UGBA 10 Lecture Notes - Lecture 28: Cash Cow, Zappos, Strategic Planning
23 May 2018
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Course
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Business and Marketing Strategy April 15
I. Strategic planning process informs marketing strategy
• Strategic planning process steps:
1. Define the company mission- h do e eist to ake our ustoers’ lies
better)?
▪ Company mission is becoming increasingly important to make sure the
right people know about the brand (ie: Toms and Zappos have different
missions)
▪ Companies sometimes need to redefine their mission (ie: Apple)
▪ Mission: motivates employees and attracts recruits
2. Set company objectives and goals- what do we do as a company?
▪ Start with the end in mind- what are you trying to achieve as a company?
▪ SMART (ie: grow market share 2.0 percentage points in 18 months)
• Specific
• Measurable
• Aggressive- make goals a stretch, but still realistic at the same
time
• Realistic
• Time-bound (measurable within a specific time)
▪ Implementing fewer ideas is better than more
▪ Example: Typical CPG company defines that they want superior products
(ie: wins blind taste tests), be among the big-share brands (ie: be #1 or 2
in every product category), and build profitable customer relationships
(ie: growing net sales every year)
3. Design the business portfolio- what businesses are we in and where do we place
our bets?
▪ Growth-share matrix: informs marketing and other investment priorities
based on relative market share and future growth potential (based on
BCG chart)
▪ Chart: focus on market share and market growth (not profitability)
• Cash cow: marketing investment focused on maintaining
relevance and business models; marketing focused on updating
products (ie: Office- marketing is focused on updating products)
o Mirosoft’s portfolio is oereighted toards ash os
and short on high growth opportunities
• Stars: aggressive marketing investment to build sustainable
advantage (ie: x box- advertising, sponsorships, new product
development; Amazon with Amazon prime)
• Question marks: focused marketing investment and fearless new
product development to gain share and become a star (ie: Bing-
marketing mainly through partnership deals; Amazon with
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