Hope You guys will like it Strategic Management IMT Ghaziabad By Sunil Saha Contact: sunilchandrasaha@gmail.com

1. Strategic Management
Sunil Chandra Saha
sunilchandrasaha@gmail.com
Lecturer- IMT Ghaziabad CDL
Work ex:
Bharti Airtel, Aditya Birla MFL, Bestseller India, Network 18
Healthcare Start Up- Spinalogy Clinic

2. Unit I: Strategic management
History and Introduction

3. Introduction of Strategy
What We Do
Best
What We Do
Better
Than Other
Competitors

4. 1. Where Do we COMPETE?
2. How do We COMPETE?
3. How do We EXECUTE
Resources
Execution -
Use of Resources
Strategy Mgmt Course Outline

5. Strategy
Have it Here or Take-Away
External
Analysis
Strategy
Formulation- Internal Analysis
Strategy
Implementation
Diagnostic
Reasoning
Skills
For Complex Business Env.
& Competitor s

6. Agenda- Lecture 1
• Strategy- Introduction of Holistic Approach
• Decision Making Process
• Vision Mission Goals
• SWOT analysis
• Porter’s 5 Forces Model- Indian Small Car Market
• BCG Matrix
• 7s Framework- Competitive Advantage
• Competitive Advantage
• CASE STUDY: 2014 Scenario- KFA Vs INDIGO

7. STRATEGY- What , Where & Why?
WHAT ARE WE NOW?
Future Customer Needs
Market Analysis
WHERE and WHY DO WE
WANT TO GO?
Vision and Mission
HOW WILL WE GET
THERE?
Plan Development
Delivery- Competitive
Advantage

8. Types of STRATEGY
• Corporate Level Strategy
– Diversification
– Acquisition
– New Market- Global Strategy
– New Ventures and Market Exits (Disinvestment)
• Business Unit Level Strategy
– Competitive Strategy for same Industry
– Cost Leadership
– STP
– Product Differentiation
– Vertical Integration
• Function Level Strategy
– Execution
– Operational Excellence

9. Strategic Decision Making Process

10. Difference between Strategy –Tactics- Policy
Strategy Tactics Policy
Planning Doing Guiding
Why to Do How to Do Rules – How to Do It
Long Term- Documented Short Term- Non
Documented
Very Long Term- Documented
and Signed by People
Competition and
Business Environment
Competition and Business
Environment
Mostly Only limited to Internal
Resources
Can be Changed with Lot
of Thought
Very Frequently Changed Conservative and Difficult to
Change
Related to Goals Related to Goals Related to Vision

11. Vision, Mission & Goals
Customers
People of the Co., Owners, Trustees
Shareholders, Investors

12. Unit II: Internal & Resource Analysis
Brain Storming Tool: STRATEGIC PLANNING

13. Competitive analysis
Interpreting the five forces model- PORTER’s MODEL
• Competitor’s analysis.
• External analysis - Environment analysis
• Components of External environment
• Components of Internal environment
• Environmental scanning.
• Industry Analysis

