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Strategic Marketing
Characteristics of A Blue Ocean Strategy
A blue ocean strategy never uses competition as a benchmark. Rather, it makes it irrelevant
through developing a leap in value for both consumers and the corporation itself. Accordingly,
blue ocean strategy rejects the fundamental tenet of conventional strategy; that a trade-off exists
between value and cost. This implies that corporations can either develop higher value for
consumers at a higher cost or develop reasonable value at a low cost. This means, strategy is a
choice between differentiation and low cost. Therefore, in the Blue Ocean, successful
corporations hunt for differentiation, as well as low cost.
The relationship between value creation and cost savings of the company is that through
reducing costs while simultaneously increasing value for consumers, a corporation can attain a
leap in value for both itself and its consumers. Because consumer value originates from the
utility and price, a corporation provides and generate value for itself through price and cost
structure; blue ocean strategy is attained only when the entire system of a corporation`s utility,
price, as well as cost activities are properly aligned. Therefore, it can be demonstrated that cost
savings are obtained from eliminating and reducing factors a company competes. On the other
hand, the relationship between value creation and costs for red ocean strategies is that
corporations have the tendency of creating higher value for clients at a higher cost as others
create higher value at a lower cost depending with the competitive rate of the company.

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How IKEA utilized a reverse positioning strategy while adding a few important elements from
the high end of the market
After establishing the target retail price for the proposed product, the corporation would
start choosing a producer to make it. The company thus utilized the reverse positioning strategy
through pursuing to balance cost-effective labor with its product quality standards. For instance,
in order to save money on labor and production, the company was continually on the lookout for
a chance to build dealers relationships in emerging nations. It also used to distribute a
description of the proposed product`s specifications and target cost to its suppliers and motivate
them to compete for the production package. In some instances, different product components
would be sourced from different suppliers. The company would also select the best designers and
it utilized the reverse positioning strategy through its transport system. For instance, it is
indicated that its furniture was designed to ship disassembled; all its products were flat. This
implies that the flat packaging not only made it simple for clients to transport the furniture home,
but it also saved the company on shipping. Therefore, this is how the company utilized a reverse
positioning strategy while adding a few important elements from the high end of the market.
How IKEA utilized functional strategies to create the value proposition.
In order to create the value proposition, the company utilized functional strategies through
providing low price with meaning concept. This concept made the company offer tasteful,
cleverly produced products that did not make the consumer feel cheap. Even the most basic
products were now created to reveal the corporation`s viewpoint of independent design.
Accordingly, the main goal of the salesperson was to reassure consumers that the furniture they
were purchasing would last a lifetime. This was essentially significant provided that Americans
were notorious for their reluctance to purchase new furniture.

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Major assets encompass furniture, with other amenities such as playrooms for children, as
well as Swedish cafes. On the other hand, the competencies that created the competitive
advantage include furniture that came unassembled giving consumers a chance to take part in its
activities by putting together the furniture on their own. Additionally, its designers had high
capabilities to produce quality products with high quality materials that attracted consumers on
visiting the store.
As a brand manager for the JWU Physician`s Assistant program, it will be vital to use a
promotional mix such as advertising, sales promotion, online communications, among others in
order to create awareness, interest and inspire them to apply to the PA Program at JWU. These
students could be reached through online communications services including Facebook, Twitter,
and Google Talk to encourage them to enroll for the program to benefit from the various services
provided by the program. Accordingly, various sales promotions and advertising activities would
be necessary in reaching the local nursing graduates. Brochures and flyers with encouraging
messages concerning the program would be essential tools to inspire students to apply for the
program at JWU.
The Impact Of The External Environment On Coca-Cola And Pepsi`S Success In Entering
The Indian Market
Through the external environment, Coca-Cola and Pepsi were able and willing to persevere the
strict regulations in order to make an entry into Indias market. The two companies had to keep
with the local tastes at all times in order to meet the needs of the people. Accordingly, amidst
competition Pepsi could launch new brands in order to fight off local competition. Coca- Cola
reentered the market in India through combining forces with Britannia Industries Indi Ltd, local
producer of snack foods.

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How Coca-Cola Was Effective In Handling Market Entrance Complications

