2. The strategy of defending the business (upper right segment of BCG-Martix) is chosen when the relevant business dynamics in the territory is growing or standing still while our market share is high. In such circumstances our business objective is to aim the necessary promotional resources at active defense of the gained market share against our competitors. The strategy of defending our business means a certain limitation of individual calls to high potential customers with high loyalty to our products in favor of group promotional activities: medical conferences, round table discussions and group presentations. The average balance between individual contacts and participation of customers in group promotional activities does not exceed 2+3 per promotional cycle (three months).

3. The strategy of supporting the business (the low right segment of the BCG-Matrix) is chosen when the relevant business dynamics in the territory is standing still or falling (below country level) while our market share is still high. In such circumstances our business objective is to aim the necessary promotional resources at the defense of the gained market share against our competitors. But unlike previous strategy (=defending business) the strategy of supporting business means even bigger limitation of individual calls to high potential customers with high loyalty to our products in favor of group promotional activities: medical conferences, round table discussions and group presentations. The average balance between individual contacts and participation of customers in group promotional activities does not exceed 1—2+3 per promotional cycle (three months).

4. The strategy of presence in the territory (low left segment of BCG-Matris) is usually chosen when the relevant market in the territory stagnates or is falling while our market share is low. Under these circumstances the investment of significant resources in the territory in terms of return of investment (ROI indicator) is not justified. The objective of this strategy is to limit the promotional resources to a reasonable minimum of less expensive promotional activities to ensure high coverage. When business environment in the territory changes, for example it starts to grow up the business strategy changes accordingly, for example from presence to driving the business. Thus following the strategy of presence the MRs and KAMs call on customers with low coverage and frequency and concentrate their attention to group activities to detail the company products. The average balance between individual contacts and participation of customers in group promotional activities is close to 1+1 or even 0+1.

Sometimes when the regional manager is short of promotional resources and the relevant business dynamics is falling down the company is forced to implement the strategy of withdrawal when MRs and KAMs have to stop calling on potential customers (even A and B categories).

Now when we understand the main business strategies and their objectives and we are fully ready to analyze some particular territory/city business potential. In order to do it let us place some territories/cities business indicators given in the table below into the BCG – Matrix.

Please be ready to analyze business potential of every city in the BCG-Matrix and give your arguments and proofs presenting their business strategies.

When the strategy for a territory is determined a regional manager can set a business objective for this territory for the next year or promotional cycle. Business objectives are usually set in terms of market share (in percent) and in sales volume (in money/packages).