competitive advantage in high growth markets
  • 2. Just like us, industries go through life cycles
  • 3. they begin, they grow and they eventually mature and decline.
  • 4. 5 there are five stages in an industry's life cycle.
  • 5. Blank the development stage 1
  • 6. Blank the growth stage 2 you are here
  • 7. Blank the shakeout stage 3
  • 8. Blank the maturity stage 4
  • 9. Blank the decline stage 5
  • 10. 12 34 5 these lifecycle stages are often plotted on a industry life cycle graph.
  • 11. A typical Industry Life Cycle curve looks like this.....
  • 12. The consumer LED lighting market in currently in a growth phase, characterised by high growth & low barriers to market entry.
  • 13. growth markets High growth markets, like the current consumer LED lighting market, are characterised by relatively low rivalry and plenty of market opportunity for everyone.
  • 14. growth markets Buyers in high growth markets are often keen to secure products due to external drivers (like high electricity prices) but lack sophistication about what they are buying, so diminishing their buying power.
  • 15. growth markets The marketing goal in high growth markets is all about growing market share and building a strong brand ready for the onslaught of competition that will arrive in the late growth stage and into the shakeout stage.
  • 16. growth markets In this high growth markets, traditional broadcast media channels like TV, radio and direct marketing work well because of the abundance of buyers and limited competition. TV + PRICE
  • 17. growth markets On the downside, high growth markets have low barriers to entry, meaning new competitors can easily enter and pick up market share quickly, This is because existing competitors may not have built scale, experience or customer loyalty.
  • 18. growth markets In a typical growth market, competition is present but there is more than enough business for everyone. The aim of the growth phase is to build market share.
  • 19. shakeout stage After the growth stage an industry moves into the shakeout stage.
  • 20. growth markets In the shakeout stage there is much higher levels of competition, the growth rate starts to decline and increased rivalry forces the weakest players and brands out of the business.
  • 21. shakeout stage In the shakeout stage broadcast promotion and big budgets won't ensure success as there will be many companies vying for a share of the consumers mind. At this point, brand strength is critical. TV + PRICE
  • 22. Similar to the way brands like Canon means something in printer and photocopier markets, and a 're-seller' brands like Aussie home loans means something in the mortgage market, Brands in high growth markets needs to develop a strong brand that is different from competitors in a way that matters to me.
  • 23. At Aussie they'll save me!
  • 24. ...and Bunnings means much more to me than just lower prices
  • 25. So why should I remembering your brand?
  • 26. why does it matter to me?
  • 27. How is your brand different in a way that matters?
  • 28. Being a strong brand that is different and valuable doesn't mean so much in a high growth market.
  • 29. but it means everything when things get crowded and you don't want to get caught up competing on price alone.
  • 30. ..to win, build a brand that matters
  • 31. ..or it's LED lights out.