1. Marketing Intelligence
Unit 17
PhotoCredit:Fotolia.com
Dr Shohail
Week6
MarketSizeandDemand
(AC3.1and3.2)
1MI : Dr Shohail Choudhury

2. Last Week
Carlton Limited (or the company of your choice) wants to understand its customers,
business and the competitive environment it operates in. Therefore, as the
Marketing Manager, you are asked to carry out the following tasks:
Assess the validity and reliability of market research findings.(2.3)
Guidelines: Your answer should, amongst other things, include an assessment of the
limitations of market research findings, an assessment of what could make market
research findings valid and an assessment of what could make market research
findings reliable.
Prepare a marketing research plan to obtain information in a given
situation. (2.4)
Guidelines: Your answer should include the following sections: background, rationale,
objective of research, a methodology section covering the following qualitative
and quantitative techniques, data analysis, timeframe within which you want the
research conducted and a budget section for this research.

3. Recap: Activity: Q&A: 5 mins
• What is the main difference between
quantitative and qualitative research?
• Define Secondary data and give example of
three sources.
3MI : Dr Shohail Choudhury

4. This Week
LO 3: Be able to assess market size and future demand
AC 3.1: Assess market size trends within a given market
AC 3.2: Plan and carry out a competitor analysis for a
given organisation
4MI : Dr Shohail Choudhury

5. This week’s content
Measuring:
• defining the market;
• estimating total
market size,
• value and volume;
• growth and trends;
• forecasting future
demand
Competitive analysis:
•competitor analysis – market/
product profiles of competition,
•brand and market share;
•characteristics of the competition –
•market innovator/follower;
•objectives of the competition;
strategies of the competition;
•strengths and weakness of
competition;
•future behaviour of the competition
and their strategic intent
LO 3 Be able to assess market size and future demand
5MI : Dr Shohail Choudhury

6. Lesson Objectives
By the end of the session the student should be able to………..
1. In pairs/groups identify concepts of market size, market trend,
sales volume and values to describe a market and identify
sources of information to do this.
2. Use secondary data to evaluate market size and trends of a
specific market.
3. In pairs, create a competitor map of one company and present
it to the class.
4. In pairs/groups identify competitors of a company/product (
e.g. Coca-cola Life) and share findings to the class.
5. In pairs apply the terms Market Leader, Market Challenger,
Market follower, and Market Nicher in a specific industry (e.g.
social networking business)
6. Explain how competitor analysis of specific organisation could
be carried out.
MI : Dr Shohail Choudhury 6

7. Market Analysis
• Market size
• Growth and trends
7MI : Dr Shohail Choudhury

8. Definition of Market
A market is a group of actual and potential customers,
who can make purchase decisions.
Market based on product: Confectionary market
Market based on consumers: Youth market.
Some firms compete in several markets because they
are diversified.
8MI : Dr Shohail Choudhury

9. WHY A MARKET ANALYSIS?
• It helps in the determination of attractiveness
of a market.
• It helps in understanding the dynamics of the
market.
9MI : Dr Shohail Choudhury

10. COMPONENTS OF A MARKET
ANALYSIS
• Actual / Potential Market Size
• Market Growth and Profitability
• Distribution Systems
• Trends and Developments
• Key Success Factors
10MI : Dr Shohail Choudhury

11. MARKET SIZE
Estimating Market size is an essential first step to calculating the
Market Share of a business, and of its competitors.
Market Size is measured by the total volume and/ or value of all
sales in the market.
• Sales volume is measured in terms of the number of units of
goods purchased.
• Whilst sales value measures the total amount spent by
customers on the volume of goods sold.
• By comparing changes in market size over a selected
period, trends in the market can be identified.
11MI : Dr Shohail Choudhury

12. Estimating Market Size
Almost all methods for estimating market size is that they are based on
decomposing the larger "market size" problem into smaller problems, and
building the results of these smaller problems into the market size. The
best way to see this approach is in the familiar method of estimating
market size as follows:
Market size = number of buyers in the market x
quantity purchased by an average buyer in the market per year x
price of an average unit
This is a common technique used by many companies, with the major
differences being how they break the problem down and how they build in
back up.
For example, an Internet service provider may think of the number of buyers
at the level of a household - since a household buys the Internet service,
not an individual.
Read more: http://www.marketingprofs.com/tutorials/marketsize1.asp#ixzz3HlcT1c5i
12MI : Dr Shohail Choudhury

