MBA course: Marketing and Business Strategy

1. Course introduction: So MBA in 2023 is expensive and there are very few people who can afford to do that. And that's why I've made this course on MBA marketing and business strategy, where I will help you understand all the concepts that I've learned during my MBA. If you watch all the videos and you will complete all the assignments that I'll be giving it to you. Then I'm sure you will have a very strong business foundation by the end of this course. I have divided this course into five different section. In section number one, we will build a strong business foundation. And in this section we will understand about some basic terminology and concepts of marketing. So we will start by understanding the definition of marketing. Then we will understand about marketing mix. Some people also call this as the four P's of marketing and seven Ps of marketing. And we'll be using a couple of examples to understand both of these concept. Then we will understand about STP analysis. Stp is also known as your segmentation, targeting, and positioning. Then we will talk about swot analysis, also known as strength, weakness, opportunity, and threat. And in the end, we will understand about product life cycle. In section number two, we will talk about business expansion and growth strategy. If you work for a company that have dozen of product and those guys are selling those products into multiple market than this section will be super-important for you. Because as a business executive, you need to formulate deed strategy by using Ansoff matrix, BCG matrix, so that you can communicate some blue ocean strategy to your team members. In section number three, we will talk about branding strategy. And in this section we will understand how companies will sell you the exact same quality of product at an expensive price using these planning strategy. In this section, I'm going to take couple of examples of companies like Apple, Nike, and Adidas so that you can understand about concepts like brand slogan, brand mantra, and BAB Morgan. Then apart from branding, in the last two sections, we will talk about business model and business strategy. And in those section, we will understand about the unique business model of all these unicorns, startup and Fortune 500 companies. So I have a lot to cover in this course. And if you are ready for that, let's dive in. 2. What is Marketing ?: So let's start this course by understanding what exactly is marketing. Marketing is the understanding that we humans are biased and by using our biases, selling us what companies wanted to sell. Now I know this definition may sound confusing to some people. So let me try to oversimplify this by giving you a small example. Let's say if I show you these two different images of two different product and this product have all of these following details. Let's say product number one and product number two, both have the exact same rating of 4.6. Both of these products have almost the same review. That is 2000s, and they are both selling at the same price. So my question is, which of these two product will you purchase? Now, you can pause this video for a while and think about the logical reason behind your answer. Now I know many of you might be thinking, well, product one and product two have almost the same rating. They have somewhat the same amount of review. And both of them are being sold at a price of $5. So I can pick any one of them. I mean, it's not really a big deal. But still majority of you will feel that the product one is having a good design. And that's why I will go with product number one. Because for majority of people, I guess product number one looks good. And this is where you did a mistake because you should have chosen the second product. And you may ask why. Now if you closely look at product number two, despite of having a normal packaging, this product is still able to get the exact same rating as product number one. And both of them have the exact same price of $5. So there might be something good in product number two. That's why a lot of people are purchasing this product. That's why in the marketing definition, I've told you that we humans are biased and these businesses are using our biases to sell us what they exactly wanted to sell. In short, a product that doesn't market well must be a better product if that product sells equally well, which is product number two in this case. Now product packaging is one of the part of marketing. There are multiple dimensions to it. And that's what we're going to study in this specific course. So I'll give you a single line definition of marketing. Then. Marketing is a way of creating, communicating, and delivering value to your customer better than your competitor. In this definition, you have three important thing to understand. The first one is about creating ten, communicating, and then delivering values. Now the way you will create value is by solving the problem of your customer. And that's why you will see in multiple marketing campaign, accompany will always try to highlight benefit of their product because they have created something that is solving a small problem. So the overall product, the packaging, the product have super-important in the value creation. Then you have the communication. So in your specific country, there might be people speaking different language. So how do you exactly communicate with those people in their specific language? And third one is delivery. Because in today's world, you have social media. You have newspaper, and some other media. So how exactly will you deliver the exact same value using these different medium? 3. 4P's of Marketing in Marketing Mix: Hey everyone, In this video, we will understand about marketing mix. The marketing mix is also known as four P's of marketing for product and seven Ps of marketing for service. But let me oversimplify this concept for you. So imagine you are making a pudding. To make a delicious pudding, you need sugar, flour, milk, and water. And then you have to mix all of these four product in the right quantity. And then you have to bake this specific product for right amount of time so that you can make a delicious pudding. Now, if I will give you a funny example, you can look at this specific image. So if a company wanted to have good marketing strategy, they need to ensure that they have the right kind of product that they're selling at the right price, at the right place. And they are also giving some form of promotions as well. So that's what a marketing mix looks like. You need to have a good strategy related to product, price, place, and promotion. I'll give you a definition. Marketing mix describes the different kinds of choices organization must make in the whole process of bringing a product or a service to the market. Now for the marketing mix of a product, you need to focus on product, price, place, and promotion. So you have to sell the right kind of product at the right price on the right place by giving some promotion. And that's what a marketing mix of product looks like. Let's start with product. I'll ask you a simple question. Why do you prefer Starbucks coffee? Well, your simple answer would be, the product quality is really good. And if I lost you, what do you mean by product quality? You may say that I can find different variety of coffee in Starbucks. The quality of the product is really nice. They are having these amazing design inside the store or inside the coffee shop. And they also have to use high-quality cup. And it can also highlight couple of more feature, the brand image starbucks have. They also have nice packaging and they have all of these different sizes of cup in their coffee shop. And you can give so many reasons related to product. So if I'll talk about Starbucks, they have a really nice product. And that's the first marketing mix. That is the product. That is the first ingredient of marketing the product. Let's talk about, please. Now, in order to provide a good customer experience, Starbucks will ensure that they are present across all the different channels. So in your country, you might be using a food tech platform where you can order a specific coffee online. And you might be just walking down the street to drink a coffee. So they are present on all the different types of channels. So whether you are purchasing a coffee online or if you're drinking a coffee by walking into a coffee shop, they are present everywhere. The second one is coverage. Starbucks is present in all major countries and in almost every single city. And that's the kind of coverage those guys have. Then we have location. So you may find a Starbucks coffee shop at the airport, near a railway station, or inside the shopping mall. They are presented almost all the places where you may need a coffee. The third ingredient of marketing is price. So if you look at Starbucks, they have a lot going on in the pricing part. They will list the product at a specific price. Then you can put some discount coupon and you may feel happy that I got the coffee at an amazing discount. And they have all of these different payment method. They provide payment flexibility to customer. You can be using your credit card or debit card. You can also be used in cash. So they have all of these pricing strategy where you can bundle different product together and you will get some discount. Or you can buy three or four coffee together and you will get some discount. So they have all of these different pricing strategy where you can bundle all of these different products. You can get their loyalty card and you can do a lot more things related to the pricing of the product. And that's why the fourth ingredient of this marketing mix is promotion. Starbucks do a lot more advertisement. They really promote the product where celebrities are drinking their coffee. And they tried to maintain their brand image lot on the social media platform where these celebrities and influencers are drinking the coffee of Starbucks, starbucks user, interesting social media growth strategy. So if you go to Starbucks, they will normally ask your name so that they can write that specific name on your coffee cup. So even if you spell your name right, they will still put the wrong spelling of your name on your cup of coffee. Because in that case, you will take a picture and you will post that picture on social media saying that that these guys can't even write the right spelling of my name. 4. 7P's of Marketing in Marketing Mix: So now that you understand all the four important ingredient of marketing mix, that is your product, price, place, and promotion. Let's talk about three other ingredient that you need to understand in case of a service. At the starting of this video, we had a discussion about pudding. If you wanted to make a delicious putting. In that case, you have to mix the sugar floor, milk and water in the right quantity. And then you have to bake this product for the right amount of time so that the cake is delicious. And that's what a marketing mix look like. If you want it to have a good marketing strategy of a product. In that case, you have to make sure that then you have to have a good mix of product, price, place, and promotion. So you need to have a good product and you are selling that product at the right price, at the right place by giving some discount or offer. That's what a good marketing mix of a product looks like. But imagine you're going on a date to enjoy this putting. In that case, you are availing or service. When it comes to service, you need three extra ingredient. You need people, unit processes, and you need physical evidence. And that is the marketing mix Forest Service. So if you look at pudding as a product, then you need to focus on the ingredient of this specific product, that is product, price, place, and promotion. But the time you started enjoying a service, let's say you are going out on a date to enjoy putting in a restaurant. Or let's say you're going with one of your colleague to enjoy a cup of coffee. In that case, you are enjoying a product and a service. When it comes to service than the company needs to focus on the people, the processes, and the physical evidence. If you look at Starbucks, the people in the Starbucks coffee shop are super nice, normally greet their customer. And they always try to behave in a certain way. So Starbucks will always focus on their people. They will give them a lot of training so that they can deliver the best customer experience. Apart from people, Starbucks and other restaurant also have a certain set of processes. In technical term, we call these processes as SOP, or standard operating procedure. You train your people to perform a specific process in a specific physical place. This can be a restaurant or a coffee shop, or a hotel. In case of a service, you have three extra ingredient, people, processes and physical evidence. So let's talk about three extra ingredient that we have in case of a marketing mix of service. That is your people processes and physical evidence. Let's start with people in Starbucks. They will ensure that all of the people who are working in the coffee shop are professional. They are spilled and they have a positive attitude. Then we have process. So they will normally try to process your order faster. They will also ask you for any short of customization If you need in your coffee. And they will also take feedback so that they can improve the process. The third one is physical evidence. If you go to a Starbucks or any coffee shop or any good fast-food restaurant, you may find a good modern furniture. All of the people might be wearing some uniform. They also have the sign board where you can read the price of the product. They have these non-smoking sign. There are couple of other things that these restaurant always do. So in case of a product, the four important ingredient is product, price, place, and promotion. When we are talking about a Service, in that case, the marketing mix of a service will have three extra ingredient. That is people, processes, and physical evidence. So if you are trying to understand about the marketing mix or the marketing strategy of a product, you always need to focus on these four important parameters. That is product, price, place, and promotion. But anytime you have a service, let's say a food delivery service, or a restaurant, or a salon, or something that is related to service. In that case, you need to bring these three additional ingredient. That is people, processes and physical evidence. And that's all about marketing mix of a product and a service. Let me give you a small assignment. And the main purpose of this course is to give you assignments so that you can solve these assignment and you can test out your knowledge. Now, I want you to download the PDF file of this specific assignment and you can print out this PDF file, or let's see, you can draw out this specific assignment on a blank sheet of paper. And you can solve the specific problem. You need to create a marketing mix of a service. That's a maybe you can create a marketing mix for Apple Store. And you can write about the product, the price, the place, the promotion, the people processes and physical evidence. 5. Marketing Management: So now that you understand about marketing mix in this video, let's talk about marketing management. Because if you work in a company, then there is a very high chance that you'll be managing couple of people and product. So what exactly is marketing management? Marketing management is the art and the science of choosing a target market and then acquiring new customer. Making sure that you are retaining those customer and growing the customer B's using these creative deliveries and communication messages so that you can provide superior value to the customer. Now, if you closely observe this definition, you will realize that you have to do a lot of work. So you first have to acquire these new customer, then you have to retain these new customer. And then you have to make sure that you are constantly growing at a specific rate. And for all of these process to happen, you have to create new marketing campaign. And then you have to deliver those campaign to the end-user. And that's what a marketing management looks like. You have to do a lot of work. Now, if you go to big companies, you may realize that they have a single marketing manager for all of these roles. There might be one marketing manager who is constantly looking after the performance marketing effort. There might be one person who is looking at the retention and the growth rate of a company. These role might be assigned to different people based on the size of company. But broadly, in marketing management, you are constantly thinking about how can you introduce new products into the market by picking up a smaller segment? And how can you expand your business by doing both of these activities. Finally, you will convince customers to buy your product with the help of unique delivery. So you have four major function of marketing management. Introducing new product, finding an interesting segment that is looking for a solution and expanding your customer base. And you will do all of these three process by delivering your communication with the help of some unique messaging or unique delivery. And we'll talk about all of these things in a minute. So let's start with new product. So for simplicity, in this video, I'm going to take an example of a company like Colgate. So as you know, in marketing mix, we had a discussion about product, price, place, and promotion. So when you're introducing a new product into the market, you can look at all of these four different ingredient of a product. So you can introduce a new product based on the quality of the existing product. You can introduce a new product based on the price that you are targeting and also based on the police. In different countries, you can introduce different product. Let's start with price. So Colgate introduce a most affordable product and that's the cheapest one. In some developing countries, especially some southeastern countries and African countries. Then they introduce a product for middle-class people. Want a little better quality of toothpaste. And then we have a product for upper-class people. They have Colgate visible white. If you are someone who can spend some extra bucks to use a high-quality toothpaste. In that case, you can buy