Competitor analysis• A systematic attempt to identify and

understand key elements of a competitor’s strategy in terms of objectives, strategies, resource allocation and implementation through the marketing mix.

Organization’s Competitive Analysis

1. Who are our competitors?

2. How can our competitors be grouped meaningfully?

3. What are our competitors’ strengths and weaknesses?

4. What are our competitors’ objectives and strategies?

5. How are our competitors likely to react to changes in

the marketing environment?

MARKET ANALYSIS

COMPETITOR ANALYSIS

Identify Industry Forces

Broad trends, Threats and opportunities

Identify & Classify

Competitors

Form, Industry, Brand

Tracking Competitors

Their strategies and objectives for competitive

co-operation

Digging Competitors

strength

MARKET ANALYSIS

COMPETITOR ANALYSISIdentify & Classify Competitors - Form, Industry, Brand

Generic need

Broad Industry need

Industry specific need

Niche

Form competition

Industry competition

Brand competition

Passenger Transportation

Passenger car

Passenger small car

Santro – tall boy style Wagon R - (Negligible comp)

MARKET ANALYSIS

COMPETITOR ANALYSISTracking Competitors

Their strategies and objectives for competitive co-operation

Benefit

Medical

Cosmetic

Price

Low High

Promise, Babool, Neem

Meswak, Colgate Total, Pepsodent-G, Colgate Calciguard, Colgate Herbal, Datun

VACANT

Pepsodent 2 in 1, Close-up, Colgate Fresh mint, Aquafresh

MARKET ANALYSIS

COMPETITOR ANALYSISDigging Competitors relative strength & Weakness

R&D

Production

Management

External relations

Marketing efforts

Performance

Position

Customer awareness

Product Qlty

Product availability

Technical Asst

Selling stafff

A E E P P G

B B G E G E

C F P G F F

E = Excellent, G - Good, F = Fair, P = Poor

MARKET ANALYSIS

COMPETITOR ANALYSIS

Monitor 3 variables

Share of market

– Target market share

Share of mind

- “Name the first company that comes to mind in this industry”

Share of heart

– “ Name of company from which you would prefer to buy the product”

MARKET ANALYSIS

COMPETITOR ANALYSISHypothetical market structure

Market leader 40%

Market challenger 30%

Market follower 20%

Market nicher 10%

Competitor identification- Who are our competitors?

• Similar specific-same product, technology and target market

• Eg Coke vs Pepsi, HP vs Compaq,

• Similar general-same product area, but different segments

• Eg Baskin Robbins vs. Kwality, SUVs vs Compact Cars

• Different specific-same need satisfied by different means

• Eg Rajdhani Express vs. Low Cost Airlines,

• Different general-competing for discretionary spend

• Eg holiday vs. new car

2. How can our competitors be grouped meaningfully?

3. What are competitive strengths and weaknesses

• Requires use of various information sources.

• Consider in terms of critical success factors:

• e.g. manufacturing, technical and financial strength, relationships with supplier and customer, its market and segment, product range, its volume, cash and profits etc.

• Information can be used to plan and launch attack.

4. What are our competitors’ objectives and strategies?

• Objectives related to

– cash generation

– market share

– technological leadership

– quality recognition

• Find clues in product portfolio.

• Strategy - related to its positioning, marketing mix etc

5. How are our competitors likely to react to changes in the marketing environment?

• Learn by experience

• Not easy to predict its reaction due to: its cost

structures, relative market positions, product

life cycle, industrial position etc.

Useful information about competitors

Table 20.2Source: Wilson et al. (1992).