Marketing plan competitive analysis

Marketing plan competitive analysis

Welcome to my “Marketing plan competitive analysis”.

The purpose of marketing analysis of the market is to understand how to smooth down the negative elements of the industry while exploiting the positive elements to make a profit. The best marketing strategies use several opportunities:https://www.blogger.com

search for a niche market with a low level of competition and a change in the positioning of the company

Change in the usual place in the branch value chain

transformation of the industry in order to gain a competitive advantage

prediction of changes in market development and actions in accordance with these predictions

Step # 1. We accurately determine the time horizon of the analysis

Marketing analysis of the market includes the time of the full operational cycle of the industry. Usually, this is a period of 3-5 years, but in some industries (shipbuilding, aviation industry, etc.) can reach several tens of years. For the company, the average values over the selected time horizon are important, and not the data of individual periods.

Depending on the chosen time horizon, the results of the market analysis and marketing strategy of the company can differ sharply.

In order to analyze something, we must first determine something. Each company operates within its own market. Rosstat, industry leaders, foreign players define the market based on their own goals and objectives, so it is not recommended to take their vision of the industry's boundaries.

The boundaries of the analyzed market exclude:

products whose market structure differs by at least one indicator (the type of buyers, suppliers, competitors, entry barriers, etc.)

Geographic regions, the structure of the market which differs by at least one indicator

Other businesses that are part of the holding (belonging to one legal entity does not determine the market)

Important. If we exclude something from marketing analysis of the market, this does not mean that we forget it. Elements that do not fit into the market structure are studied separately. Often, marketing analysis of the industry involves the study of a number of industries.

The boundaries of the analyzed market include:

Potential competitors that may arise from the companies of the industry through geographical expansion, product line diversification, reverse integration of customer companies, further integration of manufacturers, etc.

startups working on the technology front of the industry

technology and products that meet similar needs of customers. This point seems intuitively clear, but it is often overlooked. Sometimes consciously - a broad look at substitute products increases the work of the marketer.

If you concentrate only on your product, it's easy to overlook the real opportunities and threats. The market research of the cola market is not limited to similar beverages.

Determine the profitability of the market in the structure of the economy

If the company is a part of a multi-profile holding, it is a greenfield project or business diversification, then it is necessary to know the profitability of the industry in the structure of the economy. The goal is to avoid the trap of ordinary thinking and inflated expectations from investors, partners, and owners. For example, the production of juices is usually more profitable than the development of software. But intuitively it seems that on the contrary.

Profitability varies between industries. The answer to the question "do we like this industry" - the difference between ROE and Cost of Equity.

Create a multidimensional map of the industry

Get the first look at the market the easiest way to draw a multidimensional map of the industry. Players of the market are carried on separate segments. An example is a marketing analysis of the jewelry retail industry in Russia (a map based on the marketing analysis of Internet sites).

Segments on the map are presented from the point of view of the consumer (therefore, their preliminary segmentation is important, how to do: "Customer segmentation criteria: B2B and B2C markets"). If you analyze the competitive situation, then include other variables, for example, "number of outlets" and "geography of presence."

The first thing that catches your eye (and this will concern most industries) is that the differences between competitors are minimal. The presence or absence of silver in the MUZ, with an assortment of over 10 000 SKU, will not lead to defeat in the competitive struggle, nor will Almaz Holding lead the way. Subtle differences in the type of piercing products, ultrasonic cleaning services, and jeweler also have no decisive influence. Competitive advantage is achieved due to minor factors - location and quality of work of consultants.

The analysis of the multi-dimensional map of the industry suggests the direction of searching for new market segments. So, Pandora has created a set of decorations, used an upward trend of individuality and customization. The company opened a new category and identified itself from the industry of other manufacturers/jewelry retailers. In fact, Pandora created its own blue ocean. More details about the marketing strategy for the search for new market niches "Development of the company's development strategy: the strategy of the Blue Ocean".

Another way to use a multidimensional map of market analysis is to determine trends common to industry companies and try to play on the counter.

