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ENT 4210 – meeting no. 2ENT 4210 – meeting no. 2

Agenda Introduction: industry/competitor analysis

(chs 3-4) Case presentations: focus, main challenges, and plan

(15 minutes per group)

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Marketing PlanMarketing Plan

A marketing plan is a written document containing the guidelines for the business center’s marketing programs and allocations over the planning period.

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Hierarchy of PlanningHierarchy of Planning

SBU Planning

Annual Marketing (Business) Plan

Corporate Strategic Planning

Group or Sector Planning

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Objectives of a Marketing PlanObjectives of a Marketing Plan

1. Define the current business situation.2. Define problems and opportunities facing the

business.3. Establish objectives.4. Define the strategies and programs necessary

to achieve the objectives.

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Objectives of a Marketing Plan cont.Objectives of a Marketing Plan cont.

5. Pinpoint responsibility for achieving product objectives.

6. Encourage careful and disciplined thinking.

7. Establish a customer/competitor orientation.

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Frequent Mistakes in the Planning ProcessFrequent Mistakes in the Planning Process

The speed of the Process The Amount of Data Collected Who does the Planning? The Structure Length of the Plan

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Frequent Mistakes in the Planning ProcessFrequent Mistakes in the Planning Process (cont)(cont)

Number of Courses of Action Considered Who Sees the Plan Not Using the Plan as a Sales Document Insufficient Senior Management Leadership Not Tying Compensation to Successful

Planning Efforts Frequency of Planning

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Marketing Planning SequenceMarketing Planning Sequence

Update historical data

Data analysis

Develop objectives, strategies, programs Develop

financial documents Negotiate

final plan Measure progress toward objectives Audit

Collect current situation data

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Marketing Plan SummaryMarketing Plan Summary

I. Executive summaryII. Situation analysis

A. Category/competitor definitionB. Category analysisC. Company and competitor analysisD. Customer analysisE. Planning assumptions

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Marketing Plan Summary cont.Marketing Plan Summary cont.

III. ObjectivesIV. Product/brand strategyV. Supporting marketing programsVI. Financial documentsVII. Monitors and controlsVIII. Contingency plans

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Bases of CompetitionBases of Competition

I. Customer-orientedWho they are – competition for same budgetWhen they use itWhy they use it- benefits sought

II. Marketing-oriented: advertising and promotion

Theme/copy strategyMediaDistributionPrice

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Bases of Competition cont.Bases of Competition cont.

III. Resource-orientedRaw materialsEmployeesFinancial resources

IV. Geographic

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Levels of CompetitionLevels of Competition

Diet lemon limes

Baseball cards

Fruit flavored

colas

Coffee

DietCoke

DietPepsi

Diet-Rite cola

Bottled water

Lemon limes

Regularcolas

Beers

Juices

Wine

Fast food

Tea

Video rentals

Icecream

Product form competition: Diet colas

Product category competition: Soft drinks

Generic competition: Beverages

Budget competition: Food and entertainment

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Energy Bar CompetitionEnergy Bar Competition

Odwalla Power Bar

Balance BarClif

Energy Bars

Snack/Health Bars

Healthy Snacks

Other Snacks

Nutrigrain Bars Slimfast Bars Granola Bars

FruitsNutsJuice

CrackersChipsCandy

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PDA CompetitionPDA Competition

Level of Competition

Definition Competitors Need Satisfied

Product form POAs Full-features Palm Pilot VIICompaq AeroCasioplus integrated communicationCassio Poeia

Personal information management plus

Product category PIMs Palm IIIRoyalCasio PV-100

PIM only

Generic computers Notebook/subnotebook

Paper-based solutions

IBMToshibaMany othersRolodexDay Timer

Other solutions to the above

Budget Business items costing $100-$1,000

Fax machinesPersonal copiersCellular phonesFurniture (e.g. Steelcase)

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Attractiveness of Market VariablesAttractiveness of Market Variables

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Category Attractiveness over Category Attractiveness over the Product Life Cyclethe Product Life Cycle