13. Size of Smart TV Market in UK
Source: Ofcom
The graph shows this to be a rapidly growing market with a 60%
growth year on year in the share of smart TV sales in the personal
television market, and a current market share of 45%
13MI : Dr Shohail Choudhury

14. Handout: Reading: 15 mins.
• Handout on Market size
• Example of how Market Size and Trends are
researched.
(Source Euromonitor)
14MI : Dr Shohail Choudhury

15. Forecasting Market Demand
Market forecast is the forecast for the market as a whole. It is
mainly involved in the assessment of environmental factors,
outside the organisation’s control, which will affect the
demand for its products/services.
Components of Market forecast:
a. Economic review
b. Specific market research
c. Evaluation of the total market demand for the firm’s and
similar products
d. Sales forecasts
15MI : Dr Shohail Choudhury

16. Activity: Mind Map: 15 mins.
• In pairs you need to draw a mind map to show:
• Which information are needed to understand a specific
market
• From where you can collect such information.
• Choose a specific market (e.g. Smart TV market)
• Use the ‘Smart TV market’ handout for idea
generation
• Present your findings to the class
MI : Dr Shohail Choudhury 16

17. Competitive Analysis
17MI : Dr Shohail Choudhury

18. Competitive Analysis
Simply, it is analysis of your competitor
companies (or products/services).
It is the process of identifying key
competitors; assessing their objectives,
strategies, strengths and weaknesses, and
reaction patterns; and selecting which
competitors to attack or avoid.
18MI : Dr Shohail Choudhury

19. Steps in Analyzing Competitors

20. Competitor Analysis
• Firms face a wide range
of competition
• Be careful to avoid
“competitor myopia”
• Methods of identifying
competitors:
– Industry point-of-view
– Market point-of-view
• Competitor maps
can help
Identifying
Competitors
Assessing
Competitors
Selecting
Competitors to
Attack or Avoid
Steps in the Process:
20MI : Dr Shohail Choudhury

21. Identifying Competitors
21
Competitor myopia refers to a firm focusing on what it
considers to be its direct competition and not being
aware of indirect or new competitors. (We will do an
activity on finding competitors next).
Industry point of view refers to competitors within
the same industry
Market point of view refers to competitors trying to
satisfy the same customer need or build
relationships with the same customer group
MI : Dr Shohail Choudhury

22. Activity
Competitors of Coca –Cola life : 10 mins
22
In pairs, list competitor products (or companies) of coca-cola life.
(Poll everywhere)
MI : Dr Shohail Choudhury

23. Activity: Discussion
Competitors of Coca –Cola life
23
Hint:Checkpenultimateslide.
MI : Dr Shohail Choudhury

24. Example of competitor
myopia:
230-year-old
Encyclopedia Britannica
viewed itself as
competing with publishers
of printed encyclopedias.
Big mistake!
Its real competitors were
software encyclopedias
and the Internet.

25. Competitor map highlights both competitive
opportunities and challenges facing the firm
This is made up with a circle in the centre and two
outer rings.
• Center is the list of consumer activities
• First outer ring lists main competitors
• Second outer ring lists indirect competitors
Competitor Map

26. Competitor Map : Example

27. Activity:
Make a competitor map : 15 mins
In pairs, create a competitor map for one of the
following companies and present it to the class:
1. Facebook
2. Redbull
3. Adidas
4. Costa coffee
5. Dell

28. 18- 28
Competitor Analysis
• Determining competitors’
objectives
• Identifying competitors’
strategies
– Strategic groups
• Assessing competitors’
strengths and weaknesses
– Benchmarking
• Estimating competitors’
reactions
Identifying
Competitors
Assessing
Competitors
Selecting
Competitors to
Attack or Avoid
Steps in the
Process:
MI : Dr Shohail Choudhury

29. 18- 29
Competitor Analysis
• Strong or weak competitors
– Customer value analysis
• Close or distant competitors
– Most companies compete
against close competitors
• “Good” or “Bad” competitors
– The existence of competitors
offers several strategic benefits
Identifying
Competitors
Assessing
Competitors
Selecting
Competitors to
Attack or Avoid
Steps in the
Process:
MI : Dr Shohail Choudhury

30. • Basic Winning Competitive Strategies: Porter
– Overall cost leadership
• Lowest production and
distribution costs
– Differentiation
• Creating a highly
differentiated product line
and marketing program
– Focus
• Effort is focused on serving
a few market segments
Competitive Strategies
30MI : Dr Shohail Choudhury

