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STRATEGIC MANAGEMENT Theme Porter’s competitive strategies. Differentiation

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Competitive StrategiesAccording to M. Porter there are only three strategies for every company to choose for successful operation on the market: Competitive strategiesCost leadershipDifferentiationFocus (Concentration)AVK PiK SPbPU

Слайды и текст этой презентации

Слайд 1STRATEGIC MANAGEMENT Theme Porter’s competitive strategies. Differentiation

Dr. Prof. Alexander Kozlov
21/1/12016

STRATEGIC MANAGEMENT  Theme Porter’s competitive strategies. DifferentiationDr. Prof. Alexander Kozlov21/1/12016

Слайд 2Competitive Strategies
According to M. Porter there are only three strategies

for every company to choose for successful operation on the

market: Competitive strategies
Cost leadership
Differentiation
Focus (Concentration)

AVK PiK SPbPU

Competitive StrategiesAccording to M. Porter there are only three strategies for every company to choose for successful

Слайд 3Differentiation
Essentially external orientation using brand image
It creates:
Brand loyalty by

customers
Perception of exclusivity
Reduces price sensitivity of customers
Increases margins, avoiding need

for low cost operations
High margins help with suppliers and distributors

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DifferentiationEssentially external orientation using brand imageIt creates: Brand loyalty by customersPerception of exclusivityReduces price sensitivity of customersIncreases

Слайд 4Differentiation: Russian aspects
So, in Russia a brand is
Product symbol

which is
registered ®
well-known among representatives of

the target groups
connected in mind of consumers with definite product and /or company

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Differentiation: Russian aspectsSo, in Russia a brand is Product symbol which is  registered ®  well-known

Слайд 5Steps to create brand
Analysis of existing brands
Brand positioning
Development of the

brand idea
Choice of promotion strategy
Promotion campaign
Than ..... Brand management

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Steps to create brandAnalysis of existing brandsBrand positioningDevelopment of the brand ideaChoice of promotion strategyPromotion campaignThan .....

Слайд 6Brand name origin
Name of the founder (Boeing, Chrysler, Ferrari, Тиньков

(Tinkoff), Peugeot, Parker, Porsche)
Connected names (IKEA – Ingvar Kamprad, born

on the farm Elmtaeryd nearby Agunnaryd, Mercedes – daughter's name, Carlsberg – son’s name)

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Brand name originName of the founder (Boeing, Chrysler, Ferrari, Тиньков (Tinkoff), Peugeot, Parker, Porsche)Connected names (IKEA –

Слайд 7Brand name’s origin
Abbreviation
IBM – International Business Machines
RAMEC – Russian-AMerican

Electronic Company
ABB – Acea Brown Bovery
FIAT – Italian Automobile

Fabric in Tourine
АвтоВАЗ, ГАЗ, УАЗ, BMW и пр.

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Brand name’s originAbbreviationIBM – International Business Machines RAMEC – Russian-AMerican Electronic Company ABB – Acea Brown BoveryFIAT

Слайд 8Brand name origin
Emotions
Freshness
Clearness
Power
Freedom
Independence
Purity
Love
Sureness
…………….
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Brand name originEmotionsFreshnessClearness PowerFreedom Independence PurityLoveSureness …………….AVK  PiK  SPbPU

Слайд 9To choose the figure
1
2
3
4
5
6
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To choose the figure123456AVK  PiK  SPbPU

Слайд 10Brand management
Brand development
Brand support
Re-branding (Brand repositioning)
Euthanasia (death lethal injection)
Reincarnation
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Brand managementBrand developmentBrand supportRe-branding (Brand repositioning)Euthanasia (death lethal injection)ReincarnationAVK  PiK  SPbPU

Слайд 11Brand evaluation
Three main methods of brand value measuring
Evaluation of additional

income from the brand (ROI method)
Comparison with value of similar

brands
Cost of brand development and promotion

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Brand evaluationThree main methods of brand value measuringEvaluation of additional income from the brand (ROI method)Comparison with

Слайд 12Differentiation: Most valuable brands of the year 2015 г
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Differentiation:   Most valuable brands of the year 2015 гAVK  PiK  SPbPU

Слайд 13Differentiation: Most valuable brands of the year 2014 г
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Differentiation:   Most valuable brands of the year 2014 гAVK  PiK  SPbPU

Слайд 14Differentiation: Most valuable brands of the year 2013 г
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Differentiation:   Most valuable brands of the year 2013 гAVK  PiK  SPbPU

Слайд 15Differentiation: Most valuable brands of the year 2012 г
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Differentiation:   Most valuable brands of the year 2012 гAVK  PiK  SPbPU

