1-1 ENT 4210 – meeting no. 2 Agenda  Introduction: industry/competitor analysis (chs 3-4)  Case presentations: focus, main challenges, and plan (15 minutes per group)

1-2 Marketing Plan A marketing plan is a written document containing the guidelines for the business center’s marketing programs and allocations over the planning period.

1-3 Hierarchy of Planning SBU Planning Annual Marketing (Business) Plan Corporate Strategic Planning Group or Sector Planning

1-4 Objectives 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.

1-5 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.

1-6 Frequent 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

1-7 Frequent Mistakes in the Planning Process (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

1-8 Marketing 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

1-9 Marketing Plan Summary I.Executive summary II.Situation analysis A.Category/competitor definition B.Category analysis C.Company and competitor analysis D.Customer analysis E.Planning assumptions

1-10 Marketing Plan Summary cont. III. Objectives IV. Product/brand strategy V. Supporting marketing programs VI. Financial documents VII. Monitors and controls VIII. Contingency plans

1-11 Bases of Competition I.Customer-oriented Who they are – competition for same budget When they use it Why they use it- benefits sought II.Marketing-oriented: advertising and promotion Theme/copy strategy Media Distribution Price

1-12 Bases of Competition cont. III.Resource-oriented Raw materials Employees Financial resources IV.Geographic

1-13 Levels of Competition Diet lemon limes Baseball cards Fruit flavored colas Coffee Diet Coke Diet Pepsi Diet-Rite cola Bottled water Lemon limes Regular colas Beers Juices Wine Fast food Tea Video rentals Ice cream Product form competition: Diet colas Product category competition: Soft drinks Generic competition: Beverages Budget competition: Food and entertainment

1-14 Energy Bar Competition Odwalla Power Bar Balance Bar Clif Energy Bars Snack/Health Bars Healthy Snacks Other Snacks Nutrigrain Bars Slimfast Bars Granola Bars Fruits Nuts Juice Crackers Chips Candy

1-15 PDA Competition Level of Competition DefinitionCompetitorsNeed Satisfied Product form POAsFull-features Palm Pilot VII Compaq Aero Casioplus integrated communication Cassio Poeia Personal information management plus Product categoryPIMs Palm III Royal Casio PV-100 PIM only Generic computers Notebook/ subnotebook Paper-based solutions IBM Toshiba Many others Rolodex Day Timer Other solutions to the above BudgetBusiness items costing $100-$1,000 Fax machines Personal copiers Cellular phones Furniture (e.g. Steelcase)

1-16 Attractiveness of Market Variables

1-17 Category Attractiveness over the Product Life Cycle Stage of product life cycle Category size Category growth Category attractiveness Introduction Small Low Growth Moderate High Maturity Large Low Low/high Decline Moderate Negative Low Sales Time

1-18 Category Factors  Threat of new entrants  Bargaining power of buyers  Bargaining power of suppliers  Current category rivalry  Pressure from substitutes  Category capacity

1-19 Environmental Factors  Technological  Political  Economic  Regulatory  Social

1-20 Typology of Technical Developments Welfare Diffusion Innovation Invention Information Materials Transportation Energy Genetic* Commercial Defense Technology Process Impetus * Includes agronomic and biomedical developments.

1-21 Conceptualizing Political Risks

1-22 Projected Change in U.S. Population

1-23 PDA: Category Attractiveness Analysis Aggregate Market Factors Attractiveness Market Size $2.3 billion Market Growth Product Life Cycle 0%-40% Growth Profits Sales Cyclicity Good one Sales Seasonality one +/0+/0 + +

1-24 PDA: Category Attractiveness Analysis Category Factors Attractiveness Threat of New Entrants Moderate; R&D required, distribution Bargaining Power of Buyers Bargaining Power of Suppliers Low, high switching costs Moderate; PCs use similar components Category Rivalry Pressure from Substitutes Intense High Category Capacity Not a problem for now - - +

1-25 PDA: Category Attractiveness Analysis Environmental Factors: Attractiveness Technological Very sensitive Political/ Regulatory Economic Telecommunications deregulation Relatively inexpensive Social More work done on the road +

1-26 Competitor 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 data Secondary data

1-27 Primary Sources of Competitor Information Sales Force Investment Bankers SuppliersCustomersEmployees Consultants/ Specialized Firms PrimaryData

1-28 Secondary Sources of Competitor Information Internal Sources Local Newspapers Annual Reports Patent Filings 10Ks Business Press Government Electronic Databases News Releases Trade Associations Promotional Literature InternetTrade PressConsultants Customer Communi cations Secondary data

1-29 Other Sources of Competitor Information Trade Shows Help-Wanted Advertisements Plant Tours Reverse Engineering Monitoring Test Markets Hiring Key Employees Primary Data

1-30 Sources with Ethical Considerations  Aerial reconnaissance  Buying/stealing trash  Bribing printers  Running phony want ads  Snooping on airplanes

1-31 Assessing Competitors’ Strategies  Marketing strategy  Comparing value chains  Marketing mix  Pricing  Promotion  Distribution  Product/Service capabilities

1-32 Criteria to Assess Technological Strategy 1.Technology selection or specialization 2.Level of competence 3.Sources of capability: internal versus external 4.R&D investment level 5.Competitive timing: initiate versus respond 6.R&D organization and policies

1-33 Competitor Information to Collect  Ability to conceive and design  Ability to produce  Ability to market  Ability to finance  Ability to manage

1-34 PDA Product Features Matrix

1-35 Comparison of Competitor Resources: PDAs

1-36 Comparison of Competitor Resources: PDAs (cont.)