BA6352005

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Ba447 Situation Analysis Competitors, Consumers
your Company
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The Marketing Planning processes.

• Company
• Consumers
• Competitors
• Conditions
• PEST

Growth, Competitive Positioning Strategies
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Conditions
Consumers
Company
Competitors
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Industry news
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Competition Intelligence
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Nature Magnitude of Competition
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Competitors Marketing Strategy
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Consumer Research
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Conditions
Consumers
Company
Competitors
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• Consumers differ cross-nationally by segment in
  terms of
• Toothpaste size,delivery system texture prefs
• Needs trying to satisfy - (prevention of
  cavities, whiter teeth, good taste)
• Price sensitivity
• Preferred store / distribution outlet
• Customers are more likely to purchase brand they
  know, meets their needs can find in preferred
  store.

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Sim. Segments
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Figure 5-3
SOURCE Adapted from Russell I. Haley, Benefit
Segmentation A Decision-Oriented Research Tool,
Journal of Marketing, July 1968, pp. 30-35.
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• Select the country you want to analyze (Venezuela
  is used here)
• Click on Consumers
• There are four types of consumer research

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Shopping Habits
There are four types of retail stores in LA

• E.g., 46 of all Younger consumers shop in
  Traditional stores (54 shop somewhere else)
• Thus if you want to target Younger customers in
  VEN, selling only in Traditional stores will
  limit your sales potential to 46 of this group.

Each column shows what of each demographic
shops in each type -retail, -- sums to 100
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• -- shows how much weight consumers place on
• Price
• Effectiveness (benefit or type of toothpaste)
• Size
• Vehicle (paste, gel)
• Delivery (tube, pump)

• Use the XSection button to study specific
  customer segments

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Decision Criteria - Xsection

• You can click on any combination of demographic
  and benefit segments

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• This segment represents 8.4 of the VEN
  population, and buys 10.6 of all toothpaste
• Effectiveness (whitening toothpaste) and size are
  very important to this segment

• They very much prefer small sizes

• They prefer tubes and gels

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Brand Awareness

• 53 of this segment are aware of Local 1
  (compared to 55 of all VEN consumers)
• 22 of this segment are aware of Regional 1
  (compared to 27 of all VEN consumers)
• They are not at all aware of Local 2

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Brands Purchased

• 72 buy Local 1 toothpaste
• 28 buy Regional 1 toothpaste

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Competition Position

• Local 2 has 100 market share of White toothpaste
  that is, of all toothpaste labeled as offering
  whitening benefits, Local 2 has 100 share
• Why does Local 2 have 100 White share, but the
  Young White segment buys Local Regional 1 -
  not Local 2 (?

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Competition Brand Formulations

• Local 2 is the only company that sells White
  toothpaste (but offers no small sizes)
• Local 1 Regional 1 sell Economy Healthy
  (including some small sizes)
• Why are Young White consumers not buying Local
  2s White toothpaste?
• Why are Young White consumers buying toothpaste
  they really dont want (i.e., something other
  than White)?

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Competitive Analysis Why Younger White
Consumers Are Not Buying Local 2

• Check their advertising no awareness!
• Check their Distribution Coverage are they
  selling where Younger consumers shop? Do they
  have Sales Force allocated to the right channels?
• Check their Pricing consumers are willing to
  pay more get what they want
• Do any of the available formulations really give
  this segment what they want?
• Can AllStar Brands do a better job targeting
  Younger White consumers than current competitors?
  If so, develop a strategy to do so!

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Cherchez Le Creneau!

Find the whole in the market- unoccupied
positions /or unmet tastes/needs that are
important to profitable consumer segments
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Conditions
Consumers
Company
Competitors
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Evolution of the International Firm
Exporter
Multi-National
Trans-National
Global
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Exporting

• Mindless Approach to International Markets

Make no special provisions Domestic- Extension
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International Marketing

• Multinational corporations (MNCs)
• Companies that maintain significant
  operations in two or more countries
  simultaneously but are based in one home country

Transnational (TNC) corporation A company
that maintains significant operations in more
than one country simultaneously and decentralizes
decision making in each operation to the local
country
Adapt to local conditions in each foreign
market Multi-Domestic approach
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Global Marketing

• Company takes an integrated approach across
  countries regions -- Manages for worldwide
  business leverage competitive advantage

• Is a Mind-set of how to approach Intl Markets
• Not a matter of how big company is
• Or- whether or not have a global product
• Or- how many counties you operate in

Leverage Commonalities into a global strategy
(but where necessary- allow for local
implementation) Global (Glocal) Marketing
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Global Marketing Strategy Drivers

• Common customer needs
• Global customers
• Global Distribution Communication channels

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The Global Village
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The Global Corporation

• Global Vision
• Global Leverage
• Global Sourcing
• Global Competitive Moves
• Global Partnerships

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The Global Corporation

• Global Vision
• Global Leverage
• Global Sourcing
• Global Competitive Moves
• Global Partnerships

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The Global Corporation- A Global Mindset

• Global Identity
• Single Corporate Language
• Global Ethical Standards
• Multi-Country Careers
• Cross-Cultural Training
• Cross National employment .. especially
  management at all levels

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Global Marketing Evolution
Core Concepts Values
Develop CoreBusiness Strategy
Translate/Execute strategy in selected
countries..
Country A
Country B
Country C
Country D
Integrate leverage global assets alliances
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Requisite Global Marketer Expertise
Country/ Market Knowledge
Cross-Cultural Knowledge
Cross-Border Transactions Knowledge
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COUNTRY / MARKET KNOWLEDGE

• Research Intelligence
• Global Marketing Opportunity Target Market
  Assessment
• Market Entry Planning Strategy

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CROSS-BORDERTRANSACTIONS NOWLEDGE

• Standards, Regulations Product Liability

• Currency Risk/ Pricing/ Getting Paid

Risk to Exporter Least Risk

Highest Risk Confirmed
Irrevocable Bank
Bank Cash in Irrevocable Letter of
Collection Collection
Open Advance Letter of Credit Credit
Sight Draft Time Draft Account Cost
to Buyer Highest Cost

Least Cost
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CROSS CULTURAL KNOWLEDGE
Cross-Cultural Understanding, Sensitivity
Language Proficiency

• Cross-
• Cultural
• Negotiation
• Skills

Social Responsibility Government Relations
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Globalization in Practice

• Stages of Corp-Globalization
• Export Only
• Establish Foreign-Branches
• Re-locate Production
• Corp. Cloning Insider-ization
• The Complete Global Corporation