TASK 1 – MARKET MAPPINGHow useful is market mapping in helping the business you have chosen to identifythe key features of its market?You could:• investigate a business that provides goods or services• conduct primary and/or secondary research into this business• use this primary and/or secondary research to identify the key features of the good or service provided by this business. You might consider factors such as price and quality• produce a market map for this business showing its position in relation to its competitors• present useful information/data to support the points you are making• analyse how the market map could be useful to this business in identifying key features of the market• using your analysis, arrive at a supported judgement which states the usefulness of market mapping to this business.
WHAT IS MARKET MAPPING?Identifies the gaps in the marketShows where a sector is overcrowdedBusinesses spend substantial amounts to get it right
CHOCOLATES TO ADD TO THE MARKET MAP Milk Tray o Cadbury Snaps Thorntons Crunchie o Cadbury’s Dairy Milk Classics o Snickers Mars Galaxy o Kit Kat Turkish Twix o Cadbury’s Caramel Delight Smarties Malteasers
Luxury Milk tray Thornton’s Classics Cadburys SnapsTurkish Delight Caramel Galaxy Maltesers Filling Light Mars Crunchie Snickers Kit Kat Twix Smarties Mars Everyday
MARKET MAPPING MEANS:Identifying two key factors that can be used to show where rival brands* stand in relation to customer requirementsStrength: provides a ‘top-line’ look at opportunities and threats within a marketWeakness: it only works if just two variables represent the main differences between brands* *’brands’ (in this sense) could mean products, services or a whole company
KEYS TO EFFECTIVE MARKET MAPS1. Get the scales right, i.e. find the best two variables, e.g. the most relevant2. This can best be done by research among the target market ... plus research among staff who come into customer contact, e.g. for a restaurant, ask front-of- house (waiters etc)3. Then research is needed to accurately place brands/companies on the map
KEYS TO MARKET RESEARCHOnly three methods will work:1. Research among peers (in which case the product/service must be suitable, e.g. a baker or an ice cream parlour)2. Research among staff (if they’re willing to cooperate)3. Research on customers (if they’re captive, e.g. waiting at a pizza takeaway)
2011 WINNER, TIME OUT AWARD: BEST ICE CREAM IN LONDON Scoop Gelato,Covent Garden: Here
POSSIBLE CRITERIA FOR SCOOP 1. High price – low price 2. High quality/freshness v low qual/fresh 3. Natural ingredients v synthetic 4. Many flavours v vanilla only 5. Tourist location v located for regulars 6. Traditional flavours v fad flavours (eg avocado ice cream or tomato sorbet)Which are the two most important criteria for marketmapping? How could market research help in deciding?