Industry and Marketplace Analysis

1
Industry and Marketplace Analysis

• Business Plan Preparation
• College of Business Administration
• University of Central Florida

2
Agenda

• Industry and marketplace analysis
• Industry analysis
• Marketplace analysis
• Customer analysis
• Competitor analysis
• Product/service description
• Next week

3
(No Transcript)
4
(No Transcript)
5
(No Transcript)
6
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

7
Organization of Analysis Section

• Industry Analysis
• Marketplace Analysis
• Customer Analysis
• Competitor Analysis

8
Conceptual Picture
Save for Marketing Plan
Your Industry
Your Marketplace
X
Buyers
You
Sellers
9
-- 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

10
Porter Analysis
Ease ofSubstitution
Power ofCustomers
Power ofSuppliers
Industry
IndustryRivalry
Barriers toEntry
11
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 intl events influence our
  industry?
• What are growth forecasts?

12
-- Marketplace Analysis

• Define and describe your marketplace
• Niche, geographic area, subset of larger industry
• Whats happening in your market?
• Network! talk with the marketplace
• Customers, competitors, vendors, suppliers,
  salespeople,
• Chambers of commerce
• Industry trade groups

13
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?

14
-- 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!

15
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?

16
-- 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

17
Competitive Matrix
18
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?

19
Suggested References

• Encyclopedia of Associations, Business Library
  reference section
• 1997 U.S. NAICS Codes and Titles,
• http//www.census.gov/epcd/naics/naicscod.txt
• 1997 NAICS and 1987 SIC Correspondence Tables,
• http//www.census.gov/epcd/www/naicstab.htm
• Researching an Industry (Babson College)
• http//www.babson.edu/itsd/sg/word/sg4industry.doc
  
• Finding statistics (Babson College)
• http//www.babson.edu/itsd/sg/word/sg4statistic.do
  c

20
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

21
Product/Service SummaryIntroduction

• Write an evocative paragraph that attractively
  presents your product or service

Entering Hills 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 Hills 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,
Hills Kitchen has served another healthy and
delicious meal, and satisfied yet another
customer.
22
Next Week

• Lecture/Discussion Begin Marketing Plan
• Continue Section One Textbook slides