3-1

You will be able to understand and analyze the Competition between various companies

You will be able to understand how to make better judgment about competitors.

3-2

I. Customer-orientedWho they are – competition for same budgetWhen they use itWhy they use it- benefits sought

II. Marketing-oriented: advertising and promotion

Theme/copy strategyMediaDistributionPrice

3-3

III. Resource-orientedRaw materialsEmployeesFinancial resources

IV. Geographic

3-4

Diet lemon limes

Baseball cards

Fruit flavored colas

Coffee

DietCoke

DietPepsi

Diet-Rite cola

Bottled water

Lemon limes

Regularcolas

Beers

Juices

Wine

Fast food

Tea

Video rentals

Icecream

Product form competition: Diet colas

Product category competition: Soft drinks

Generic competition: Beverages

Budget competition: Food and entertainment

3-5

Budget

Generic

Product Category

Product Form

Competitive Level

Convince Customers that the Brand is Better than Others

Convince Customers that the Product Form is Best in the

Category

Convince Customers that the Product Category is the Best

Way to Satisfy Needs

Convince Customers that the Generic Benefits are the Most

Appropriate Way to Spend their Money

Product Management Task

3-6

Odwalla Power Bar

Balance BarClif

Energy Bars

Snack/Health Bars

Healthy Snacks

Other Snacks

Nutrigrain

Bars Slimfast Bars Granola Bars

FruitsNutsJuice

CrackersChipsCandy

3-7

Level of Competition

Definition Competitors Need Satisfied

Product form POAs Full-features Palm Pilot VIICompaq AeroCasioplus integrated communicationCassio Poeia

Personal information management plus

Product category PIMs Palm IIIRoyalCasio PV-100

PIM only

Generic computers Notebook/subnotebook

Paper-based solutions

IBMToshibaMany othersRolodexDay Timer

Other solutions to the above

Budget Business items costing $100-$1,000

Fax machinesPersonal copiersCellular phonesFurniture (e.g. Steelcase)

3-8

Markets Same Different

Product/Services

Same

Different

A

C

B

D

3-9

A B C D E

A .6 .2 .2 0 0

B .2 .3 .4 .1 0

C .2 .3 .5 0 0

D 0 .1 .1 .5 .3

E .1 0 0 .4 .5

Time t+1

Time t

3-10

Regular

All brands

RegionalNational

DietFamilybrand 1

Family brand 2

Cola Non-Cola

3-11

•Moist•Needs refrigeration

•Tapioca pudding mixLocal mix •

Pudding mix

Chocolate torte mix •

Dzer ta • •Jell-O

•Canned pudding

•Individual pie

•Hostess cupcakes

•Quick bread mix

Good for a coffee break •

As a formal dessert•

Homemade cake •Bakery cake

•

Homemade cookies

• Cheese cake mix

“Snackin’ Cake” mix •

• Frozen cake

• Layer cake mix

• “Stir’n Frost cake mix

Takes a long time to prepare •

Bundt cake mix •

Custard mix

Boston crème pie mix“Light Style” cake mix

Coffee cake mix •

Bakery cookies •Pillsbury cookie dough •

Cookie mix •

•

•Easy to carry with meIn my school work lunch •

• Between meal snack

•Pepperidge Farm cookies• Oatmeal cookies

• Frozen pie

• Homemade pie

Date bar mix •

Brownie mix •

••

3-12

3-13