Food entrepreneur competitive analysis_gyrm_spring_2012

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How to conduct competitive analysis for your food product start up business.

How to conduct competitive analysis for your food product start up business.

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  • 1. COMPETITIVE ANALYSIS“The competitive analysis is a statement of the business strategy and how it relatesto the competition. The purpose of the competitive analysis is to determine thestrengths and weaknesses of the competitors within your market, strategies thatwill provide you with a distinct advantage, the barriers that can be developed inorder to prevent competition from entering your market, and any weaknesses thatcan be exploited within the product development cycle.” – Entrepreneur Magazine Lizzy Caston Business Advisor, GYRM http://www.entrepreneur.com/article/25756 Getting Your Recipe to Market. Spring 2012
  • 2. THE BAD NEWSIt’s Incredibly competitive out there in the specialty food world…competing for the same shelf spaces and customers… Getting Your Recipe to Market. Spring 2012
  • 3. THE GOOD NEWSPeople are still hungry…For quality, new tastes, new experiences, and have specialty needs and wants… Getting Your Recipe to Market. Spring 2012
  • 4. COMPETITIVE ANALYSISD.I.Y. Analysis (Cheap, Gives Good Insights, Overviews, Market Data Available forsale, some market data for free Or…Hire a Firm (Expensive, Very Detailed Insights and Numbers, Good Market Data) Getting Your Recipe to Market. Spring 2012
  • 5. SWOT ANALYSIS Strengths, Weaknesses, Opportunities, Threats: SWOT Analysis is a strategic method for identifying your small business Strengths and Weaknesses, and to examine the Opportunities and Threats in the wider environment (market, industry, global situation). http://business.nmsu.edu/~dboje/sbc/pages/page3.htmlGetting Your Recipe to Market. Spring 2012
  • 6. SWOT ANALYSIS Strengths •What is golden about your company? What do you do well (in sales, marketing, operations, management)? •What are your assets? •What are your core competencies? •Where are you making money? •What experience do you have? http://business.nmsu.edu/~dboje/sbc/pages/page3.htmlGetting Your Recipe to Market. Spring 2012
  • 7. SWOT ANALYSIS Weaknesses •What looks a bit rusty inside your company? What do you need (customer service, marketing, accounting, planning)? •Where do you lack resources? •What can you do better? •Where are you loosing money? http://business.nmsu.edu/~dboje/sbc/pages/page3.htmlGetting Your Recipe to Market. Spring 2012
  • 8. SWOT ANALYSIS Opportunities Where is the blue sky in your environment? What new needs of customers could you meet? •What are the economic trends that benefit you? •What are the emerging political and social opportunities? •What are the technological breakthroughs? •Where niches have your competitors missed? http://business.nmsu.edu/~dboje/sbc/pages/page3.htmlGetting Your Recipe to Market. Spring 2012
  • 9. SWOT ANALYSIS Threats Where is the blue sky in your environment? What new needs of customers could you meet? •What are the economic trends that benefit you? •What are the emerging political and social opportunities? •What are the technological breakthroughs? •Where niches have your competitors missed? http://business.nmsu.edu/~dboje/sbc/pages/page3.htmlGetting Your Recipe to Market. Spring 2012
  • 10. WHY CA IS IMPORTANT http://www.youtube.com/watch?v=peMGNLwwDsQGetting Your Recipe to Market. Spring 2012
  • 11. COMPETITIVE ANALYSISA good competitive analysis is a scouting report of the actual market terrain that yourcompany must navigate in order to be successful…FIVE STEPS TO DIY COMPETATIVE ANALYSIS:1. Your companys competitors.2. Competitor product summaries.3. Competitor strengths and weaknesses.4. The strategies used by each competitor to achieve their objectives.5. The market outlook. http://www.mwknowles.com/free_articles/companalysis/companalysis.html Getting Your Recipe to Market. Spring 2012
