COMPETITIVE ANALYSIS
BASIS OF THE ANALYSIS
It is important to establish the compatibility between the Products and the Market, Marketing, Supplier, Distribution/Customer Interface and Customer factors and parameters in each of the markets investigated in this report.
The Surveys of the industry Suppliers, Distribution Channels, Customers and various other sources have identified a number of critical or potentially critical factors and parameters for each Product, Market, Operation, Competitor and Sector. Most of these factors cannot be evaluated on a monetary scale and their measurements are not comparable, thus another mode of analysis and evaluation must be found.
In order to aggregate the separate factors into a single value, which will indicate areas of concern or potential opportunity, one must convert them into a value scale. This can be done by assigning value points to each critical or potentially critical factor through a scale of judgments which are based on actual past experience of the product, the marketing, and the customers concerned. The relative importance of each factor is indicated by the weights assigned. A factor's rating value is multiplied by its weight to yield its critical value. These values are then used to generate rational prose which best illustrates the value/s.
The prose produced (in certain editions) by the computer is logical in the assignment of the description of the cell in question and thus the adjectives used have a definitive scale (given in the Appendix).
Obviously such an analysis can assist readers in evaluating both areas which might produce problems for the marketing of the product and also areas of opportunity which may be exploited by suppliers when marketing or distributing the product/s in each of the areas concerned.
The techniques used here are very similar to that used in new product evaluation and screening, indeed readers frequently use the weightings and conclusions found here when evaluating new products and markets. The main purpose of these analyses is of course to attempt to provide a rational and objective basis with which to compare and evaluate the factors and parameters critical to the provision of products and services.
PRESENTATION OF THE ANALYSIS
This section analyses hundreds of major items in relation to the Market and Industry Norms. Thus several thousand Issues and Considerations are discussed and analyzed.
Clearly it would be extremely difficult, and indeed overwhelming in length, to produce this analysis in prose and thus the data is presented as spreadsheets for which the user can construct a tabular or graphic representation as needed.
In order to interpret this data it is necessary to understand the various factors being considered in the analysis. These factors include:
1. The relative strength, weakness and performance of the Companies, Market and Industry in terms of the Norms in all relevant Competitive, Operational, Geographic, Product and Market sectors.
2. The relative strengths, weaknesses and performance of the Companies and Industry in terms of all relevant Competitive, Operational, Geographic, Product and Market sectors.
3. The average strengths, weaknesses and performance of the competitors in terms of all relevant Competitive, Operational, Geographic, Product and Market sectors.
4. The Market and Industry in which the industry operates and the prevailing Norms and expectations of the marketplace.
5. All the above factors when forecast individually, in relation to the Product Companies, Markets and Industries, can thereafter be projected in the Medium Term.
CORPORATE DATABASES:
The general basis of the analysis is the comparison of the products, market, operations and industry and the various SECTION Norms which exist in the product sectors, markets and industries in which Industry Companies operate.
The comparison is made in terms of the Strengths and Weaknesses of the industry in respect of the Company and its Competitors, (being the major competitors which together accounts for 80% of the cumulative Market Share in each country of the Trade Cell).
The forecasted performance of the industry is a function of its strengths and weaknesses in relation to that of the Product, Market, Operational and Competitive Norms. This function and the conclusions thereof drawn are projected from the various forecasts contained.
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MARKET DATABASES:
The general basis of the analysis is the comparison of the National Industry in the Base Country and the Product, Market, Operational and Competitive Norms in the Trade Cell markets and industries which operate on the SECTION.
The comparison is made in terms of the Strengths and Weaknesses of the National companies versus the International Product, Market, Operational and Competitive Norms within the Trade Cell.
The data is gained from research into Customer and Distribution Channel Bases as well as those of the companies in the Trade Cells markets.
The forecasted performance of the National Industry is a function of its strengths and weaknesses in relation to that of the Trade Cell Norms. This function and the conclusions thereof drawn are projected from the various forecasts contained.
The techniques used here produce an evaluation and screening of each item and in addition one can use the weighting and conclusions found here when evaluating the item. The main purpose of these analyses is to provide a rational and objective basis with which to compare and evaluate the factors which are critical to the industry in the countries covered.
