Analysis for Marketing Planning Market Sensing: Industry Analysis Competitor Analysis

What is Market Sensing?

Industry Analysis n Why is industry analysis an essential component of marketing planning?

Market Attractiveness n Is the industry sufficiently attractive to warrant investment in it?

What are the Bases for Industry Analysis?

Attractiveness to Entrants

Competitor Analysis n Assess current objectives n Assess current strategies n Assess capabilities n Assess commitment

Ben & Jerry’s “While we and others certainly would have pursued our mission as an independent enterprise, we hope that, as part of Unilever, Ben & Jerry’s will continue to expand its role in society,” co-founders Cohen and Jerry Greenfield said in a statement following the announcement that Unilever had bought Ben & Jerry's for $326 million. Richard Goldstein, president of Unilever Foods North America, said he hopes the company will continue on its social mission. In fact, Ben & Jerry’s Cohen and Greenfield will serve as “caring capitalism” ambassadors, traveling to Unilever outposts worldwide and preaching the gospel of a “three-part mission” — social concerns, product quality and profits, said Ben & Jerry’s CEO Perry Odak. “Much of the success of the Ben & Jerry’s brand is based on its connections to basic human values, and it is our hope and expectation that Ben & Jerry’s continues to engage in these critical, global economic and social missions,” Unilever’s Goldstein said. How does Ben & Jerry’s mission fit with corporate objectives?

Tools for Competitor Analysis n Competitive grid F Compares your firm and major competitors on assets and skills most relevant to competitive strength.

Competitive Grid of American and Japanese Luxury Cars in U.S. Market

n Competitive product analysis F Compares tactical strategies of competitive brands

Competitor A Brand 1…K a Competitor B Brand 1…K a Your Firm Brand 1…K a Product: Quality Quality Value Chain Value Chain Benefits Benefits Target segment: Who Who Where Where When When Why WhyPlace: Distribution method Distribution method Distribution coverage Distribution coveragePromotion: Total effort ($) Total effort ($) Methods MethodsAdvertising: Strategy/copy Strategy/copy Media Media Timing Timing Total effort ($) Total effort ($)Price: Retail Retail To trade To trade Technological strategy

n Competitive capability assessment

Competing Firm A B C D Your Firm Ability to conceive & design Technical & human resources Technical & human resources Funding Funding Ability to produce Physical & human resources Physical & human resources Ability to finance Debt/liquidity Debt/liquidity Cash flow Cash flow Budget system Budget system Ability to market Sales force Sales force Distribution Distribution Service & sales policies Service & sales policies Advertising Advertising Human resources Human resources Funding Funding Ability to manage Key people Key people Decision process Decision process Planning Planning Staffing Staffing Organization structure Organization structure

n Expected competitive behavior/response analysis

Product Form Competitors A B C D E Product Category Competitors A B C D E ObjectiveStrategy Mix elements: Product Product Price Price Advertising Advertising Promotion Promotion Distribution Distribution Environmental change: Overall demand Overall demand Regulatory Regulatory Competitive strategy change: 1. (e.g., new product) 1. (e.g., new product) 2. (e.g., price cut) 2. (e.g., price cut)