10-08-2012, 01:00 PM
Market Driving Strategies
Enteerp Market Driving .pptx (Size: 73.25 KB / Downloads: 33)
CEO’s Demand
CEOs Demand their organizations to be innovative
Stress Radical or Discontinuous innovations
Market Driven:
Current practice uses - Market Research for well defined segments e.g. HLL, P&G and Nestle.
Market Driving:
Successful Pioneers like Amazon, IKEA & Starbucks have created new markets & revolutionized the industry thro’ radical innovation
Arvind Eye Hospital
Founded in 1976 in South India by 58 year eye surgeon, Dr. Venketaswamy
His vision was to serve 20 million resident Indians blind from Cataracts
Hospitals in India had 3 categories:
Private
Government owned
Rural areas
Venkys vision was to serve both the Rich & the Poor for modern cataract surgery
Market Driving
AYH’s approach resembles that of Amazon, Dell, IKEA, Wall-Mart & Sony
Market Research seldom leads to breakthrough innovation
Mkt. Driving firms see the world differently –their vision addresses deep seated, latent customer needs
Henry Ford “ If I had listened to customers, I would have given them a faster horse”
Rather than focusing on the market share in the existing markets, they create their own markets
Characteristics of Market Driven Companies
Lead by Vision rather than Market Research
Redraw Industry Segmentation
Create new Price Points for Value
Educate Customers for Sales Growth
Reconfigure Channels
Exploit the Buzz Network
Exceed Customer Expectations
Redraw Industry Segmentation
AYH did not accept the normal segmentation between Rich & Poor
Southwest Airline destroyed segmentation between Ground transportation & Air
Wal-Mart Demonstrated that small rural towns can support large discount stores
SAP developed and deployed Enterprise software instead of functional departmental software
Lead by Vision rather than Market Research
Customers can’t visualize revolutionary concepts and technologies by themselves.
Titan, Market research proved otherwise
Fred Smith of FedEx, Tracking the Package
Sam Walton of Wal-Mart, Save and have a better life Style
Employees are motivated by the the vision of the founder rather than the pay cheque
Create new Price Points for Value
Southwest Airline, AEH and Wal-Mart created new price points, which other companies could not quickly replicate
Star Bucks &FedEx, prices on the South – value proposition that customers could not ignore