Colgate visible white. So they have these three different product for three different class of people. And the reason they did that is because different people have different disposable income. I mean, if a person is earning less amount of money every single day, then he may not be interested in spending a lot in choosing a toothpaste. I mean, he just won the most affordable one. And same goes with the people who are in the middle-class and upper-class. So they have these three different product for three different class of people. And that's introducing a new product based on the price. The next one is introducing a product based on a specific segment. Now Colgate is a big company and they have a lot of investor and they are also a listed company. And that's why their aim is to make sure that they are growing at a specific rate every single year so that they can increase the stakeholder's value. And that's why they are constantly introducing a new product. By solving a pinpoint of a specific segment. Let's look at all the different segment you have in the market. The first segment is for kid. And I'm sure you have seen these different shapes and sizes of these toothbrush and toothpaste. I mean, the main aim here is to make these toothbrush or toothpaste or a little more interesting by using these different cartoons or that kids will enjoy brushing their teeth. So that's their first customer segment. I mean, they have a lot more stock keeping unit or SKU or product in this specific segment. The next one is for you. And we have seen all those three different products for different class of people. But they have a Colgate Max Fresh product, especially for youth. So if you are someone from the age group of 18 years to 25 or 30 years. In that case, you can go with Colgate Max Fresh. In the end. They have a product for adult people who have sensitive tooth as well. So they have a Colgate sensitive product for them. And not only these three different segment, I mean, they have product for almost every single segment that you can imagine. Now they did some research and they figured out that they need a product for every single segment. Because normally in a household you just have one toothpaste and every single family member is using just that toothpaste. And that's why they have introduced all of these different types of product so that people will purchase these products and they will use different toothpaste. And that's the whole purpose of maximizing the revenue or stakeholder's value by introducing a product based on the price or affordability, Then we have market expansion. So this is purely based on the type of country you are in. So Colgate have different types of product in different countries. So if you look into some African countries, they have this basic Colgate's strong teeth paste and that's the most affordable one in African country. They are not really launching these premium expensive toothpaste. They have this Colgate strong tea toothpaste. In some Asian countries like India or Indonesia, they have this toothpaste that is named Colgate with Shakti. This specific toothpaste have a lot more Ayurvedic ingredient because people are more inclined towards these Ayurvedic ingredient. And that's why in some Western countries they have Colgate Max ways. So you can see that in three different continent or countries, they have three different product. The reason Colgate launched Colgate beads at t is because one of the Indian brand was expanding very fast in Ayurvedic toothpaste category. And that's why they launched Colgate beads up thin India. So now that you understand how exactly a brand can launch a different product based on price, based on the customer segment. Let's understand how exactly that brand can deliver a unique value with the help of their advertisement. Let's start with the first campaign that is Colgate MOM. Now if you look at a normal household, you will realize that majority of the shopping or products are purchased by women, especially our mom. And those products are used by almost every single family member. That means the customer of the product is different from the consumer. You and me are the consumer of the product, but the customer of the product is our mom. And that's why Colgate obsessively focused on targeting these small. And that's why you may have seen these emotional ad from these marketing campaign like Colgate mom, where these different humans are describing how their kids teeth are stronger just because they are using colgate. And that is one of their marketing campaign. And that is a unique way to deliver value. Because if you are able to convince The woman that this product is good for all the kids or all the family members you have, then they'll probably purchase it. The second campaign they did was on youth. So they showed the benefit and the future of the product. Like you will avoid bad breath if you use the product, a lot of goals would be attracted towards you and all of those things. In the end, they had this unique delivery for their premium product that is, Colgate visible white. And they use these different actresses or these different influencer in order to show them that your teeth will look sparkling white if you use the premium Colgate visible white product. They use these different marketing campaigns to make sure that they have a unique delivery and they are delivering the value to the customer much better than the competitor. So that's all about the marketing management. Or if I summarize the video, marketing management is the art and science of choosing a specific market and then constantly acquiring new and new customer by making sure that you have good retention. And you're constantly growing in that specific market. And the way you do that is by communicating a superior value to your customer. So that's all for this video. I have a small assignment for you, and I highly recommend you to complete this assignment because that's how you're able to test your knowledge, whether you are able to grab this concept or not. So you have to do a marketing management assignment for a brand like Coca-Cola. So you have to write about how does Coca-Cola communicates superior value to the customer. You have to list out all of their product based on different customer segment, based on different price, and maybe based on different continent. 6. Intro to STP (Segmentation, Targeting, and Positioning): Hey everyone, My name is now beep. And in this video, we're going to talk about STP analysis. Now, there is a famous scene in the business world that if you try to be everything to everyone, you will become nothing to anyone. And that's why in this video, we will understand about the S-T-P process. Now, STP stands for segmentation, targeting, and positioning. So if you're launching a brand or a product into the market, in that case, instead of targeting all the people in that specific market, you have to pick a very small segment of people. And then you have to target them across different social media or newspaper or different medium. And then you have to position your product. And that is the overview of your S-T-P process, also known as segmentation, targeting, and positioning. So let's understand why do we need STP? And I'm gonna give you a small example so that everyone can understand. So let's say you are an entrepreneur and you strike up with this idea of creating toothbrush out of bamboo shoots. So instead of picking a very small segment that is environment friendly, Let's say you're planning to target all the toothbrush user by positioning your product is the environment friendly alternative to these plastic toothbrush? But the reality is a normal customer don't really care about sustainable living. That's why you have to do an STP analysis where you have to segment a specific class of customer and then you have to target them. Because in reality, 85% of your audience doesn't really care about sustainable living. No matter how good or bad your product or your idea is, you have to segment your market into all of these categories and then you have to target them. And that's the whole idea of doing STP analysis. You first have to segment your customer. Then you have to find unique ways by which you can target them across different media. And then you have to position your product over the period of time. So if I'll give you a high-level overview of S-T-P process. You first have to segment your customer. Then you have to target them by highlighting the benefit of your product. How will your product is different from all the existing product into the market? After targeting, you have to position this specific product in the mind of people. And obviously this process can take up two ears so that people can understand that this is a good alternative to these plastic tube pressed. And I think I should give it a shot. That's why positioning will take a lot more time so that you can convince people that this is a good alternative to the existing product into the market. And over the period of time, you also have to work on the implementation side. That means you have to work on pricing, product, place, and promotion. And I hope you already have a good understanding about marketing mix. So that's the high level overview of STP analysis. Now, let's take this framework of STP analysis and let's try to implement this SDP into the idea we had. You had an idea of launching a bamboo toothbrush, which is an alternative to the plastic toothbrush. So you first have to segment the customer. Then you have to find unique ways so that you can reach to those specific customer. And then you have to position your product. In a market. You might be able to find almost 15% people that are really interested in trying out products that are eco-friendly. But the main problem is how exactly do you reach out to them? So you have to find different channels and different community where all the people who are doing some environment friendly work are connected to each other. Then you have to educate them about the adverse effect of plastic. And that's how you will be able to position your product in the long run. Now, obviously, the whole process can take up two ears or sometime decades to convince people that this product is a good alternative to the plastic product that you have. And that's why some people will always try to find these so that they can target top 1% people. Instead of targeting all these 15% people that are interested in environmentally-friendly product. So if I summarize the complete video, than STP is a marketing approach where you segment your audience and then you try to target the best-fit audience segment for your product. And in the end, you position your product to capture your target segment effectively. This is all about the basic outline of S-T-P process. In the next video, we will understand how can you pick these different customer segment and how can you find different ways by which you can target those segment? So I'll see you guys in the next video. 7. STP Analysis: Hey everyone, My name is now deep. And in this video we will understand about segmentation, targeting, and positioning. So in the last video, we had a discussion about the outline of STP analysis. And in that video we had a discussion that what exactly is STP analysis and why do we need to do it? In this video, we will pick a small problem and then I will help you understand how can you exactly do some experiment in order to target different customer segment? Now I know I might be going a little slow in this course. But the main purpose of this course is to make sure that all of you have a strong foundation. So in this video, let's pick a small day-to-day problem and then we will understand how you can experiment with different sales channels. And in the next video, we will take our industry specific problem. Let's say you wanted to sell toys in the market. In that case, you have to find different unique ways by which you can sell these toys into the market. Now the false assumption you took was that these kids have these elder brother and those people might be going to these different universities. And that's why I have to visit these universities so that I can sell these products with their elder brother. The second assumption was that all of the appearance might be visiting these corporate officers. And that's why I should stand in front of a university or a corporate office. And that's how I'm able to sell all of these toys. So basically, in this case, we are targeting a wrong segment because in case of toys or customer and the consumer are two different people. A customer is someone who is buying these products, and consumer is someone who is playing with these product. Now customer can be the elder brother or appearance of the kid, but the customer is the good itself. Just picking the customer is not sufficient in this case, you realize that I'm only targeting costumer, but not the consumer. And that's why you changed your sales channel. Now you're selling in front of a school, or let's say you somehow got a permission to sell all of these toys inside the school. But still you are not able to sell these toys well, because you're targeting is not good. So you went back home and you brainstorm this problem with one of your friend. And your friend told you that you have to target the customer and the consumer at the same time. And that's why you decided to change your sales channel. And this time you are standing outside of school, especially when the students are coming out with their parent. And you're standing in front of a pediatric hospital. And in this case you have the right segment and you're doing the right targeting. Because when you stand outside a pediatric hospital, in that case, you have your customer and your consumer. And the consumer who are these kids have the emotional influence on these customer so that they can purchase these toys. Because normally these kids started crying and that's why these parents have to buy these toys so that they can make their kids happy. And that is your right segment and write targeting. You are able to get a place where you have both your customer and consumer. And these consumer have some influence on these customer so that they can purchase the product. So this is the analogy that I have used in order to explain how can you pick your sales channel and how can you target your customer or let's say consumer. So let's understand about the definition of STP analysis. So STP is a marketing model that redefines whom you market your product too. And how. Some people also call this as a step formula. That means if you are able to segment your customer really well, and if you are trying your best in order to target those customers at all the possible seams channel or marketing channel. In that case, you will end up with a good positioning of a product into the market. So in short, this step formula will make your marketing communication more focused, relevant, and personalized to your customer. So let's talk about the objective of STP analysis. And then I will give you these different example and framework so that you can segment your customer and then you can target and position your product. Let's talk about the objective of STP analysis. The first objective is that STP analysis will help companies identify attractive market segments. Now once you have a single or a group of market segment, in that case, STB analysis will also help you choose a target marketing strategy. The last objective of STP analysis is that it will help company's position their product for maximum competitive advantage. And we'll talk about all of these objective in the next video. 8. Segmentation in STP Analysis: So in the last two videos, we had a discussion about the outline and the objective of STP analysis. And this video will go deep into segmentation. And in this video we will understand how can you segment the market based on the specific attributes. Now, I understand that I'm going a little slow in this specific topic. And the reason is that SDP analysis is the core concept of marketing. And that's why you have to have a strong foundation. So segmentation is the process of segmenting the audience into smaller group based on specific attributes. This segmentation will give you a better clarity on who benefits the most from your product and how, if you want to split a big market into these smaller group, in that case, you can do a geographic segmentation or a demographic segmentation. Or maybe you can go ahead with psychographic or behavioral segmentation. Let's start with geographic segmentation. Now to understand geographic segmentation, I'm going to take an example of a brand like McDonald's. So if you know someone who work at McDonald's, they have a famous tagline that you need to think global and act local. And that's why if you closely observe a single product in McDonald's, that's burger across these different countries. So let's say in United States, you will find McDonald's selling a beef burger. But in India, you may not find them selling a beef burger. Instead, they are selling our ALU Tikki burger. And similarly in Philippines they are selling make spaghetti burger. So you can see that a single international brand selling a different type of product in different countries. And that's a really good example of geographic segmentation. Then we have a demographic segmentation. If you're segmenting a market based on different age, group of people in that specific market, or based on their gender or education level. Or maybe the family size or ethnicity or income group. In that case, That's a really good example of demographic segmentation. So if you look at these different FMCG brands like Unilever or PNG, these brands may launch different flavors or different types of product based on the income group of people, or based on their education level, or even based on ethnicity. And that's a good example of demographic segmentation. Then we have psychographic segmentation. If you're segmenting a market based on the interest, lifestyle, or subconscious motivator than it says psychographic segmentation. In the end we have behavioral segmentation. Let's go deep into segmentation and let's solve a real-world problem. Let's say you started working in a company and those guys are launching a new product that is plant-based milk. And let's say you are in the marketing team of that specific company. Now, obviously the first step of marketing campaign is to make