Analysis for Marketing Planning Market Sensing: Industry Analysis Competitor Analysis.

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Analysis for Marketing Planning Market Sensing: Market Sensing: Industry Analysis Industry Analysis Competitor Analysis Competitor Analysis

Transcript of Analysis for Marketing Planning Market Sensing: Industry Analysis Competitor Analysis.

Page 1: Analysis for Marketing Planning Market Sensing: Industry Analysis Competitor Analysis.

Analysis for Marketing Planning

Market Sensing:Market Sensing:Industry AnalysisIndustry Analysis

Competitor AnalysisCompetitor Analysis

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What is Market Sensing?

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Industry Analysis

Why is industry analysis an essential Why is industry analysis an essential component of marketing planning?component of marketing planning?

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Market Attractiveness

Is the industry sufficiently attractive to Is the industry sufficiently attractive to warrant investment in it?warrant investment in it?

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What are the Bases for Industry Analysis?

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Attractiveness to Entrants

High Low

Market Factors

SizeGrowthStage in life cycleCyclicitySeasonalityMarket spendingProfitsFinancial ratios

Competitive Factors

ConcentrationPower of BuyersPower of SuppliersRivalryPressure from substitutesCapacity utilizationThreat of entry

LargeHighEarlyLowLowLowHighHigh

LowLowLowLowLowHighLow

SmallSlowLateHighHighHighLowLow

HighHighHighHighHighLowHigh

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Market Attractiveness_Business Position Matrix

MARKET ATTRACTIVENESS

High Medium Low

High 1 1 2

BUSINESSPOSITION Medium 1 2 3

Low 2 3 3

1. Invest/grow2. Selective investment3. Harvest/divest

Evaluating Business Position Evaluating Market Attractiveness• Size • Size• Growth • Growth• Share by segment • Customer satisfaction levels• Customer loyalty • Competition• Margins • Price levels• Distribution • Profitability• Technology skills • Technology• Patents • Governmental regulations• Marketing • Sensitivity to economic trends• Flexibility• Organization

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Competitor Analysis

Assess current objectivesAssess current objectives Assess current strategiesAssess current strategies Assess capabilitiesAssess capabilities Assess commitmentAssess commitment

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Ben & Jerry’s

“While we and others certainly would have pursued our mission as an independent enterprise, we hope that, as part of Unilever, Ben & Jerry’s will continue to expand its role in society,” co-founders Cohen and Jerry Greenfield said in a statement following the announcement that Unilever had bought Ben & Jerry's for $326 million.

Richard Goldstein, president of Unilever Foods North America, said he hopes the company will continue on its social mission. In fact, Ben & Jerry’s Cohen and Greenfield will serve as “caring capitalism” ambassadors, traveling to Unilever outposts worldwide and preaching the gospel of a “three-part mission” — social concerns, product quality and profits, said Ben & Jerry’s CEO Perry Odak. “Much of the success of the Ben & Jerry’s brand is based on its connections to basic human values, and it is our hope and expectation that Ben & Jerry’scontinues to engage in these critical, global economic and social missions,” Unilever’s Goldstein said.

How does Ben & Jerry’s mission fit with corporate objectives?

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Tools for Competitor Analysis

Competitive gridCompetitive gridCompares your firm and major Compares your firm and major

competitors on assets and skills most competitors on assets and skills most relevant to competitive strength.relevant to competitive strength.

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Competitive Grid of American and Japanese Luxury Cars in U.S. Market

American JapaneseCadillac Lincoln Lexus Acura Infiniti

Assets & SkillsKey for Success

New product capacityProduct qualityCost structureProduct differentiationDealer satisfactionMarket share

Secondary ImportanceFlexible productionFinancial capabilityQuality of managementBrand name recognitionQuality of service

Key: Strong Average WeakAbove Ave. Less than Ave.

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Competitive product analysisCompetitive product analysisCompares tactical strategies of Compares tactical strategies of

competitive brandscompetitive brands

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Competitor ACompetitor A

Brand 1…KBrand 1…Kaa

Competitor BCompetitor B

Brand 1…KBrand 1…Kaa

Your FirmYour Firm

Brand 1…KBrand 1…Kaa

Product:Product:

QualityQuality

Value ChainValue Chain

BenefitsBenefits

Target segment:Target segment:

WhoWho

WhereWhere

WhenWhen

WhyWhy

Place:Place:

Distribution methodDistribution method

Distribution coverageDistribution coverage

Promotion:Promotion:

Total effort ($)Total effort ($)

MethodsMethods

Advertising:Advertising:

Strategy/copyStrategy/copy

MediaMedia

TimingTiming

Total effort ($)Total effort ($)

Price:Price:

RetailRetail

To tradeTo trade

Technological strategyTechnological strategy

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Competitive capability assessmentCompetitive capability assessment

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Competing FirmCompeting Firm

A B C DA B C D

Your FirmYour Firm

Ability to conceive & designAbility to conceive & design

Technical & human resourcesTechnical & human resources

FundingFunding

Ability to produceAbility to produce

Physical & human resourcesPhysical & human resources

Ability to financeAbility to finance

Debt/liquidityDebt/liquidity

Cash flowCash flow

Budget systemBudget system

Ability to marketAbility to market

Sales forceSales force

DistributionDistribution

Service & sales policiesService & sales policies

AdvertisingAdvertising

Human resourcesHuman resources

FundingFunding

Ability to manageAbility to manage

Key peopleKey people

Decision processDecision process

PlanningPlanning

StaffingStaffing

Organization structureOrganization structure

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Expected competitive behavior/response Expected competitive behavior/response analysisanalysis

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Product Form CompetitorsProduct Form Competitors

A B C D EA B C D E

Product CategoryProduct Category

CompetitorsCompetitors

A B C D EA B C D E

ObjectiveObjective

StrategyStrategy

Mix elements:Mix elements:

ProductProduct

PricePrice

AdvertisingAdvertising

PromotionPromotion

DistributionDistribution

Environmental change:Environmental change:

Overall demandOverall demand

RegulatoryRegulatory

Competitive strategy change:Competitive strategy change:

1. (e.g., new product)1. (e.g., new product)

2. (e.g., price cut)2. (e.g., price cut)