14. Porter’s
5- Forces
MODEL
COMPETITIVENESS
Intensity
WITHIN
INDUSTRY
In Existing
Players

15. Customers
SMALL CAR MARKET
INDIA

16. Unit IV: Portfolio Approach & Analysis- BCG
Matrix

18. 7s Framework
Competitive Advantage

19. Kingfisher Indigo- Case Study- 2014
2013 Oct- IndiGo has a market share - a shade under 30 per cent – that must be
telling a story of KINGFISHER Airlines’ failure to Indian Aviation Industry.
From the tag of India’s first Five Star Airlines, has now come down to the verge of
Permanent Closure! On the contrary, the baby step start of Indigo in 2005, is
now taking giant strides in aviation and taking it to International Skies to fight
Bigger Players of the Industry. Now Indigo, stands as the most profitable in
the Indian airline business.
Indigo is looking forward for an IPO in 2014-15 as the market valuations are on
high. Being a Non-listed Airlines, its not mandatory that Indigo reveal
revenues and profits, however the company going public soon revealed
revenues as 11000 Cr and Net Profits of 787 Cr in 2013-14. Just the opposite,
Kingfisher is yet to post any Profit since the inception year and has reported a
loss of Rs. 4300 crore with a revenue of just 683 Cr (against 5832 cr in 2012-
13). Net Losses has reached 13000+ Crores.
Kingfisher Airlines has been grounded and facing the heat from the Law and
Investors for a while now. The flying licence of the Airlines too has been
cancelled. The banks like SBI and Almost all banks in Indian banking scenario
has given Loan to Kingfisher and have considered Dr. Mallya a defaulter.
On 10 Mar ‘13 , DGCA ordered the airline to give money to clear out the dues, as
well as the debts and the salaries of staffs and the vendors payments as well!

20. The man who turned around the aviation industry and made the base for a profitable airline and
who bested Vijay Mallya was- Rahul Bhatia.
Who brought along some of the industry’s best people from Bar Council of India along with Airline
business. Rakesh Gangwal as co-founder, J.B. Singh and Harish k. Gandhi etc.
He was quick to spot the opportunities and was sure enough not to repeat the strategical mistakes
done by KFA. He saw India’s struggling Aviation as a industry which has an average Monthly 5
million people travel (Feb 2014), which is assumed to rise up to 35 million by 2020. India being
highly under penetrated in Aviation sector for having 1 airline to about 2 Million People, where
America has 1 airline per 50000 people. Rahul Bhatia and IndiGo strategically took good steps to
make the airline a success story. IndiGo 1st Ordered 100 Airbus-320s in 2005 in Paris Airshow to
be delivered in a span of 8 Years till 2015. And quite recently in 2011. IndiGo ordered 180 more
aircrafts to be delivered between 2016 to 2025. IndiGo has gone global with its low cost Airline
and is tapping the most popular destinations- Dubai, Kathmandu, Bankok, Muskat and a Few
More.
By 2025 The Indigo will have 280 strong fleet, and if we have to compare the same with respect to
some of the global Low Fair competitors, KFA’s ordered A-380s and A 350s has been cancelled
and the Airline is grounded; Singapore Airline has 106 and has 116 in order along with Air Arab is
has 25 now and has ordered 8 More. The airline started Delhi-Singapore; Kolkata- Bankok and
Kerela Dubai Flights.
The Airline brought operational excellence by adhering to 90% On time record! Very Affordable Rates
of Seats along with effective advertising and may the logo style – all have helped the airline to
gain emotional space in Indian Flight Travellers.
Airline also has the inducted 3 level training in the people. The functional training which includes all
employees with respect to their profile. The next level was Customer Service and Softs kills and
the last level has been the game changer- The leadership training!
The risk which comes along in next phase will be to maintain growth, in economic environment
which is slowing down, along with fighting bigger players with deep pockets!

21. KINGFISHER And INDIGO Fleet Status -2014
Aircraft Type
Current Future Historic
TotalActive On Order Other Operator
KFA Airbus
A319 4
KFA Airbus
A320 23
KFA Airbus
A321 8
KFA Airbus
A330 5
KFA ATR 42/72 28
Total 0 0 60 68
INDIGO Airbus
A320 80 2 98
Total 80 2 16 98
Source: http://www.flykingfisher.com/pdf/KFA%20Annual%20Report%20-%202012-13.pdf)
Source: http://www.moneycontrol.com/news/ipo-upcoming-issues/indigo-ipo-gathers-steam-co-mgmt-meets-
bankers_1117321.html
http://timesofindia.indiatimes.com/kingfisher-crisis/specialcoverage/10754352.cms

22. QUESTIONS
• What’s Your Take : What STRATEGICAL Mistakes KFA
made to meet this Fate
• What are the Strategies used by Rahul Bhatia and Co.
to make INDIGO this Success Stories
• What are Your Recommendations for KFA to REVIVE
The CO. : For the Students to THINK!!!