sure that you are targeting the right segment. So you first have to find these different customer segment in the market because you don't really want to target general public. So you have to find all those segment of people who want to move away from the database product. So let's say this is your product and you have to find these different customer segment. Let's say after doing some market research and maybe talking to these different customer, you were able to find these two interesting customer segment are first segment is Segment number a. And this segment have all those people who are looking for a daily free alternative for lifestyle purpose. These are all high-income group people. Apart from this, you were also able to find a different customer segment, that is segment. And this segment have all those people who are lactose intolerant and they are looking for some other option. So lactose intolerant are all those people who are not able to digest dairy products, specifically milk. And in case if you don't know, the milk is normally digested by an enzyme called rennin. Rennin is present in maximum quantity, especially in kids. And as you grow older, the production of renin goes down in your body. In short, you have to segment of customer, segment E, have all those people who are looking for dairy free alternative for lifestyle porpoise. And these people have high-income. In segment P, you have all those people who are lactose intolerant and then looking for other option. So the first part of a marketing campaign is to make sure that you are going from undifferentiated mass marketing campaign to a micro marketing campaign. Because you don't really want to target abroad segment. You have to target of very narrow segment. And that's why we normally go from undifferentiated mass marketing campaign to a micro marketing campaign. Now, that doesn't mean that you don't really have to target a broader segment. If you look at a product like Coca-Cola. So whether you are a five-year old kid or a 65-year-old guy. Anyone can drink Coca-Cola. And that's why Coca-Cola will always try to have a undifferentiated marketing, also known as mass marketing. But because we are launching a duty-free alternative and we have a limited amount of marketing budget. In that case, we have to pick a smaller segment and we have to target them narrowly. And that's why we are doing a micro marketing. So I hope you understand the difference between these two. 9. Targeting in STP Analysis: So let's pick the same example to understand targeting in STP analysis. Targeting is the stage where you decide which segment you created during these segmentation fees is worth pursuing. So let's understand about the criteria to choose a target segment. So you have to pick a customer segment that have enough potential so that you can justify the marketing effort. This is because you might be putting a lot more financial and human resources in order to sell a product into the market. The next criteria is difference. So you have to ensure that you have enough measurable difference between all of these to different customer segment. Otherwise you will be unnecessarily duplicating the effort for these two different customer segment. The third criteria is reachability. Reachability means is your customer segment accessible to your sales and marketing team? I mean, which marketing channels will you use to make sure that you are reaching out to your customer? The fourth one is profitability. So in order to acquire a customer, you might be spending some amount of money, and that is your customer acquisition cost. And once you have a customer with you, than those people might be purchasing some product from your brand. And the frequency and the duration of their porches will give. And the frequency and the duration of their purchase will lead to customer lifetime value. And if your customer lifetime value is more than your customer acquisition cost, then you are making profit. So you have to check whether you will have profitability by targeting that specific customer segment. And in the end, you have benefits. So do you have enough benefits so that you can target that specific customer segment? So in our case, we have two different customer segment, segment E are all those people who are looking for a dairy free alternative. And segment P are all those people who have lactose intolerant. For segment a will go with cruelty free value proposition. And for segment B, we will go with dairy free value proposition. So let's look at both of our segment. Segment a is looking for a dairy free alternative. And all the people in this segment have high-income and they have some online presence. While for segment B, these people are lactose intolerant and they may or may not have a high-income. So all the people in this specific category are medium to low-income. And some of them might be present online, while few of them are also present offline. That means they might not be using any mobile phone or they might not have a social media presence. Now the reason we're focusing on income and channel is because if a specific segment is not using a mobile phone or if they are not connected with internet. In that case, how exactly will be target? Let's say as a marketing manager, if you have a choice that you need to pick just one segment out of these two different customer segment, then you should choose segment number e. This is because people in segment a have high-income and that's why these people can easily afford a premium product. And also all these people have some online presence. They might be using a social media app or they might be consuming some form of content using Internet. And that's why you can easily target these people. So to conclude this video, in this case, you have to pick a customer segment a, because this will have all the high-income group people who are ready to pay a premium price for quality lifestyle change in product. 10. Positioning in STP analysis: Hey everyone. Now that you understand everything about segmenting your customer and targeting them. And this video, let's talk about positioning. Positioning is the process of thinking about your product from the customer's perspective. So broadly, we have three different ways by which you can position your product. The number one is consumer-based positioning. So in consumer-based positioning, we tried to understand the pinpoint of the customer. And then we will align those pinpoint with the benefits of the product. Then we have a competitor base position. If you already have enough competition in the market. So let's say if you have multiple brands selling soy milk in the market, in that case, it's difficult for you to just highlight benefit and align the pinpoint of the customer. You have to also highlight all the benefits that your product have and how it is better than the competitor. And that's the competitor based positioning. And in the end, we have a price based positioning. And in this case, we will try to justify the cost of the product. So let's say if you're selling your product at a premium price, you also have to justify that premium price, that why we are selling our product at an expensive price. And apart from these three, we can also have a benefit based positioning and a prestige base position. So if you're selling a luxury product, whether it is a clothing item or a luxury forge, or a smartphone, then you have a prestige space positioning. So in the end, positioning is all about performing a competitor analysis and figuring out the value proposition of your brand. And then how can you communicate that value proposition with your customer? So let me give you a small framework. If you want to position your product into the market. In your marketing campaign, you first have to highlight what exactly is your product. Then you have to talk about the job that specific product do. And then you have to discuss about the outcome of your product. And finally, you have to ask yourself, why people should care about that specific outcome and why it is super-important to take an action. Now, let's start by highlighting what exactly does your product. So we will pick the exact same problem that we were solving in the last video, where we are trying to sell our soy milk in the market. So let's start by describing about the product. So soy milk is a great dairy free alternative. That's a description of your product. Then you have to tell people what job does this product do? We will be writing things like this product contains no fat. This have zero cholesterol and it also tastes amazing. Then we have to communicate the outcome of this specific product. If you consume or if you drink this specific soy milk. In that case, you will get omega-3, omega-6 fatty acid, and this will help you build strong bones. Now this is a good value proposition in order to target mom because our mom is really concerned about our health. And that's a good value proposition because majority of our moms are doing grocery shopping. And that's why, if you highlight the value proposition that this product contains omega-3 and omega-6 fatty acid. And these two are healthy fat that are super important in order to build strong bonds. In that case, your mom will end up purchasing this product somehow. Then you have to highlight why people will purchase this product. Because normally kids avoid drinking milk. And that's why, if you highlight the value proposition that this specific product comes in six different flavor and your kids will love it. In that case. That's a good way to tell people that. Why don't you try all of these six different flavor? In the end, you have to create urgency so that people will at least explore about your product. So you can highlight things like buy online on our website, or you can try out this product on Walmart or Target. And that's your urgency. So when you're creating a marketing campaign, in that case, you have to go from top to down and you have to use this positioning framework so that you will be able to position this product on the mind of people. So you have to start with giving the introduction of a product, and then you have to end the positioning by creating urgency about your product. And that's your positioning in STP analysis. So let's quickly summarize this video by understanding the benefits of STP analysis in marketing. The first benefit of STP analysis is that it will improve your engagement. So you have precisely targeting a segment and it is more likely to engage and convert from your marketing campaign. The second benefit is reduction in marketing cost because you have picked up very smaller segment and your precisely targeting it really well. In that case, you are not wasting your budget figuring out different marketing channels and different customer segment. And that is why your customer acquisition cost will be very less. And if your customer acquisition cost is less, and if your customer lifetime value is high, then you are generating profit. The third benefit is that you can create more robust product. Now because you have a clear understanding about the customer segment, Those people can give you instant feedback. And based on that specific feedback, you can also improve the product. These are the few benefits of doing STP analysis. In the next video, I'm gonna give you a small assignment and you have to complete that assignment so that you can test your knowledge. So this is the time you will test your knowledge by completing assignment. I'm gonna give you a small assignment where you have to find a customer segment. And then you have to find different ways by which you can target those customers segment. And in the end, you have to position about your brand in the mind of the customer. So Marriott Hotel have all of these different brand. I guess they have more than 20 different brands. So you have to find out the different customer segment that these people are targeting with these brand. And how can they position their individual brand in the mind of the customer? You have to find out the customer segment for, let's say Marriott Hotel. And how can they target and position about Marriott Hotel in the mind, of course, customer. Similarly, you have to find out the customer segment for executes t0 and how can the target and position about executes t0 in the mind of their customer. You have to complete this assignment by yourself. You can solve this assignment on a piece of paper. And I'm also going to attach the assignment and the solution in this specific video. 11. What is value Proposition?: Hey everyone, My name is now deep. And in this video, we will discuss about the value proposition. Now, before we discuss about what exactly the value proposition is, let's first understand about the structure of value proposition. A value proposition have a structure like this. So in your value proposition, you will first highlight your target customer, what your value proposition is for. And then you will highlight what kind of product your customer need or the opportunity you have in the market. Then you will mention about your product and what exactly your product is and all the benefits that your product will bring to the market. So that's the high-level structure of your value proposition. Let's look at the example and let's understand about the value proposition. So if I'll give you a small example, let's say in the last few videos, we were discussing a lot about the dairy free alternative, and we were discussing about soy milk. So let's take that soy milk blend as an example. So the value proposition of soy milk brand will go something like this. So for people who have active lifestyle, I'm looking for dairy free alternative. In that case, our product is good because it is healthy and our product contains omega-3 and omega-6 fatty acid that can improve your brain and muscle health. So that's the value proposition of a brand like soy milk. And we had a discussion about that specific product in the last video. Now, in this value proposition, you can see that we have covered for that is all the people who have an active lifestyle and who are looking for d roughly alternative. So we have also covered h2 and then we have r. That means what exactly our product to and in which category or product line. And then we have highlighted couple of benefits. So that is a high level overview of a value proposition. Now, before we talk more about value proposition, let's understand what value proposition is and what value proposition is not. So value proposition is a simple statement that summarizes why a customer would choose your product or service. So let's understand what value proposition is and what value proposition is not. Let's start with what value proposition is. Value proposition is exclusive. That means, how well does it highlights the competitive advantage of your brand and how it can separate your part. Also, value proposition is being focused. That means in value proposition you have to mention how your product can fix the customer's pain point and how it can improve their life. Also, value proposition needs to be specific. This means that you have to highlight the specific benefit that your customer will receive from the product. So these things will help you understand what your value proposition is. And then the last slide, we had discretion about that. Let's understand what value proposition is not. So value proposition is not a description of your brand. That means you don't really have to talk about what exactly your product is, how it is made up of these different ingredients and all of that. And obviously if those ingredients have some benefit, in that case, you can highlight that. Also, value proposition is not information. That means you will not talk about your product, your company, or your vision, mission, or who are all the people who started this brand and all of that stuff. Because value proposition is not the inflammation. Also value proposition is not a slogan. That means you don't really have to write some slogan or some catchy phrases for your brand. I mean, if you want it to do that, you can look at other brands attribute. So now that you understand what exactly value proposition is and what it is not, now, you might be thinking, fine, I understand the difference, but how do I create a value proposition of my brand? Let's say you might be working in a company as a brand manager or maybe as a marketing manager. In that case. Is there any framework that you can use in order to create the value proposition of a brand. So in this video, I'll give you a high level understanding or maybe an overview of a small value proposition building framework. So you first have to start with the market. You have to choose a specific group of customer that you are targeting. We had a discussion about this specific concept in the STP video, where we had a discussion about how do you go around segmenting your market into smaller groups and how exactly you can find different sales channel in order to target those customers. And obviously you have to position your product as well. So lets the first part of value proposition, where you choose a specific group of customers that you are targeting. Then the second part of this value proposition building framework is value. That means you first have to mention at least three to four benefit of your product. And when we talk about value, than value is nothing but benefits minus cost. And that's how the customer will look at your product. So you have to make sure that you are giving maximum value out of your product. So value in terms of benefit of your product and in terms of prestige. So if you're selling a premium product, the reason people pay for a premium product is because they are getting more than just benefit. They're getting a perceived value. Let's say if there's a premium brand or let's say there is a premium smartphone brand. The Nevada from benefit or uses. People also carry a luxury or a value along with the product. So that's number two. You have to find out all the ways by which you can build a value of your product. The third one is we are offering. And in that you will highlight. For this, you will use your product or service mix that you are selling. In this case, you have to work on product, price, place, and promotion. And we had a discussion about that specific concept in the marketing mix topic. Then we have benefits. So you have to write down at least three to four benefits that your