Слайд 16Differentiation: Most valuable brands of the year 2009 г
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Differentiation:   Most valuable brands of the year 2009 гAVK  PiK  SPbPU

Слайд 17Differentiation: Most valuable brands of the year 2007 г
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Differentiation:   Most valuable brands of the year 2007 гAVK  PiK  SPbPU

Слайд 18Differentiation: Most valuable brands of the year 2000
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Differentiation:  Most valuable brands of the year 2000 AVK  PiK  SPbPU

Слайд 19Differentiation: Most valuable Russian brands of the year 2013
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Differentiation:   Most valuable Russian brands of the year 2013AVK  PiK  SPbPU

Слайд 20Differentiation: Most valuable Russian brands of the year 2010
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Differentiation:   Most valuable Russian brands of the year 2010AVK  PiK  SPbPU

Слайд 21Differentiation: Most valuable Russian brands of the year 2008
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Differentiation:   Most valuable Russian brands of the year 2008AVK  PiK  SPbPU

Слайд 22Differentiation: Most valuables Russian brands of the year 2005
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Differentiation:  Most valuables Russian brands of the year 2005AVK  PiK  SPbPU

Слайд 23Differentiation: Russian aspects
1. Now it’s time to construct brands, in

consumer goods markets in particular (Cosmetics, food, furniture, clothing etc.).
2.

Russian versus foreign Brands
Food – preferably Russian brands «Чудо», «Домик в деревне», «Бородинский»
Clothe – “foreign” brands “Isi”, “Designi”, “Gregory”, “Oggi”, “Palmetta”

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Differentiation: Russian aspects1. Now it’s time to construct brands, in consumer goods markets in particular (Cosmetics, food,

Слайд 24Russian versus Foreign Brands
As purchasing power among Russia's various consumer

segments has increased, a preference for domestically produced items (Russian

brands) has also increased.
Some foreign manufacturers have sought to become more competitive on the market through local production of "Russian" brands, creating "national" brands, which have gained popularity among Russian consumers.

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Russian versus Foreign BrandsAs purchasing power among Russia's various consumer segments has increased, a preference for domestically

Слайд 25Brand names Examples
VALIO Valio is one of the biggest and

foremost food companies exporting to Russia. Valio's Russian operations has

been organised under OOO Valio covering activities in St. Petersburg and Moscow.
Brands : Viola, Valio Butter (imported butter market leader in Moscow and St. Petersburg), Valio Oltermanni, Valio Gefilus

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Brand names Examples VALIO Valio is one of the biggest and foremost food companies exporting to Russia.

Слайд 26Brand names Examples
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Brand names Examples AVK  PiK  SPbPU

Слайд 27Russian versus Foreign Brands

Promotion and advertising of international brands has

increased. Aggressive advertising, promotion policy, and slight decrease in prices

are currently the three most important factors shaping consumer choice.

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Russian versus Foreign BrandsPromotion and advertising of international brands has increased. Aggressive advertising, promotion policy, and slight

Слайд 28Russian versus Foreign Brands
Competition between local brands and international brands

is intense. International brands, particularly in the fast-moving consumer goods

market, have benefited from a recognized reputation and the improved financial situation of Russia's consumers.
Local brands are currently perceived as high quality, a good value-for-money, and benefit from Russians' patriotic impulse to buy "Russian-made" products.

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Russian versus Foreign BrandsCompetition between local brands and international brands is intense. International brands, particularly in the

Слайд 29Differentiation: Russian aspects
Russian attitudes to brands, though, were shaped by

1998. The glamour attached to non-Russian global brands has been

replaced by a trust in Russian alternatives.

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Differentiation: Russian aspectsRussian attitudes to brands, though, were shaped by 1998. The glamour attached to non-Russian global

Слайд 30Differentiation: Russian aspects
Russian brands - particularly food and cosmetics -

are generally seen as less artificial, more affordable, and of

equal if not higher quality to non-Russian products.
But most Russian brands are not very proactive in marketing terms, there is huge scope for international brands to counter such impressions.

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Differentiation: Russian aspectsRussian brands - particularly food and cosmetics - are generally seen as less artificial, more

Слайд 31Differentiation: Russian aspects
A huge opportunity lies in the shift towards

new distribution channels: suburban mega stores, discount houses, and most

importantly door-to-door salesmen (very rare in the old Russia).

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Differentiation: Russian aspectsA huge opportunity lies in the shift towards new distribution channels: suburban mega stores, discount

Слайд 32Differentiation: Russian aspects
Loyalty to local brands
a manifestation of the Russian

sense of being an exception:
the widely held belief in

Russia's status and role as a world power (a sense the current government is keen to bolster).

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Differentiation: Russian aspectsLoyalty to local brandsa manifestation of the Russian sense of being an exception: the widely

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