23. What’s Your Take : What STRATEGICAL Mistakes
KFA made to meet this Fate
• Corporate Level Strategy Mistake:
– 6 types of Aircrafts: Different Pilots and Training needs
– Only Focusing on Business Class High End Customers
– Higher Pricing for majority of 5 years of Operations
• FUNCTIONAL Level Strategy Mistake:
– Function HR:
• Staff training was focused on functions
• No Leadership Developed to lead internally
– Function Finance:
• Kept Ordering Aircrafts, One of the Most Costly A 380s in the List
– Function Marketing:
• The Kingfisher Calender made from Hostesses photoshoots made the
staffs being focused on photoshoots rather than the Jobs
• Integrated Marketing was Missing

24. What are the Strategies used by INDIGO to
make it a SUCCESS
• Strategy to buy Same Aircraft saved huge resources and lead
to standardization
• HR : Training needs were spot on
• Customer Needs Identified: Good Service and ON TIME
• Operational Excellence: On Time Strategies

25. Thank You
LECTURE 1 Ends
Next Session
Case Study on ZARAand Success
Strategies Across Globe with a
Perspective of India

26. Scope: Lecture 2
• Business Level Strategy and Competitive Advantage
• Developing Resources and Capabilities
LEARN>>>(Translate)>>> ACTION (Faster)
• Functional Level Business Strategy and The Capabilities
• Organizational Capability Development
– Merger, Acquisition & Strategic Alliance
– Internal Development
• Strategic Evaluation
• Case Study: Zara

27. Unit V: Business Level strategy : Competitive
Advantage
COST Leadership Differentiation Leadership
LV, GUCCI
Apple
Cancer Drugs
Focus Cost Leadership Focused Differentiation
Leadership
Cost Leadership
MarketScope>>>
Focused
target
Larger
Market
COST >>>

28. Developing Resources and Capabilities
LEARN>>>(Translate)>>> ACTION (Faster)
Resources
Knowledge and
Behaviour
i. HR: Workforce
ii. Operations
- Production
- Systems
iii. Capital
Leadership-Philosophy
Vision Values and
Policy
Org. Environment
Capabilities
Financial
Fund Availability
Funds Sources
and Mgmt
Operations
Productn-Control
Process Excellence
R&D
HR Capabilities
Talent Acquisition &
Mgmt: Training,
Succession Planning,
Appraisal, Retention
Marketing
Distribution,
Marcomm, Brand
Image, Product
Innovation

29. Financial Capability
- Bajaj - Cash Management
- LIC - Centralized payment,
decentralized collection
- Reliance - high investor
confidence
Marketing Capability
Hindustan Lever - Distribution
Channel
IDBI/ICICI Bank - Wide variety of
products
Tata - Company / Product Image
Facebook and Apple- Product
InnovationOperations Capabilities:
-Indigo: On Time 90%
-Ebay and Amazon
- Buggati Veyron
HR Capabilities:
- Google: Retention, Development
- Infosys: Bench Strength

30. Organizational Capability Development
1. Merger, Acquisition
& Strategic Alliance
2. INTERNAL DEVELPMENT
-Technical capability
-Relationship Building
-Time Factor
-Market Size
- Brand Building
-Eg. TATA and Jaguar LR
- Myntra and Flipkart Merger
I. Knowledge Mgmt : GENERATION
- Creation: R&D
- Acquisition: Training, Patents, Recruitment
II. Knowledge Mgmt: APPLICATION
-Integration and Sharing: Strategic Operations
improvement, New Product Development
- Replication and Storage: Database and SOP,
On Job Training, Best Practice Transfers
- Measurement and Identification: Reviews,
Competency Modeling