product will provide. And then you have to highlight those benefits whenever you are targeting different customers segment. So if you are targeting moms in that case, you can highlight benefits like so Emily can help your kids improve their brain and bone cells. And when you're targeting a high-income group people, none, maybe you can highlight the specific benefit. Does the product have like this product will have omega-3 or omega-6 fatty acid. Then we have differentiation and, and that you will distinguish your product. Then we have a differentiation. So if you have a competitor in the market, then you can differentiate your brand in terms of price benefit quality, or GMO free on GMOs, genetically modified organism. So many brands use these hybrid ingredient or genetic modified ingredient that are not good. So you can differentiate your brand in terms of the ingredient to use, or in terms of benefit or in terms of flavor or quality. And different brands use different techniques to do that. In the end, you have your proof. And normally people use. Now normally brands use a third party organization or a health authority in order to show a proof that our product is approved by this, this, this, and it is used by 1 million people and all of them are happy and recommended by dentists and all of that. So these brands use these different techniques so that they can prove to the customer that this product is good for you and it is approved by all these health care professionals. So now that you have a good understanding about value proposition, now let's quickly do a small assignment. So in this assignment you have to create a value proposition canvas of a brand like Tesla. But you might be thinking, well, what exactly is a value proposition canvas? So first, let me help you understand what exactly a value proposition canvas is. And then you want to complete this assignment where you will create a value proposition canvas of a brand like Tesla. Now, you have to do all this exercise by yourself. I mean, if you do a small Google search, you can always find the solution of this assignment. But I will highly recommend you not to do that. Because doing this assignment will help you understand how do you or your concepts are. And these things are super-important. In the value proposition canvas. You first have to write about the basic detail of the brand and the product. So you will write things like the company name, the ideal customer, the different products that company has, and the substitute that are available in the market. Then on the right side, you have to mention about the customer. So in that specific section, we will discuss all the details about the customer. And on the left side, we will write things about the product. So let's start with customer. So whenever our customers thinking about purchasing a product, the first thing those people have in mind is that what all benefits to get from the product. So in this section you will talk about all the benefits or gains of a customer and what is their expectation and desire from a product. That in this section, you will talk about all the pins. So before a customer buy a product, let's say they may have some negative emotion or some undesired cost or some risk in mind. Since this section you will write all the risk or pins that the customer have in mind before he think about purchasing a product. And in this section you will talk about the jobs. That means what is the minimum expectation the customer have in mind from a specific product? So you have all these three section where we will talk about the gains, the pains, and the job. Then in the left section where we will discuss about the product. The first one is about the product and service. So you will highlight the list of product and service where your value proposition is built around. You will highlight all the different product and service. Then you will discuss about all the gains that these customer will get out of this specific product. We will discuss how your product or service can create customer. Again. In this section we'll talk about the pain relievers. So you can see that in the customer section they had some pain or negative emotion or some risk in mind. So in this product section, we will discuss how that product is. Eliminating the customer pains or negative emotion or undesired cost or situation that those people have in mind. This is the high level overview of a value proposition canvas. Now, you have to do assignment where you will highlight all the gains, pains, and the benefit of a product. For a brand like Tesla. I'm going to attach the assignment and the solution. You can download the assignment and just try completing that assignment by yourself. 12. Whta is SWOT Analysis?: So almost a few days back, I was scrolling through Instagram. Although I don't really spend so much of time using it. But I saw a video and in that specific video or person was seeing that many people fail in certain task in life because they are unable to channel their strength in the right direction. And as a result of that, they loose direction in life and become frustrated. Now some of you will say that, Well, why are you using that specific video in this course? Well, just like people have strengths and weaknesses, organization also have strengths and weaknesses. And that's what we're going to study in this course or in this video. In this video we'll talk about strength, weaknesses, opportunities, and threat of a company. Now, if you look at yourself or if you look at any person, you may have some strengths and some weaknesses. So let's say if communication is your strength as a person, in that case, you should choose domain like journalism or human resource. And you should avoid becoming a software developer or something else. On the other side, if your strength is mathematics, in that case, you should become a financial analyst or a statistician instead of becoming a human resource manager. So you have to make sure that you are generalizing your strength and you are avoiding your weaknesses. Or at least we are working on them. Now in this video, we'll talk about swat analysis. So let's understand what exactly is swot analysis and why as a business manager, we need to perform swat analysis. Swot analysis is an examination to identify its internal strengths and weaknesses, as well as its external opportunities and threats that will affect the business growth. Let's start with strength. So strength are all the things that you do well in your business. Now some business or companies use people as their strength. Some companies use financial resources as their strength. While some companies have operation management as their strength. So strength can be anything that you do well, then you have weaknesses. Weaknesses are all those things, all those departments of your business where you need to improve. So maybe you do not have enough people to work on a specific task. Or you may not have the best technology team in your company. All of these are your weaknesses. Then you have opportunity. Now the strength and weaknesses are always internally in your company. That means you have a full control on your strength and weaknesses inside your company and external factor cannot affect your strength and weaknesses, then you have your opportunities. And opportunities and threat can be influenced by external factors. If your company wanted to expand into a new market or they wanted to launch a new product. That's the opportunity. That means all the goals that you want it to achieve or you're looking forward to it. That's the opportunity. In the end, you have your threat. And threats are all the obstacles that you face. So let me quickly summarize all these things for you. So strength are all the things that you do well as a company. And these can be human resource or financial capital that you have with you. And these can be your strength because you can leverage your people or financial resources. If you have, then you have a sauteing weaknesses in your company. And you have to use either your human resource or financial resource to make sure that you are generalizing your weaknesses into strengths. Then we have opportunity. And let say, if you are working in a company like Apple or Google, and they have a lot more free cashflow in their company, or they have deep pockets so they can invest a lot more capital in the new opportunity or in new areas. In that case. In this area, you will understand how you can leverage your strength in order to create opportunity in the large market. You can take advantage of some trends. Let's say Google is investing a lot more capital in cloud computing and in the machine learning space. Similarly, Microsoft and Apple, along with Facebook, is investing a lot more capital in metaphors and we are space. Then we have threats where we have to understand about how new businesses can disrupt the existing business. So in the recent few example, if I talk about one of the product of OpenAI, that is Chet GPT-3. They are somewhat disrupting search engine. So people are using Chet GPT-3 to quickly get the answer. Instead of using Google, that's your thread. Your thread and weaknesses have internal origin. And your opportunities and threats are external origin. And strength or all those things that your organization do particularly well. And strength will help you distinguish your company from your competitor. So things like human resource manufacturing or financial resource can be one of your strength. Then you have weaknesses where you need to work on. And then you have opportunity and these have the external origin. So let's say if a government is creating a platform and as a company, you can build a product on the top of that specific platform. These are all the opportunities you have, or let's say if the government is changing rules and regulation and they are setting up some sort of compliances in a specific industry. And that's the opportunity you have to focus on. In the end, you have your threat. And threat are all those things that can negatively affect your business. So maybe you have more competition into the market, or there might be a supply chains shortest in the future due to some pandemic or something. These are all the possible threat. If you are able to identify threats or opportunity really well, before then your competitor, then you are able to create much better impact in the market. So in the next video, Let's do a swat analysis of a company like Amazon. And in that video we will understand how people at Amazon are doing a swat analysis in order to understand how they can channelized their weaknesses or how they can grab these opportunities and maybe avoid these threats in the future. 13. SWOT Analysis fof Amazon: So in the last video we had a discussion about swot analysis. And in that video we had a discussion about all the strengths, weaknesses, opportunities, and threats of a company, and how they can generalize these weaknesses, or let's say these opportunity in order to make sure that their business is constantly growing and they are generating profit. Now, let's try to apply swat analysis in case of Amazon. And in this video, we'll understand about strength, weaknesses, opportunities, and threats of a company like Amazon. Let's start with strength. Now, we all know that Amazon is a customer oriented brand. And I guess they have written this specific keyword into their mission statement as well. All the things that they do is very well aligned with the value that they provide to the customer. Then if you look at the e-commerce vertical of Amazon, then they have an amazing network effect. Now, if you don't know about network effect, let me try to explain that in a single line. So one of the reason you use a specific app, like WhatsApp or Facebook or Instagram, is because your family member and your friends are using the exact same map. That's a good example of network effect in case of social media. But if you talk about Amazon, so in case of Amazon, if you have more number of users using your e-commerce platform, then you would be able to attract more number of sellers selling their product on your platform. And in that case, you will have a network effect because you would be able to grab more number of user, because you have more number of sellers on your platform. And sellers will only sell on Amazon because it is the only product that have the maximum number of users. And that's a good example of network effect. In the coming videos, we have a dedicated video network effect. So I'm not gonna go deep into this specific topic. Also, one of their strength is large number of acquisition that these guys have done so far. I mean, from acquiring Whole Foods to couple of Robo-Taxi platform, Amazon do a lot more acquisition. And that is one of their strength because they know how exactly to generalize their acquisition well into their main business. Now let's talk about couple of weaknesses. Now, one of the business model of Amazon that is e-commerce is easily imitable. I mean, you can easily duplicate it. Like let's say if you want it to start at e-commerce brand, then you can simply create a store with the help of Shopify or Woo Commerce. Or you can use any e-commerce store builder. And you can create your own website and your own e-commerce store. Now I understand that it is typical to duplicate the network effect or it is not easy to drive traffic on your website, but it is super easy to create your own store. And that's why you can easily duplicate the e-commerce business model of Amazon. In fact, in some countries they have a lot more competition, especially in Southeast Asian countries, there are multiple alternatives. Amazon, like Flipkart and other platforms. Also one of the weaknesses is that Amazon doesn't have any control on their seller. Obviously, Amazon have a lot more negotiation power. So normally when these sellers sell their product on Amazon, in that case, amazon charged them around 25 to 30% commission. And that will include the logistic cost, handling the packaging and the reverse shipment and all of that. But still, I guess 30% is a very huge amount. And that's why many sellers also don't really sell their product on Amazon. Apart from that, they are also making losses and couple of areas. Although their Cloud computing business is doing really well, that is AWS. But I guess they are making a huge losses in the e-commerce business. Let's talk about the opportunity. Now. One of the opportunity that Amazon has recently started focusing on is the omni-channel expansion. Now, omnichannel is when you are expanding into more than one channel. They have recently started expanding into the physical store. And they are somewhat competing with Walmart or LDs. Also, they can do more acquisitions, So that is one of their opportunity. I mean, if a company is up and running and if they are doing good and they are somewhat overlapping with the business of Amazon, then most rapidly Amazon will try to acquire that company. Also, one of the opportunity that they have is to attract the Netflix customer. And they are doing that with the help of Amazon Prime umbrella. So just take a Prime membership, you will get Prime video. You will get prime music, one day delivery and so many other benefit. I guess that's their value proposition. They are trying to grab a little market share in case of OTT platform. Or maybe they are trying to do that. Not really sure how much will they succeed in this. But these are all the opportunities that Amazon hat. Let's talk about threats. So controversies related to the diverse of the founder of Jeff Bezos, related to him quitting as a CEO and joining the space race with Elon Musk and all of that. And what are their threat is aggressive competition from some of the other e-commerce players, especially in Southeast Asia or in Asia in general. And also a brand can easily. One of the major threat is that other brands can easily duplicate this business model, especially the e-commerce business model. So these are all the strengths, weaknesses, opportunities, and threats off Amazon. Now, let me give you a small assignments so that you can practice what you have learned from this video. So you have to do a swat analysis of Google. You can download this PPT file and you can complete this assignment by yourself. So that's all for this video. I'll see you guys in the next one. 14. What is Holistic Marketing: Hey everyone, My name is now deep. And in this video, we will discuss about holistic marketing. Now, holistic marketing is the integration of value exploration, value creation, and value delivery activities with the purpose of building long-term mutually satisfying relationship with all the key stakeholders. Now I know this definition may sound confusing. So let's understand the meaning of holistic marketing with the help of this diagram. So in short, holistic marketing is nothing but the management of all the important key aspect of the business. In a single line. Holistic marketing is the marketing management across different department. So if we discuss about relationship marketing, then in your business, you might be having these different distributor or supplier. And in that case, you have to build a relationship with those people. Then we have integrated marketing. So in your business, if you are selling across different distribution channel, let's say you might be having an e-commerce website or let's say if you have offline store, in that case, how do you make sure that you have a constant communication across all your sales channel? And that's your integrated marketing. Then we have performance marketing. So as a brand, you might be running these marketing campaigns or ad campaigns across social media. So how do you make sure that you have enough revenue, enough sales from those marketing campaigns? And you are doing all those things ethically. And how can you build a community around all those things. So that's your performance marketing. Then we have internal marketing. And as a company, it is super important to make sure that all your employees are also aligned with the vision and the mission of the company. So let's break down all these things are in the next slide. Let's start with relationship marketing. Relationship marketing aims to develop deep and enduring relationship with all your stakeholder, like your customer employees, marketing partners, like your distributor or supplier. And finally your financial community. Like