Strategy Planning: Missions, Value and Objectives
Learning Outcomes At the end of this session you should be able to: 혰 Critically reflect on the situational review process to start facilitate strategy formulation 혰 Critique key elements influence strategic choice and direction 혰 Create an effective mission statement and supporting marketing objectives to guide the strategy process 혰 Strategically relate the marketing mix to the green marketing strategy formulation process
Strategy Process 1. Mission
Phase 1: Goal Setting
2. Corporate Objectives 3. Marketing Audit
Phase 2: Situation Review
4. Marketing Overview 5. SWOT Analyses 6. Assumptions
Phase 3: Strategy Formulation
7. Marketing Objectives and Strategies 8. Estimate expected results and identify alternative plans and mixes 9. Budget
Phase 3: Resource Allocation and Modelling
10. First year detailed implementation programme
Strategy Process 1. Mission
The Strategic Plan
Phase 1: Goal Setting
2. Corporate Objectives 3. Marketing Audit
Mission Statement Financial summary Phase 2: Situation Review
Market Overview
4. Marketing Overview
SWOT Analyses
5. SWOT Analyses 6. Assumptions 7. Marketing Objectives and Strategies
Assumptions Marketing Objectives and Strategies Phase 3: Strategy Formulation
Three-year Forecast and Budgets
8. Estimate expected results and identify alternative plans and mixes 9. Budget
Phase 3: Resource Allocation and Modelling
10. First year detailed implementation programme
Strategy Process
STRATEGIC ANALYSIS STRATEGIC CHOICE • • • •
Understand where we are Where do we want to get to? How we you get there? How do we now we have got there?
Strategy Process
Strategy Process Strategic marketing objectives/target groups addressed by strategy
Customer benefits and positioning as compared to competition
Basic design and structure of the marketing mix
Central Strategic Questions
Competitive and co-operative conduct
Customer relationship management
Strategy Process
Internal Resources v Corporate Objectives Corporate mission > competitive advantage (internal resources)
The company is trying to achieve more than it is able to realise in existing competitive conditions
Corporate mission = competitive The company is well focused on advantage its specific capabilities and has a realistic strategic objective Corporate mission < competitive advantage
The company is not fully exploiting its competitive advantage and will be offering market opportunities to other companies Adapted from Ranchhod & Gurau
Mission Statements
Activity 1:
â&#x20AC;˘ What is a mission statement? â&#x20AC;˘ What is the value/purpose of a mission statement?
Mission Statements
Framework for entire business: â&#x20AC;˘ Articulation of the belief that the company has in itself, what it can achieve and the values that drive the company â&#x20AC;˘ Staff focus
Mission Statements
Framework for entire business • Articulation of the belief that the company has in itself, what it can achieve and the values that drive the company • Why are we in • Staff focus
existence? • What is the nature of the business? • What customers do we seek to satisfy?
Mission Statements
Ashridge Mission model Purpose
Strategy
Values
Competitive Position and Future Orientation
What do we believe in?
Standards & Behaviours Policies and culture
Mission Statements
Why have a mission? Internal • Focal point for individuals • Identifies organisation’s direction • Ensures unanimity of purpose External • Creates firm identity • Customers, competitors & public
Mission Statements
Levels of ‘missions’ Motherhood • Found in annual report • Designed to ‘stroke’ shareholders The real thing • Meaningful statement • Impacts on behaviour of executives Purpose statement • Strategic business unit level
Mission Statements
Vision v Mission Statements •
Vision – desired future position for your organisation (future)
•
Mission – why you exist (present); it defines the company's business, its objectives and its approach to reach those objectives
•
The two terms of often used interchangeably
Mission Statements
Vision v Mission Statements •
Vision – desired future position for your organisation (future): Inspire
•
Mission – why you exist (present); it defines the company's business, its objectives and its approach to reach those objectives: Inform
•
The two terms of often used interchangeably
Mission Statements
Mission v Vision Statements
Mission v Vision Statements
Mission v Vision Statements
Mission v Vision Statements
Mission Statements
Environmental Mission Statements Why + Goal + Success 1. Why is this topic important to us? We believe… 2. What is our end goal? We want to… 3. How is success measured? We envision a world….
Mission Statements
Mission Statements Understand the customer • What value proposition are you presenting?
