Best Practice Guide - Marketing Strategy - Competition Analysis By Wayne Chen

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An overview of the competition analysis for your marketing strategy. Learn to understand your competitors, SWOT analysis results, product positioning, branding, and tips to conquer the competition

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Best Practice Guide - Marketing Strategy - Competition Analysis By Wayne Chen

  1. 1. ì   Competition Analysis A  Best  Prac+ce  Guide  For  Your  Marke+ng  Strategy  Process   By:  Wayne  E.  Chen  ©  2011  –  Wayne  Chen  
  2. 2. Learning  Objective   ì  Understand  the  compe++on  landscape   ì  What  is  S.W.O.T.   ì  Develop  internal  and  external  analysis   ì  S.W.O.T.  results  and  ac+ons   ì  Market  share  research   ì  Product  posi+oning  &  map  ©  2011  –  Wayne  Chen  
  3. 3. Competition  Analysis   ì  Develop  a  plan  to  beat  your   compe++on   ì  Reduce  expenses   ì  Get  crea+ve   ì  Deliver  customer  service   ì  Developing  A  SWOT  Chart   ì  Self  vs.  Compe+tors      ©  2011  –  Wayne  Chen  
  4. 4. S.W.O.T.  Chart   Strengthens   Weakness   Opportuni+es   Threats  ©  2011  –  Wayne  Chen  
  5. 5. S.W.O.T.  COMPARISON   ì  What  is  our  place  in  the   market  place?   ì  Market  size  and  whole   ì  Financial  posi+on   ì  Historical  performance  and   reputa+on   ì  Resource  comparison   ì  Human  Capital  /  Sales   ì  Technology  capability   ì  Research  &  Development   ì  Legal  /  Poli+cal  ©  2011  –  Wayne  Chen  
  6. 6. Identify  Strengthens   ì  What  are  your  assets?   ì  Do  you  have  strong  partners  and   supporters?   ì  Which  asset  is  the  strongest?   ì  Will  you  be  cash  posi+ve  in  the   ì  What  makes  you  different?   short-­‐term?   ì  Do  you  have  talented  teammates?   ì  Do  you  have  specific  sales,   technical  or  marke+ng  exper+se?   ì  Do  you  have  a  broad  customer   base?  Is  it  growing?   ì  Is  your  business,  product  or  service   scalable?   ì  What  unique  resources  do  you   have  in  your  arsenal?   ì  Can  you  capitalize  on  economies  of   scale?   ì  Are  you  debt  free?  ©  2011  –  Wayne  Chen  
  7. 7. Identify  Weaknesses   ì  What  can  you  improve?  How   ì  Do  you  have  strong  profit  levels?   quickly?   ì  Do  you  have  a  well  of  new  ideas?   ì  What  necessary  exper+se,  or   technology  do  you  lack?   ì  Can  you  execute  your  new  ideas   quickly  and  cost-­‐effec+vely?   ì  Do  you  have  adequate  cash  flow  to   sustain  you  for  3-­‐6-­‐12  months?   ì  What  is  your  marke+ng  and   opera+ng  cost  structure?   ì  What  is  your  current  burn-­‐rate?   ì  Do  you  have  too  much  debt?   ì  Do  you  have  outdated  technology   or  service?   ì  Are  you  overinvested?    ©  2011  –  Wayne  Chen  
  8. 8. Identify  Opportunities   ì  What  external  changes  present   ì  Can  you  fill  the  gap  of  your   interes+ng  opportuni+es?   compe+tors?   ì  What  trends  might  impact  your   ì  What  partnerships  can  be  formed?   industry?   ì  Are  there  trends  emerging  that  you   ì  Is  there  new  talent  and  where?   can  profitably  service?   ì  Can  repurposing  your  product   ì  Can  you  reach  new  markets?   extract  new  value?     ì  Can  you  capitalize  on  your   ì  Can  you  reduce  your  service  or   consumer  needs?   product  offering  with  new  product   or  cost  models?  ©  2011  –  Wayne  Chen  
  9. 9. Identify  Threats   ì  Is  there  a  be^er  equipped   ì  Is  your  IP  properly  secured?   compe+tor  in  your  market?   ì  Do  you  have  a  strong  customer   ì  How  strong  is  their  execu+ve   base?   team?   ì  What  is  your  cash  to  debt  ra+o?   ì  How  happy  is  your  staff?   ì  What  if  your  service  or  product  is   ì  What  if  your  customers  don’t  pay?   pirated  or  hacked?   ì  How  much  run-­‐way  do  you  have?   ì  Are  you  dependent  on  key   suppliers?    ©  2011  –  Wayne  Chen  