Readers wishing to apply this analysis to their own activities should amend both the Value scale and the Weight to suit their own situation. It should be remembered that once a company has decided upon a Value scale and a Weight scale this should be retained and not changed. This is because it is important to be able to relate one company or operation to another and thus scales must remain constant if a valid comparison is to be made. Subscribers wishing to undertake such analyses should formulate a blank set of analysis forms which may be used when evaluating current or changing circumstances.
In addition to the scale of value judgments the results are applied to a standard weighting for each factor and parameter. These weights are based on past experience of the corporate environment in relation to the individual factors analyzed.
The evaluation of any particular factor of corporate activity will allow readers to gain an insight into the problems and opportunities of the industry and the market and this can be first achieved by considering the relative Weightings:-
C / 08 / 11E
L
L / 03
05 / 10 / 15
06
V
A
L / x
U
E
04
09 / 14
13
02
07
12
01
RELATIVE CORPORATE STANDING & ENVIRONMENT
The values of base Factors (fields Crit_A to Crit_K), together with the data is for 15 sectors (products, markets, operations, geographic locations, competitors, et al) covered in each table (fields Headx01 to Headx15) represent the relative weightings.
One can plot these weightings as an initial analysis of the relative importance to the criticalness of the Factors and the criticalness of the factors (defined in fields A_Def to K_Def) to the individual Sectors (defined in fields Head01 to Head15). x = Base reference for the Factor.
In this example one can compare the weightings of one particular base Factor, x, with that of the 15 other sectors.
THE DATABASE
There are a series of spreadsheet and database tables for this section, and each table will consist of a number of records for each of the specific products, markets, operations, geographic locations and competitor areas:
TABLE / DatafileCORPORATE STANDING ANALYSIS (x) / C8I – C8A
MAJOR CITY STANDING ANALYSIS (x) / C8I – C8B
COMPETITOR STANDING ANALYSIS (x) / C8I – C8C
OPERATIONAL STANDING ANALYSIS (x) / S8I – S8O
PRODUCT STANDING ANALYSIS (x) / S8I – S8P
MARKET STANDING ANALYSIS (x) / C8I – C8T
CORPORATE ENVIRONMENT ANALYSIS (x) / C9C – C9A
MAJOR CITY - ENVIRONMENT ANALYSIS (x) / C9C – C9B
COMPETITOR ENVIRONMENT ANALYSIS (x) / C9C – C9C
OPERATIONAL ENVIRONMENT ANALYSIS (x) / S9C – S9O
PRODUCT ENVIRONMENT ANALYSIS (x) / S9C – S9P
MARKET ENVIRONMENT ANALYSIS (x) / C9C – C9T
There are 4 types of tables for this section with distinct considerations (headings indicate Field names):
ANALYSIS /CODE / FACTORS / A_DEF / B_DEF / C_DEF / D_DEF / E_DEF / F_DEF / G_DEF / H_DEF / I_DEF / J_DEF / K_DEF /
C8I_01 / RELATIVE STATURE / PREVALENT AWARENESS BY CUSTOMERS / PREVAILING REPUTATION / PERCEPTION OF PRODUCTS / RECOGNITION OF PRODUCT QUALITY / PERCEPTION OF SERVICE SUPPORT / PERCEPTION OF CLIENT TREATMENT