your shareholder, your investor, and your analyst, who are talking about your brand, or who are analyzing the financial health of your company. Now, let's pick a small example because I love taking example. And I guess example can also help you understand the topic in a much better way. To understand relationship marketing, Let's take an example. I'm going to take an example of a company like Pepsi. So let's talk about the distributor of Pepsi. And Domino's Pizza is the biggest distributor of Pepsi. I mean, they have exclusive tie up with the brand. We also call this as a strategic partnership. And in Domino's Pizza, They are only allowed to sell PepsiCo product. And these people are there distributor or channel partner, whatever you call it. Then we have partner. So PepsiCo have multiple product like leaves, or they are also into cookies and odds. So their partners, let's say a farmer is the partner of PepsiCo. Normally, these brands have tie up with these NGOs or community members and they will buy all the potato these farmers are producing. These people are their partners than they have supplier like Walmart who is helping companies like PepsiCo and distributing these product to the end customer. So sometime if PepsiCo end up producing more of a certain product, walmart will give discount and push that product to the end consumer. So Walmart will do volume purchase and they will push these product to the end consumer. And that's what your relationship marketing looks like. If you work in a company like PepsiCo, in that case, you have to make sure that you are constantly building stronger relationship with your distributor, with your partner, supplier, or other stakeholders like investor or employees. And that's your relationship marketing. Let's talk about integrated marketing. So let's say if you are working for a company like Warby Parker or lend Scott, these are D to C IVR brand. And they have these different sales channel. So if you look at a company like Warby Parker, they might be having an offline store near you. Or you can also order your spectacles online. That's why they have a try at home program. And you can also use their online app where you can use the augmented reality technology in order to try out these spectacles on your fees. So if they have all these different sales channel, then they must deliver a consistent experience across communication, product, and service to make sure that all of these things are intact. That means whatever quality you will get in the offline store, you will get the exact same quality at your home and in the app as well. And the marketing or the communication across all these different sales channel will exactly be seen. And that's your integrated marketing. Third one is your internal marketing. And marketing. Activities outside your organization is as important as inside because it makes no sense to Promise excellent service before the company's stock is ready to provide those excellent service. And that's why internal marketing is super-important. Now, when we talk about internal marketing, we are basically talking about how do you communicate goals, aims, and objectives with all of your team member, or let's say all of your employees. So in that case, we will discuss about culture, staff motivation. We will do couple of training. We also have to establish a reward program. Then we have internal marketing. And if you look at a company, marketing activities outside the company is as important as insight. Because in reality it makes no sense to Promise excellent service before the company stuff is ready to provide. And that's why we have to focus on internal marketing. Now, when we're talking about internal marketing, we are basically talking about goals, aims, and objectives. And that's why in internal marketing, you need to make sure that your employees are motivated. You are giving them proper training and SOPs, also known as standard operating procedure. And you're also rewarding them time-to-time. And you're also ensuring that they are maintaining a quality standard and they also have a culture. I mean, that's the responsibility of a Chief Human Resource Officer in your company. So that's your internal marketing. Because you have to do couple of marketing activities inside your company as well. In the end we have performance marketing. And performance marketing is all about the understanding of financial and non-financial return. So performance marketing is all about finding a sales channel and optimizing the budget for these different social media channels or sales channel. And in the end, figuring out the ROI of the business. And optimizing on these three parameters. You can also go deep into performance marketing by looking at CPM, CPC, CPA, and LTV. Now, we will not discuss about all of these things in this video, but I have a dedicated course on all of these SAS metrics, or I would say these digital marketing metrics. And that course we had a discussion about course formulae or cost-per-click, cost per action and customer lifetime value and customer acquisition cost. Will not discuss about these things in this video. And that is all about your holistic marketing. Now, I have a small assignment for you. And in this assignment you have to write about the holistic marketing of a company like Starbucks. And in that case, you can cover things like relationship marketing, integrated marketing, performance marketing, and internal marketing. And you can refer to this video and you can take some help. And you can complete the assignment by yourself. 15. What is product life cycle ?: So I was a big Nokia, and Nokia used to be one of my favorite brand. So at the starting of my career, I bought their first phone, that was Nokia 11 double zero. Then I purchased Nokia 3110, then Nokia N9, T7. And I remember I also bought a Windows phone somewhere around 2015, 2016. So I was a big Nokia fan. But the reality is products like people have life cycles. And that's what we're going to study in this video. And this video, we'll talk about product life cycle. Product life cycle is the four-stage process that a product have to go through from boat to that. And you can understand the product lifecycle by looking at this diagram. So on x-axis you have time, and on y-axis you have sales or revenue of a product. And you can see that you start your journey from point a and then you go from point a to point E. Point E is the decline. And after that, you will have to, after e, You have to either spin-off or you have to kill the product. So let's start with process number e, that is the development. So at this process, you are investing a ton of money in developing a new product. And in fact, Nokia was also investing a ton of money developing new and new product for people. And they started off by developing big font so that people can communicate. So they were investing a lot of money in developing flip phone. You can open your phone or slide it like a laptop. So that was the development process where you invest a lot of money in solving the pinpoint of your customer and you are developing a new technology here. That is your stage number one in the product life cycle. Then the second stage is introduction. So at this stage, you are building a buzz around the product and you are creating awareness in the market for that specific product so that people can purchase it. And that's your introduction stage in the product life cycle. Then you have stage number three, that is the growth stage. And at growth stage you are growing at the exponential rate. You are killing it in the market, and you're generating massive amount of profit from that specific product. Now, at this stage, because you have a bigger market and you may not be able to fill all the gaps in the market. And this is the best time where you will have some sort of competition or some new players were entering into the market. Then we have our maturity stage. Now, all those competitor or small players who entered the market when you were growing exponentially, those people have now started dominating the market. And at maturity stage, you have enough competition in the market and your growth is stagnant and your sales will eventually decline or stabilize. And in the decline stage, your profits are declining and your sales is reducing. And now this is the best time you should innovate new product so that you can create a new market altogether. This is the product life cycle for almost every single product that you can imagine. I mean, this is not just about Nokia, this is about almost every single technology or physical product you can imagine. Now, let's understand product life cycle by looking at Nokia as a mobile brand. Because, I mean, who else doesn't know about Nokia? So this will be super interesting and it'll be easy for you to understand. So on x-axis you have time, on y-axis you have profit or sales. Now the fourth stage of product life cycle is development, where you're investing a ton of money in research and development. And you're quickly innovating on product and you are solving customer pinpoint at this specific stage in the product life cycle, that is development. Once you have launched your product, then this is the introduction stage where you are introducing a new product in the market. Now, Nokia introduced a new product. I mean, as far as I remember, back in 2010, I mean, Nokia is a very old brand. They had a product in 1995 and in 1980s as well. But as far as I can remember, I was the first user of their first mobile phone. That was 1110. I mean, it was a small mobile phone. Then they started launching couple of more product and that was their growth stage. So at this stage they were launching products like nokia 3110, Nokia N9, T7 series. Then they started innovating a lot. They started investing a lot more money in research and development. And then after the growth stage, they started launching multiple products. So they had a flip phone. They were launching our form that looks like a laptop. So that was their maturity stage. And this is somewhere around 2,014.2013 ish. And in the end, they started the brand was at the peak when they had the n series or the ECUs in their category. But after the Microsoft acquisition, their sales started declining. And at that point of time they had an Windows Phone. And in fact, I bought this Windows phone as well. Although the UI was super nice for these windows phone, but somehow they were not able to adapt well in the market. And developers were not that interested in developing apps for these windows phone. And because of that, Microsoft had to kill the operating system. And the soul, the smartphone division, or I guess the whole company to a Chinese brand or a conglomerate. I don't exactly remember the name, but that is the lifecycle of Nokia mobile brand. They started off with introduction stage, then they were growing at exponential rates somewhere around 2010. Then they were innovating really fast and they were launching the school product. You can flip these smartphone, you can fold them like a laptop. Then their sales started declining because they were not able to convince enough developer to build apps for their platform that has been dose before Windows, they were using operating system called Symbian. I mean, a lot of people might not be aware of that, but I was a big Nokia phone back then. But that's a product life cycle of Nokia mobile brand. I don't know why I'm so excited about Nokia, but this is a really interesting way by which I can help you understand how exactly does a product life cycle looks like for a product. Instead of Nokia, you can also take couple of more examples of different brands like Ford. And that's why Let's understand about couple of things about product life cycle. So if you look at this product life cycle and if you look at sales and profit, when you are developing a product, that means at the product development stage, you're investing a ton of money in research and development. And at that point of time, you don't really have enough sales and you are investing some of your profit into research and development. Now once the product is ready, then you have to invest a lot more capital so that you can manufacture the product. And at the introduction stage, you have to invest a lot of money in manufacturing and distribution of the product. And after the initial launch, once your product hit a certain stage of growth, in that case, you will start generating profit. So you can see from this diagram that, that the product is generating good amount of profit at the growth stage and at the maturity stage. And the profit will start declining once you reach to the decline stage. So Nokia invested a ton of capital in the product development stage. They were doing a lot of research and development. Now, once they launch the product, then they have to do manufacturing and distribution. So they have to bear more losses. Once the product is there in the market after the initial launch, they were generating massive amount of profit. And these profit will stagnant for a while and they will decline once you reach the decline stage. So that's your sales and profit in the product development lifecycle. If you want to understand the competitive landscape in the product life cycle than at the R&D stage or at the introduction stage, you have the monopoly in the market because you are the only player in the market who is selling a smartphone. But once you reach a certain inflection point in the growth stage than competition started coming. Because now enough gaps in the market that these competitors can fill. So the code for innovative form will look like this. First, you will innovate a lot. You do a ton of research and development. And once you are generating enough profit than the innovation or the experimentation will go down. Now the competition code will look like this. So once you are at the growth stage than the competition, co, will increase exponentially. And obviously, once the market is mature and enough, people are using a specific type of product and the competition will decline. So if we talk about the introduction, growth, maturity, and decline stage, then at the introduction stage, you have some innovative idea until the competitor started copying. Then you have your growth stage. Where all of these commutators started replicating your product or they are developing a new feature on the existing product by their own. Then you have the maturity stage where the product has standardized or innovative product have now become a commodity. Now these competitor or company have to work on cost or economies of scale so that they can produce the same product at the cheapest rate possible. And the term for that is economies of scale. And probably we will discuss about economies of scale and economies of scope in the coming videos. And in the end, we have a decline stage where the competition is increasing. And the one that has the minimum cost to produce a product will eventually win the market when you don't really have other brand advantage. So that's all about the product life cycle. Let me give you a small assignment so that you can practice what you have learned from this video. I'm attaching this assignment and you can download and complete the assignment of product life cycle for Ford. 16. What is Value Chain Analysis?: Hey everyone. In this video, we will talk about value chain analysis. So our value chain analysis will describe all the business activities it takes to create a product from start to finish. So things like designing production distribution and so on. Now to understand how a business create value will be using this specific diagram. So let me take the laser pointer. Now if you look at this specific diagram, you have some primary activities, things like inbound logistics, operations, outbound logistics, marketing and sales and service. All of these are primary activities. Then you have some supporting activities. So things like form infrastructure, human resource management, technology development, and procurement. These are all the supporting activities. And then as a company, you are giving out some value to the customer, and then you're also generating some profit and these are all your margin. Now, the meaning of doing a value chain analysis is to explain the relationship between these five dynamic forces that can affect the industry performance. Also, with the help of value chain analysis, you can assess the structural attractiveness of analyst industry. So let's understand about this specific diagram. Let's start by understanding about what exactly is this margin. So as a business, you are creating some value. And if you subtract your cost of creation of value, that's your margin or profit. So let's understand about value chain analysis. Now, we will first start with primary activities and then we will understand about supporting activities. And as you know, the amount of value that you are creating. If you subtract the cost of creation, that's your margin. Let's start with primary activities. Now, the first primary activity you do in a business is to buy all of these raw materials so that you can produce a product. So inbound logistic means all the raw material or all the products that are coming into your warehouse. That's your inbound logistic. To manage inbound logistic unit, a procurement team, you need to make sure that you have real-time inventory data. You also need to make sure that you have a supply chain control tower where they can see the location of all your distribution facility. You need to have some trucks for transportation these warehouses, and you need people to handle the material. And all of this is a part of inbound logistic. In fact, in some companies they have a dedicated team or department for inbound logistic and their responsibilities to make sure that everything is happening normally in inbound logistic. Apart from inbound logistics, you have to do some operation. And this will include day-to-day operation, whether it is manufacturing a product or if you're a distributor than storing the product in your warehouse for a period of time and then shipping it back to a retailer or to a customer. And these include all of your operation. So for operation department, they need to have access to the real times sales and inventory data so that they can supply you the amount of product you need in the coming week or in the coming month. And the operation team have some standardized