31. Unit VI: Strategic Evaluation

32. Case Study
Meet Zara, the famous Fast fashion Spanish retail brand! The brand is owned by
Inditex; Started in 1975, by Amancio Ortega who now is the 4th richest person on
earth! Zara operates through 2000+ stores across 90 countries. India has 12 stores
till now. By 2015 Zara will be opening 6 more stores.
Zara operated from Spain HQ The cube, where a much studied subject, “design-
manufacturing- distribution” system has been revolutionized. Just outside Cube,
Zara has its huge distribution centre. Cube works on a philosophy: Speed and
Responsiveness more important than Cost.
Zara is known worldwide for a phenomenon which no other retailer has able to
replicate nor achieve. Zara manages to do Twice a week, at precise times, to all
stores across globe in response to the store managers’ system orders. The company
is known to produce about 45 cr items in a financial year. China has just became
the 2nd biggest market of Zara with 146 Stores. But being a global co. China seems
to be a struggle for Zara with changes in business external environment. Whether a
shirt is made in Portugal or Morocco, in China or Bangladesh, it still goes to Spain
before being shipped to a store. Beyond the distribution center are the 11 Zara-
owned factories. Every garment made is first sent directly to the distribution center
via an automated underground monorail. There are 124 miles of track within the
centre.

33. 2012 Zara accounted for €10.5 billion (1 Lac Cr) of that. Zara’s factories in
Spain and those it uses in Portugal, Morocco, and Turkey produce its
trendiest clothes, often taken directly from the fashion weeks & runways,
after slight design alterations. This has led to furious reactions from the
global high end fashion Brands and Designers. Zara brings along the same
high end fashion to masses at almost economic pricing! The products from
factory of Portgual and Morocco, account for about half of Zara’s
inventory. Its more basic T-shirts, sweaters, and the like are ordered on a
traditional schedule, about six months in advance, from factories in Asia,
where labor costs are often cheaper, then sent by ship to Spain.
Once all the garments produced in all centres reach the Cube, the new items
are inspected, sorted, tagged with prices, and hung on racks or folded,
they’re packed overnight, loaded onto trucks, and taken directly to a store
or the airport. The trucks and planes run on established schedules,
delivering clothes to most stores within 48 hours.
Zara can afford the extra labor and shipping costs because it doesn’t have to
discount as much as its competitors. Nor does it advertise. Zara gets 85
percent of the full price on its clothes, while the industry average is 60
percent to 70 percent.
Zara has achieved global success, with fashion affordable and prepackaged
fashion. A business built on Speed, and designed for addiction!

34. Question
• Measure the success of Zara with respect to
Competitive Advantage
• What Function Level Strategies Zara used
to become to 100000 Cr Brand
• Are there any mistakes of Zara’s Rival
brands you can find out?

35. MCQ
• Withdrawal, consolidation and building are examples of ....
what?
a. Grand strategies
b. Strategy alternatives
c. Strategic directions
d. Corporate strategies
e. Directional strategies
• In strategic thinking, how long is the long term,
approximately?
a. A week to a month
b. 1 to 12 months
c. 1 to 5 years
d. More than 5 years
e. Any of these

36. 3. What are stages 2, 3 and 4 of the outline strategy process?
a. Appraisal of strengths and weaknesses; choice of strategic direction; strategy implementation
b. Generate options; select strategy; implement strategy
c. Deliberate strategy; emergent strategy; realised strategy.
d. Strategy selection; strategy implementation; strategic control
STRATEGIC
ANALYSIS
4. The marketing strategy emphasises price as the key to good value;
operations runs with tight cost control; development focuses on cost
reduction. Which of Porter's competitive strategies is illustrated here?
a. Cost focus
b. Divisionalisation
c. Cost leadership
d. Differentiation
e. Differentiation focus

37. 5. . Two reasons for mergers and acquisitions are
a. to increase managerial staff and to minimize economies of
scale.
b. to reduce tax obligations and increase managerial staff.
c. to create seasonal trends in sales and to make better use of a
new sales force.
d. to provide improved capacity utilization and to gain new
technology.
6. All of these, except__________, are part of Porter's competitive
forces in industry analysis.
A. potential entry of new competitors
b. bargaining power of suppliers
c. development of substitute products
d. bargaining power of union

