Market

Six steps of analysing competiton

Defining the competitive arena in the marketCompetitor analysis begins by identifying the

industryIn the industry there could be direct ,

indirect, actual and potential competitors

Generic competitionproducts which are all different in type but

are capable of satisfying the same basic want of the prospective purchaser, for example, the consumer may want to quench his thirst Anything that he would buy to quench his thirst would be a product in the generic category

Brand competitionCompetition occurs among the same

product types that could satisfy the need of the consumer almost in the same manner.

Example: Consumer who wants to buy a soft drink will choose anything in that category

Varient CompetitonCompetition among the product variants

are the products that can satisfy the need of the consumer when he opts to purchase a separate variant of the product

Eg. Consumer who opts to drink a soft drink to quench his thirst may select

A cola variant, Fruit Juice variant, Artificial Flavour variant of the soft drink category.

Geographic Competition

Any of the above competitors may be found in the geographic locations of the company may operate.

You need to do find specific information from the geographic locations to assess this category of competition.

This competition would differ from the overall / general competition

Industry structure and characteristicsIndustry Form- Monopoly, Oligopoly,

pure competitionIndustry environment- Emerging,

Fragmented, Transitional (mature), Declining, Global

( somewhat related to PLC)Competitive Forces- Brand rivalry,

threat of new entrance, threat of substitutes, bargaining power of suppliers, bargaining power of buyers

Strategic Group AnalysisStrategic group is the set of firms in an

industry that use common strategies in the competitive environment

It could be analysed on product specialization, brand image, distribution, technological, vertical and horizontal integration, cost advantage, price, financial status etc

Eg: Pesi ,Coke and Elephnat House . Mobitel ,Dailog and Etisalt, Nissan, Toyota and Ford

These groupings make competitor analysis more feasible and usable

Identifying, describing and evaluating competitorsStrategic Group analysis helps identify the key competitors in an industry

Key competitor is a firm that goes after the same target market that the company is going to play

It is very important to get more details as much as possible about the key competitors

• Evaluating key competitors• Current capabilities, extent of market

coverage, customer satisfaction provided, past performances , their products, their pricing, positioning, distribution and promotional activities etc.

• Now refer to the Marketing Plan Format you are using and find out the information that you should write.