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Ba447
Situation Analysis :Competitors,Consumers &your Company
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The M ark eting Pl a nningp roc esses.
TargetTargetMarketMarket
Product Place
PromotionPrice
TargetTargetMarketMarket
Product Place
PromotionPrice
TargetTargetMarketMarket
Product Place
PromotionPrice
CC ompanyompany
CC onsumersonsumers
CC ompetitorsompetitors
CC onditionsonditionsPEST PEST
WM
WM
TGT
TGT
E
E
D
D
C
C N
N
G
G
F
F
Service
G rowth,G rowth,
CompetitiveCompetitive&&PositioningPositioningStrategiesStrategies
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Company
Company
Competitors
Competitors
Economic AnalysisEconomic Analysis(costs, profitability )
Customer AnalysisCustomer Analysis(volume, frequency,Loyalty)
Company AuditCompany Audit( Strength &, weaknesses,Resources, Culture,G oals)
Economic AnalysisEconomic Analysis(costs, profitability )
Customer AnalysisCustomer Analysis(volume, frequency,Loyalty)
Company AuditCompany Audit( Strength &, weaknesses,Resources, Culture,G oals)
Consumers
Consumers
M arket StructureM arket Structure(Segments, size,growth rate)
ConsumerConsumerBehaviorBehavior(purchasingdeterminants &
patterns)
M arket StructureM arket Structure(Segments, size,growth rate)
ConsumerConsumerBehaviorBehavior(purchasingdeterminants &
patterns)
Conditions
ConditionsPoliticalEconomicSocio-cultural
Technological
PoliticalEconomicSocio-cultural
Technological
IndustryIndustry
StructureStructureAnalysisAnalysis(entry/exitbarriers,buyers, sellers,substitutes)
Competitor Competitor ResponseResponseProfilesProfiles(capabilities,performance &strategies)
IndustryIndustry
StructureStructureAnalysisAnalysis(entry/exitbarriers,buyers, sellers,substitutes)
Competitor Competitor ResponseResponseProfilesProfiles(capabilities,performance &strategies)
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Indust ry news
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C om petiti o n Intelligen c e
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N a tu r e & M a gnitude of C om petiti o n
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C om petit or s M ark eting St ra teg y
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Consumer Research
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Lax Natarajan & Sully RomeroOrdonez12
CompanyCompany
CompetitorsCompetitors
ConsumersConsumers
M arket StructureM arket Structure(Segments, size,growth rate)
ConsumerConsumerBehaviorBehavior(purchasingdeterminants &
patterns)
M arket StructureM arket Structure(Segments, size,growth rate)
ConsumerConsumerBehaviorBehavior(purchasingdeterminants &
patterns)
ConditionsConditions
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Consumers differ cross-nationally & by segment in terms of:
Toothpaste size,deliverysystem & texture prefsNeeds trying to satisfy -(prevention of cavities,whiter teeth, good taste) Price sensitivityPreferred store /distribution outlet
Customers are more likely to purchasebrand they know, meets their needs & canfind in preferred store.
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B A 447 International M arketing
Product-Segment
Benefit-Segment
Consumer -Segment
Basic/Economy
DecayPrevention
Families w/Kids
White Sex Appeal Young Singles
Tarter Control Health Middle Age
Flavor Taste Kids
S im. S egmentsS im. S egments
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SensorySegment
SociableSegment
WorrierSegment
IndependentSegment
F lavor & product appearance
Principal benefit
sought
Brightest of teeth Price
Decay prevention
ChildrenDemographic strengths
Teens, young people
Men
LargeFamilies
Users of spearmint-flavoredtoothpaste
Special behavioral
characteristics
Smokers Heavy usersHeavy users
SOURCE: Adapted from R ussell I. Haley, Benefit S egmentation : A Decision- O riented R esearch Tool, Journal of Marketing , July 1968, pp.30-35.
(continued)
Figure 5-3
ColgateBrandsfavored
M acleans,Ultra Brite
Cheapestbrand
Crest
Hedonis tLifestylecharacteristic Active
Value-oriented
Conservative
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Select the country youwant to analyze(V enezuela is used here)Click on ConsumersT here are four types of consumer research:
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There are four types of retailstores in LA: S hopping Habits
E .g., 46% of all Younger consumers shop inT raditional stores ( 5 4%
shop somewhere else)T hus if you want totarget Younger customers in V E N,selling only inT raditional stores will limit your sales potential to 46% of thisgroup.
E ach column shows what % of each demographic shops in eachtype -retail, -- sums to 100%
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-- shows how much weight consumers place on:
PriceE ffectiveness ( benefit or type of toothpaste)Size
V ehicle ( paste, gel)Delivery ( tube, pump)
U se the XSection button to studyspecific customer segments
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D ecision Criteria -Xsection
You can click on any combination of demographic and benefit segments
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T hey very much prefer small sizes
T his segment represents 8.4%of the V E N population, and buys10.6% of all toothpasteE ffectiveness ( whiteningtoothpaste) and size are very important to this segment
They prefer tubesand gels
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B rand Awareness
53% of this segment areaware of Local 1( compared to 55 % of all V E N consumers)
22% of this segment areaware of Regional 1( compared to 27% of all V E N consumers )T
hey are not at all awareof Local 2
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Brands Purchased
72% buy Local 1toothpaste28% buy Regional 1
toothpaste
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Competition Position
Local 2 has 100% market share of W hite toothpaste that is, of all toothpaste labeled as offering whitening benefits ,Local 2 has 100% share
W hy does Local 2 have 100% W hite share, but the YoungW hite segment buys Local & Regional 1 - not Local 2 (?
