Chapter 4: Competitor Analysis

What are they going to do?

Advanced Marketing BiMBA 2006

Competitor Analysis System

1. Gather secondary data 2. Gather primary data 3. Answer key questions
 

What are their product/service features? What are their objectives / strategy?

4. Determine who has competitive edge 5. Figure what they are going to do
Advanced Marketing BiMBA 2006

Secondary data
Internal sources Internet Sales literature Local newspapers Business press Consultants

Advanced Marketing BiMBA 2006

Primary data
Sales people Employees
 

mystery shoppers Accountants, lawyers, printers, etc.

Suppliers Consultants Investment bankers Help-wanted ads Trade shows Reverse engineering / benchmarking
Advanced Marketing BiMBA 2006

Comparing Product Features

Length Tour A Tour B Tour C 7 days 10 days 13 days Meals all breakfast breakfast & lunch Transportation bus bus & train air and bus Price $3,450 $2,900 $5,500

Advanced Marketing BiMBA 2006

Comparative size & growth (BCG)

Growth of industry

Company B Company C

Company D Company A Company E

Advanced Marketing Comparative market share BiMBA 2006

= sales

Determining Objectives
Objective Company A* Company B Company C** Harvest Hold Growth Implication increase price, decrease promos maintain price and promos cut price, increase promos increase distribution

*Company appears to be short of cash **Short-term loss does not appear to be a concern

Advanced Marketing BiMBA 2006

Determining Core Strategy

Company A Company B Company C Target Market teenagers young adults teenagers Core Strategy high status & high price comfort, fit, service & high price high style & low price

Advanced Marketing BiMBA 2006

Determining Value Chain

Inbound Operations Outbound Marketing Service Company A Company B Company C + 0 + 0 + 0 + 0 + + 0 + + -

Advanced Marketing BiMBA 2006

Determining the Marketing Mix

Company A Product hi quality Price hi price Promotion extensive TV, net limited TV, hi net heavy net promos Distribution specialty stores specialty stores mass market

Company B

hi quality hi service lo quality lo service

medium price lo price

Company C

Advanced Marketing BiMBA 2006

Alternative Marketing Mix Analysis

Company A Product: quality, value chain, benefits Target Segment: who, where when, why Place: distribution method and coverage Promotion: cost and method Advertising: strategy, media, timing & cost Price: retail, trade Company B Company C

Advanced Marketing BiMBA 2006

Differential Advantage Analysis

Ability to Company A, etc..US Conceive / design technical resources human resources Produce physical resources human resources Market sales force distribution system service and sale policy advertising Ability to Company A, etc..US Finance debt liquidity cash flow Manage human resources decision process planning

Advanced Marketing BiMBA 2006

Critical Success Factors Comparison

Critical Success Company A Factors 1. hot design 2. Internet hype 3. trained sales reps 4. liberal return policy 5. mass distribution Overall rating (1 = low, 10= high) Company B Company C US

Advanced Marketing BiMBA 2006

Assessing Competitors Will

How crucial is this product to the firm? Company A very Company B not very none somewhat Company C very none very

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

Advanced Marketing BiMBA 2006

What now?
What will be competitors strategies? 1. continue as is 2. change due to
    

Changes in marketplace Changes in management Changes in financial goals Management judgment Simulation

How to determine new direction? What will be competitors reaction to our strategy?
Advanced Marketing BiMBA 2006