Find the basic values and themes • What key words, values, and ideas best reflect your proposition
Turn the list into a statement • Convert to a simple statement that expresses the company’s commitment and value proposition
Don’t forget the employees • Repeat the process but change the focus to employees
Strategic Frameworks
Market Leader
Market Challenger
Market Follower
Niche Marketer
• New service offering • Range of services • Innovative • Wide distribution • Technological advance • Market-led • Defensive
• Well resourced • Challenging in strategic and tactical dimensions of price and quality • Maintenance of costs – attention paid to value chain • Innovative
• Low risk strategy • Imitation of leaders, ‘me-to’ approach • Price follower • Insufficient resource base to challenge • Complementary offerings
• Small scale • Specialist market offerings
•
•
• •
• •
Emphasis on market expansion and market share
•
Building market share Possible acquisition of niche companies to outflank leaders
•
Avoids challenges Maintains market share Some degree of differentiation
•
Avoids challenges Maintains market share Some degree of differentiation
[Lumsdon, 1997]
Creating Objectives
Vision Statement Mission Statement Marketing Objective #1
Goal 1
Goal 2
Goal 3
Action Planning
Marketing Objective #2
Goal 1
Goal 2
Goal 3
Action Planning
Present Products
New Products
Existing Markets
Market Penetration
Product Development
New Markets
Ansoff Matrix
Market Development
Diversification
Creating Objectives Business Scope • What business should we be in? Business Orientation • Best suited to purpose of survival, growth & profit Business Organisation
Public Responsibility • Have we considered present and future social and economic needs of the public Performance Evaluation • Does the appraisal system map the planning system?
[Adapted from Baker, 2007]
• Does it fit the chosen orientation in style, structure and staff?
Strategic Objectives Product • Variety, quality, design, features, brand name, packaging, services Price • List price, discounts, allowances, payment period, credit terms Place • Channels, coverage, assortments, locations, inventory, transportation, logistics Promotion • Advertising, personal selling, sales promotion, public relations
Strategic Objectives Product: CUSTOMER SOLUTION • Variety, quality, design, features, brand name, packaging, services Price: CUSTOMER COST • List price, discounts, allowances, payment period, credit terms Place: CONVENIENCE • Channels, coverage, assortments, locations, inventory, transportation, logistics Promotion: COMMUNICATION • Advertising, personal selling, sales promotion, public relations
Strategic Objectives Product Price Place Promotion People Packaging Physical Evidence
Strategic Objectives
PRODUCT
• What is the customer receiving? • Using sustainability to add value to the proposition • Materials used in production • Development process – e.g. no animal testing • Sourcing / ethical purchasing e.g. FairTrade • Distribution (e.g. food miles) • CSR standards e.g. eco-labels • Differentiating factors
Strategic Objectives
PRICE
• How much does the customer pay? • Can green products command a higher price? • Think about the segment and the proposition • ‘Green Pricing Gap’ - organic food grown with natural fertilizers may be more expensive than foods using artificial fertilizers – leading to a higher price point – creating a barrier to wide customer acceptance
Strategic Objectives
PLACE • Where can customers get it from/connection to place? • Distribution channels (physical or online) • Associated connections with place (e.g. locally sourced/local distinctiveness) that link to your green value proposition
Strategic Objectives
PROMOTION • What communications inform customers and stakeholders? • A green claim needs clear, authentic and watertight particularly in an increasingly regulated market • Ditch the cliché – position your proposition based on the benefits to the target audience and tailor the imagery/narrative accordingly
Strategic Objectives
PEOPLE • What interactions do customers and other stakeholders have with your representatives? • People are your biggest asset and brand ambassadors at every point • Engaged employees are more productive and reduce costs and losses to the organisation • Prioritise communications intended to get your employees engaged with your green message • Be as creative as you would be with external stakeholders
Strategic Objectives
PACKAGING • How is the offer wrapped for sale? • Packaging materials which are carefully sourced and printed become a proposition in their own right • Move against single use plastics / re-usable shopping bags
Strategic Objectives
PHYSICAL EVIDENCE • What materials carry your message? • As an extension of packaging, consider not just what your brand presence says about you but also how the materials are produced • Choosing to print in a certain way, waterless offset for example, backs up sustainable messages
Strategy: Price
Price Strategies Change price • Beware competitor action Change terms/conditions Skimming policies • Innovative products, First mover advantage • Introduction stage Penetration policies • Me-too, imitative products
Strategy: Promotion
Promotional Strategies Change Advertising Special Offers Re-branding/Branding Change Sales Tactics Change Emphasis Change Timings
Strategy: Place
Place Strategies Change Delivery/Distribution Change Service Change Channels (Internet) Alter Degree of Forward Integration Introduce Hierarchy Below-the-line Promotions
Strategy Process
[Adapted from Stokes, 2002]
Learning Outcomes At the end of this session you should be able to: 혰 Critically reflect on the situational review process to start facilitate strategy formulation 혰 Critique key elements influence strategic choice and direction 혰 Create an effective mission statement and supporting marketing objectives to guide the strategy process 혰 Strategically relate the marketing mix to the green marketing strategy formulation process