C8I_02 / COMPETITIVE PROMOTIONAL PRACTICE / EVALUATION OF ROUTINE SALES PROMOTION ACTIVITY / MERIT OF ADVERTISING / VALUE OF SALES PERSONNEL / CALIBER OF SALES PRINT
C8I_03 / COMPETITIVE PRODUCT AVAILABILITY / GRADE OF PRODUCT AVAILABILITY / MERIT OF PRODUCT DEFINITION / GRADING OF ON-TIME DELIVERY / RATING OF UNIMPAIRED ORDER DELIVERY / RATING OF ORDER HANDLING / RATING OF CAPACITY TO PROVIDE
C8I_04 / COMPETITIVE MARKETING APTITUDE / CALIBER OF MARKETING EXPERTISE / EVALUATION OF MARKETING RESPONSE / EVALUATION OF MARKETING TECHNIQUE / EVALUATION OF PROMOTIONAL DOCUMENTATION / EVALUATION OF PROMOTIONAL + SALES DECAY / EVALUATION OF ADVERTISING DEXTERITY
C8I_05 / MARKET COMPONENTS / CONSCIOUSNESS OF PRODUCT PRICING / PRODUCT EXCELLENCE / CLIENT SERVICE / RELIABLE DELIVERY / SERVICE RELIABILITY / SERVICE STANDARDS / SERVICE CONDUCT / SERVICE CONVENIENCE / PRODUCT DELIVERY SYSTEM / RESPONSIVENESS OF CLIENT TREATMENT / OBSERVANCE OF FAIR TERMS OF BUSINESS
C8I_06 / SALES STAFF ACHIEVEMENT / PRIMARY CONTACT / ORDER HANDLING STAFF / SALES STAFF / ADMINISTRATION STAFF / SALES MANAGEMENT / SALES PERSONNEL
C8I_07 / CORPORATE SALES ELEMENTS / UPSTREAM SALES CONSOLIDATION / DOWNSTREAM PROMOTIONAL HARMONIZATION / CAPTIVE SALES CONDUITS / DEPENDENCE ON SELLING OUTLETS / OPERATION OF SEGMENTED PROMOTIONAL UNDERTAKING / BENEFITS OF SEGMENTED MARKETING / CAPTIVE CUSTOMER BASES
C8I_08 / COMPETITIVE SALES CHANNEL AWARENESS / WAREHOUSING & HANDLING / PACKING & PACKAGING / SALES ACTIVITY / STOCK AVAILABILITY / CUSTOMER SATISFACTION
C8I_09 / COMPETITIVE CLIENT AWARENESS / LOCATION OF CUSTOMERS / CAPTIVENESS OF THE CUSTOMER BASE / CUSTOMER BASE LOYALTY / CONCENTRATION OF PURCHASES / PURCHASE FREQUENCY / ORDER SIZE / CUSTOMER SERVICING / SEASONALITY
C8I_10 / COMPETITIVE PROMOTIONAL CONSIDERATIONS / ADVERTISING & SALES PROMOTION / MARKETING / SALES PROMOTION / SALESFORCE / ADVERTISING
C8I_11 / COMPETITOR CONSEQUENCES / PRICING CONDUCT / ECONOMIC ENVIRONMENT / COMPARATIVE MARKETING ACTIVITY / RESPONSE TO OPPONENTS / NEW COMPETITORS / PRICES AT MSP / PRICE INCREASES / PRICES AT RSP / MARKET SHARE
ANALYSIS /
CODE / FACTORS / A_DEF / B_DEF / C_DEF / D_DEF / E_DEF / F_DEF / G_DEF / H_DEF / I_DEF / J_DEF / K_DEF /
S8I_01 / RELATIVE REPUTATION / OVERALL AWARENESS BY CUSTOMERS / OVERALL REPUTATION / REPUTATION OF PRODUCTS / REPUTATION OF PRODUCT QUALITY / REPUTATION OF SERVICE PROVIDED / REPUTATION OF CUSTOMER HANDLING
S8I_02 / RELATIVE PROMOTIONAL ACTIVITY / RATING OF OVERALL SALES PROMOTION ACTIVITY / RATING OF ADVERTISING / RATING OF SALES PERSONNEL / RATING OF SALES PRINT
S8I_03 / RELATIVE PRODUCT AVAILABILITY / RATING OF PRODUCT AVAILABILITY / RATING OF PRODUCT SPECIFICATIONS / RATING OF ON-TIME DELIVERY / RATING OF COMPLETE ORDER DELIVERY / RATING OF ORDER HANDLING / RATING OF ABILITY TO SUPPLY
S8I_04 / RELATIVE TECHNICAL COMPETENCE / RATING OF TECHNICAL COMPETENCE / RATING OF TECHNICAL AWARENESS / RATING OF PRODUCT TECHNOLOGY / RATING OF PRODUCT DOCUMENTATION / RATING OF PRODUCT RETURNS / RATING OF AFTER-SALES SERVICES
