If you attempt to position your business in this market segment, you are going to need a strong marketing team to give your brand the image and recognition that it needs to move product at such a high price point.
If you can manage to build a reputation for selling quality goods while also being among the low cost leaders in the segment, you will have a chance to grow customer loyalty and gain market share.
Subsequently, Kraft has formed a rainforest alliance to protect ecosystems and wildlife and honoured the commitments of Cadbury cocoa partnership and fair-trade Kraft, Low Price When a company wants to sell a high volume of a product for a low Bowmans clock disadvantages, this is the area of the market where they choose to compete.
This implies that customers may have gone to other distributors to buy Kraft products. CEO Irene Rosenfeld stated: This is a very short-term strategy as the opportunity to sell for a high price without justification seldom lasts long.
This Bowman identified as the hybrid strategy, which challenges Porters distinctive strategy and takes position 3 on the clock Johnson et al, High Price — Low Value This strategy is really only an option for those who have a monopoly in their market. Nonetheless it still helps managers understand their markets and make decisions over their positioning and competitive advantage Johnson et al, It also assists them to renew or refresh a strategy.
With this strategy, you are simply going to raise prices without changing anything about the quality of your product. Differentiation This part of the market is all about standing out from the crowd despite selling something that plenty of other businesses have to offer.
This clock provides 8 different competitive positions, three of which are destined to fail see diagram. This suggests Kraft is not on position 4 or 5 as the company are not targeting a niche market because it is selling to large supermarkets and therefore attracting a wide customer base see diagram.
Many business owners and managers fall into the trap of thinking that they can just roll out a great product or service and instantly have a successful business. This is only sustainable where the organization has a monopoly.
This involves an element of low price and some product differentiation. All eight are listed below, along with a short description.
Of course, in the long run, other competitors are sure to enter the market at a lower price and you will be forced to adjust. Thus Kraft has been successful in differentiating products in terms of its value from low cost brands such as Wal-Mart. While it helps to have something great to sell, you also need an overall strategy for your business to ensure that you are able to execute all parts of the operation efficiently.
This the strategy adopted by luxury brands, who aim to achieve premium prices by Bowmans clock disadvantages targeted segmentation, promotion and distribution. If you have entered a market niche that is light on competition, you may be able to charge high prices while offering a relatively low quality product.
Thus it appears that Kraft is on position 3 on the clock, which is the hybrid strategy. Recommended by Free Strategy Skills Resources See the full list of Strategy Skills eBooks, templates and checklists available for free download right now.Model explanation Bowman strategy is a competitive strategy.
Competitive strategies are tools that businesses use to achieve competitive advantages (Johnson et al. ). The Bowman’s clock strategy is a more sophisticated approach, which recognizes and deals with certain criticisms of Porter’s model (Tiwari, ).
Bowmans Strategy Clock. Chapter 6 Business Level Strategy Page – Bowman Strategy Clock Most Important. Sample Question: ← Identify strategic business units (SBUs) in organizations. ← Explain bases of achieving competitive advantage in terms of ‘routes’ on the strategy clock.
Bowman's Strategy Clock is a model used in marketing to analyse the competitive position of a company in comparison to the offerings of competitors. It was developed by Cliff Bowman and David Faulkner  as an elaboration of the. Apr 27, · This Bowman identified as the hybrid strategy, which challenges Porters distinctive strategy and takes position 3 on the clock (Johnson et al, ).
For an indication of Kraft’s position on the clock depends upon the customer perceived value. Bowman’s Strategy Clock is a model used in marketing to analyse the competitive position of a company in comparison to the offerings of competitors.
Differentiation, as contemplated by Bowman and Faulkner, is the same as under Porter’s Generic Strategies. By differentiating the product or service, the business is creating some unique form of value for the customer.Download