An example is the marketing analysis of the Russian cash services market. The specificity of the industry is money. The buyer can easily compare the two services on the simplest basis - where the big savings. As a result, the basis of competition is the price.

Companies are trying to declare a greater percentage of cashback, other monetary advantages. For example, Megabonus's step of 50% reward for users for attracting friends, the idea of Boom25.com is to return the full cost of every 25th purchase through PayPal, etc. But this direction of competition has a ceiling - maximum cashback service can return 100% of the funds transferred by the store to the buyer. And in the western market, this ceiling has already been achieved.

Go to the market - offer a quick withdrawal of funds. This is the only advantage that can overplay a low-interest rate, plus a guarantee of service reliability. It is difficult to realize the idea, but the winner will have the opportunity to win a significant market share.

Having obtained, with the help of marketing analysis of the market, the idea, we practice practical ways of its implementation. In the example with cashback: combination of safety elements (advance deposit, insurance of risks, ceiling of quick payments, offer for loyal customers, scans of documents, binding to the account FB); the introduction of own currency with the ability to spend "in controlled" places on goods with a long-term; introduction of deposit practice (service retains money, but charges%).

Step 6. Assess the attractiveness of market segments

Each segment of a multi-dimensional industry map must be digitized. The more fractional data will be obtained, the better. Minimally necessary parameters:

market size

growth rates within the time horizon

profitability

The size of the market and the growth rate set the range of opportunities for earnings in the industry.

Step 7. Define promising market niches

The attractiveness of the market segment does not mean that the company should go there. Rather says that this is the most saturated sector of the market.

Prospectiveness of the market niche is determined by competitive analysis of the industry. How to conduct - is written in detail in our articles: "Evaluation and analysis of competitive advantages of the company", "Formation of competitive advantages of the company: a step-by-step plan".

Define the competitive forces of the market. 5 Porter's forces

Classics of the genre. Yes, the phrase "vendor analysis by Porter" sounds much less cool than "an Adjayl adaptation of blocking technology on the market of an internet of things", but it is necessary to investigate the driving forces of the market.

In the short term, thousands of factors influence the development of the market. The 5 driving forces of the market work with long-term analysis. The Porter model is important, as it gives an opportunity to understand why the profitability of the market is as it is, which explains the gap between the costs and revenues of the industry players.

The strongest driving force of the market determines the profitability of the industry and it is it that lies at the heart of the marketing strategy.

Step 8. Analysis of the competitive strength of the market number 1: the threat of new players entering

The duty of every acting player is to raise barriers to entry. The more attractive the industry becomes, the higher the chances that the potential threat of competition from beginners will turn into a real one.

New players take away market share and reduce prices. Market Eldey Consulting Group - marketing and management consulting. The entrance barriers are low. Anyone can make a badge "business consultant" and go to advise how to manage the company. And in fact, they walk and advise. Forming a negative perception of the quality of consulting and lowering the price level.

The purpose of marketing analysis of the market: to get not just an answer to the question "can new players come", but "can new players come while remaining profitable".

The likelihood of new competitors depends on the height of the entrance barriers:

The possibility of economies of scale on the part of the production. Saving on a scale can be anywhere: from marketing research to production and training

The possibility of economies of scale on the demand side. Using the effect of ties - the desire of the buyer to pay for the product is enhanced by the number of other buyers. The reasons are the trust or importance of having a network of clients (the number of active players on eBay).

The cost of switching consumers to a new manufacturer. The higher, the newer it is more difficult to attract customers.

Capital requirements. The need to invest a significant amount of resources to attract buyers. The barrier becomes higher if the costs of entry do not directly pay off, i.e. are related to fixed costs.

The market players have advantages not related to size. By cost, quality, geographical location, customer relations, etc. which are not available to potential competitors. Beginners will have to look for workarounds.

Unequal access to distribution channels. The more limited the warehouse or retail channels, the more difficult it is to enter. Sometimes the barrier is so high that newcomers have to create their own distribution channels.

The expected response to the arrival of newcomers. New players will be afraid to stop by if:

Previously, market players responded sternly

competitors are well prepared for the fight

existing players will prefer to reduce prices in order to maintain market share, since high prices.