38. Lecture 3
• Product- Process Innovation Mode
• Diversification Integration Strategy
– Forward Vertical Integration (Upstream)
– Backward Vertical Integration (Downstream)
– Horizontal Integration
• Global Strategies
– Porter’s diamond framework
• Modes of Entry in Global Market
– Direct Investment
– Trade

39. Product Process Innovation
Strategy Model

40. INNOVATOR- FOLLOWER Market Winner

41. Motive and Modes of Diversification
1. Growth
Location, Markets and Globalisation
2. Risk Reduction
- Economic slowdown and recession
- Lesser dependability on one sector
3. Value Creation
- Produce products at lower cost
- Better technology for customers
4. Change in Competitive Structure
Remove comp. and economies of scale
5. Improve Capabilities
Technology, Innovation and Access to
talent pool

42. Diversification: Vertical Integration

43. Diversification: Vertical Integration

44. EXAMPLE : Forward Vertical Integration
EXAMPLE : Horizontal Integration

45. GLOBAL STRATEGIES: Porter Diamond Framework

46. Pattern of Industry Internationalization

47. MODES of ENTRY in OVERSEAS Market
1. TRANSACTION
1.
Transaction
Exporting
Spot Sales Foreign Agent
Long Term
Contract
Licensing
Licensing
Patents and
IPs
Franchising

48. MODES of ENTRY in OVERSEAS Market
2. Direct Investment
2. DIRECT
INVESTMENT
JV
Marketing and
Distribution
Only
Fully
Integrated
WHOLLY
Owned
Marketing and
Distribution
Only
Fully
Integrated

49. Case Study
The Tata acquisition of Jaguar Land Rover is a superb example to include in research notes on
takeovers and mergers. At the time (early 2008), Tata’s investment in JLR seemed to be
poorly timed and there were many critics who questioned the strategic logic of the move as
well as its timing. Shortly after the takeover, demand in the global market for luxury cars
collapsed as a result of the financial crisis and Tata was forced to refinance to support its
investment.
Several years later, however, the takeover appears to be a compelling example of a successful
acquisition which is generating substantial shareholder value for Tata as well as continued
support from JLR’s many stakeholder groups in the UK.
Background- Jaguar Land Rover (JLR):
Jaguar Cars and Land Rover bought by Ford from BMW for $1.4bn in 1989. A difficult
relationship between the UK firm and its US owners ;saw the worst times of extremely
respectable brand under US firm leadership. Jaguar fell into heavy losses whilst owned by
Ford (reaching up to $600million per year). However, Ford invested heavily in new model
development
Tata Group:
One of India’s largest private conglomerates - used to investing in the UK. Tata Bought Tetley Tea
in 2000 And also Bought Corus Steel - a big supplier to JLR - in 2007 which raised eyebrows
across globe. Tata made its presence felt in almost every economy by taking over Corus. Tata
Motors - was already India’s third largest car-maker, but struggling with a poor image and
hampered by rising raw material costs.

50. The Deal
Ford sells JLR to Tata in March 2008, just over £1bn - just a few months before a collapse in global
demand in the international car market. Tata financed the takeover with $3bn of new long-term
loans. The price paid by Tata was approximately half of what Ford paid to buy Jaguar and Land
Rover.; + Ford had continued to incur heavy losses in Jaguar as it failed to turn the business
around. The deal took over a year to agree - which may have helped with the post-merger
integration. Tata recognised that it would continue to need support from Ford who are a main
supplier of car components to the two brands. No significant change proposed to the businesses
by Tata. They claimed that staff, trade unions and the UK government had been kept informed
about the proposed takeover and supported the move. The deal has been endorsed by trade
unions, which secured a commitment from Tata to continue with JLR’s production plans until the
end of 2011. This includes development of new models.
What happened next?
Significant slump in new car sales in late 2008 as a result of the credit crunch; Tata had to refinance in
order to keep JLR solvent. UK government considered a financial aid package, indicating the
strategic importance of JLR to the UK economy. In February 2010: Tata secures a £340million loan
from the European Investment Bank to support JLR through recession. And in May 2011: Tata
announces £5b five year investment programme in JLR - focused on new product development &
new equipment at JLR three UK plants + investment in a planned factory in China. November
2011: JLR announces 1,000 new jobs a Land Rover plant in Solihull boosted by rising demand for
SUVs in China, Russia, India and Brazil. February 2012: Soaring sales of Jaguar and Land Rover cars
have helped Indian firm Tata Motors to a huge rise in profits (up 41% on 2010). JLR arm saw sales
rise 37%, helped by selling 32,000 of its new RangeRover Evoque. China overtakes the UK as JLR’s
biggest market. April 2012: JLR announces that it will build a successor to its previous sports cars
called the F-type at its factory in Birmingham.