model in their system. Then you have your outbound logistics. Outbound logistics is when the product is going out of your warehouse. So let's say if you are a distributor of a specific company, in that case, you might be shipping some product every single week or every single month to a retailer so that, that person can sell that product to the end consumer. So that's your outbound logistic. Now, their main role is to do order processing. They are also delivering the product to the retailer and delivery and processing is their main function. And companies have special outbound logistics department or team to handle this. So we are generating value as a business and that's why we have to understand the core pillars of that. So inbound logistics, operations, outbound logistics, marketing and sales. These are all the pillars of your business. In the end, you have your marketing and sales. And as a company, I'm sure that you are focusing on product, price, place, and promotion. So working on pricing, making sure that you have the right communication and marketing to the end consumer. You are producing new product based on their need. And you are selling those products at low prices. These are all the things done by a normal marketing and sales team. In the end, you have your services. Whether you are a hardware company or a software company, you always have a customer support or customer service team will ensure that they have the delivery, the installation, the repair of a product. And anytime they have any issue related to a product, they can always raise a ticket or they can always reach out to the repair center. So these are all the primary activities of a business in order to create value for the end consumer. So from procurement, that is your inbound logistics to operation, to outbound logistic, which means shipping out the product from your warehouse to marketing and sales and to service. These are all your primary activities. Now, in order to perform these primary activities, you need some supporting activities. At first, you need a procurement department who can ensure that you have the form material or semi-finished good in your warehouse all the time. If you are someone who is manufacturing a product. So the procurement department may need a real-time inventory data. They need to communicate with supplier and they need to purchase supplies and materials. For that. Normally companies use our ERP software like SAP or Oracle. Now, in order to make sure that you have a proper implementation of these ERP solution and you are using technology in your business. In that case, you need a technology department for technology development. So these people will make sure that you have integrated supply chain system. The all the department have real-time sales information so that they can plan their manufacturing AND operation. Then you have human resource management. Human resource management team will ensure that they are helping their employees in professional development. They are building a strong relationship with them. And then they are doing performance appraisal based on a proper evaluation parameters they have. And then obviously the main role of human resource management is to make sure that your salary is credited on time. Because that's the most important thing. Then in the end we have formed infrastructure. I think I should have covered all of the supporting activities from top to bottom instead of going from bottom to the top. So form infrastructure means that you have a good management team in your company. You are closing all your books and you have a good capital inflow in your company. That means you have a good cash-flow and making sure that you don't really have any legal issues and maybe planning for other normal day-to-day operation. So that's the underlying foundation of your companies. And that's how a company's able to create value. They have to perform all of these five primary activities. And for that, they need all of these supporting activities, department or people. And that's how they are able to create value and profit or margin. 17. Value Chain Analysis of Tesla?: Now I know that this value chain analysis may not be very much useful for a lot of people. So let's try to implement this specific concept to solve a real-world problem. So let's say you want to work in Tesla. In that case, you first have to do a value chain analysis on how exactly a company is creating value and also generating profit. For that, you can do a value chain analysis and you can use this template. Obviously, in though, last few minutes, I'm gonna give you an assignment. But before that, let's understand about the value chain analysis of a company like Tesla. So we will go from top to the bottom. At the top, you have all your forms, primary activities. And at the bottom you have the opportunities of reducing the cost. So let's start with firm's primary activities. So if you look at Tesla is a brand, they manufacture these electric car. Now if you're a car manufacturing company, then you will first start with design and engineering to make sure that you are building a high-quality product. Now, once you're done with your design and engineering and obviously it's ongoing process, then you will do purchasing material and component from all of the suppliers to have. Once all those components are there in your manufacturing facility, then you will do assembling. Once the car is ready. After that, you will do testing and quality control. And once your product is completely ready, in that case, we will do some sales and marketing and finally, distribution on dealer support. So these are all the primary activities you have to do as our electric car brand or as a car brand, then you have your total cost and importance. So over here we will write about the total cost of doing this specific operation. Now, you can write the monthly cost or yearly cost on this specific area. But the main purpose here is to understand Fitch activity is costing you a lot. And which one can you outsource to one of your partners or strategic alliance? So I was not having enough time for this video, so I was not able to pick the exact number from the financial statement of Tesla. So these are all the random number. So let's say they might be putting $164 million for design and engineering. And they might be putting to 30 million dollar for distribution and dealer support. You have to mention all of their capital expenditure across all of these different primary activities. Then you have your cost driver. That will help you understand how they can reduce down the cost over a long period of time. No cost driver will help you understand which of the process is costing them a lot and how can they reduce down the cost structure? Now if you look at Tesla as a company, they don't have a bunch of models. They just have four to five different model. And that's why they are not investing that much off. Capital in design and engineering. Then they have purchasing material and component. Now the price of these components and material depend on the amount of your purchase. So if you're purchasing in very large quantity, in that case, you would be able to get the exact same product at a much cheaper price. So if their supplier is present in United State, in that case, they might be purchasing those components at a higher price. But if their supplier is theory in China than they would be able to purchase the same component at a cheaper price. Very obvious. Then they have assembly. So now the cost driver in case of assembly depends on the scale of plant, the capacity utilization and the location of plant. Then they have testing and control. I guess they have a list of more than 800 different types of tests that they do before releasing a product to the public market. Then you have your sales and marketing. And I guess they invest very less capital in sales and marketing because Elon is their brand ambassador or their chief marketing officer as well. Apart from being a CEO, these are all the cost driver across design and engineering to distribution dealer support. Then you have to write about the link between these activities. So let's say if you have a high-quality assembling process, just like Tesla, where robots are assembling your car. In that case, you can increase the cost of quality because these machines have some SOP and they don't really work like human, where if you give more work to human, the quality of the end product will reduce. Also they have some Gigafactory located in China. So that's how they are able to assemble couple of products that cheaper price because, because the plant is near the cluster of supplier and that's how they are reducing on purchasing and distribution cost. Also, Tesla have fewer model and that's how they are reducing on assembling coast because they don't really have to configure these assembling machine. Every single quarter, then you have your opportunity and reducing cost. If you just sell one model across all these different countries. In that case, you'd be able to reduce down your cost structure. And that's very obvious because in that case, you will be producing just one single product and then you are selling that product in almost every single country. Also, there are some components that you can manufacture inside your company. So if Tesla as a company, is able to manufacturer couple of component inside their Gigafactory. In that case, you'll be able to get rid of these few supplier and you can also produce those products faster. So that's the value chain analysis of a company like Tesla. Now, you can invest some time and you can complete this assignment by doing a value chain analysis of a company like Apple. And you can write about the firm's primary activities, the total cost and importance, all the cost drivers you have in the company. And then you can discuss a bit about link between these primary activities and all the opportunities of cost reduction. You can invest some time and you can complete this assignment by yourself. 18. What is a business Strategy ?: Hey everyone, My name is now deep. And in this video, we're going to talk about what exactly is a strategy. So have you played any of these games like Clash of Clans or chess? Or maybe you have read a book like The Art of War. All of these things are based on a strategy. Even before you start playing chess, you have to look at the other person. And while you're playing the game, you have to constantly mixed strategy. And maybe you have to predict the next move of the other person. And that's why I asked you that if you have played any of these schemes or if you have read a book like The Art of War, then you already understand how the other person is making a strategy based on your Move. Now, if you look at Clash of Clans as a game, The objective of this game is to build your village. And then you have to design your bees and you have to defend it using the resources that you have gained by attacking other people's religious groups. And all of these things are real example of how do you make strategy as a human being. Now, just like these games, you also have to make some business strategy as a business executive. Because I'm sure after watching this course, you'll be working in some company, making either a business strategy or working with the operation team. Strategy is a well-defined roadmap of our organization. And the objective of strategy is to maximize the organization strength and achieve better performance. And while you are doing this, you also have to build a long-term competitive advantage. Now, in this specific strategy definition, you have to work on three important things. You have to figure out the strength of our organization. For that, you can do things like swat analysis. Then you have to make sure that the organization is having a better performance. And we'll talk about performance in the coming video. And in the end, you have to build a competitive advantage. And we also have a dedicated section on competitive advantage. When we talk about business strategy, then you can implement the business strategy, a three-level. You have your corporate level strategy, then you have business level strategy, and finally the functional level strategy. So let's understand all these three different level of strategy. With the help of business strategy pyramid. The business strategy must plan, is implemented by the management team to secure a competitive position in the market. So the way you build a competitive position is by making sure that you have efficient operation. You are working on customer satisfaction and you have some desired business school. We have to work at three-level to make sure that we are implementing strategy at all the level of business. So we have to figure out a corporate level strategy of business level strategy and a functional level strategy. Now if you're starting your career as a MBA graduate, in that case, there is a very high chance that you'll be working at making functional level strategy as you progress in your career. Let's say if you have five to ten years of experience, then you'll be making business level strategy. And if you are someone who have 15, 20, or let say, 30 years of experience, in that case, there's a very high chance that you will work in making corporate level strategy. So a business have these three different level and we will discuss about these three concept with the help of this strategy pyramid. So as the name suggest, business level strategy is related to a business or a vertical, or a product. So in business level strategy, you will answer questions like, how do we compete as a brand and how do we gain competitive advantage as a company? So in business level strategy, you normally figure out different ways by which you can improve your product. You can adjust your pricing based on the competitor. All of this is a part of business level strategy. Then you have your functional level strategy. And remember, business level strategy is a work that is done by people who have almost three to five years of experience. So those people exactly understand all the competitors, how those guys are selling the product into the market. Then we have the functional level strategy. So if you're starting out your career than there is a very high chance that you will be working at making these functional level strategy. So these functional level strategy often aim to improve the effectiveness of a company's operation. And these are normally developed by the first-line manager or the supervisor to solve the functional areas like marketing, production, human resources, and development. So if you're working in a warehouse or let's say in a production line. In that case, you will try to solve the day-to-day problem that you and your other colleagues are facing. And these are all functional level strategy that our individual employ a first-line manager or supervisor make. In the end we have corporate level strategy. And the strategy are normally made by people who have at least 20 to 25 years of experience and who are at the CXO position of the company. So corporate-level strategy is normally made by the top management. So in corporate level strategy, they will think about mergers and acquisition. How they can build a new business unit? Or do they need to shift their manufacturing facility to a different location? These are all your corporate level strategy, which are made by people in the top management or maybe CXO level people. 19. Sumsung's Corporate, funtional and busines level strategy: Now I know that some of you may have a question in mind that now the power we're going to cover this section and these concepts related to business level strategy in this course. So I have a small diagram for you so that you can understand how we will be covering these different concept related to business level strategy. So for internal analysis, we have two framework. We have a value chain analysis and a Brio model. And as the dome suggest an internal analysis, we'll be analyzing everything about that company. Then we have some external analysis framework. And in that, we will talk about Porter's five forces model and PESTEL analysis. Now once you have this framework ready for your company, then the top management can move on the strategy formulation by using this framework. So once you are done with all these framework, then we will discuss about value discipline, Blue Ocean Strategy, and Porter's generic strategies. And we'll talk about all of this and the coming video. Let's understand the business strategy pyramid. And the first part of that is your functional level strategy. If you're planning to work in corporate, then you will start your career making these functional level strategy. So functional level strategy can be defined as the day-to-day strategy, which is formulated to assist in the execution of corporate and business level strategy. So if you are starting out your job working in a company, in that case, you will work as a manager in one out of these five different department in a company. So let's say you might work as a marketing manager in the marketing department, or a finance manager or a financial analyst in the finance department, or maybe a human resource manager, a production supervisor, or research and development manager. In that case, you might be working in any of these five different department. Let's say you decided to work in the marketing department and you have a good understanding about marketing. And in that case, you'll be making the functional level strategies like, how do you figure out the right marketing mix for your product? And you will be doing swot analysis and concentrated marketing. On the other side, if you are working as a financial analyst or as a finance manager, in that case, you will be dealing with day-to-day operations related to closing the books, creating budget for these different department. How can you allocate funds to different departments AND operation? On the other side, if you get a chance to work as a human resource manager, in that case, your responsibilities are recruitment, development, motivation, retention of employees, and industrial relations. In production, you'll be working as a supervisor whose main responsibility is to make sure that you enhance the quality of the product by making sure that the high-quality material is being used in the manufacturing facility. And all of your colleagues or employees are working. In the end you have your research and development. And it's very obvious that in this department will be working on developing new product and how exactly can you innovate things faster? Now I know that the story is boring and that's why I'm not going to discuss more about business level or corporate level strategy in this way. Rather, I'll be using an example so that you can understand a functional level of business level and a corporate level strategy. So let's take an example and let's understand about business strategy pyramid. If you look at a company like Samsung, Samsung is a conglomerate consisting of multiple SBUs. Sbus stands for strategic business unit. And these SBUs have diverse product portfolio, ranging from smartphone to cameras to tv, microwave, and refrigerator. So each of these product or SBUs need a business strategy in order to compete successfully within its own industry. So at the top, Samsung have a corporate headquarters that is in South Korea. And from that corporate headquarters, they are managing all of these different strategic business unit, also known as SBU's. They have a different strategic business unit for silicon component. They have a different strategic business unit for smartphone. And they have a different strategic business unit for home appliances. If you look at their strategic business unit that is related to the manufacturing of the silicon component. Now, just to give you a perspective, almost 70 per cent of all smartphone or LED display are manufactured by Samsung. So whether you use a smart phone from brands like Apple, 1plus, apo. All of these, all at display are made by Samsung and they are the market leader in the OLED displays peas. Similarly, the manufacturer, majority of the RAM memory chip of all the smartphone brand. And Apple have our strategic alliance with a company like Samsung. Now, this may sound a little counter-intuitive because these companies fight a lot on the market share of their smartphone division. But they have a mutual benefit on the component division. At the top, you have your corporate level strategy. Then you have your business level strategy related to managing these strategic business unit. And then you have your functional level strategy in order to manage things like manufacturing, finance, marketing, and research and development. In the next video, we will discuss about how exactly as a brand you can figure out a strategic management process and how you can start implementing the strategy. That's all about this video. In the next video, we will discuss about strategic management process. 