ba447 wk3 sit a compt cons co

8/8/2019 BA447 Wk3 Sit a Compt Cons Co

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Ba447

Situation Analysis :Competitors,Consumers &your Company


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The M ark eting Pl a nningp roc esses.

TargetTargetMarketMarket

Product Place

PromotionPrice


Product Place

PromotionPrice


Product Place

PromotionPrice

CC ompanyompany

CC onsumersonsumers

CC ompetitorsompetitors

CC onditionsonditionsPEST PEST

WM

WM

TGT

TGT

E

E

D

D

C

C N

N

G

G

F

F

Service

G rowth,G rowth,

CompetitiveCompetitive&&PositioningPositioningStrategiesStrategies


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Company

Company

Competitors

Competitors

Economic AnalysisEconomic Analysis(costs, profitability )

Customer AnalysisCustomer Analysis(volume, frequency,Loyalty)

Company AuditCompany Audit( Strength &, weaknesses,Resources, Culture,G oals)


Customer AnalysisCustomer Analysis(volume, frequency,Loyalty)

Company AuditCompany Audit( Strength &, weaknesses,Resources, Culture,G oals)

Consumers

Consumers

M arket StructureM arket Structure(Segments, size,growth rate)

ConsumerConsumerBehaviorBehavior(purchasingdeterminants &

patterns)



patterns)

Conditions

ConditionsPoliticalEconomicSocio-cultural

Technological

PoliticalEconomicSocio-cultural

Technological

IndustryIndustry

StructureStructureAnalysisAnalysis(entry/exitbarriers,buyers, sellers,substitutes)

Competitor Competitor ResponseResponseProfilesProfiles(capabilities,performance &strategies)

IndustryIndustry

StructureStructureAnalysisAnalysis(entry/exitbarriers,buyers, sellers,substitutes)

Competitor Competitor ResponseResponseProfilesProfiles(capabilities,performance &strategies)


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Indust ry news


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C om petiti o n Intelligen c e


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N a tu r e & M a gnitude of C om petiti o n


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C om petit or s M ark eting St ra teg y


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Consumer Research


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Lax Natarajan & Sully RomeroOrdonez12

CompanyCompany

CompetitorsCompetitors

ConsumersConsumers



patterns)



patterns)

ConditionsConditions


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Consumers differ cross-nationally & by segment in terms of:

Toothpaste size,deliverysystem & texture prefsNeeds trying to satisfy -(prevention of cavities,whiter teeth, good taste) Price sensitivityPreferred store /distribution outlet

Customers are more likely to purchasebrand they know, meets their needs & canfind in preferred store.


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B A 447 International M arketing

Product-Segment

Benefit-Segment

Consumer -Segment

Basic/Economy

DecayPrevention

Families w/Kids

White Sex Appeal Young Singles

Tarter Control Health Middle Age

Flavor Taste Kids

S im. S egmentsS im. S egments


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SensorySegment

SociableSegment

WorrierSegment

IndependentSegment

F lavor & product appearance

Principal benefit

sought

Brightest of teeth Price

Decay prevention

ChildrenDemographic strengths

Teens, young people

Men

LargeFamilies

Users of spearmint-flavoredtoothpaste

Special behavioral

characteristics

Smokers Heavy usersHeavy users

SOURCE: Adapted from R ussell I. Haley, Benefit S egmentation : A Decision- O riented R esearch Tool, Journal of Marketing , July 1968, pp.30-35.

(continued)

Figure 5-3

ColgateBrandsfavored

M acleans,Ultra Brite

Cheapestbrand

Crest

Hedonis tLifestylecharacteristic Active

Value-oriented

Conservative


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Select the country youwant to analyze(V enezuela is used here)Click on ConsumersT here are four types of consumer research:


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There are four types of retailstores in LA: S hopping Habits

E .g., 46% of all Younger consumers shop inT raditional stores ( 5 4%

shop somewhere else)T hus if you want totarget Younger customers in V E N,selling only inT raditional stores will limit your sales potential to 46% of thisgroup.

E ach column shows what % of each demographic shops in eachtype -retail, -- sums to 100%


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-- shows how much weight consumers place on:

PriceE ffectiveness ( benefit or type of toothpaste)Size

V ehicle ( paste, gel)Delivery ( tube, pump)

U se the XSection button to studyspecific customer segments


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D ecision Criteria -Xsection

You can click on any combination of demographic and benefit segments


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T hey very much prefer small sizes

T his segment represents 8.4%of the V E N population, and buys10.6% of all toothpasteE ffectiveness ( whiteningtoothpaste) and size are very important to this segment

They prefer tubesand gels


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B rand Awareness

53% of this segment areaware of Local 1( compared to 55 % of all V E N consumers)

22% of this segment areaware of Regional 1( compared to 27% of all V E N consumers )T

hey are not at all awareof Local 2


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Brands Purchased

72% buy Local 1toothpaste28% buy Regional 1

toothpaste


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Competition Position

Local 2 has 100% market share of W hite toothpaste that is, of all toothpaste labeled as offering whitening benefits ,Local 2 has 100% share

W hy does Local 2 have 100% W hite share, but the YoungW hite segment buys Local & Regional 1 - not Local 2 (?


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Competition B rand Formulations

Local 2 is the only company that sells W hite toothpaste ( but offers no small sizes)Local 1 & Regional 1 sell E conomy & Healthy ( including somesmall sizes)

W hy are Young W hite consumers not buying Local 2s W hitetoothpaste ? W hy are Young W hite consumers buying toothpaste they really dont want ( i.e., something other than W hite)?