  • 12. YOUR COMPETITORS•Create a list of your competitors•Google, Google, Google: what’s out there aboutthem?•Scan markets, farmers markets…watch, listen, learn•If your product is “unique” determine what’s similarby category: desserts, spreads, dips, snacks, frozenentrees, etc. http://marketing.about.com/cs/brandmktg/a/whatisbranding.htm Getting Your Recipe to Market. Spring 2012
  • 13. COMPETITOR PRODUCT SUMMARIESAnalyze the competitions products and services in terms of features, value, and targets:•How do your competitors sell their wares and where are they located?•How do they market them?•What is their branding like?•Any customer satisfaction surveys out there?•How do customers see your competition?•Distribution?•Online Reviews? http://www.cleaningalliance.com/competitorissue.aspx Getting Your Recipe to Market. Spring 2012
  • 14. COMPETITOR STRENGTHS & WEAKNESSESAnalyze the competitions products and services in terms of features, value, and targets:•What is different, good, bad about their packaging, branding?•What negative and positive patterns do people say (hint, google online reviews)•How big is their sales and marketing reach? (local, international?)•What gaps do you think they have?•Assesses, Honestly assess if you can compete with them, in what ways, or if you shouldtweak your product, branding and do it differently… http://www.openforum.com/articles/the-best-kept-secrets-of-doing-a-competitive-analysis http://www.youtube.com/watch?v=X41Ri02txkM http://www.jerryrmitchell.com/attachments/files/WhitePaper0105.pdf http://www.toolkit.com/small_business_guide/sbg.aspx?nid=P03_2016 Getting Your Recipe to Market. Spring 2012
  • 15. STARBUCKS’ COMPETITIVE OOPSIEFor years Starbucks was THE LEADER in “gourmet coffee”. They changed theworld…gourmet coffee is everywhere…Starbucks became “gourmet fast foodcoffee”. So, Starbucks looked at their competition to determine they need toact more like “indy” neighborhood coffee houses and less like Dunkin’ Donuts. http://seattletimes.nwsource.com/html/localnews/2009479123_starbucks16.html Getting Your Recipe to Market. Spring 2012
  • 16. COMPETITIVE STRATEGIES .Observe how your competitorsmarket themselves through pressreleases and advertising, socialmedia. Quarterly and annualreports reveal a great deal ofinformation, too. (if you can getthem). But more than likely youllhave to do quite a lot of footworkto nail your competitors down.Cost, Leadership, Uniquenessare key areas to look at http://tutor2u.net/business/strategy/competitive_advantage.htm http://www.entrepreneur.com/article/204092 Getting Your Recipe to Market. Spring 2012
  • 17. MARKET OUTLOOK•What larger trends areoccurring in your marketsegment?•Trends in sales channels?•What larger demographictrends?•Data Providers have thisdata, can subscribe toservices.•Free info on the web!(census, industry sites, MBAprograms, etc) http://www.scribd.com/doc/24558569/Analysis-Yogurt-Case Getting Your Recipe to Market. Spring 2012
  • 18. USE YOUR GUTBut don’t let just data deter you. IGNORE negative data chatter “you can’t dothat!” “no one will ever buy that” “there’s too much of that already out there”.“No one will ever pay that for that” - Many Specialty Food Companies HaveProven the Data WRONG….Sometimes you are creating a market for your product, sometimes you arejoining a trend too early to assess, sometimes you can simply just do it betterthan anyone else. Getting Your Recipe to Market. Spring 2012
  • 19. RESOURCES FORCOMPETITIVE/MARKET ANALYSIS Books Websites SBA SBDC FoodBbizStartup Professional Associations: American Marketing Assoc. Schools: PSU, PNCA, Art Institute North American Specialty Food Trade Specialized Industry Groups (i.e. Gluten Free) US Census Bureau Bureau of Labor Statistics USDA Getting Your Recipe to Market. Spring 2012