31. Hypothetical
Market Structure

32. 18- 32
Competitive Strategy
• Expanding the total demand
– Finding new users
– Discovering and promoting
new product uses
– Encouraging greater product
usage
• Protecting market share
– Continuous innovation
• Expanding market share
– Profitability rises with market
share
Market Leader
Market
Challenger
Market
Follower
Market Nicher
Competitive
Positions
MI : Dr Shohail Choudhury

33. Competitive Strategy
WD-40 has a knack for
developing new uses for its
product.
WD40
33MI : Dr Shohail Choudhury

34. 18- 34
Competitive Strategy
• Option 1: challenge the
market leader
– High-risk but high-gain
– Sustainable competitive
advantage over the leader is
key to success
• Option 2: challenge firms of
the same size, smaller size or
challenge regional or local
firms
• Full frontal vs. indirect
attacks
Market Leader
Market
Challenger
Market
Follower
Market Nicher
Competitive
Positions
MI : Dr Shohail Choudhury

35. Pepsi is an
example of
market
challenger that
has chosen to
use a full
frontal attack

36. 18- 36
Competitive Strategy
• Follow the market leader
– Focus is on improving
profit instead of market
share
– Many advantages:
• Learn from the market
leader’s experience
• Copy or improve on the
leader’s offerings
• Strong profitability
Market Leader
Market
Challenger
Market
Follower
Market Nicher
Competitive
Positions
MI : Dr Shohail Choudhury

37. Competitive Strategy
• Serving market niches
means targeting sub-
segments
• Good strategy for small
firms with limited
resources
• Offers high margins
• Specialization is key
– By market, customer,
product, or marketing mix
lines
Market Leader
Market
Challenger
Market
Follower
Market Nicher
Competitive
Positions
37MI : Dr Shohail Choudhury

38. Activity: Market Structure: 10 mins
• Consider companies serving as social networking
websites.
• In pair identify who could be classified as:
• Market Leader
• Market Challenger
• Market follower
• Market Nicher
38MI : Dr Shohail Choudhury

39. • Companies can become so competitor
centered that they
lose their customer focus.
• Types of companies:
– Competitor-centered companies
– Customer-centered companies
– Market-centered companies
Balancing Customer and Competitor
Orientations
39MI : Dr Shohail Choudhury

40. Evolving Company
Orientations

41. Industry/Sector Analysis using
Porter’s Five Forces
41MI : Dr Shohail Choudhury

42. 42MI : Dr Shohail Choudhury

43. Competitive Analysis Template
by CIM
43MI : Dr Shohail Choudhury

44. Source: CIM44MI : Dr Shohail Choudhury

45. Handout/Weblink
• Competitive Analysis by CIM
• http://www.cimmarketingexpert.co.uk/wp/?w
pid=751
• (Source CIM)
45MI : Dr Shohail Choudhury

46. Further Study
1. How to get to grips with your competitors: 10
minutes Guide.
Web Link: http://www.cim.co.uk/files/competitors.pdf
(Click the link to download the pdf guide.
2. Marketing Mangement, by Kotler and Keller, Chapter
18.
46MI : Dr Shohail Choudhury

47. Assignment Task
Conduct research for the events sector (or the sector of your choice) within
London and prepare a summary of your findings in the form of slides; these
slides should include speaker notes. These slides and speaker notes will
cover the following:
Assess market size trends within a given market (3.1)
Guidelines: Include a description of what a ‘market’ consists of and an
identification and description of the market you will use for this question.
You can discuss your chosen market with your lecturer however, due to time
constraints; you are advised to select a market you can access information
about. Include an estimation of this market’s size, volume and /or value, a
description of a market trend, and an assessment of this market’s trends.
Plan and carry out a competitor analysis for a given organisation in a sector of
your choice (3.2)
Guidelines: Your answer should include the following; a description of
competitor analysis, a description of strategic group, an identification of the
strategic group your chosen organisation belongs to, identification of your
chosen organisation’s likely competitors. In addition, plan and carry out
analysis of your chosen organisation’s competitors. 47MI : Dr Shohail Choudhury

48. Did you consider?
48
Coca-cola life competes against:
• Pepsi True
• All other soft drinks
•Tea and coffee
• Tap water
• Soda stream or similar home soda makers.
MI : Dr Shohail Choudhury

49. References
• BPP (2013) Marketing Intelligence and Planning.
• CIM (2013) How to get to grips with your competitors. Web
Link: http://www.cim.co.uk/files/competitors.pdf
• Kotler and Keller (2012) Marketing Management.
49MI : Dr Shohail Choudhury