20. Components of business strategy: Hey everyone. In this video, we'll talk about the different components of our strategy. And to be specific, in this video, we'll talk about the components of strategies treatment. Now, there is a famous book written by Stephen Covey and the name of that book is Seven Habits of Highly Effective People. In that book, Stephen Covey said that begin with the end in mind. Now, this statement reminds me of the different components of a business strategy. Because as a company, you need to focus on achieving its long-term goal and aspiration. Before even attempting to accomplish anything. You need to think in terms of decades and not in terms of years. Now, if you look at a strategy statement, it has four different component. You have your strategic intent, then you have a mission statement, then you have a vision statement. And finally, goals and objective. So let's start with strategic intent. Now, strategic intent will help management to emphasize and concentrate on priorities. So you'll be inspiring people with your vision and your mission statement. And we'll talk about your vision and mission statement in a minute. Then you will be encouraging individuals and team participation. And then you will be utilizing your intent to allocate resources to all of the Strategic Business Unit you have in your company. So when we talk about the component of strategies treatment, the three most important concept you need to understand is your mission statement, your vision statement, and your goals or objectives. So let's understand about the mission statement first. So a mission statement describes what exactly your organization does, home it serves, and what makes an organization unique. Now when I'm saying what exactly organization does, these are all the present capabilities the company have. Now, what I'm talking about home, does it serve? That means all these stakeholders, like your investor or your customer and all the channel partners you have. And finally, what makes an organization unique means? What is the reason for existence? So if I'll give you a simple example to understand this, if you look at the mission statement of a company like Walmart, their mission statement is to give ordinary people the chance to buy the same thing as rich people. So basically they wanted to democratize the retail for everyone. And that's their mission statement. Now let's talk about the vision statement. A vision statement will help you understand where exactly as a company you want it to go. So our vision is a potential to view things ahead of themselves. Now, when you look at the vision statement of a company like Walmart, their vision is to become a world leader in retailing. Now, let's discuss about goals. Now, goals are more prominent in concrete, and goals are all the desired future state the organization wanted to achieve. So these are all the different components of a strategy statement. Now I understand that you might be a little confused between a vision statement and mission statement, what exactly goals and objective means. But in the next video, we'll go deep into vision statement. How exactly does accompany set a vision and mission statement? And how do they use goals and objective to go close to their mission and vision they have. So let's discuss about all these individual component of a strategy statement. In the next video. 21. Vision Statement of a company: Hey everyone, my name is not deep. And in this video, we will discuss about mission statement, vision, goals, and objective. But before we discuss about these things, Let's understand why do we need these things at the first place. So in the last video, we were discussing a lot about the corporate level, the business level, and the functional level strategy. So your entire corporate level and functional level strategy will work towards achieving this vision, mission, goals, and objectives. And that's why we need to understand this topic. Because if you look at all the senior executive of your company, whether he is a CFO or CEO of the company. They are inspired by these vision and mission statement. And that's why we have to understand about these vision and mission statement so that you can inspire all of your team members and employees so that they can choose a common goal instead of going into random direction. So to understand mission, vision, and goals, let's look at this specific diagram. So our vision statement will paint the future in your company for next five to ten years. Anytime you join a company, you may find them having a vision statement in their office or on the wall. And if you look at that specific vision statement, you will find that those people are painting the future of the company in next five to ten years. And that's their vision statement. I mean, as a company, they wanted to go to that specific point because that's their vision. Then you have your mission statement. And mission statement will help you understand fundamentally, the reason why the company exists today. So what they do exactly at this point of time and why they are doing that. And that's your mission statement. Now, in order to go from this mission to that specific vision, you have to have some goals and objective. These goals are the future state of an organization. That means you normally set the smaller goal and you will achieve these goals so that you can reach to your vision. So you start with your mission. That's your fundamental reason why you exist today as a business. And you have to achieve your vision in the next five to ten years. And you do that by setting smaller goals and achieve those goals by having these objectives. So let's discuss about vision statement first, and then we will discuss about mission, goals and objective. So our vision statement paints a picture of where you're going and why you want to go there as a company. And as you know, our vision statement normally paints the future of your company for next five to ten years. Let's say if you are someone who wanted to understand about the vision statement, or let's say if you are working with the executive in order to meet the vision statement for a company. In that case, you have to understand two core pillars of a vision statement. Where, and why. So you have to ask yourself, where are you going as a company? And what does success looks like in the future for your company? Now let's understand these two points with the help of one example, because I love giving example. Let's say you're starting out your career working in EV company, then your vision statement will look something like this, that your company, XYZ, wanted to be a leader in the manufacturing of electric vehicle. That's your vision statement. That means your main aim is to become a leader in the manufacturing of a electric vehicle. If you look at this vision statement, you will realize that our vision statement is normally short and brief. It is written in simple language. That means it doesn't have any jargons or any complicated word. There is hard for a normal person to understand. It is crystal clear and it should complete all the aspect of your business. If you look at this vision statement, they want to be a market leader in the manufacturing of a electric vehicle. So they have specifically highlighted their position by doing something in a specific segment, leader in the manufacturing of electric vehicles. Then it is also non-ambiguous and non-conflicting and it should motivate the employees. So that's your vision statement. Now this vision statement fits really well for a company like Tesla, but will not pick a company specifically for this video. But let's talk about the mission statement now. 22. Mission statement of a company: So a mission statement talks about the fundamental reason why you came into this business. It will help you understand about the purpose for existing into the business. Now if I give you a small example than, let's say a company like XYZ wants to make the most compelling car of 21st century. That means, as a company you wanted to create most compelling car. That's your mission. I mean, that's the fundamental reason why you exist today. You wanted to revolutionize the car manufacturing industry. If I combine the mission statement and divisions treatment, then the mission statement explains the company's reason for being present. While the vision statement gives its purpose for the future. These two mission and the vision statement will defines the overall future, or I would say the overall growth strategy of any company. Now, let's talk about the features of a mission. A mission must be feasible and attainable. And it is possible for a company to achieve it. Also, it should be clear enough so that action can be taken by the people who are working in the company or the senior executive team can work toward achieving this specific mission. Also, it should be inspiring, which is obvious because if it is not inspiring management staff and people, then there's no purpose of having a mission statement than it should be precise enough. Which means it should neither be too broad for a person to understand or know to narrow. It should be unique and distinct so that it can leave an impact in everybody's mind. Also, it should be analytical and it should analyze the key components of your strategy. And in the end, it should be credible so that all stakeholders should be able to believe on omission that accompany wanted to achieve. These are all the futures of mission statement. You don't really have to remember these features, but I was just covering these features in case if you end up working with a senior management team and writing about the mission, the vision, and the goals of a company, or let's say a startup if you are creating. Now let's pick a company because I love giving example. And let's look at the vision and the mission statement of a company. And after that, we will discuss about the goals and the objective. So let's pick Tesla Motors. If you look at the vision statement of Tesla, than their vision is to accelerate the world's transition into sustainable energy. If you look at their mission statement than they want to create the most compelling car of 21st century by driving the volts transition to electric vehicle. Nephew closely absorbed their vision statement, you will realize that this is their five to ten year goal that they have in mind. But if you look at their mission statement, then you will realize that this is the fundamental reason why the company exists today. Because they wanted to create the most compelling car company of 21st century. And the do it by driving the bolts transition into electric vehicle. That's their mission statement. So vision is long-term and mission is what exactly they want it to do as a company. Let's look at Google as an example. Let's look at their vision statement. The vision statement of Google is to provide access to the world's information in one-click. If we look at their mission statement while they want to organize the world's information and making it universally available and useful. And that's their mission statement. That means why the company exists today. That's the mission and what they wanted to do in the next five to ten years. So let's say in 20 years, that's their vision. Let's look at Amazon as an example. The vision statement of Amazon is two, be the world's most customer-centric company. And they wanted to build a place where people can visit and find and discover anything they might want it to buy online. If you look at their mission statement, well, they strive to offer the lowest price possible to customer with the best available selection and at the utmost convenience, That's their mission statement. So I hope after watching these many videos, you'll be able to understand about the vision statement and mission statement. Now let's discuss about the goals and objectives in the next video. 23. What are Goals and objective?: So from the last two videos, were discussing a lot about the vision statement and mission statement. In this video, we're going to talk about goals and objectives. Goal is the future state of your company and objective or the specific action that you will take as a company in order to achieve these goals. And I know this definition may sound a little confusing. So let me try to simplify this by giving you some example. Let's say as a company, your goal is to increase the revenue by ten per cent. And you want it to decrease the waste reduction by five per cent. That's a very realistic goal as a company. Now let's talk about objective. Objective or all these specific action that you will take in order to achieve these goals. So your first objective, in order to achieve the goal, that's your ten per cent increase in revenue and five per cent reduction in waste. That you can just add five new customer and you can retain the existing to customer. And you can simply increase your revenue by ten per cent. So if you're adding five new customers, let's say if you're selling a software product. So in that case, you can acquire five new customer and you can retain to customer. And that's how you'd be able to increase your revenue by ten per cent. That's your objective number one, by which you can achieve the first part of your goal. Now in order to achieve the second part of your goal, you have your objective number two. So our goal is to decrease down the waste reduction by five per cent. Now if you wanted to reduce down to faced by five per cent, you can follow two different approach. Either you can optimize the manufacturing process. So in a manufacturing process, waste can happen at three different stitch. Waste can happen at the time of manufacturing. So if the raw material is bad, then you may have a little more waste. Or a waste can also happen when you're packaging or product. So sometime people end up damaging those products. So you can optimize the manufacturing facility. And that's how you'd be able to decrease down the waste reduction by five per cent. Also, you can outsource the process to have byte label manufacturer or to a contract manufacturer. And that's how you can also reduce down the waist. So you have a goal in mind, that's the future state of your business. And you will take these specific actions called objective in order to achieve that goal. So in the end, goals are the desired future state of your business that will make your mission more prominent and concrete. And your goal should have the following features. You should have a precise and measurable goal. And one of the framework that you can use for a precise and a measurable goal is the smart framework. We'll talk about smart framework in the coming videos. But you have to have a precise call and you can also measure that specific goal over time. Your goal will always look after a critical problem, insignificant issues. That means achieving a specific target every single month or every single quarter should not be your goal. Your goal should be critical and significant for the business. Also, it should be realistic and challenging. And again, we have covered all of these things like precise, measurable, realistic, challenging in the smart approach. And it should include both financial and non-financial component. Now let's discuss about objective. So I assume that you already understand that objective are all the tasks that will help you achieve a specific goal. And objective will act as the foundation of planning. And these objectives have the following feature. You should not have a single objective. You can have multiple objective in order to achieve a goal. Your objective should be short-term and long-term and accompany. And your objective must respond and react to changes in the environment. So they must be flexible. And as usual, your objective should be feasible, realistic, and operational. Now personally, I'm not a big fan of theory, so you don't really have to memorize these concept or theory. I mean, if you have to work with a senior management or a senior executive in your company, then you can use these concept. Otherwise, you just need to know the basics of our mission, vision, and goals of the company. 