2. Defining the Competitive Set3
Defining the Competitive Set

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

4. Bases of Competition cont.
Resource-oriented
Raw materials
Employees
Financial resources
Geographic

5. Levels of Competition Diet lemon limes Baseball cards Coffee Coke
Fruit flavored colas
Coffee
Coke
Pepsi
Diet-Rite
cola
Bottled
water
Lemon
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

6. Levels of Competition: Implications for Product Strategy
Competitive Level
Product Management Task
Product Form
Convince Customers that the Brand is Better than Others
Convince Customers that the Product Form is Best in the Category
Product Category
Generic
Convince Customers that the Product Category is the Best Way to Satisfy Needs
Budget
Convince Customers that the Generic Benefits are the Most Appropriate Way to Spend their Money

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

8. PDA Competition Level of Competition Definition Competitors
Need Satisfied
Product form POAs
Full-features
Palm Pilot VII
Compaq Aero
Casioplus integrated communication
Cassio Poeia
Personal information management plus
Product category
PIMs
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
Budget
Business items costing $100-$1,000
Fax machines
Personal copiers
Cellular phones
Furniture (e.g. Steelcase)

9. Managerial Judgment of Competition
Product/Services
Markets
Same
Different A B
Same C D
Different

10. Brand-Switching Matrix
Time t+1 A B C D E .6 .2 .3 .4 .1 .5
Time t

11. Defining Competition with Brand Choice Data
All brands
National
Regional
Diet
Regular
Family
brand 1
Family
brand 2
Cola
Non-Cola

12. Defining Competition with Perceptual Mapping
Moist
Needs refrigeration
As a formal dessert •
Custard mix
Bakery cake •
Pudding mix
Tapioca pudding mix
Homemade cake •
Homemade pie
Local mix •
Takes a long time to prepare •
Layer cake mix
Cheese cake mix
Dzer ta •
Jell-O
Bundt cake mix •
Frozen pie
Chocolate torte mix • ••
Canned pudding
Frozen cake
Boston crème pie mix
“Light Style” cake mix
“Stir’n Frost cake mix
Coffee cake mix •
Individual pie
“Snackin’ Cake” mix •
Quick bread mix
Hostess cupcakes
Date bar mix •
Brownie mix •
Homemade cookies
Cookie mix • •
Oatmeal cookies
Bakery cookies •
Pepperidge Farm cookies
Pillsbury cookie dough •
Good for a coffee break •
Between meal snack
In my school work lunch •
Easy to carry with me

13. Methods Versus Competition Levels and Information Required

14. Enterprise Competition in Financial Services