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Competition B rand Formulations
Local 2 is the only company that sells W hite toothpaste ( but offers no small sizes)Local 1 & Regional 1 sell E conomy & Healthy ( including somesmall sizes)
W hy are Young W hite consumers not buying Local 2s W hitetoothpaste ? W hy are Young W hite consumers buying toothpaste they really dont want ( i.e., something other than W hite)?
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Competitive Analysis Why Younger WhiteConsumers Are Not B uying Local 2
Check their advertising no awareness! Check their Distribution Coverage are they sellingwhere Younger consumers shop ? Do they have SalesF orce allocated to the right channels ? Check their Pricing consumers are willing to pay moreget what they want D o any of the available formulations reallygive this segment what they want?Can AllStar Brands do a better job targeting Younger W hite consumers than current competitors ? If so,develop a strategy to do so!
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F ind the whole in the market-unoccupied positions &/or unmet tastes/needs that areimportant to profitableconsumer segments
Cherchez Le Creneau!
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CompanyCompany
CompetitorsCompetitors
Economic AnalysisEconomic Analysis(costs, profitability )
Customer AnalysisCustomer Analysis
(volume, frequency,Loyalty)
Company AuditCompany Audit( Strength &, weaknesses,Resources, Culture,G
oals)
Economic AnalysisEconomic Analysis(costs, profitability )
Customer AnalysisCustomer Analysis
(volume, frequency,Loyalty)
Company AuditCompany Audit( Strength &, weaknesses,Resources, Culture,G
oals)
ConsumersConsumers
ConditionsConditions
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February 08, 2005 Lax Natarajan & S ully R omeroO rdonez
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Exporter
M ulti-National
Trans-National
Global
Evolution of the International FirmEvolution of the International Firm
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Mindless App roac h t o Inte r n a tio n a l Mark ets
M ake no specialM ake no specialprovisionsprovisions
DomesticDomestic- -ExtensionExtension
E xportingE xporting
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M ultinational corporations ( M NCs)C ompanies that maintain significant operations intwo or more countries simultaneously but are basedin one home country
Adapt to localAdapt to localconditions in eachconditions in each
foreign marketforeign market
M ultiM ulti--DomesticDomesticapproachapproach
Inte r n a tio n a l Mark eting
T ransnational ( T NC)corporation
A company that maintains significant
operations in more thanone country
simultaneously and decentralizes decision
making in each operationto the local countr
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Company takes an integrated approach across countries& regions -- M anages for worldwide businessleverage & competitive advantage
L everageL everageCommonalities intoCommonalities intoa global strategya global strategy
(but where necessary(but where necessary- -allow for localallow for local
implementation)implementation)Global (Glocal)Global (Glocal)M arketingM arketing
G loba l Mark eting
Is a M ind-set of how toapproach Intl M arkets
Not a matter of how bigcompany is
Or- whether or not have a global product
Or- how many countiesyou operate in
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G lobal M arketing Strategy DriversG lobal M arketing Strategy Drivers
C ommon customer needsGlobal customersGlobal Distribution &
C ommunication channels
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The G lobal
Village
The G lobalEconomy
The G lobalCorporation
G lobal M arketingStrategy
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The Global C orporationThe Global C orporation
G lobal VisionG lobal LeverageG lobal S ourcing
G lobal CompetitiveMoves
G lobal Partnerships
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The Global C orporationThe Global C orporation
G lobal VisionG lobal LeverageG lobal S ourcing
G lobal CompetitiveMoves
G lobal Partnerships
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The Global C orporation- A GlobalMindset
The Global C orporation- A GlobalMindset
Global IdentityS ingle C orporate
LanguageGlobal E thical S tandardsMulti-C ountry C areers
C ross- C ultural TrainingC ross Nationalemployment .. especiallymanagement at all levels
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Core Concepts & Values
Country
A
Country
B
Country
C
Country
D
Develop CoreB usiness Strategy
Translate/Executestrategy in selectedcountries..
Integrate &
leverage globalassets
& alliances
Global Marketing E volutionGlobal Marketing E volution
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Requisite Global M arketer Expertise
Cross-Border
TransactionsKnowledge
Country/ MarketKnowledge
Cross-CulturalKnowledge
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COUNTRY / M ARKET KNOWLED G ECOUNTRY / M ARKET KNOWLED G E
Research & IntelligenceG lobal M arketing Opportunity &
Target M arket AssessmentM arket Entry Planning & Strategy
Risk
Return/Control
ExportL icensing
ContractM anu-facturing
JointVenture
DirectInvest-ment
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CROSS-BORDER TRANSACTIONS NOWLED G E
CROSS-BORDER TRANSACTIONS NOWLED G E
Standards, Regulations & ProductLiability
Currency Risk/ Pricing/ G etting PaidRisk to Exporter
L east Risk Highest Risk
Confirmed Irrevocable Bank Bank Cash in Irrevocable Letter of Collection Collection Open
Advance Letter of Credit Credit Sight Draft Time Draft Account
Cost to B uyer
Highest Cost L east Cost
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CROSS CULTURAL KNOWLED G ECROSS CULTURAL KNOWLED G E
Cross-Cultural
NegotiationSkills
SocialResponsibility
&Government
Relations
Cross-Cultural
U nderstanding,Sensitivity
L anguageProficiency
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GLOB AL IZATI O N
G lobalization in PracticeG lobalization in Practice
Stages of Corp-Globalization :
1. Export Only2. Establish Foreign-Branches3. Re-locate Production
4. Corp. Cloning & Insider-ization5. The Complete Global Corporation
Stages of Corp-Globalization :
1. Export Only2. Establish Foreign-Branches3. Re-locate Production
4. Corp. Cloning & Insider-ization5. The Complete Global Corporation