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External Environment

demand of commodity Consumer Analysis

- Identifying consumer needs

- Market segmentation

- The buying process

Analysis of Competitive Environment

- Market Structure

- Basis of competition

- Institutional Constraints

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Consumer Analysis Identifying consumer needs

- expressed as preference for product staste, smell, color, texture, and appearance

- needs relate to nutritional requirements andappetite satisfaction

- social status- usage conveniences as packaging orcooking ease

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Consumer Analysis Market Segmentation

- divide consumers into groups or market

segments- geographic location (regional taste)

- Age, sex of consumers

- income

- domestic and export consumers

- end users (industrial, institutional, endconsumers)

Prof. Rushen Chahal

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Consumer Analysis The buying process

- who decides to purchase the product- (where to direct promotion)

- (consumer and buyer may not be the same)- How they decides- (planned purchase for expensive items greater informationfor consumer sales advice)- (low price items impulse purchase product display andpackaging)

- when and where they make the purchase- frequency and seasonality- (inventory management)

Prof. Rushen Chahal

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Analyzing the competitive

environment Market Structure

- identification of competitors (presentand future)

- numbers, product, location, salevolume, and market share

- positioning of the product at acompetitive advantage

Prof. Rushen Chahal

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Analyzing the competitive

environment Basis of competition

- price- product quality

- service

Prof. Rushen Chahal

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Analyzing the competitive

environment Institutional Constraints

- economic, political and legal

- Tariffs (export and import competition)

- import quotas, export incentives

- sanitary standards

- subsidies- licensing

Prof. Rushen Chahal

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Salient point for analysis Who are the potential consumers?

- socio-economic, cultural and demographic

characteristics?- market segments?

- positioning options for the product?

Why would they buy the product?

- reasons for purchasing? Sustenance?Sensory appeal? Status? Necessity?

- implication for marketing plan?

Prof. Rushen Chahal

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Salient point for analysis How would they buy the products?

- Decision making unit?- Impulse or planned purchase?

- Purchase frequency?

- Seasonality?- Purchase location?

- Implications for marketing plan?

Prof. Rushen Chahal

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Salient point for analysis What is the products market structure?

- Existing competitors?

- Role of substitutes?

- How many competitors?

- Location relative to market and supply?

- share of sales, market- Change in market share over time?

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Salient point for analysis What is the basis of competition in the

industry?

- consumer price sensitivity?

- consumer sensitivity to quality?

- Extent of entry barriers fromeconomies of scale? Capitalrequirements?

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Salient point for analysis How do institutional constraints affect

the competitive environment?

- tariffs? Quota?

- sanitary standards?

- subsidies, licensing?

Prof. Rushen Chahal