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Competitive Analysis Why Younger WhiteConsumers Are Not B uying Local 2

Check their advertising no awareness! Check their Distribution Coverage are they sellingwhere Younger consumers shop ? Do they have SalesF orce allocated to the right channels ? Check their Pricing consumers are willing to pay moreget what they want D o any of the available formulations reallygive this segment what they want?Can AllStar Brands do a better job targeting Younger W hite consumers than current competitors ? If so,develop a strategy to do so!


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F ind the whole in the market-unoccupied positions &/or unmet tastes/needs that areimportant to profitableconsumer segments

Cherchez Le Creneau!


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CompanyCompany

CompetitorsCompetitors


Customer AnalysisCustomer Analysis

(volume, frequency,Loyalty)

Company AuditCompany Audit( Strength &, weaknesses,Resources, Culture,G

oals)


Customer AnalysisCustomer Analysis

(volume, frequency,Loyalty)

Company AuditCompany Audit( Strength &, weaknesses,Resources, Culture,G

oals)

ConsumersConsumers

ConditionsConditions


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February 08, 2005 Lax Natarajan & S ully R omeroO rdonez

28

Exporter

M ulti-National

Trans-National

Global

Evolution of the International FirmEvolution of the International Firm


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Mindless App roac h t o Inte r n a tio n a l Mark ets

M ake no specialM ake no specialprovisionsprovisions

DomesticDomestic- -ExtensionExtension

E xportingE xporting


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M ultinational corporations ( M NCs)C ompanies that maintain significant operations intwo or more countries simultaneously but are basedin one home country

Adapt to localAdapt to localconditions in eachconditions in each

foreign marketforeign market

M ultiM ulti--DomesticDomesticapproachapproach

Inte r n a tio n a l Mark eting

T ransnational ( T NC)corporation

A company that maintains significant

operations in more thanone country

simultaneously and decentralizes decision

making in each operationto the local countr


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Company takes an integrated approach across countries& regions -- M anages for worldwide businessleverage & competitive advantage

L everageL everageCommonalities intoCommonalities intoa global strategya global strategy

(but where necessary(but where necessary- -allow for localallow for local

implementation)implementation)Global (Glocal)Global (Glocal)M arketingM arketing

G loba l Mark eting

Is a M ind-set of how toapproach Intl M arkets

Not a matter of how bigcompany is

Or- whether or not have a global product

Or- how many countiesyou operate in


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G lobal M arketing Strategy DriversG lobal M arketing Strategy Drivers

C ommon customer needsGlobal customersGlobal Distribution &

C ommunication channels


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The G lobal

Village

The G lobalEconomy

The G lobalCorporation

G lobal M arketingStrategy


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The Global C orporationThe Global C orporation

G lobal VisionG lobal LeverageG lobal S ourcing

G lobal CompetitiveMoves

G lobal Partnerships


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The Global C orporationThe Global C orporation

G lobal VisionG lobal LeverageG lobal S ourcing

G lobal CompetitiveMoves

G lobal Partnerships


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The Global C orporation- A GlobalMindset

The Global C orporation- A GlobalMindset

Global IdentityS ingle C orporate

LanguageGlobal E thical S tandardsMulti-C ountry C areers

C ross- C ultural TrainingC ross Nationalemployment .. especiallymanagement at all levels


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Core Concepts & Values

Country

A

Country

B

Country

C

Country

D

Develop CoreB usiness Strategy

Translate/Executestrategy in selectedcountries..

Integrate &

leverage globalassets

& alliances

Global Marketing E volutionGlobal Marketing E volution


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Requisite Global M arketer Expertise

Cross-Border

TransactionsKnowledge

Country/ MarketKnowledge

Cross-CulturalKnowledge


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COUNTRY / M ARKET KNOWLED G ECOUNTRY / M ARKET KNOWLED G E

Research & IntelligenceG lobal M arketing Opportunity &

Target M arket AssessmentM arket Entry Planning & Strategy

Risk

Return/Control

ExportL icensing

ContractM anu-facturing

JointVenture

DirectInvest-ment


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CROSS-BORDER TRANSACTIONS NOWLED G E

CROSS-BORDER TRANSACTIONS NOWLED G E

Standards, Regulations & ProductLiability

Currency Risk/ Pricing/ G etting PaidRisk to Exporter

L east Risk Highest Risk

Confirmed Irrevocable Bank Bank Cash in Irrevocable Letter of Collection Collection Open

Advance Letter of Credit Credit Sight Draft Time Draft Account

Cost to B uyer

Highest Cost L east Cost


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CROSS CULTURAL KNOWLED G ECROSS CULTURAL KNOWLED G E

Cross-Cultural

NegotiationSkills

SocialResponsibility

&Government

Relations

Cross-Cultural

U nderstanding,Sensitivity

L anguageProficiency


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GLOB AL IZATI O N

G lobalization in PracticeG lobalization in Practice

Stages of Corp-Globalization :

1. Export Only2. Establish Foreign-Branches3. Re-locate Production

4. Corp. Cloning & Insider-ization5. The Complete Global Corporation

Stages of Corp-Globalization :

1. Export Only2. Establish Foreign-Branches3. Re-locate Production

4. Corp. Cloning & Insider-ization5. The Complete Global Corporation

ba447 wk3 sit a compt cons co

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