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One in a series of articles for Ed News 2002 The intellectual
properties and
Peter Laurenson, NZIEMN Project Manager and strategic Marketing Consultant, MPWR methodologies contained
in this document are copy
write of MPWR (a
Demystifying strategic planning registered trademark of
VSP Associates Limited),
unless specifically s tated
Article 2 - How to do it otherwise. Duplication of
them is not permitted
without the express
permission of MPWR.
Introduction
In the last edition of Ed News, I explained what strategic planning is and why it’s so
important to do it properly. In this second article, I’ll begin to explain how to actually go about
strategic planning. Concepts like stakeholders, value chain, competitor analysis, the 4 Ps,
SWOT analysis and market position can all help to make strategic planning work for you –
to sort the relevant from the irrelevant and to help you to optimise your scarce resources.
Doing the leg work – situation analysis
Like any worthwhile pursuit, to get strategic planning done properly requires leg work. With
strategic planning, the starting point is what is often referred to as a “situation analysis”. And
a situation analysis is exactly what the name implies – a review of all the important factors
that make up the situation that you have to compete and operate within.
What are the important factors? If you think about all the things – specifically and generally -
that you need to consider if you want a clear picture of your situation, the list should include
the following:
• People and organisations that have some stake in your performance – central and local
bodies, your suppliers, your own staff, your agents, your support services and above all,
your customers. These are the “stakeholders” – all of whom sit somewhere in an inter-
related system. This system is known as a “value chain” when you look at it in terms of
who receives what from who. This is a very useful way to view things, because it focuses
you on what drives your stakeholders to do things. If you understand that, then you can
determine whether your part in this can be done better and also, whether some of your
stakeholders should be doing more for you.
• Competitors – those who operate in the same value chain as you. Where is it that they
are stronger and weaker than you? Of these strengths and weaknesses, which are most
important for you to accentuate or to be concerned about? What competitor trends can
you see emerging for the future?
• The general environment – economic, political and social trends at home and in your
markets that can have an impact on you.
Imagine how powerful this information can be, if you are able to assemble it in a clear,
readily interpretable way – turning your information into the knowledge you need to decide
what your vision should be, the goals that must be met along the way and what strategies
are required to do this.
The first step is to make sense of your information. This is where tools like the “4 Ps”, the
“SWOT analysis”, “category mapping”, and “brand positioning” come in.
MPWR (A trademark of VSP Associates Ltd) 3 Buchanan Street Wadestown Wellington New Zealand
P (64 4) 499 0197 F (64 4) 499 0196 M (64 25) 446 097 E info@mpwr.biz
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Making sense of lots of information
The 4 Ps
Most people have heard about the legendary “4 Ps”. Not everyone can recite what each P
stands for though. They stand for:
• Product – what your customers buy from you.
• Price – how much your customers pay for it and how that price is made up.
• Place – where and how your customers get hold of what you have to offer, ie the
distribution system.
• Promotion – how your customers hear about what you have to offer, ie the
communication system, which includes all forms of media, the internet and can include
your distribution system too.
The 4 P’s are another framework within which to view information. In a simplistic sense they
represent what is referred to as your “marketing mix” – all the elements you have to work
with to compete in your markets.
SWOT analysis
It might sound fancy, but SWOT simply stands for “Strengths, Weaknesses, Opportunities
and Threats”. It’s a very useful framework within which to hang your information, so that you
start to focus on the issues facing you – both good and bad.
Some people do more than one SWOT analysis in order to really harvest the knowledge from
their information. For example, you might do an internal SWOT and an external SWOT. If
you wish to really focus in on a particular competitor or market, you could do a SWOT
specifically for that. Some people do a SWOT for each of their 4 P’s.
In the end though, it’s vital that you bring your perspective right back up to the big picture
again - to your vision. I always try to end up with an overall SWOT so that I don’t get bogged
down and confused by too much detail. Good strategic planning is always set in an overall,
big picture context.
Category map
Sometimes, when you’re dealing with lots of information, it helps to try to boil it down to a
more visual expression. This is what a category map does.
A category maps depicts how you sit, relative to your competitors, on a conceptual map that
is defined by what you judge to be the main variables driving your market. It can be used, not
only to represent your current situation, but to plot where you would like to go in your market
in the future.
Brand positioning
Quite often, a category map doubles as a brand positioning map. That is because your
brand should reflect the sole of your organisation and the products and services it has to
offer.
Branding is a whole field of its own – a very important one, which I don’t intend to cover in
any detail now. Suffice to say, your brand is much, much more than your logo. Indeed, it’s
possible to have no overt logo, but still have a brand in many respects.
MPWR (A trademark of VSP Associates Ltd) 3 Buchanan Street Wadestown Wellington New Zealand
P (64 4) 499 0197 F (64 4) 499 0196 M (64 25) 446 097 E info@mpwr.biz
www.mpwr.biz
Page 3
In the context of strategic planning, what you must understand is your “brand positioning” –
where you (your organisation, products and services) sit in the hearts and minds of your
customers, relative to your competitors.
Category mapping Value chain mapping
Environment Value chain
• Economic • Customers
• Financial SWOT • Shareholders
• Political analysis • Mgt & staff
• Social • Suppliers
• Legal • Competitors
Customer needs
Vision Competitors
Your strengths
Goals
Strategies
Brand
Product
Marketing Price
mix Place
Promotion
By employing these tools, you will convert information into knowledge about your situation.
The next step is to translate your knowledge into intent and then action. I’ll cover this in the
third and final article of this series about strategic planning, in the next edition of Ed News.
MPWR (A trademark of VSP Associates Ltd) 3 Buchanan Street Wadestown Wellington New Zealand
P (64 4) 499 0197 F (64 4) 499 0196 M (64 25) 446 097 E info@mpwr.biz
www.mpwr.biz
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