Your competitors COMPETITOR ANALYSIS WHAT COMPETITOR INFORMATION SHOULD BE ANALYSED Any organisation that wishes to succeed in their market, needs to analyse their competitor's strategies. A strong competitor can hinder business success, even lead to business failure. Competitor analysis helps firms to anticipate their competitor's actions and exploit competitor's weaknesses. It also helps firms to identify their firm's unique selling points, so that these can be promoted in marketing campaigns. Market the small business The Marketing Plan BSB40407 Certificate IV Small business management Marketing Plan 3_WOB 2 1

Your competitors Market Entry A new business or a firm entering into a new market should gather information to help answer the following questions about their competitors: Who are your competitors? The firm should decide on which competitors are likely to impact on their business and which businesses the firm will be able to compete with. Market the small business The Marketing Plan BSB40407 Certificate IV Small business management Marketing Plan 3_WOB 2 2

Your competitors Market Entry What is their size and dominance within the market? An understanding of the market share each competitor has, will help you identify their size and dominance. It will also reveal whether there is market share available for your business. Market the small business The Marketing Plan BSB40407 Certificate IV Small business management Marketing Plan 3_WOB 2 3

Your competitors Market Entry What customer base do competitors have? This will help you identify if a firm is a competitor. If a firm is aimed at a different customer base to yours they may not be a competitor Market the small business The Marketing Plan BSB40407 Certificate IV Small business management Marketing Plan 3_WOB 2 4

Your competitors Market Entry What is their positioning strategy within the market? This question is about the perceptions customers have about your competitor's products. Are they quality products? cheap products or luxury products? Think about how each competitor's positioning strategy is the same or different to yours? Market the small business The Marketing Plan BSB40407 Certificate IV Small business management Marketing Plan 3_WOB 2 5

Your competitors Market Entry What objectives does each competitor have? This includes future growth plans and company values. For example are they about to embark on an aggressive growth programme? Or do they believe in recycling and saving the planet. To gather information about competitor objectives and plans look at their websites, company reports, press releases and marketing material. It is important to analyse competitor objectives so that you get an idea of their values and likely strategy. Market the small business The Marketing Plan BSB40407 Certificate IV Small business management Marketing Plan 3_WOB 2 6

Your competitors Market Entry What are their strengths and weaknesses? A SWOT analysis may help you to identify and record the answers to this question. Each competitor will have strengths that give them a competitive advantage. They are also likely to have weaknesses that may give you or other competitors an advantage. Market the small business The Marketing Plan BSB40407 Certificate IV Small business management Marketing Plan 3_WOB 2 7

MARKET TARGETING OPTIONS Target Markets Before engaging in marketing campaigns and promotions businesses need to decide who they would like to aim their products at. This involves analysing and splitting (segmenting) the market into different sectors. The most effective way to segment the market will depend on the product and the business producing the product. After segmentation firms can adopt one of three strategies to target customers. Market the small business The Marketing Plan BSB40407 Certificate IV Small business management Marketing Plan 3_WOB 2 8

MARKET TARGETING OPTIONS Option 1: Undifferentiated Marketing Undifferentiated marketing is marketing that does not target a particular segment of the market. The firm adopts one marketing strategy and hopes that it will appeal to as many people as possible. Market the small business The Marketing Plan BSB40407 Certificate IV Small business management Marketing Plan 3_WOB 2 9

MARKET TARGETING OPTIONS Option 2: Differentiated Marketing Strategy If a firm decides to target several segments of the market, it is engaging in a differentiated marketing strategy. A differentiated marketing strategy, a firm will develop products and services with separate marketing mix strategies for each of the segments chosen by the firm Market the small business The Marketing Plan BSB40407 Certificate IV Small business management Marketing Plan 3_WOB 2 10

MARKET TARGETING OPTIONS Option 3 Concentrated Marketing Concentrated marketing occurs when a business concentrates its marketing effort on one segment of the market. The firm will develop a product that caters for the needs of that particular group. For example Rolls Royce cars and the Harrods Group target the premium segment of the market. Market the small business The Marketing Plan BSB40407 Certificate IV Small business management Marketing Plan 3_WOB 2 11

