Understand the business

Understand Competitor
products and services

Understand target customers

for above
StonePoint ltd - do you know the following?

Products

Differences between
this and competitors?
Services

Price

Value
Proposition

Target
customers
 Do you know their competitor’s:

Products

Target
Services
Customer

Value
Prices
Proposition
 Suggestion

Produce a
customer Produce a
position map competitor
position map

Helps to compare Identify similarities and Identifies potential Identifies customer

competitors differences market gaps differences
 Look for:
Competitor Mapping: • Differences and similarities
First steps
•Identify the competition
•Define what their products and • Consider potential ways to segment
services are
•Who are the direct competitors?
– remember not all products and
•Who are the indirect competitors? services are the same!
•Are there any potential new
competitors?

• Build a grid which ‘maps’ the

competitors by appropriate
‘dimensions’
 Example Competitor
map – carbonated soft
drinks

Note the
dimensions. You
work out what
are the key
dimensions that
they are
competing on
(add a little
more
explanation)
It may be possible to add customers to this
Customers
Customer segmentation is done by
many dimensions:

Simplify it – What are their needs?

What are they seeking for in the

product
Value Proposition
This identifies ‘how’ the company meets the needs of the customer.
Ideally this makes it different or superior than competitors

J Magretta 2012