Unit 1: Marketing Competitor analysis 05/02/2018

Objective’s Recap PESTLE analysis Introduction to competitor analysis Competitive benchmarking Dimensions of competitor analysis Sources and dissemination of competitor information 05/02/2018

Recap PESTLE analysis 05/02/2018 Fda Business

How important is competitor analysis? “if you know your enemy as you know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory you gain you will suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle” (Sun Tzu, 1981, pp115, Marketing Strategy and Competitive positioning, Graham Hooley et al 2008) 05/02/2018

Benchmarking A process of measuring your companies strategies and operations against ‘best in class’ companies, both inside and outside your own industry Who to benchmark against What aspects of business to benchmark Relevant data collection Comparison of own processes 05/02/2018 Fda Business

Benchmarking So, which aspects of business do we need to benchmark? Who to benchmark against? Market/industry leaders Why are they a success? Non-profit organisations' i.e. universities New entrants strengths from which an organisation can learn Can also benchmark against a process of an organisation in a different industry i.e. finance within supermarkets So, which aspects of business do we need to benchmark? All aspects of business across the complete value chain however will focus on certain processes including; costs, impact on customer satisfaction 05/02/2018 Fda Business

Benchmarking Collecting relevant data Swain, 1993 suggests 3 main sources of competitor information; Published sources Data sharing Direct interviews How important is data from competitors? Comparison with own processes Stick with your own and continuous improvement Overhaul operations due to being inadequate Adopt best practice from other industries 05/02/2018 Fda Business 7

Exercise 1 In pairs think of examples within a chosen organisation where the practices of benchmarking we have discussed can be applied 05/02/2018

Dimensions of competitor analysis Whole industry must be scanned even indirect competitors i.e. the UK financial services sector and supermarkets Substitutes tend to be the major threat i.e. downloads vs the music industry (pre-recorded CD’s vs Apple) Lehmann and Winer (1991) suggest four main stages in competitor analysis 05/02/2018

The components of competitor analysis Research and discuss the four stages outlined by Lehmann and Winer (1991) Assess competitors current and future strategies Assess competitors current strategy Assess competitors resource profile Predict competitors future strategies

Assessing competitors current and future strategies Identification of the market/markets they have chosen to compete in The way in which they have chosen to operate/compete – strategic focus Supporting marketing mix adopted

Sources of competitor information What they say about themselves Advertisements (media and message Recruitment ads Promotional material Technical reports Press releases Company reports What others say about them Newspapers and magazines Trade sources Customers Market reports (i.e. keynote)

Smashhits case study Complete question to attached case study and discuss findings with rest of group next week

Further research Principles of Marketing: Brassington and Pettitt (2003); pp 865-884 Marketing concepts and strategies: Dibb et al (2006); pp 50-59 http://www.emeraldinsight.com/journals.htm?issn=0263-4503&volume=21&issue=6&articleid=854643&show=html http://www.emeraldinsight.com/journals.htm?issn=1087-8572&volume=30&issue=6&articleid=872852&show=html

Recap on activities to be completed Exercise 1 – application of the practices of benchmarking Lehmann and Winer (1991) – components of competitor analysis – research and discuss Smashhits case study