S8I_05 / RELATIVE MARKETING FACTORS / PERCEPTION OF PRODUCT PRICES / TECHNICAL SUPERIORITY / SERVICE FACTORS / PROMPT DELIVERY / WHOLE ORDER DELIVERY / STOCK LEVELS / ORDERING PROCEDURES / DELIVERY CONVENIENCE / THE DELIVERY SYSTEM / FLEXIBILITY OF CUSTOMER HANDLING / PERCEPTIONS OF TERMS OF TRADING
S8I_06 / RELATIVE STAFF PERFORMANCE / INITIAL CONTACT / ORDER HANDLING STAFF / SALES STAFF / ADMINISTRATION STAFF / SPECIALIST STAFF / SERVICE PERSONNEL
S8I_07 / RELATIVE CORPORATE CONSIDERATIONS / UPSTREAM INTEGRATION / DOWNSTREAM INTEGRATION / CAPTIVE DISTRIBUTION CHANNELS / RELIANCE ON OTHER MANUFACTURERS / UTILIZATION OF OTHER DISTRIBUTORS / BENEFITS OF OTHER MARKETING / CAPTIVE CUSTOMER BASES
S8I_08 / RELATIVE DISTRIBUTION CONSIDERATIONS / WAREHOUSING & HANDLING / PACKING & PACKAGING / DISTRIBUTION / STOCK AVAILABILITY / ORDER BACKLOG
S8I_09 / RELATIVE CUSTOMER CONSIDERATIONS / LOCATION OF CUSTOMERS / CAPTIVENESS OF THE CUSTOMER BASE / CUSTOMER BASE LOYALTY / CONCENTRATION OF PURCHASES / PURCHASE FREQUENCY / ORDER SIZE / CUSTOMER SERVICING / SEASONALITY
S8I_10 / RELATIVE PROMOTIONAL CONSIDERATIONS / ADVERTISING & SALES PROMOTION / MARKETING / SALES PROMOTION / SALESFORCE / ADVERTISING
S8I_11 / RELATIVE COMPETITIVE CONSIDERATIONS / PRICING POLICY / ECONOMIC CONDITIONS / RELATIVE MARKETING EFFORT / REACTION TO COMPETITORS / NEW COMPETITORS / PRICES AT MSP / PRICE INCREASES / PRICES AT RSP / MARKET SHARE
ANALYSIS /
CODE / FACTORS / A_DEF / B_DEF / C_DEF / D_DEF / E_DEF / F_DEF / G_DEF / H_DEF / I_DEF / J_DEF / K_DEF /
C9C_01 / COMPANY PHYSICAL MARKETING CONCERNS / PHYSICAL MARKETING OBSTACLES / PHYSICAL MARKETING RESOURCES / PHYSICAL ADVERTISING POTENTIAL / RESPONSIVENESS OF ADVERTISING REACTION / ADROITNESS TO MODIFY MARKETING EFFORT / CLIENT HANDLING SYSTEMS & EQUIPMENT
C9C_02 / ADVERTISING & MARKETING MATERIALS ELEMENT / ADVERTISING + MARKETING MATERIALS ACQUISITION & SOURCES / ADVERTISING & MARKETING MATERIALS STOCK LEVELS / DEPENDENCE ON ADVERTISING + MARKETING CONTRACTORS & AGENTS / ADVERTISING BUYING INFLUENCE
C9C_03 / SALES PERSONNEL PERCEPTIONS / SALES PERSONNEL ACCESSIBILITY / SALES EMPLOYEES RELATIONS / PRESSURE OF SALESFORCE WAGE RISES / RELATIVE SALES PAYROLL LEVELS / RELATIVE SALES INCENTIVE LEVELS / SALESFORCE SPECIALIZED EXPERTISE
C9C_04 / MARKETING COSTS & MARGIN CONCERNS / MARKETING SUPPLIES INVENTORY LEVELS / VARIABLE MARKETING COSTS / FIXED MARKETING COSTS / MARKETING PAYROLL COSTS / DIRECT MARKETING COSTS RELATIVE TO COMPETITORS / PRODUCT DEVELOPMENT COSTS
C9C_05 / PRODUCT ADVERTISING + MARKETING / QUALITY / PRODUCT SPECIFICATIONS / DESIGN / OPERATING CRITERIA / PRODUCT EFFICIENCY / PRODUCT RELIABILITY / PRODUCT LONGEVITY / PRODUCT LIFE CYCLE / PRODUCT CUSTOMIZATION / PRODUCT TECHNOLOGY / PRODUCT USAGE
C9C_06 / MARKETING MANAGEMENT STRENGTHS / MANAGEMENT STRENGTHS: SENIOR MARKETING PERSONNEL / MANAGEMENT STRENGTHS: SALESFORCE MANAGERS / MANAGEMENT STRENGTHS: SALES & MARKETING STAFF / MANAGEMENT STRENGTHS: CUSTOMER HANDLING MANAGERS / MANAGEMENT STRENGTHS: TECHNICAL APTITUDE / MANAGEMENT STRENGTHS: CUSTOMER HANDLING RELIABILITY