24. Amazon's Mission, vision and goal: So now you have to complete a small assignment and you have to think about the vision and the mission statement of a company like Amazon. Please do not search this mission and vision statement of Amazon on Google. Just think about it. From an employee who works at Amazon. How does vision and a mission statement in Amazon looks like? I'm in what they wanted to become a next five to ten years. And what is their current state of business there next five to ten year. Ambition is their vision and their current state of businesses, their mission. So just think about it and maybe then you can continue playing this video. Because in this video, I will also help you understand about the mission and the vision statement off Amazon. So just spend some time and think about the mission and the vision statement of a company like Amazon. So I hope you have written a vision and a mission statement of Amazon. Now, your vision or mission statement don't really have to match with Amazon because the main purpose of assignment was to make sure that you are using your brain. You are writing about the vision and the mission of the company. So let's discuss about it. So the vision statement of Amazon is to be the Earth's most customer-centric company. And to build a place where people can discover and find anything they want, and they can also buy those products online. Their mission statement is to offer customer the lowest possible price and the best available selection and at the utmost convenience. Now if you look at this mission statement, you will find three important terms. Lowest price, best selection, and utmost convenience. And I think you have seen these three important keyword in the previous few videos that Amazon always wanted to focus on giving you a product at the best possible price, the different variety of a product. And they always focus on shipping the product in this shortest duration of time. And we had a discussion about this framework in the first video of this course, that Amazon wanted to be a faster, cheaper, and a better alternative to retailing. I'm in offline retailing. Now if you really want to understand how exactly amazon makes sure that they have a wider selection and they are selling their product at the most affordable price and they're shipping is super-fast. Then you have to understand about the flywheel concept. Now, if you don't really want to understand this, it's perfectly fine. You can skip this part, but this is a super interesting concept that you should know. So if you look at any company in this world, one of the reason a company can become successful and it is evil to target a mass market is when the company is having the lower cost structure. In a company you have to have a lower cost structure. Saw that you'd be able to hire enough people to do a specific operation. So Amazon has a lower cost structure and that's how they are able to maintain lower prices on their platform. So if you have lower cost structure and you're maintaining a lower prices on your platform, then customer will buy more number of product from your platform. That's very obvious, and the customer will have a good customer experience. So imagine if people are purchasing more number of product from your website or e-commerce app. In that case, the traffic is good. If the traffic is good, then these sellers will list more and more number of product. And that's very obvious because you have more number of people coming to your platform and they are buying a ton of product. In that case, more number of sellers, or we call these as third-party sellers, will be interested in selling their product. If more number of sellers are selling the product on an e-commerce platform, and that platform have more selection or variety of product. And if they have more selection or variety of product, then customer will become happy. This is a vicious cycle. And we call this vicious cycle as a flywheel. Because once the platform have a wide selection of products and these sellers are competing with each other because they wanted to listed on their product at the cheapest rate possible so that they can get maximum number of orders. These sellers are competing with each other. They are listing variety of product for people and they are selling at the most affordable treat. And that's why people are purchasing the product from the platform. And that's the flywheel concept. And this flywheel concept, we'll make any platform unstoppable. If more number of people are purchasing product from Amazon, in that case, more number of seller will list their product at the most affordable price because they are competing with each other and people are purchasing more quantity of product. So earlier, if a delivery guy was carrying, let's say 50 or 100 different boxes at once. Now he's carrying 300 or maybe 400 different boxes because more and more people are purchasing from Amazon. So the success of Amazon is a combination of lower per unit cost because of economies of scale, they have a flywheel running. And that's why Amazon is unstoppable. Now if you look at their goals that they have in their supply chain, is that they wanted to make sure that they have the right kind of product on the platform. And they're maintaining the right quantity of that specific product. And they are making sure that the product is being delivered at the right time. And they also have these quality check. The seller have to go through these quality check. And they are also sending to us product at an affordable price. And that's how Amazon is able to succeed in their business. 25. What is BCG Matrix?: Hey everyone. In this video, we'll talk about BCG matrix. And BCG stands for Boston Consulting Group. And before understanding about this specific metrics, let's understand what exactly is BCG matrix and why do we need it? If you go back to the first video where we were discussing a lot about the Samsung strategy example, where they were having multiple strategic business unit. So if you look at Samsung as a company, they have multiple strategic business unit. So they have a SBU for semiconductor. Then they have a strategic business unit for IT solution. They have one for LCD and visual display, and they have few for smartphone and then for home appliances. And you can see that from all of these different strategic business unit. So Samsung as a company, have multiple strategic business unit from semiconductor to IT solution to LCD and visually display, to smartphone, and finally the home appliances. And their most profitable one is this semiconductor. And I've told you in that specific video that almost 70 to 80 per cent of all, all at displaying your smartphone is made by Samsung. So whether you purchase a smartphone made by Apple or Samsung, or one plus or any other brand, there is a very high chance that they're all at display will is off Samsung. In order to understand in which strategic business unit or company should invest or divest, we have to understand about BCG matrix. So VCG is a tool that is used in the corporate strategy in order to analyze these strategic business unit or maybe product lines with the help of these two variable. The number one is relative market share, and the number two variable is market growth rate. Let's discuss about these with the help of a diagram. So as you know, BCG matrix is a tool that is used to assess the value of a product in terms of their growth and market share. Now, when we are discussing about growth, that means with the help of growth rate, you can understand how desirable the product is in the market. And with the help of market share, you can understand, do they have any competitive advantage as accompany or not? Now, BCG is a two-by-two matrix. And let's discuss about this two-by-two matrix. If you look at the first quadrant, then if a product of your company have a high market share and they have a high growth rate. It's a star product of your company. If you look at a company like Apple than iPhone is their star product, then if you have a product that has a low market share, but that specific product have a high growth rate, then that's a question mark product. And a really good example is MacBook. Macbook is having a low market share. If you look at the laptop, it as an industry in that case, you will find that almost 80, 85% people have windows as their primary machine or laptop. While less than 15% people have macOS or let say MacBook. Macbook is a really good example in this caution my quadrant, where they have a product that has a relative low market share, but the growth rate is quite high. Then you have a product that has a low growth rate, but a high market share. And a really good example is a product like iPad. If you look at iPad as a product, in that case, they have a high market share because iPad is the category leader in the tablet category. But they have a low growth rate because people are not that interested in buying iPad. I mean, they're more interested in a smartphone or a laptop. In the end, you have dogs. So if a product is having a low market share and low market growth rate, then that product will be categorized under the dog category. And you have to divest from these specific category. With the help of BCG model accompanying can easily prioritize in which product they wanted to invest their money, time, and effort. Now let's understand about all of these individual quadrant. Because if you look at a company like Apple, than they have multiple line of product and they wanted to put all those products into all of these different quadrant. So let's start off with star code red. So all the products that are there in this star quadrant, they are most profitable and they have a large market share. And therefore the company's advice to invest in these products so that they can generate massive amount of profit and they can prevent the star product becoming a cash cow product. Accompany need to heavily invest in these star product so that they can increase the market share. And a really good example of star product in reference to a company like Apple is iPhone. I'm an iPhone is the star product. The specific product has high market share and high market growth rate. So iPhone is the star product for Apple. Then similarly, you can look at the star product for different companies like Microsoft or maybe Adobe and all of these other companies. And I'm gonna give you assignment for that as well. Let's talk about the question mark quadrant. So all the products in the question mark quadrant hold a small market portion, but they have the potential to become a star product. And that's why company might be investing some amount of capital in these question mark product. A really good example in reference to Apple is MacBook. Currently, MacBook only holds around ten to 15% of market share, but they have the potential to become a star product. So if you look at MacBook as a product, MacBook holds just ten to 15% of market share, but that product have the potential to become a star product. You have to invest some capital into all the product that are there in the question mark quadrant. Then you have your cash cow quadrant. In cash cow quadrant you have all those products that are dominating a specific category or a specific domain. And they are generating good amount of profit. But that specific segment or category is not growing at the expected grade. As a company, you have to continue to invest in this specific product in order to melt the benefit from this specific category, then you have dogs. And in this quadrant you have all those product that neither dominate a specific market, nor they have the potential for a high growth rate product. And that's why it is in the organization's best interests to divest from these product in order to avoid misuse of companies. One. 26. Apple's BCG matrix: So now let's understand about BCG matrix by taking an example. And in this specific slide, I'll be taking an example of a company like Apple. And we'll be putting all the different products of Apple into all these different quadrant of a BCG matrix. Let's start with caution mock product. So caution my product have a lower market share and a high growth rate. So if you look at a product like apple Watch and MacBook, you will realize that these products have a small market share, but they are growing at a faster rate. And these are your question mark product. If you look at these star product like your iPhone or air pod or Final Cut Pro. These products have a high market share and they have a high growth rate. And the company have to put a ton of capital to make sure that they are innovating really fast in this product category. And these are all your star product. Then you have couple of products in the dark quadrant. And I guess I have some emotional feeling for this specific product for Apple. I mean, you can't really purchase it. Apple is not manufacturing this product anymore. But I hope you got the point. Then in the end you have some product in the cash cow quadrant. A product like iPad is a really good example of it, because this specific product have a high market share into the tablet category. But, but I guess this category is not growing at a good market growth rate. So that's why you can milk profit from this specific quadrant or all the product in this specific quadrant. Now I know some of you might be thinking that now we understand what exactly a BCG matrix is. But how do you exactly know where to invest or rare to divest? Because that was the core purpose of understanding about the BCG matrix. That in a company you have multiple strategic business unit. And you wanted to understand that in which strategic business unit you should invest or divest. So now that you understand everything about BCG matrix, you might be thinking, well, how do we exactly use this specific metrics? Well, in the starting of this video, we were discussing about strategic business unit and how as a company you will decide where exactly you should invest or divest. And that's why we are using a BCG matrix. So let's understand about the movement of your cashflow and desired movement of your focus as a company. So as you know that cash cow product have a low market growth rate, but they have a high market share. So all the profit that you are generating from your cash cow product, you have to invest that capital either into the product that are in the caution my quadrant or in the star quadrant. Also, you should try to move your question mark product. Because these products have a high growth rate and soon these product can become a market leader. So you have to focus on moving these product from your question mark quadrant two, this star quadrant. And you may have to make sure that these products have a high market growth rate as well as high market share. In the end, you have to divest yourself from all those product that has a low market share and low market growth rate. 27. Limitation of BCG matrix: So now that you understand everything about BCG matrix, let's talk about the limitations of BCG matrix. Bcg matrix is a framework for allocating resources among different business unit. And it makes it possible to compare multiple business units you have. But apart from that BCG matrix, also got couple of limitation and I think you should a bear about it. So BCG matrix classify your business as low and high. But generally if you look at businesses, they can be medium also. So BCG matrix may not reflect the true nature of your business. Also in BCG metrics are specific. Market is not clearly defined. I mean, when you are discussing about market share, are you talking about market share in a specific geography or in a specific category? So the market is not clearly defined in the BCG matrix. Also, if you have a high market share into a specific category, that doesn't mean that you can generate higher profit from that specific product. Because some of the product may have a high cost involved with a high market share. Maybe you might be boning a ton of capital into advertisement. In BCG matrix is not just limited to one single brand or one single product. You can put different product lines of different companies into BCG matrix. Also, if you look at growth rate and relative market share, They are not the only indicator of profitability. So this BCG model somehow ignores the overall indicator of profitability. Now if you look at the dogs quadrant, then many companies might think that we should divest from all of these strategic business unit or product line. But sometimes the product in this specific quadrant can help a business gain competitive advantage. And maybe they allow them to on even more cash than the cash cow quadrant. But in the end, the only reason why we are using BCG matrix is because it's very simple. It's a two-by-two matrix and it is super easy for a normal person to understand. Now if you want to get rid of a couple of limitations that BCG metrics have. In that case, you can try out the ADL metrics. I mean, let's say if as a business, if you have multiple product line and let's say as a business executive or as a business manager, if you are making a presentation where you want it to put all of your different product into a specific diagram or metrics. In that case, you can also use EDL metrics. So alien metrics will help you develop strategies that can be used to understand the competitive position of your product or service and the market share that you have. Or I would say, at which stage of your product lifecycle your product is right now. So an x-axis you have industries less market life cycle stage, and on y axis you have competitive influence or position. 28. Assignment - BCG matrix: Now I have a small assignment for you and I highly recommend you to complete this assignment by yourself. Because by completing these assignments, you can always test your knowledge and you can understand how much have you learned from this specific video. So you have to put multiple product of Adobe into these different quadrant in the BCG matrix. So you have to first figure out all the different products that Adobe have. And then you have to put all those different product into these multiple quadrant.