The document discusses micro market analysis and provides examples. It defines a micro market as a clearly defined, specific market segment. Micro market analysis involves three components: customer analysis using demographic, psychographic and technographic segmentation; location analysis using tools to evaluate economics, image, target customers, competitors, and conditions; and competitor analysis using benchmarking of products/services, price, customer service, and store ambiance. Examples provided include a golf resort project, a commercial center development, and a new fried chicken and school supply store concept.

1. MICRO MARKET STUDY
Tuesday, March 17, 2015
MBA in Health

2. AGSB – MBA in Health
What is a micro market?
• Is a market that is clearly defined, specific
and detailed.
• If macro is the “big picture” then this is
“small picture”.

3. AGSB – MBA in Health
Three Components of the Micro
Market
Micro Market

4. AGSB – MBA in Health
Customer Analysis – Tools for
Profiling
Demographic Segmentation
(Structure of Society)
• Age ( stages in life cycle influence
buying behavior)
• Income levels ( high, upper middle,
lower middle, low.)
• Ethnicity and Religious beliefs
(affects certain cultural behavior)
• Occupation (indicator of what goods
and services may be availed of)

5. AGSB – MBA in Health
Customer Analysis – Tools for
Profiling
Psychographic Segmentation
(How consumers think and feel)
• Motivation ( physiological and
psychological)
• Perception ( defines action to be taken
through the human sense)
• Preferences ( through exposure,
experience and expectations)

6. AGSB – MBA in Health
Customer Analysis – Tools for
Profiling
Technograpic Segmentation
(Different levels of expertise or
sophistication)
• Novice ( Beginner, entry level)
• Regular ( Day to day user)
• Professional ( for competitive
advantage, high level)

7. AGSB – MBA in Health
Customer Analysis – Tools for
Profiling
• The key is customer intimacy
• knowing exactly who the market
• How they behave
• Being able to react quickly, if not anticipate
their needs and wants

8. AGSB – MBA in Health
HOW HE / SHE EXACTLY

9. AGSB – MBA in Health
Location Analysis – Tools for Evaluation
Economics
–Cost of buying or renting
–Cost of renovating
–Probable volume of customers: traffic
–Sales conversion ratios
–Estimated profits

10. AGSB – MBA in Health
Location Analysis – Tools for Evaluation
Image desired
– Upscale image
– Middle class appeal
– “Flea market” attraction
E.g.
• Is a Medium Rise Building
for class B located at
floodway ( DEFG) correctly
located
• Is a jewelry store correctly
located in a high criminality
neighborhood

11. AGSB – MBA in Health
Location Analysis – Tools for Evaluation
Exact fit to Target Customers
– Traffic is generally composed of customers
being targeted
– The specific profile of the potential customers
in the area matches the product or services
that the company offers
– More value for perfect fit

12. AGSB – MBA in Health
Location Analysis – Tools for Evaluation
Clustering or
Non-clustering of
Competitors
– Clustering may result in
drawing a bigger market
due to a wider range of
choices
– Is it more advantageous
to have wider choice or a
monopoly

13. AGSB – MBA in Health
Location Analysis – Tools for Evaluation
Neighborhood Conditions
–Aesthetics
–Sanitary conditions
–Peace and order situation

14. AGSB – MBA in Health
Location Analysis – Tools for Evaluation
Future Development Program
– May not have correct economics in the short run
– Potentials that may improve or depress the area

15. AGSB – MBA in Health
Location Analysis – Tools for Evaluation
Fiscal and Regulatory requirement
–Favorable tax systems
–Good governance
–Excellent infrastructure
–Great public service
• EPZA
• Cyber City
• Technoparks
• Freeports

16. AGSB – MBA in Health
Location Analysis – Tools for Evaluation
The key is knowing your exact location
inside out as well as its surrounding
conditions. You should be able to
determine whether such location is
beneficial to your business or not.

17. AGSB – MBA in Health
Competitor Analysis – Tools for
Benchmarking
Product/services offered
–How does it compare with your “menu vs.
their menu?
–Do they offer a complete line?
–How superior or inferior are you in terms
of quality?

18. AGSB – MBA in Health
Competitor Analysis – Tools for
Benchmarking
Price/Cost advantage
–Are you more expensive or cheaper in
terms of price?
–Are you a lower or higher cost producer?

19. AGSB – MBA in Health
Competitor Analysis – Tools for
Benchmarking
Customer servicing
–What is their customer service level?
–How accommodating and helpful are their
staff?
–How customer –friendly are they?
–How ‘FAR” will they go for their customer?

20. AGSB – MBA in Health
Competitor Analysis – Tools for
Benchmarking
In-store ambiance
– How does their
store look like?
– How does their
store “feel like’?
– Do they have good
music, lighting, art
decorations etc.

21. AGSB – MBA in Health
Competitor Analysis – Tools for
Benchmarking
The key in knowing very well your
competitors like the back of your hands.
The ability to determine their strengths and
weaknesses would eventually serve your
business in good stead.

22. MICRO MARKET STUDY
EXAMPLES

23. AGSB – MBA in Health
Golf resort project
* No similar project
* New
* A property in Batangas owned by Roxas
Competitive study
* Resort lots in Batangas at P 1,500/sq.m
* no development
Batangas – sea front
Historical - old Spanish fort

24. AGSB – MBA in Health
Customers Study
- FGD with existing
- Ayala customers
(for children)
- They said idea is OK
Positioning
* Golf course resort
* 500 lots only @ 500 – 1000
sq.m
* ½ - facing China sea
* ½ facing golf course

25. AGSB – MBA in Health
TUTUBAN Center
- no similar project
- old tutuban station
was up for rehab
Competitive Study
- Existing 3 x 3 stalls @
P 1,500,000
- No improvement
- No amenities

26. AGSB – MBA in Health
Location
–High traffic
–Near Divisoria
Customer Study
- did a FGD about 2000 said yes
- In law of Danny Antonio ( former
president of LANDCO) – a Chinese

27. AGSB – MBA in Health
POSITIONING
–25 year lease of P500,000.00
–With CR, aircon, amenities
( vs. competitor who had none)

28. AGSB – MBA in Health
NEW FRIED CHICKEN
• Competitive study (re-negatives)
–Studied positives
–Nothing came out (P300,000 was spent)
–NED Roberto PhD was consulted “ ASK
THE NEGATIVES

29. AGSB – MBA in Health
WHAT DON’T YOU LIKE ABOUT
LEADING BRAND?”
1. Serving too small
2. Blood in the fried chicken
3. CR – no urinal for children
POSITIONING FOR THE PRODUCT
• Large Serving
• Removal of blood in the fried chicken
• CR urinals for children

30. AGSB – MBA in Health
IT WAS A SUCCESSFUL LAUNCH
• New product brand coming out of
competitor NEGATIVES!

31. AGSB – MBA in Health
A NEW SCHOOL SUPPLY STORE
What irritates you?’
–Children are in the habit of asking parents
to buy school materials @ 9 pm when
stores are closed.

32. AGSB – MBA in Health
STORE POSITIONING
• Open for 8pm-12 midnight
• Stocks frequently looked
for last minute school
supplies, paste, fastener,
art paper, illustration
board, manila paper,
colored paper
• Prices are stiff 40% higher

33. AGSB – MBA in Health
WAS IT A SUCCESS?
YOU BET.
Who says you have a perfect product?
Who says there is no chance for new
business