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Targeting and Positioning of Gazprom


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Gazprom

4 Targeting and Positioning of Gazprom


After dividing the large diversified customer market into smaller groups with homogeneous characteristics, Gazprom should wisely choose the target segment/segments whose needs and expectations match the company’s resources and capabilities.

The targeting can be done by evaluating the commercial attractiveness and growth potential of identified segments. Gazprom can choose one or more segments depending on the segments’ characteristics and the company's resources, capabilities and growth objectives.

The commercial attractiveness and growth potential of each segment can be evaluated by using the following indicators:


  • Identified segments have the appropriate size

  • Have concrete differences.

  • The estimated profits should exceed the additional marketing costs.

  • Segments are easily accessible.

After segmenting the customer market and choosing the right target market, Gazprom now requires to set a clear positioning statement that could create a positive image of the offered product in the customers' mind. Gazprom can follow the following steps to develop an effective positioning strategy:

  • Develop the positioning statement for Gazprom Marketing Strategy by answering the following questions:

    • What your brand stands for?

    • What are the needs and wants of your target market?

    • How your brand serves those needs?

    • How different is your offering from competitors?

  • Answers to these questions will yield enough information to develop a positioning statement.

  • The comparison of their communication and messaging strategy with competitors will reveal the potential areas that could be addressed with targeted positioning message.

  • Identify the strengths/weaknesses of business by comparing with competitors to find that gaps that offered product can fill.

  • Analyse positioning of competitors and evaluate own position in the market.

  • By using the analytical data collected from a different market, customer and competitor surveys, develop a positioning statement and periodically test its effectiveness by collecting qualitative and quantitative data (like focus groups, polls, interviews etc.).

  • Use the test results to make necessary adjustments in the brand positioning.

5 Company Competitive Advantage in the Marketing Strategy of Gazprom


The survival in the increasingly competitive market requires Gazprom to set the clear differentiation basis that could provide an edge against rivals. Gazprom Marketing Strategy should focus on identifying unique selling propositions (USPs). Some examples of USPs are the highest quality, lowest cost or uniqueness of idea. Identifying USPs is not sufficient as the effectiveness of the Marketing Strategy of Gazprom will directly depend on management's ability to communicate the identified unique selling propositions.

The Gazprom can apply Porter's generic strategies model to explore how competitive advantage can be created. The pictorial presentation of the Porter Model is given below:



The company can set a competitive advantage based on cost or differentiation.


5.1 Cost based competitive advantage


  • The cost leadership strategy will suit if Gazprom has developed capabilities to reduce the cost below the industry average and achieve the economies of scale. Moreover, it will require Gazprom to develop close collaboration between different functional areas.

  • Developing most effective distribution channels, access to latest technological tools to assist production processes, using lean production methods and strong bargaining position when negotiating with suppliers are some indicators of setting competitive advantage based on cost leadership.

5.2 Differentiation based competitive advantage


The differentiation strategy focuses on developing brand loyalty by offering premium products. The company can find different ways to develop differentiation leadership, such as- by focusing on the reliability, durability, benefits and distinctive features of products, by developing strong brand recognition and by increasing expenditure on marketing efforts like celebrity endorsements and sponsorships etc. Gazprom can set achieve competitive advantage by adopting product, service, quality, image, people or innovation differentiation.

5.3 Competitive advantage model


Following the model shows how Gazprom can develop an effective Marketing Strategy by evaluating its resources and capabilities, identifying distinctive competencies and leveraging those competencies by adopting either cost or differentiation orientation:



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