Coca- Cola`s effectiveness in dealing with entrance complications by employing various
campaigns in order to create awareness among the local population in India. Its strategy focused
on relevant local idioms in an effort to develop a link with the youth market. A significant
number of ad campaigns were employed to attract this market segment. Furthermore, the
company used the affordability plank to promote affordability of Coca-Colas products, bring
them within arm`s reach of consumers, and thus, promoting regular consumption. Another
initiative by the company was the introduction of a new size with the expectation to upsurge the
total capacity of sales and account for carbonated soft drink sales. Therefore, these are some of
the measures Coca-Cola used in handling entrance complications in India.
Major methods of segmenting markets and how to segment the market for higher education
Market segmentation is a strategy used in marketing, and it includes separating a broad
target market into subgroups of customers with common requirements and priorities and then
planning and executing strategies to target them. Some of the methods include geographic
segmentation where entrepreneurs divide markets, according to geographic approach that is
countries, districts, town, and postal codes among others. The Geo-group method connects
demographic information with geographic information in order to establish an accurate profile.
Another method includes behavioral segmentation, which separates consumers into clusters
according to their knowledge of, attitude, the rate of usage, or reaction to a product. Accordingly,
there is segmentation by occasions, which depends on requirements and desires of customers on
different occasions. Furthermore, there is psychographic market segmentation, which examines
markets, according to lifestyles, personality, as well as values.

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To segment the market for higher education, it is important to comprehend learners`

popular suggestion toward and use of particular products as this enables a company to set
priorities in the future development of internal college products and campaigns.
Strategic positioning for Swatch (breakaway positioning), target market and how it utilized
branding in creating the breakaway positioning strategy.
Breakaway position strategy is an approach that relates the product with a radically
different category. Through manipulating the case of customers of the way they perceive and
categorize a product, a corporation can alter the way consumers frame a product (Ferrell 45).
When the Swatch was produced, everything in the implementation of its marketing plan was
planned to get the consumer re-categorize the product. The company did some things that were
so apparent. They were the first to use color in their watches, and they made everything out of
plastic. However, some of the things they performed were not so obvious and yet equally vital
from an inner perception in how consumers ended up consuming the product. For instance, their
product line management differed from what the watch industry had ever seen. At any time, there
was enormous variation in the number of swatches that could be bought; this variety rotated on a
seasonal basis. Therefore, through such value chain and promotion, the company was able to
create a breakaway positioning strategy.
Product terms
The product mix refers to the total number of product lines that a corporation provides to
its consumers. On the other hand, a product line is a cluster of related products produced by a
single corporation. Brand elements include objects, such as name, logo, colors, shapes, sounds,
and graphics among others, whereas sub brands are separate, complementary brands created
when the larger institutional brand is too broad to differentiate the benefits or unique features of

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a section. Accordingly, a brand line is a marketing term employed to define all the products
vended under a solitary brand title. When bigger trades function under numerous diverse
trademarks, services, as well as corporations, then a brand portfolio is employed to include all
these bodies under one canopy. In most cases these brands have individual trademark and
functions as business entity.
P&G utilizes individual branding strategy for its line of detergents, rather than a family
branding strategy because it believes that the benefits to individual branding outweigh its
negatives. For instance, additional to avoiding the possibility of a defamed image of the
organization and its goods, there is a lower likelihood a depraved product will harm sales of
other items in the product mix (Ferrell 69). Moreover, individual branding permits the company
to take advantage of the available market segments. Therefore, P&G targets its different
detergent brands to slightly different market segments, permitting the company to exploit the
whole market for this product. This would be difficult to do if it employed family branding. P&G
also recognize that their goods are fundamentally low contribution in nature. For this purpose,
consumers tend to variability look amid substitute brands in order to try something fresh and
diverse occasionally. P&G offers consumers with varieties in each of its product lines. The
corporation will rather have customers diversity seek among its individual brands and thereafter
switch to an opponents product.
A candy company might utilize a long channel of distribution than companies selling
restaurant equipment because of the durability and the urgency of the products. In most cases,
restaurant equipment is delicate and thus should be delivered quickly than candy products. The
consumer vs. business factor into this decision in that in this process, the company has to put into
consideration the needs of the consumer rather than the business needs.

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Integrated marketing communication, such as social media, advertising, and sales

promotion among others are great tools used in transforming individuals attitudes toward a new
product. Therefore, it is highly recommended for Sushi to choose the right media and
promotional strategies while carrying out her promotion. For instance, she could use Facebook as
her promotional avenue because majorities of people use it.
Pricing strategies: how pricing affects unit sales, costs, and profit
Skimming pricing is the charging of the high price for a company to attain maximum
profit under conditions of product uniqueness and inelastic demand patterns. On the other hand,
penetration pricing is the process of setting a relatively low initial entry price, frequently lower
than the ultimate market price in order to appeal to consumers. This method works on the
expectation that consumers will change to the new brand because of the lesser price. Value
pricing is a technique, whereby the producer gathers consumer`s perception of the value and
fixes the price around the average perceived value. This makes the cost and demand to be
secondary aspects of this approach. Prestige pricing is the process of pricing products at a high
level so that to provide the appearance of quality.
Profits depend on the increasing sales volumes and managing costs, which encompass
variable and fixed cost. Therefore, when prices are high, chances of selling large volumes of
products are low and thus no or less profit.

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Works Cited
Ferrell, Michael. Marketing Strategy. New York, NY: Sage, 2010.