51. Questions
• ENLIST the Key drivers of motives for the takeover of Financially
broken JLR during RECESSION by Tata in 2007-08 w.r.t.
– Product Process Innovation Strategy
– Global Strategy and Entry In Overseas Market
By 2014 Under Tata ownership, Jaguar Land Rover has launched new vehicles including
the Range Rover Evoque, Jaguar F-Type, the Jaguar XF, the latest Jaguar XJ the Second-
generation Range Rover Sport, the Fourth-generation Land Rover Discovery and the fourth-
generation Range Rover.
Jaguar Land Rover delivers best ever full year global sales performance retailing 425,006
vehicles in 2013, up 19%. Jaguar is the fastest growing brand in Germany, India and the USA in
8 countries.

52. Key drivers of / motives for the takeover:
i. Acquiring JLR giving Tata greater international distribution, broader
product range and better customer service skills – Horizontal
Integration
ii. Tata gains access to world-class engineering capability
iii. Strengthens relationship between Tata’s steel and motoring
businesses: Vertical Integration
iv. LR also to link closer with Tata Steel to provide new lightweight steel
alloys for new car models: Vertical Integration
v. March 2012: JLR and Chery Automobile agree a joint venture that
should pave the way for production of Jaguar and Land Rover cars in
China.

53. Session 4
• Current Trends in Strategic Management
– The New External Env. : Economy, Technology, and Societal Pressures
– Managing Economic Crisis:
• Diversification, Leadership(Change agents), ERP and Optimizing Supply
Chain
• Cost Advantage
– Economies of Scale
– Drivers of Cost Advantage
– Cost Curves and Production Efficiencies
– Developmental Cost Examples
• Using Value Chain to Analyze Costs
– Value Chain component and Cost Driver
• Differential Advantage
– Value chain in Differentiation Analysis
– Differentiation: Demand Side and Supply Side

54. 1. Current Trends in Strategic Management
The New External Env.
– Economy: Fluctuating Economies and Recession

55. • Change in Managing the business: ERP- 24x7
approach
• Analytics based decision making
• Change in Process or Product- Cost/
Differentiation Advantage
• Change in Marketing and Customer Service
2. Current Trends in Strategic Management
Technology

56. TECHNOLOGY and CHANGE IN EFFICIENCY
SCM Components: ERP integration
WMSPOS System
GPS, Tracking Systems,
Replenishment
Request Processing Sys
Order Processing Sys
Stock Mgmt
Quality Mgmt
Data Mgmt Sys
Efficient Demand
Prediction Sys
ERP

57. How SCM can Improve Efficiency
CURRENT
SITUATION
SUPPLY CHAIN
STRATEGY
SALES STRATEGY
Sales INR 10,00,000 INR10,00,000 INR12,50,000
Cost of materials INR 6,00,000 (60%) INR 5,50,000 (55%) INR7,50,000 (60%)
Production costs INR2,00,000 (20%) INR 2,00,000 (20%) INR2,50,000 (20%)
Fixed costs INR1,00,000 (10%) INR 1,00,000 (10%) INR1,00,000 (8%)
Profit INR1,00,000 (10%) INR 1,50,000 (15%) INR1,50,000 (12%)
RJ’s Furniture CHAIN
60% of sales goes in Sourcing and supply chain
Current gross profit = INR 1,00,000
TARGET : Increase profits to INR1,50,000 (50%)

