Chapter 8 Evaluating the Competition CHAPTER OBJECTIVE: To determine why a consumer would purchase any of YOUR products or services OVER your competitions?

DESCRIBE YOUR PRODUCTS/SERVICES… WHAT ARE YOUR MAJOR PRODUCTS/PRODUCT LINES? RANK IN ORDER OF IMPORTANCE. Your Major Products: #1)________________________________________ #2)________________________________________ #3)________________________________________ #4)________________________________________ #5)________________________________________   WHO ELSE SELLS THESE MAJOR PRODUCTS/PRODUCT LINES? Current Competitors: #1)_________________________________________ #2)_________________________________________ #3)_________________________________________ #4)_________________________________________ Potential Competitors: #5)_________________________________________ #6)_________________________________________ WHAT ARE THE MAJOR SUBSTITUTES FOR YOUR PRODUCTS/PRODUCT LINES? Substitutes:

YOUR MAJOR PRODUCT #________ vs. CURRENT COMPETITOR #__________? TABLE #8-1   YOUR MAJOR PRODUCT #________ vs. CURRENT COMPETITOR #__________? (Complete one form per major product/service and current competitor. If you have many products, you might want to designate a product line for the comparison.) YOURS: vs. THE COMPETITIONS: A) PRICE: __________ __________________ B) PRODUCT: 1) Quality: __________ __________________ 2) Warranty: __________ __________________ 3) Reliability: __________ __________________ 4) Availability: __________ __________________ 5) Selection __________ __________________ C) PLACE: 1) Ease of Entry/Exit: __________ __________________ 2) Parking Ease: __________ __________________ 3) Convenience: __________ __________________ 4) Traffic Count: __________ __________________ 5) Walk-ins: __________ __________________ 6) Proximity to Target Market: __________ __________________

TABLE #8-1 continued YOURS: vs. THE COMPETITIONS: D) PROMOTION: 1) Promotional Intensity: ___________________ ___________________   2) Advertising media and frequency: Media ___________________ ____________________ 3) Publicity: __________ __________________ 4) Sales Staff's Knowledge: __________ __________________ 5) Sales Staff's Ability: __________ __________________ 6) Sales Staff's Friendliness: __________ __________________ 7) Sales Staff's Cross Selling: __________ __________________ 8) Image: __________ __________________ 9) Signs: __________ __________________

TABLE #8-1 continued YOURS: vs. THE COMPETITIONS: E) MANAGEMENT: 1) Aggressiveness: __________ __________________   2) Response to Change: __________ __________________ 3) Experience: __________ __________________ 4) Ownership, Local, Regional or National: __________ __________________

Hixon’s has been in the same place for 20 years and is world renown.

Sandy’s Surf Shop has 15,000 sq feet and has surfboards displayed through out the store.

Notes: 1) Sandy’s Surf Shop is a large, brand new facility located on a major road leading to the beach. 2) Hixon’s Surf Shop is located across the street from the beach with lots of pedestrian traffic. 3) Island Surf Shop is located in a strip center accessible only by car.

MANAGEMENT STRUCTURE: Sandy is aggressive and has just spend lots of money building a big new store loaded with beach gear. Hixon defines his target market as beach area teenagers. Island is owned by a beach resident but considers his store in another market which is located on the way to the beach several miles to the South.

Maximize your strengths for maximum profits – minimize your weaknesses to gain market share!

Why would a consumer purchase a product from HIXON’S SURF SHOP over one of its competitors?