Industry and Marketplace Analysis

Business Plan PreparationBusiness Practice Firm

Pascack Valley High School

Agenda

Industry and marketplace analysis

Industry analysis

Marketplace analysis

Customer analysis

Competitor analysis

Product/service description

Industry and Marketplace Analysis

Overview of industry and marketplace

Trends, dynamics, problems, opportunities

Demonstrate need or hole in marketplace

Show how trends lead inevitably to your concept

Tone of dispassionate analysis

Arms-length viewpoint, outsider looking in

Not the place to describe your concept or firm

This is not where you present your market strategy

Conceptual Picture

Your Industry

Your Marketplace

BuyersSellersYouX

Save forMarketing Plan

-- Industry analysis

Overview of industry organization

Pure competition, oligopoly, …

Focus on major and important trends

Identify disruptive technologies (if any)

Porter analysis is a good exercise

May or may not include in plan

Porter Analysis

Power ofSuppliers

Power ofCustomers

Ease ofSubstitution

Barriers toEntry

IndustryIndustryRivalry

Industry Questions How do we define our industry?

How is the industry segmented?

What are current trends and important developments?

Who are the largest and most important players?

What problems is the industry experiencing?

What national and int’l events influence our industry?

What are growth forecasts?

-- Marketplace Analysis Define and describe your marketplace

Niche, geographic area, subset of larger industry

What’s happening in your market?

Network! – talk with the marketplace

Customers, competitors, vendors, suppliers, salespeople, …

Chambers of commerce

Industry trade groups

Marketplace Questions How do we define our marketplace?

How large is it and how fast is it growing?

How is our marketplace segmented?

What companies currently service this market?

What trends are important in our marketplace?

-- Customer Analysis

Identify current buyers in your marketplace

Segment these customers

What “problems” are not being solved?

What needs are not being met?

Which customer segments are currently ignored?

Talk with current buyers!

Customer Questions Who are the traditional customers in this market?

How is the market segmented?

What motivates buying decisions?

What channels of distribution are used? What channels are being ignored

In what ways are customers dissatisfied with current offerings in the marketplace?

What customer needs are currently unmet by the market?

What emerging customer groups are being ignored?

-- Competitor Analysis Identify current sellers in your marketplace

Niche and focus

Target customers

Strengths and weaknesses

Talk with current marketplace sellers!

Sellers themselves

Vendors

Customers

Competitive Matrix Comparison

Competitive MatrixCompetitive Matrix Chart

Product or Service

Production/ Quality

UniqueFeatures

DistributionSystem

Marketing /Advertising

GeographicLocation

Strengths &Weaknesse

MarketShare

Competitor A

Competitor B

Competitor C

Competitor D

Competitor E

Competitor F

Competitor Questions Who are current sellers in the marketplace?

What are the attributes and characteristics of these sellers and their products/services?

What is there size, location, target market, and other important characteristics?

For their products or services, identify price, quality, features, distribution, and other important attributes.

What problems and concerns to customers have with these sellers?

Product/Service Description Introduction

Description What is your product or service? Describe carefully.

Market comparison Why is our product or service unique or better?

What problems does it solve for customers?

Proprietary rights (if any)

Stage of development (brief)

Use this section to sell your concept

Product/Service Summary

Introduction Write an evocative paragraph that attractively presents your product or

service

Entering Hill’s Kitchen, customers are engulfed by the aroma of warm, hearty soups and freshly baked breads. They relax to music and peruse our menu of original gourmet recipes and freshly baked breads. A friendly and knowledgeable kitchen staff person greets them at the counter to offer suggestions and health information, and to take their order. Within moments the customer is served a generous portion of hot, hearty, and delicious Hill’s Kitchen soup. Accompanying the soup is a large slice of freshly baked bread and a fresh fruit choice, all of which can be carried out or enjoyed in our clean and comfortable dining area. In just those few brief moments, Hill’s Kitchen has served another healthy and delicious meal, and satisfied yet another customer.

Differences between Servicesand Products

1. Products are generally tangible, services intangible

2. Services are created and delivered at the same time

3. Services cannot be inventoried

4. Services are highly visible to consumers

5. Some services have low barriers to entry and exit

6. Location is often important to service design, with convenience as a major factor

7. Service systems range from those with little or no customer contact to those that have a very high degree of customer contact

8. Demand variability alternately creates waiting lines or idle service resources

Differentiation Road Map

•Core Benefits

•Tangible Benefits•Augmented Benefits

•Communications

• What’s it for?• What’s it do?

• Delivery• Warranty• Installation• Time of sale• Service• After sales• Special terms• Usergroups• Design help

• Features• Packaging• Quality• Color• Size• Style• Options• Timeliness• Customize

• Brand• Trademark• Bundling