Food entrepreneur competitive analysis_gyrm_spring_2012

COMPETITIVE ANALYSIS
“The competitive analysis is a statement of the business strategy and how it relates
to the competition. The purpose of the competitive analysis is to determine the
strengths and weaknesses of the competitors within your market, strategies that
will provide you with a distinct advantage, the barriers that can be developed in
order to prevent competition from entering your market, and any weaknesses that
can 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

THE BAD NEWS
It’s Incredibly competitive out there in the specialty food world…

competing for the same shelf spaces and customers…


THE GOOD NEWS
People are still hungry…

For quality, new tastes, new experiences, and have specialty needs and wants…


D.I.Y. Analysis (Cheap, Gives Good Insights, Overviews, Market Data Available for
sale, some market data for free
Or…
Hire a Firm (Expensive, Very Detailed Insights and Numbers, Good Market Data)


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.html


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?



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?



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?



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?



WHY CA IS IMPORTANT

http://www.youtube.com/watch?v=peMGNLwwDsQ


A good competitive analysis is a scouting report of the actual market terrain that your
company must navigate in order to be successful…

FIVE STEPS TO DIY COMPETATIVE ANALYSIS:

1. Your company's 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


YOUR COMPETITORS
•Create a list of your competitors
•Google, Google, Google: what’s out there about
them?
•Scan markets, farmers markets…watch, listen, learn
•If your product is “unique” determine what’s similar
by category: desserts, spreads, dips, snacks, frozen
entrees, etc.

http://marketing.about.com/cs/brandmktg/a/whatisbranding.htm


COMPETITOR PRODUCT
SUMMARIES
Analyze the competition's products and services in terms of features, value, and targets:
•How do your competitor's 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


COMPETITOR STRENGTHS &
WEAKNESSES
Analyze the competition's 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 should
tweak 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


STARBUCKS’ COMPETITIVE OOPSIE
For years Starbucks was THE LEADER in “gourmet coffee”. They changed the
world…gourmet coffee is everywhere…Starbucks became “gourmet fast food
coffee”. So, Starbucks looked at their competition to determine they need to
act more like “indy” neighborhood coffee houses and less like Dunkin’ Donuts.

http://seattletimes.nwsource.com/html/localnews/2009479123_starbucks16.html


COMPETITIVE STRATEGIES
.

Observe how your competitors
market themselves through press
releases and advertising, social
media. Quarterly and annual
reports reveal a great deal of
information, too. (if you can get
them). But more than likely you'll
have to do quite a lot of footwork
to nail your competitors down.

Cost, Leadership, Uniqueness
are key areas to look at
http://tutor2u.net/business/strategy/competitive_advantage.htm
http://www.entrepreneur.com/article/204092


MARKET OUTLOOK
•What larger trends are
occurring in your market
segment?
•Trends in sales channels?
•What larger demographic
trends?
•Data Providers have this
data, can subscribe to
services.
•Free info on the web!
(census, industry sites, MBA
programs, etc)

http://www.scribd.com/doc/24558569/Analysis-Yogurt-Case


USE YOUR GUT
But don’t let just data deter you. IGNORE negative data chatter “you can’t do
that!” “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 Have
Proven the Data WRONG….

Sometimes you are creating a market for your product, sometimes you are
joining a trend too early to assess, sometimes you can simply just do it better
than anyone else.


RESOURCES FOR
COMPETITIVE/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


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