Meeting 2_SFE_ver2.ppt
Transcript of Meeting 2_SFE_ver2.ppt
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ENT 4210 – meeting no. 2ENT 4210 – meeting no. 2
Agenda Introduction: industry/competitor analysis
(chs 3-4) Case presentations: focus, main challenges, and plan
(15 minutes per group)
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Marketing PlanMarketing Plan
A marketing plan is a written document containing the guidelines for the business center’s marketing programs and allocations over the planning period.
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Hierarchy of PlanningHierarchy of Planning
SBU Planning
Annual Marketing (Business) Plan
Corporate Strategic Planning
Group or Sector Planning
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Objectives of a Marketing PlanObjectives of a Marketing Plan
1. Define the current business situation.2. Define problems and opportunities facing the
business.3. Establish objectives.4. Define the strategies and programs necessary
to achieve the objectives.
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Objectives of a Marketing Plan cont.Objectives of a Marketing Plan cont.
5. Pinpoint responsibility for achieving product objectives.
6. Encourage careful and disciplined thinking.
7. Establish a customer/competitor orientation.
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Frequent Mistakes in the Planning ProcessFrequent Mistakes in the Planning Process
The speed of the Process The Amount of Data Collected Who does the Planning? The Structure Length of the Plan
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Frequent Mistakes in the Planning ProcessFrequent Mistakes in the Planning Process (cont)(cont)
Number of Courses of Action Considered Who Sees the Plan Not Using the Plan as a Sales Document Insufficient Senior Management Leadership Not Tying Compensation to Successful
Planning Efforts Frequency of Planning
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Marketing Planning SequenceMarketing Planning Sequence
Update historical data
Data analysis
Develop objectives, strategies, programs Develop
financial documents Negotiate
final plan Measure progress toward objectives Audit
Collect current situation data
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Marketing Plan SummaryMarketing Plan Summary
I. Executive summaryII. Situation analysis
A. Category/competitor definitionB. Category analysisC. Company and competitor analysisD. Customer analysisE. Planning assumptions
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Marketing Plan Summary cont.Marketing Plan Summary cont.
III. ObjectivesIV. Product/brand strategyV. Supporting marketing programsVI. Financial documentsVII. Monitors and controlsVIII. Contingency plans
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Bases of CompetitionBases of Competition
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
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Bases of Competition cont.Bases of Competition cont.
III. Resource-orientedRaw materialsEmployeesFinancial resources
IV. Geographic
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Levels of CompetitionLevels of Competition
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
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Energy Bar CompetitionEnergy Bar Competition
Odwalla Power Bar
Balance BarClif
Energy Bars
Snack/Health Bars
Healthy Snacks
Other Snacks
Nutrigrain Bars Slimfast Bars Granola Bars
FruitsNutsJuice
CrackersChipsCandy
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PDA CompetitionPDA Competition
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)
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Category Attractiveness over Category Attractiveness over the Product Life Cyclethe Product Life Cycle
Stage of product life cycle
Category size
Category growth
Category attractiveness
Introduction
Small
Low
Low
Growth
Moderate
High
High
Maturity
Large
Low
Low/high
Decline
Moderate
Negative
Low
Sales
Time
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Category FactorsCategory Factors
Threat of new entrants Bargaining power of buyers Bargaining power of suppliers Current category rivalry Pressure from substitutes Category capacity
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Environmental FactorsEnvironmental Factors
Technological Political Economic Regulatory Social
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Typology of Technical DevelopmentsTypology of Technical Developments
Welfare
Diffusion
Innovation
Invention
Information
Materials
Transportation
Energy
Genetic*
Commercial
Defense
Tech
nolo
gyProcess
Impetus
* Includes agronomic and biomedical developments.
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PDA: Category Attractiveness AnalysisPDA: Category Attractiveness Analysis
Aggregate Market Factors Attractivenes
sMarket Size •$2.3 billionMarket GrowthProduct Life Cycle
0%-40% ++
+GrowthProfitsSales Cyclicity
Goodone
Sales Seasonality
one
+/0
++
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PDA: Category Attractiveness AnalysisPDA: Category Attractiveness AnalysisCategory Factors Attractivenes
sThreat of New Entrants
•Moderate; R&D required, distribution
Bargaining Power of BuyersBargaining Power of Suppliers
Low, high switching costs +
0
0Moderate; PCs use similar components
Category RivalryPressure from Substitutes
IntenseHigh
Category Capacity
Not a problem for now
-
-
+
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PDA: Category Attractiveness AnalysisPDA: Category Attractiveness Analysis
Environmental Factors: Attractivenes
sTechnological •Very sensitive
Political/ Regulatory
Economic
Telecommunications deregulation
+
-
+Relatively inexpensive
Social More work done on the road
+
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Competitor Analysis SystemCompetitor Analysis System
What are they going to do?
Differential competitor advantage analysis i.e. Who has the competitive product advantage?
Key questions: - Who are they?- What are the
competing product features?
- What do they want?
- What is their current strategy?
Primary dataSecondary data
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Primary Sources of Competitor InformationPrimary Sources of Competitor Information
Sales Force
Investment Bankers
Suppliers
Customers
Employees
Consultants/ Specialized
Firms
PrimaryPrimaryDataData
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Secondary Sources of Competitor InformationSecondary Sources of Competitor Information
InternalSources Local
Newspapers
Annual Reports
PatentFilings
10Ks
BusinessPress
GovernmentElectronicDatabases
NewsReleases
TradeAssociations
PromotionalLiterature
Internet
Trade Press
Consultants
CustomerCommuni
cations
Secondary dataSecondary data
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Other Sources of Competitor InformationOther Sources of Competitor Information
Trade Shows
Help-Wanted Advertisements
Plant Tours
Reverse Engineering
Monitoring Test Markets
Hiring KeyEmployees
PrimaryData
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Sources with Ethical ConsiderationsSources with Ethical Considerations
Aerial reconnaissance Buying/stealing trash Bribing printers Running phony want ads Snooping on airplanes
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Assessing Competitors’ StrategiesAssessing Competitors’ Strategies
Marketing strategy Comparing value chains Marketing mix
Pricing Promotion Distribution Product/Service capabilities
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Criteria to Assess Technological StrategyCriteria to Assess Technological Strategy
1. Technology selection or specialization2. Level of competence3. Sources of capability: internal versus external4. R&D investment level5. Competitive timing: initiate versus respond6. R&D organization and policies
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Competitor Information to CollectCompetitor Information to Collect
Ability to conceive and design Ability to produce Ability to market Ability to finance Ability to manage