Market Analysis Workshop Tony Walmsley Chartered Institute of Marketing CIM 9 th Dec 2009

Why market analysis? Why bother Your thoughts

Why market analysis? Increases the chance of business success dramatically – avoid expensive mistakes Because mum / friends are too kind! To avoid wasting time / resources pursuing inappropriate market segments / products The world existed before you arrived - why should it buy your product/service now! FUNDAMENTAL QUESTIONS WHO IS OUR TARGET MARKET? WHY SHOULD THEY BUY FROM US?

Some thoughts about market analysis! It’s time consuming done properly and can be difficult Even experienced companies get it wrong Dasani Both the process and conclusion are important Many previous UWE Biz idea plans devote pages to the product and a paragraph to the market! Tick the box mentality! Keep it simple – if the reader cannot understand who will buy your product / service, why and how many (with some objective supporting data) you have failed to plan or communicate your plan

How do we do it? Many approaches – CIM use STP and competitor analysis S - Segmentation - market review / segmentation T - Targeting - target customer P - Positioning - proposition Competitors - direct / in-direct

Market segmentation Clear description of the market and its segments Segments - definable, similar needs, available data, able to talk to, not too large or small Avoid thinking about product at this stage Segment by use, price, geography, demographics etc. etc. Group exercise – suggested segments for the following –Clothing –Data processing (Computers) –Office furniture –Your own???

Market / segment size Units, £value, £profit Where do we get this data???? Gov’t – Office for National Statistics –Ofcom, Oftel etc Market reports eg Mintel, Key Note, CIM – cost Trade bodies – FENSA window industry Trade Journals – Plastics and rubber weekly List brokers eg marketingfile.com Large players eg Halfords bikes or B2B companies eg ABB transformers Google Pick up the phone – you will learn lots!

Market dynamics - PESTEL Helpful tool to assist the thinking process / but keep it relevant P – Political – ammunition E – Economic – luxury foods S – Social - drinks / cider T - Technology – data storage DVD to Blue ray E – Environment – decoration – paints water based L – Legal – financial services – payment protection insurance Group exercise – PESTEL for a market you segmented

Target the segment Select the segment based upon ability to serve at a profit Really understand who the customer is and the needs they have – describe them More complex in B2B – DMU How is the need being satisfied at present? Don’t solve problem that doesn’t exist – Dragons Den CHECK - is the target segment accessible and big enough?

Positioning – What is your proposition Where will you pitch your offer? Masses / exclusive You don’t have to be cheapest but you have to offer value – clear differentiation What clear USP’s do you have? Think about both product and service around it What is the competition?

Competitor analysis Direct / Indirect eg cinema - entertainment SWOT Features table driven by needs analysis Write it down – be objective Test market / interviews / surveys No competitor means great opportunity or bad idea! Group exercise –IPOD competitor analysis

To Conclude Remember STP Use the PESTEL and SWOT tools Be critical / objective – get someone who is Use different info sources / cross check Think about realistic conversion rates Take a critical look at the competition Spend as much time on market analysis as the product Good luck