58. TECHNOLOGY and Change Organizations

59. TECHNOLOGY and CHANGE in MARKETING

60. Managing Economic Crisis
• New Leadership
– Analytical Decision Making
– Future Forecasting Planning and Present Strategies
– Strive for Innovation and Leadership (Cost and Differentiation)
– Preparedness for Economic Crisis from Top-Down
• Diversification
– Vertical
– Horizontal
• ERP: System Integration: 24x7 approach
– Control Mechanism
– Instant Decision making- better financial Management
• Higher C-SAT with System Integration: Customer Retention

61. FACTORS: Cost Advantage
Economies of SCALE
Economies of LEARNING
PRODUCTION Technique
PRODUCT Design
INPUT cost
CAPACITY Utilization
Residual Efficiency

62. Economies of Scale: Optimal Order and Production
Time
Number of facilities
1 2 3 4 5
Response time
(a) Response Time
INR
Number of facilities
1 2 3 4 5
Lowest cost
(b) Cost INR
Total logistics cost
Facility costs
Inventory costs
Transportation costs
i. Response Time
ii. Cost
iii. Profit- Revenue- Cost

63. INR
Number of facilities
1 2 3 4 5
Revenue
(c) Cost, Revenue, and Profit
Total
logistics
cost
Max
profit
OPTIMAL ORDER: CB analysis
i. Response Time
ii. Cost
iii. Profit- Revenue- Cost

64. Development Costs: Differentiation Products
PRODUCT LEAD COMPANY Estimated Dev. Cost Launch

65. Using Value Chain to Analyze Costs DRIVERS

66. Differential Advantage in VALUE CHAIN

67. Differentiation: Demand Side
Identifying Potential
STP

68. Differentiation: Demand Side
Multidimensional Scaling Mapping: Bollywood Brands
ACTINGPOTENTIAL
Face Value
Potential
Hrithik Roshan
RANBIR
Aamir
SRK
SALMAN
JOHN
ARJUN RAMPAL
Naseeruddin Shah
Pankaj kapoor
TIGER SHROFF
HIMESH
KATRINA
Deepika
Priyanka
Chitrangada
MALE STARS
FEMALE STARS
SHRADDHA

69. Differentiation: Demand Side (3D)

70. • Drivers of Uniqueness
– Features and Performance
– Complimentary service (Credit, Delivery and Repair)
– Intensity of marketing
– Technology in design and manufacturing
– Quality of Input Supplies
– Skill, Exp employees and Process Followed (QC etc)
– Location (Retail Stores)
• Branding
• Product Integrity
– System/ Product/Service /Commodity
Differentiation: Supply Side

71. Differentiation Potential: Supply Side

72. • Decision Making Process
• Vision Mission Goals
• SWOT analysis
• Porter’s 5 Forces Model
• 7s Framework- Competitive Advantage
• Business Level Strategy and Competitive
Advantage
• Developing Resources and Capabilities
LEARN>>>(Translate)>>> ACTION (Faster)
• Functional Level Business Strategy and
The Capabilities
• Organizational Capability Development
– Merger, Acquisition & Strategic
Alliance
– Internal Development
• Strategic Evaluation
• Product- Process Innovation Mode
• Diversification Integration Strategy
Global Strategies
Porter’s diamond framework
Modes of Entry in Global Market
Direct Investment
Trade
Current Trends in Strategic Management
The New External Env. : Economy,
Technology, and Societal Pressures
Managing Economic Crisis:
Diversification,
Leadership(Change agents), ERP
and Optimizing Supply Chain
Cost Advantage
Economies of Scale
Drivers of Cost Advantage
Using Value Chain to Analyze Costs
Differential Advantage

