Industry and Marketplace Analysis Business Plan Preparation Business Practice Firm Pascack Valley High School
Agenda • Industry and marketplace analysis • Industry analysis • Marketplace analysis • Customer analysis • Competitor analysis • Product/service description
Industry and Marketplace Analysis • Overview of industry and marketplace • Trends, dynamics, problems, opportunities • Demonstrate need or hole in marketplace • Show how trends lead inevitably to your concept • Tone of dispassionate analysis • Arms-length viewpoint, outsider looking in • Not the place to describe your concept or firm • This is not where you present your market strategy
Conceptual Picture Save for Marketing Plan Your Industry Your Marketplace X Buyers You Sellers
-- Industry analysis • Overview of industry organization • Pure competition, oligopoly, … • Focus on major and important trends • Identify disruptive technologies (if any) • Porter analysis is a good exercise • May or may not include in plan
Porter Analysis Ease ofSubstitution Power ofCustomers Power ofSuppliers Industry IndustryRivalry Barriers toEntry
Industry Questions • How do we define our industry? • How is the industry segmented? • What are current trends and important developments? • Who are the largest and most important players? • What problems is the industry experiencing? • What national and int’l events influence our industry? • What are growth forecasts?
-- Marketplace Analysis • Define and describe yourmarketplace • Niche, geographic area, subset of larger industry • What’s happening in your market? • Network! – talk with the marketplace • Customers, competitors, vendors, suppliers, salespeople, … • Chambers of commerce • Industry trade groups
Marketplace Questions • How do we define our marketplace? • How large is it and how fast is it growing? • How is our marketplace segmented? • What companies currently service this market? • What trends are important in our marketplace?
-- Customer Analysis • Identify current buyers in your marketplace • Segment these customers • What “problems” are not being solved? • What needs are not being met? • Which customer segments are currently ignored? • Talk with current buyers!
Customer Questions • Who are the traditional customers in this market? • How is the market segmented? • What motivates buying decisions? • What channels of distribution are used? What channels are being ignored • In what ways are customers dissatisfied with current offerings in the marketplace? • What customer needs are currently unmet by the market? • What emerging customer groups are being ignored?
-- Competitor Analysis • Identify current sellers in your marketplace • Niche and focus • Target customers • Strengths and weaknesses • Talk with current marketplace sellers! • Sellers themselves • Vendors • Customers • Competitive Matrix Comparison
Competitor Questions • Who are current sellers in the marketplace? • What are the attributes and characteristics of these sellers and their products/services? • What is there size, location, target market, and other important characteristics? • For their products or services, identify price, quality, features, distribution, and other important attributes. • What problems and concerns to customers have with these sellers?
Product/Service Description • Introduction • Description • What is your product or service? Describe carefully. • Market comparison • Why is our product or service unique or better? • What problems does it solve for customers? • Proprietary rights (if any) • Stage of development (brief) • Use this section to sell your concept
Product/Service SummaryIntroduction • Write an evocative paragraph that attractively presents your product or service Entering Hill’s Kitchen, customers are engulfed by the aroma of warm, hearty soups and freshly baked breads. They relax to music and peruse our menu of original gourmet recipes and freshly baked breads. A friendly and knowledgeable kitchen staff person greets them at the counter to offer suggestions and health information, and to take their order. Within moments the customer is served a generous portion of hot, hearty, and delicious Hill’s Kitchen soup. Accompanying the soup is a large slice of freshly baked bread and a fresh fruit choice, all of which can be carried out or enjoyed in our clean and comfortable dining area. In just those few brief moments, Hill’s Kitchen has served another healthy and delicious meal, and satisfied yet another customer.
Differences between Servicesand Products • Products are generally tangible, services intangible • Services are created and delivered at the same time • Services cannot be inventoried • Services are highly visible to consumers • Some services have low barriers to entry and exit • Location is often important to service design, with convenience as a major factor • Service systems range from those with little or no customer contact to those that have a very high degree of customer contact • Demand variability alternately creates waiting lines or idle service resources
Differentiation Road Map • Brand • Trademark • Bundling • Communications • Features • Packaging • Quality • Color • Size • Style • Options • Timeliness • Customize • Delivery • Warranty • Installation • Time of sale • Service • After sales • Special terms • Usergroups • Design help • Augmented Benefits • Tangible Benefits • Core Benefits • What’s it for? • What’s it do?