  10. 10. Types  of  Competitors   REPLACEMENT   REGULATORY   DIRECT   You   INDIRECT   POTENTIAL  ©  2011  –  Wayne  Chen  
  11. 11. Direct  Competitor   ì  Offer  the  same  products   with  the  same  game   ì  Generate  the  same  revenue   and  have  the  same  channel   ì  Head-­‐to-­‐head   ì  More  generic  =  for  everyone   ì  Compe+ng  solely  on  price  ©  2011  –  Wayne  Chen  
  12. 12. Indirect  Competitor   ì  Offer  the  same  products  but   have  a  different  goal   ì  Does  not  drive  revenue  the   same  way   ì  Content  marke+ng  ma^ers   ì  Strong  marke+ng   ì  Large  adver+sing  budgets    ©  2011  –  Wayne  Chen  
  13. 13. Replacement    Competitor   ì  Consumer  can  choose  your   product   ì  Same  resources  they  could   have  commi^ed  to  your   product   ì  Must  listen  and  interview   consumers  to  gain  why  they   go  for  the  alterna+ve  ©  2011  –  Wayne  Chen  
  14. 14. Regulatory  Competitor   ì  Local,  State  and  Federal   agency   ì  Regula+ons   ì  Statutory   ì  Policy   ì  Alliance     ì  Lobbyist   ì  Poli+cal  ©  2011  –  Wayne  Chen  
  15. 15. Leverage    S.W.O.T.  Analysis     ì  Take  ac+on  on  results   ì  All  this  data  enables  you  to   do  the  following:   ì  Improve  your  strengths   ì  Eliminate  weaknesses   ì  Leverage  opportuni+es   ì  Defend  your  business  from   threats  ©  2011  –  Wayne  Chen  
  16. 16. Take  Action   ì  Guideline:   ì  S.W.O.T.  Analysis  Trap   ì  What  can  I  do  to  make  my   ì  Jus+fy  ac+ons  and  decisions   strengths  even  more   powerful?   ì  Objec+ve  on   ì  What  do  I  need  to  change  to   ì  Previous  decisions   eliminate  or  minimize  my   ì  Weaknesses  and  threats   weaknesses?   ì  Internal  reflec+on   ì  How  can  I  use  the   opportuni+es  to  my   advantage?   ì  What  should  I  do  to  protect   my  business  from  emerging   threats?  ©  2011  –  Wayne  Chen  
  17. 17. Potential  Competitor   ì  Service  and  products  that  may   appear  at  some  point  in  the   future   ì  Direct  or  indirect   ì  Can  impact  your  business     ì  Monitor  purchasing  habits   ì  Environmental  and  industry   changes   ì  Ver+cal  growth  and  expansion  ©  2011  –  Wayne  Chen  
  18. 18. Market  Shares  -­‐  Players   ì  Market  share  leverage  is  a   key  concept  to  consider   when  examining  market   shares  within  an  industry     ì  The  bigger  the  pie,  the   bigger  the  profit   ì  Produc+on  costs  per  unit   ì  Crea+vity  through  small   shares  ©  2011  –  Wayne  Chen  
  19. 19. Product  Perceptual  Map   ì  A  graphic  way  to  view  and   compare  your  product   against  the  compe+tors’     ì  Grid  by  Price  and  Quality     ì  Determining  known   markets  and  un-­‐served   ì  Percep+ons  importance   ì  Quality,  strengthen,  and   appeal  ©  2011  –  Wayne  Chen  
  20. 20. Product  Positioning   ì  Product  evolu+on   ì  Unique  Selling  Proposi+on   (USP)     ì  Product  Image   ì  Product  Posi+oning   ì  The  importance  of  produc+on   percep+on  vs.  physical   a^ributes  ©  2011  –  Wayne  Chen  
  21. 21. Ten  Ways  To  Conquer  Product  Positioning   1.  Posi+oning  begins  with  the  name     2.  Unique  products  require  new  names   3.  Be  the  first  to  own  the  word   4.  Reinforce  the  original  concept  across  all  ac+vi+es   5.  Introduce  a  new  brand  not  blurring  the  original   6.  Establish  a  new  category  and  brands  that  are  tough  to   beat   7.  Find  an  open  posi+on  in  the  consumer’s  mind   8.  Reposi+on  the  compe++on  to  undercut  leader’s  product   9.  Be  consistent  with  your  posi+on  always  ©  2011  –  Wayne  Chen  

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