73. STRATEGIC PLANNING
Product Innovation and Marketing
Today, the Pepsico commands about 60 per cent market share in the 'bridge' category,
which is worth Rs 1,950 crore. Pepsico called it the 'bridge' category and Kurkure,
the 'finger snack'. The total market for salty snacks in India is worth Rs 13,000 crore
and traditional snacks account for Rs 5,200 crore. The puffed snack market too is
valued at Rs 1,950 crore. The potato chips/wafer market is worth Rs 3,900 crore
where Uncle Chips and PepsiCo's Lays are market leaders.
PepsiCo launched Kurkure 15 years ago and has retained a dominant market share for
the brand despite intense competition from both organised and unorganised
players. In this period the brand also overcame some challenges including
allegations that the snack was unhealthy.
Though Kurkure created a new space in the market, the larger challenge for the
company was to get the customers hooked to its unusually shape and crunchy
texture. "In fact the brand name Kurkure was the outcome of a group discussion in
which consumers sampled the brand and repeatedly said that it was nice and
'kurkura' (crunchy)”. Company used the advertising line Kya Karen Control Nahi
Hota.
As part of this, in 2005, the company roped in actor Juhi Chawla as a celebrity brand
ambassador. The brand also kept pace with the flavour of the season - teleserials.
The tagline 'Kahani Mein Kurkure' was launched where Chawla spoofed the
character of Tulsi in the Kyunki Saas Bhi Kabhi Bahu Thi soap and the brand
humorously wedged itself into the mainstream. The 'Kya Family Hai' campaign tried
to capture the dysfunctional family that came together at tea-time.

74. However, many local competitors were mushrooming. Significant among them were
Balaji Foods, Yellow Diamond and established brands DFM Foods with Crax brand
and Haldiram's and Bikanerwala.Between 2009 and 2011, the number of local
players rose from 1,378 to 2,863 and PepsiCo lost two to three per cent market
share. The competition forced it to be innovative again.
ndustry sources say Kurkure continues to hold 60 per cent of the market share in the
segment. All others such as Bingo, Yellow Diamond, Balaji and Bikanerwala
together accounts for less than 25 per cent.
Kurkure made a similar attempt with its campaign Meetha Sheetha Chodo, Kurkure
Kha Ke Ho Jao Mast.
KING
of
SNACKS

75. QUES- KURKURE
STRATEGIC Decisions
– Enlist the Strategies of Pepsico w.r.t. Product Innovation
which lead the snack to be a 1000 cr brand
– Enlist the Marketing Initiatives which you would have
taken to make this brand a great Success.
– If Not Juhi Chawla, Which Actor/ Actress You would have
taken to take this brand to heights

76. Product and Brand Differentiation Strategy
• Potato chips at Rs 300/kg premium Out of Home Snack.
To the namkeens, the traditional Indian salty snack, at
Rs 100/kg.
• Patoto is carbohydrates , Product mix was –Lentils-
Rice-Corn and Indian Masala
• Irregular shaped first snack-puffed extrusions or
collette
• 1.7 Times bag size- International packaging
• Crunchy Name- Kurkure- Indian Touch
• Desi Kurkure and Westernized Lays were branded
separately

77. Marketing Initiatives
• All the three-wheelers carrying the product were
painted orange.
• first in the segment to start selling ladis (string of
packs) that we could hang out in our stores
• Campaign to counter Bingo’s ads- Tedha Hai Par
Mera Hai- to Reaching out families- Kya family hai
• Rs 3 packs in 2004 and Rs 2 packs in 2011

78. The Content Info
• The Structure of presentation is directly taken from
IMT Ghaziabad- CDL course- material
• The Content used in form of Pictures and content is
taken from various education and business websites.
• The creation is to be used for education purpose only
and not for business

79. Thank You
Sunil Saha
Lecturer, IMT Ghaziabad CDL
Corporate Exp:
Bharti Airtel, Aditya Birla MFL, Bestseller India, Healthcare Start Up- Spinalogy Clinic
Email: sunilchandrasaha@gmail.com
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