MARKET TARGETING OPTIONS Summary There are three targeting strategies that can be used by firms when aiming their products and services at market segments. Undifferentiated marketing implements one marketing strategy aimed at the whole market place, differentiated marketing tailors marketing efforts for each market segment chosen by the firm, whilst concentrated marketing tailors marketing strategy for one particular segment of the market. Each of the three targeting strategies has its advantages and disadvantages; these should be weighed up when deciding which one to ado Market the small business The Marketing Plan BSB40407 Certificate IV Small business management Marketing Plan 3_WOB 2 12

Your Customer Customer demographics Who are your customers ? What are they spending habits? Market the small business The Marketing Plan BSB40407 Certificate IV Small business management Marketing Plan 3_WOB 2 13

Your Customer Market the small business The Marketing Plan BSB40407 Certificate IV Small business management Marketing Plan 3_WOB 2 14

Distribution strategies Place How to get your products or services to your customers Place is also known as channel, distribution, or intermediary. It is the mechanism through which goods and/or services are moved from the manufacturer/ service provider to the user or consumer Market the small business The Marketing Plan BSB40407 Certificate IV Small business management Marketing Plan 3_WOB 2 15

Distribution strategies From your experiences as a consumer, producers rarely sell their goods or services directly to the person that consumes them. Marketing channels, or place in terms of the marketing mix, are the means by which interdependent organizations move products or services from the producer to the person that purchases or consumes the product. This is the basic role of distribution Market the small business The Marketing Plan BSB40407 Certificate IV Small business management Marketing Plan 3_WOB 2 16

Distribution strategies A basic example would be a tin of vegetable soup. The entire chain would begin with the seeds that the farmer sews and then plants. The farmer would sell the vegetables to the soup manufacturer, who would create soup from a recipe and then package the soup in a tin, and then bulk pack tins into a box and then those same boxes onto a pallet. Market the small business The Marketing Plan BSB40407 Certificate IV Small business management Marketing Plan 3_WOB 2 17

Distribution strategies The pallets would be driven by lorry or some other vehicle to a wholesaler. Independent retailers whilst visiting the wholesaler would break down a pallet and take a box of tinned soup. The retailer would return to his or her store and open the boxes of soup and place individual items onto a shelf next to similar products. Market the small business The Marketing Plan BSB40407 Certificate IV Small business management Marketing Plan 3_WOB 2 18

Distribution strategies The purchaser or customer would enter the store and buy a series of products including tinned soup. Having paid for the products the customer returned home and cooked soup for his or her family. The family eats the soup and they are the final consumers, as opposed to customers. This is an example of a very basic marketing channel in operation. Market the small business The Marketing Plan BSB40407 Certificate IV Small business management Marketing Plan 3_WOB 2 19

Distribution strategies The case is that a manufacturer will attempt to maximise the accessibility of his product to as many consumers as possible. A prime example of this is Coca- Cola and their attempt to put a bottle of Coke within the arms reach of every consumer. For Coca-Cola this means a number of channels of distribution including manufacturing, transportation, bottling, wholesaling, retailing, vending machines and any other form of distribution you can think of. Coca-Cola maximises its accessibility. Market the small business The Marketing Plan BSB40407 Certificate IV Small business management Marketing Plan 3_WOB 2 20

Distribution strategies Place has a number of names. Place is also known as channel, distribution or intermediary. It is the mechanism through which goods and/or services are moved from the manufacturer/ service provider to the user or consumer. Market the small business The Marketing Plan BSB40407 Certificate IV Small business management Marketing Plan 3_WOB 2 21

Distribution strategies There are six basic 'channel' decisions: Do we use direct or indirect channels? (e.g. 'direct' to a consumer, 'indirect' via a wholesaler). Single or multiple channels. Cumulative length of the multiple channels. Types of intermediary Number of intermediaries at each level Which companies as intermediaries to avoid 'intrachannel conflict' (i.e. infighting between local distributors). Market the small business The Marketing Plan BSB40407 Certificate IV Small business management Marketing Plan 3_WOB 2 22

Distribution strategies Types of Channel Intermediaries Wholesalers Agents Retailers Internet Licensing and franchising Market the small business The Marketing Plan BSB40407 Certificate IV Small business management Marketing Plan 3_WOB 2 23