category,competitor,customer analysis

8/22/2019 .Category,Competitor,Customer Analysis

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CATEGORY, COMPETITOR &

CUSTOMER ANALYSIS


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1. Category Attractiveness

Analysis


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Deciding Factors1. Market Size Estimation

Industry Potential

Market Potential Company Potential

2. Aggregate Market factors

3. Category Factors

4. Environmental Factors


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1.Market Size Estimation

Unrealized

Potential

Company

Sales

Forecast

Industry

Sales

Forecast

Market Potential

Estimate


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0

100

200

300400

500

600

700

800

900

Sales (in 1000s

of units)

2003 2004 2005 2006 2007 2008 2009 2010

Market

Potential

Sales Forecast

Company XYZ

Sales Forecast

Market Size Estimation


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2.Aggregate Market Factors Industry size, growth, and composition

Typical marketing practices

Industry changes that are anticipated -consolidation trends, mergers, takeovers

Industry strengths and weaknesses

Strategic alliances among competitors


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2.Aggregate Market Factors Market Sizerefers to the BCG matrix

Market Growth - refers to the BCG matrix

Stage in PLC

Sales Cyclicityproducts tied closely to thebusiness cycle- financial services, agriculture, realestate, automobiles etc.

Seasonalityconsumption skewed in certain time ofthe yearfestivals, summers, wedding season etc

Profits


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3.Category 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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Threat of new entrants Economies of scale

Product differentiation

Capital Requirements

Switching costs

Distribution channels


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4.Environmental Factors Political

Economic

Social

Technological

Regulatory/Legal


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Category Rivalry

Many & Balanced competitors- fast-food,

automobiles, Personal computers

Slow Growthmature markets High Fixed costs- automobiles, chemicals,

telecommunications- high exit barriershigh

competition Lack of product differentiationindustrial

marketsintense competition


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2.Competitor

Attractiveness Analysis


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DEFINING & ANALYZING COMPETITORS

1.Define Product-Market Boundaries and Structures

2.Identify and Describe End-Users

3.Analyze Industry & Value Added Chain

4.Evaluate Key Competitors

5.Forecast Market Size & Growth Trends


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ProductMarket Boundaries &

Structure Determining Product-Market Structure

1. Start with the generic need satisfied by theproduct category of interest to management

2. Identify the product categories (types) that

can satisfy the generic need3. Form the specific productmarkets within

the generic productmarket


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Matching Needs with Product Benefits

A productmarket matches people with

needs to the product benefits that satisfy those

needs

A product market is the set of products judged

to be substitutes within those usage situations

in which similar patterns of benefits are

sought by groups of customers.


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SUPER

MARKETS

MICROWAVE

OVENS

CONVENIENCE

STORES

TRADITIONAL

RESTAURANTS

Illustrative Fast-Food

Product-Market Structure

FAST-FOOD

MARKET


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Illustrative ProductMarket Structure

Generic ProductClass

Product Type

Variant A

RegularVariant B

Brands

Food and beverages

for breakfast meal

Cereals

Ready to eat

NaturalPre-sweetened

Life

Nutritional

Special KProduct 19


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3. Analyze Industry & Value Added

Chain Extent of Market ComplexityThree

characteristics of markets:

1. Functions or Uses of the product

2. Enabling technology of the product

3. Customer segments in the product-market


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Analyzing Competition1. Define the Competitive

Arena for the Generic,Specific, and Variant

Product Markets

2. Identify &Describe Key

Competitors

4. Identify &Evaluate

Potential

Competitors

3. Evaluate KeyCompetitors

PRODUCTMARKET

STRUCTURE

&

MARKET

SEGMENTS


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Extent of Market Coverage

Customer

Satisfaction

Current

Capabilities

Past

Performance

CompetitorEvaluation


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4. Analyze Key Competitor

Business scope and objectives

Management experience, capabilities, andweaknesses

Market position and trends

Market target(s) and customer base

Marketing program positioning strategy

Financial, technical, and operating capabilities Key competitive advantages - access to resources,

patents etc.


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Competitor Analysis System

Analysis of Primary & Secondary data

Comparing Market strategies of competition -

Key questions - Who are they

What are their competing product features

Whatis their current strategy

Differential competitor advantage analysis-who has the competitive product advantage


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Comparing Market strategies

Value chains

Marketing Mix

Technology Strategy

Technology selection/specialization

R&D investments

Level of competence

Competitive timing- initiates or responds


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Product Features!!

Identify parallel needscoffee in an

environment, McDonalds in Beijing

Identify Purchase Patternsseasonality How customers use the productPepsi in

PET bottles

Identify customer perception of riskCitibank credit cards for students, internet

shopping with cash on delivery


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Competitors Will

How critical/crucial is this product to the

firm?

How visible is the commitment to the market? How aggressive are the managers?


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3.Customer Analysis


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Identifying andDescribing Buyers

HowBuyersMakeChoices

BuildingCustomerProfiles

EnvironmentalInfluences

DESCRIBING& ANALYZING

END-USERS


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Identifying and Describing End-Users

Buyer characteristics in consumer markets: Family size,

Age,

Income,

Geographical location,

Gender

Occupation

Buyer factors in business markets: Type of industry

Type of products

Company size

Location


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How Buyers Make Choices

Buying Decision Process

1. Problem recognition

2. Information search

3. Alternative evaluation

4. Purchase decision

5. Post-purchase behavior


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Environmental Influences

External factors influencing buyers needs

and wants:

Government, social change, economicshifts, technology etc.

These factors are often non-controllable

but can have a major impact on purchasingdecisions


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Building Customer Profiles

Start with generic productmarket

Move next to product- type and variant

profiles >> increasinglymore

specific

Customer profiles guide decision makingsegmenting, targeting, positioning etc.


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Current & Potential Customers

Who buys & uses the product- Initiator

Influencer

Decider Purchaser

User

What customers buy &how they use it

Benefits Purchase pattern

Product Assortment

Use


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Where Customers buy - channels

When Customers buyusage patterns

How Customers choose Consideration set

Steps in buyer behavior - attributes, perceptions

Why they prefer a productcustomer lifetime value


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Customer Value of a Brand

Importance of Usage situations

Effectiveness of product category in the

situation Relative effectiveness of the brand in the

situation


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Sources ofCustomer Value

Economic

Functional

Psychological


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How they respond to marketing programs?

Will they but it againSatisfaction

Satisfaction depends on- Expectations of performance/quality

Perceived performance/quality

Gap betweenexpectations & performance

category,competitor,customer analysis

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