Stage of product life cycle

Category size

Category growth

Category attractiveness

Introduction

Small

Low

Low

Growth

Moderate

High

High

Maturity

Large

Low

Low/high

Decline

Moderate

Negative

Low

Sales

Time

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Category FactorsCategory Factors

Threat of new entrants Bargaining power of buyers Bargaining power of suppliers Current category rivalry Pressure from substitutes Category capacity

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Environmental FactorsEnvironmental Factors

Technological Political Economic Regulatory Social

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Typology of Technical DevelopmentsTypology of Technical Developments

Welfare

Diffusion

Innovation

Invention

Information

Materials

Transportation

Energy

Genetic*

Commercial

Defense

Tech

nolo

gyProcess

Impetus

* Includes agronomic and biomedical developments.

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Conceptualizing Political RisksConceptualizing Political Risks

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Projected Change in U.S. Population 1995-2005Projected Change in U.S. Population 1995-2005

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PDA: Category Attractiveness AnalysisPDA: Category Attractiveness Analysis

Aggregate Market Factors Attractivenes

sMarket Size •$2.3 billionMarket GrowthProduct Life Cycle

0%-40% ++

+GrowthProfitsSales Cyclicity

Goodone

Sales Seasonality

one

+/0

++

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PDA: Category Attractiveness AnalysisPDA: Category Attractiveness AnalysisCategory Factors Attractivenes

sThreat of New Entrants

•Moderate; R&D required, distribution

Bargaining Power of BuyersBargaining Power of Suppliers

Low, high switching costs +

0

0Moderate; PCs use similar components

Category RivalryPressure from Substitutes

IntenseHigh

Category Capacity

Not a problem for now

-

-

+

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PDA: Category Attractiveness AnalysisPDA: Category Attractiveness Analysis

Environmental Factors: Attractivenes

sTechnological •Very sensitive

Political/ Regulatory

Economic

Telecommunications deregulation

+

-

+Relatively inexpensive

Social More work done on the road

+

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Competitor Analysis SystemCompetitor Analysis System

What are they going to do?

Differential competitor advantage analysis i.e. Who has the competitive product advantage?

Key questions: - Who are they?- What are the

competing product features?

- What do they want?

- What is their current strategy?

Primary dataSecondary data

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Primary Sources of Competitor InformationPrimary Sources of Competitor Information

Sales Force

Investment Bankers

Suppliers

Customers

Employees

Consultants/ Specialized

Firms

PrimaryPrimaryDataData

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Secondary Sources of Competitor InformationSecondary Sources of Competitor Information

InternalSources Local

Newspapers

Annual Reports

PatentFilings

10Ks

BusinessPress

GovernmentElectronicDatabases

NewsReleases

TradeAssociations

PromotionalLiterature

Internet

Trade Press

Consultants

CustomerCommuni

cations

Secondary dataSecondary data

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Other Sources of Competitor InformationOther Sources of Competitor Information

Trade Shows

Help-Wanted Advertisements

Plant Tours

Reverse Engineering

Monitoring Test Markets

Hiring KeyEmployees

PrimaryData

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Sources with Ethical ConsiderationsSources with Ethical Considerations

Aerial reconnaissance Buying/stealing trash Bribing printers Running phony want ads Snooping on airplanes

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Assessing Competitors’ StrategiesAssessing Competitors’ Strategies

Marketing strategy Comparing value chains Marketing mix

Pricing Promotion Distribution Product/Service capabilities

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Criteria to Assess Technological StrategyCriteria to Assess Technological Strategy

1. Technology selection or specialization2. Level of competence3. Sources of capability: internal versus external4. R&D investment level5. Competitive timing: initiate versus respond6. R&D organization and policies

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Competitor Information to CollectCompetitor Information to Collect

Ability to conceive and design Ability to produce Ability to market Ability to finance Ability to manage

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PDA Product Features MatrixPDA Product Features Matrix

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Comparison of Competitor Resources: PDAsComparison of Competitor Resources: PDAs

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Comparison of Competitor Resources: PDAs (cont.)Comparison of Competitor Resources: PDAs (cont.)