how to attack the leader - final

7/27/2019 How to Attack the Leader - Final

1/14

How to attackthe Leader

Presented By:

Anshul Kumar Singh MS12A011

Krishna Kumar Balaraman MS13D013

Vinod Kumar Ellamaraju MS12A102

Vishesh Kumar Agarwal MS12A103


2/14

Who is a market leader?

The dominant player with a major hold on the market.

Largest market share

Highest profitability margin

Several characteristics of Market Leaders:A. Customer-Focused : Customer is the most important element to achieving s

B. Clear Vision : Leaders have a clear vision of their direction as well as an effectroad map

(contd..)


3/14

Continued..

C. Flexibility: When theres an inevitable need to change, the market leaders enough to make necessary adjustments with as little disruption as possible

D. Investing in Employees : Market leaders not only focussed on recruitingbrightest employees available, they also invest in their continued developme


4/14

How to Attack the Leader

Key points to consider:

Understand customer needs deeply by staying close with customers Build your own core-competency and develop your product over it in order to gain th

competitive advantage

Look for disruptive ideas - new technology, create new desire etc.

Know your strengths and weaknesses

Must have at least one thing that the market leader does not have and that custome

Analyse leaders strengths and weaknesses. Analyse the depth and reasons for consumer loyalty towards leader

Do not fight head-on with a market leader unless you have at least three times its re

Have long term goal on mind. Be ready to accept small losses in order to win the mar

long run

Be the opposite to the leader


5/14

How to Attack the Leader

Factors that may affect the attack:

Economic conditions, legal aspects, geographical and so on

Consumers culture and loyalty towards the leader maybe for more reasons than o

like sentimental reasons

The timing of attack - which is best time?

and so on..


6/14

How to Attack the Leader - Strategy

1. Begin with a quantifiable objective, e.g. to attain x% of market share by year

Be clear on the objective and basis of attack like getting the market share in ofVolume or in terms ofValue.

2. Understand the leader well - Strengths and weaknesses - market segments,

positioning, pricing, product line and so on.

3. Choose a plan of attack (attack strategy)


7/14


Attacking Strategies:

a) Frontal Attack

b) Flank Attack

c) Encirclement Attack

d) Bypass Attack (Leap Frog Strategy)

e) Guerrilla Warfare

f) Commitment Strategy


8/14


Fronts of Attack:

Price / Quality - lower price for lower quality Price discounts

High Premium - Quality / Prestige

Increased scope and product spread

Innovation - model, process, products

Service differentiator

Supply Chain Management - Inbound, Outbound, Suppliers, Buyer reach Manufacturing - Advantage of Scale

Marketing and Sales - Increased advertisement and customer acquisition mo

Geographical consolidation

Channel upgradation - Alternate channels and channel compensation


9/14

Response of Market Leader on Atta

Expand Total Market This strategy involves having more number of transactions

by either having more number of users or

increasing the frequency of use

Larger number of users can be achieved by

segmenting the market further

Expand Market Share

Get more market share and increase profit. The firm needs to check

that cost of buying market share should be less than the benefit


10/14

Response of Market Leader on Attac(Contd.)

Defend Market ShareMarket leader needs to respond to the attack with various defensive strategie

Position Defence - Firm uses its position for a while but it doesnt help to restrain

competition for long

Mobile Defence - By market broadening and diversification

Flanking Attack - Secondary markets, in which the firm is weaker, should be the foc

area Contracting Defence - Firm withdraws from the weaker segment and directs all its

resource to its strong hold

Pre-emptive Defence - Firm attacks the enemies first before it being attacked in th

area where it expects competitors

Counter-Offensive Defence - Respond by attacking the competitor firms weaknes


11/14

Fairever vs Fair & Lovely

Fair & Lovely was launched in 1978 and maintained market share of 90% till 1988

Fairever a late entrant launched in 1988 and gained 1.3% market share in first year an

15% in second year

Fairever- A fairness cream with saffron and milk

Focus on achievement rather than fairness in advertisements

Excellent Packaging


12/14

Response HLL gave 50% extra volume to counter Fairever

Fairever didnt follow the competitor, and it maintained itself as a premium fairness

cream

In 2005, Fairever went natural

The brand also launched a premium Fairness cream sub-branded Manthra aimed at theUpmarket customers


13/14

Present Scenario

Fairever is currently at a market share of around 3.5%

At the same time the share of Market leader Fair & Lovely has reduced to 46.9% w

entrants like LOreal Garnier taking the share away and having 7.3% of the market

This example shows how the market leader can be repeatedly attacked to have a le

lesser market share


14/14

Thank You

how to attack the leader - final

Documents