MKTG304 S1 2013 Tutorial 2 BOS Ch4

Steps to Creating an ‘As Is’ Strategy Canvas A) After completing Phase 1 which evaluates buyer utility, gaining a deep understanding of existing customers and non-customers, list the competitive factors on which all buyers make purchasing decision B) Use the 7Ps plus Brand as a framework to get started, but other than Price, go beyond just listing Product, Place, Promotion, People, Process and Physical Evidence This will give competitive factors for the X Axis e.g. Yellow Tail Wines entering US market
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Visual Awakening: Steps to Creating an ‘As Is’ Strategy Canvas
How to create „As Is‟ in your group in relation to the Client Partner 1) Separately come up with the following initial points: - competitive elements of the complete offer that all buyers value(both existing customers and non-customers). - define competitors and what they offer to their customers. How is this different to the client partner? 2) Then come together as a group to discuss/brain storm ideas. By working separately first this overcomes „group think‟. These go on X Axis. 3) Once you have established „competitive factors‟ (no more than 10) then decide which competitor‟s value curves will be listed. You may group together similar Strategic Groups following similar value curves 4) Decide for your own client partner and the competitors how you will evaluate the level of each competitive factor on the Y Axis 5) Set the levels of each competitive factor to create a line graph of each Value Curve
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MKTG304 MARKETING PROJECT
Four Steps of Visualising Strategy • Key idea here is to draw up the company‟s strategic canvas and take it on from there, and not spend excessive amounts of time on figuring out numbers and preparing documents • This approach would unlock the creativity of the organisation and open their eyes to blue oceans Drawing the strategy canvas does three things: 1. Shows the strategic profile of an industry 2. Shows the strategic profile of current and potential competitors 3. Shows the strategic profile/value curve of your company 6
Physical Environment: (Online and Offline)
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Visual Awakening: Steps to Creating an ‘As Is’ Strategy Canvas
B) Who are the competitors and how are they grouped in your industry? There may be 1 or 2 major competitors, with other minor players (who can be grouped in various strategic groups) What are the successful distinctive competitive elements your competitors offer their customers? This shows gaps in your own strategy.
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Visual Awakening: Steps to Creating an ‘As Is’ Strategy Canvas
D) For your own company and competitors set the levels of each competitive factor, connecting them to create the value curve.
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MKTG304 MARKETING PROJECT
Four Steps of Visualising Strategy
1. Visual Awakening •Compare you business with competitors by drawing ‘As Is’ Strategy Canvas •See what your strategy needs to change 2. Visual Exploration •Go into the field. Never outsource your „eyes‟. Gain a deep understanding of buyers •Observe advantages of alternative products and services • Create ERRC Grid 3. Visual Strategy Fair •Draw „To Be’ Strategy Canvas based on field insights •Use this to gain feedback on alternate To Be’ Strategy Canvas options from all buyers 4. Visual Communication • Distribute „As Is‟ and „To Be‟ Strategy Canvas on one page for easy comparison •Choose those projects and operational moves that allow acutalisation of new strategy
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PHASES
(1)Demand Side (Customers)
Buyer utility
Get the Strategic Sequence Right This Gives Us The Report Framework of 4 Phases
Is there exceptional buyer utility in your business idea? Yes
MKTG304 MARKETING PROJECT
Tutorial 2 Outline 1) Mid semester quiz format (week 7) 2) Reflective Journal Part A Overview 3) Final Group Report Overview 4) BOS Chapter 4: Strategy Canvas
A Commercially Viable Blue Ocean Idea
Final Group Report Outline: Appendix 3
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MKTG304 MARKETING PROJECT
Chapter 4 Focus on the Big Picture, Not the Numbers. The typical strategic plan
(3) Supply Side (Su are the adoption hurdles in actualizing your business idea? Are you addressing them up front? Yes
(4) The Future Implementation
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Visual Awakening
Compare your business with your competitors by drawing an „As Is‟ strategy canvas See where your strategy needs to change
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Visual Awakening
Price
Is your price easily accessible to the mass of buyers?
(2)Competitors Industry
Yes
Cost
Can you attain your cost target to profit at your strategic price? Yes
• A very long document made up of mishmash data from different people from the organisation which would lead to conflicting agendas and poor communication • Managers have to spend large amounts of time fitting these data together and make sense out of them • Difficult to communicate a single strategy to all levels of the organisation.
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Visual Awakening: Steps to Creating an ‘As Is’ Strategy Canvas
C) Decide how you are going to set the offering level on the Y Axis.
How will you evaluate each of these and then give them a score out of 10?
Price
Product
Promotion
Product
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Visual Awakening: Steps to Creating an ‘As Is’ Strategy Canvas
Lets do an example of good old Apple (all products) together Price: Product: Place: Promotion: People: Process: