Defining The Competitive Set 11v5f

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Defining the Competitive Set

McGraw-Hill/Irwin

Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.

Bases of Competition I. Customer-oriented Who they are – competition for same budget When they use it Why they use it- benefits sought

II. Marketing-oriented: advertising and promotion Theme/copy strategy Media Distribution Price

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Bases of Competition cont. III. Resource-oriented Raw materials Employees Financial resources

IV. Geographic

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Levels of Competition Beers Ice cream

Tea

Regular colas

Diet lemon limes Diet-Rite cola

Wine Diet Pepsi

Diet Coke

Fast food

Bottled water

Baseball cards

Fruit flavore d colas

Lemon limes

Coffee

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Product form competition: Diet colas

Juices

Product category competition: Soft drinks

Video rentals

Generic competition: Beverages Budget competition: Food and entertainment

Levels of Competition: Implications for Product Strategy Competitive Level

Product Management Task

Product Form

Convince Customers that the Brand is Better than Others

Product Category

Convince Customers that the Product Form is Best in the Category

Generic

Convince Customers that the Product Category is the Best Way to Satisfy Needs

Budget

Convince Customers that the Generic Benefits are the Most Appropriate Way to Spend their Money 3-6

Energy Bar Competition Other Snacks Healthy Snacks Snack/Health Bars Energy Bars

Odwalla Power Bar Balance Bar Clif Nutrigrain Bars Slimfast Bars Granola Bars Fruits Nuts Juice Crackers Chips Candy 3-7

PDA Competition Level of Competition

Definition

Competitors

Need Satisfied

Product form POAs Full-features

Palm Pilot VII Compaq Aero Casioplus integrated communication Cassio Poeia

Personal information management plus

Product category

PIMs

Palm III Royal Casio PV-100

PIM only

Generic computers

Notebook/ subnotebook

IBM Toshiba Many others Rolodex Day Timer

Other solutions to the above

Paper-based solutions Budget

Business items costing $100-$1,000

Fax machines Personal copiers Cellular phones Furniture (e.g. Steelcase) 3-8

Managerial Judgment of Competition Markets

Product/Services Same Different

Same

A

B

Different

C

D

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Brand-Switching Matrix Time t+1

Time t

A

B

C

D

E

A

.6

.2

.2

0

0

B

.2

.3

.4

.1

0

C

.2

.3

.5

0

0

D

0

.1

.1

.5

.3

E

.1

0

0

.4

.5

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Defining Competition with Brand Choice Data All brands

National

Diet

Cola

Regional

Regular

Non-Cola

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Family brand 1

Family brand 2

Defining Competition with Perceptual Mapping •Moist

•Needs refrigeration

As a formal dessert • Bakery cake Homemade cake • • • Homemade pie • Layer cake mix Takes a long • Cheese cake mix time to prepare • Bundt cake mix • • Frozen pie •• • Chocolate torte mix • Frozen cake Boston crème pie mix • “Stir’n Frost cake mix “Light Style” cake mix •Individual pie Coffee cake mix • •Quick bread mix “Snackin’ Cake” mix •

Pudding mix Local mix • •Jell-O Dzer ta •

•Canned pudding

•Hostess cupcakes

Date bar mix • Brownie mix • Homemade cookies Cookie mix •

•

Good for a coffee break •

Bakery cookies • Pillsbury cookie dough • In my school work lunch •

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• Oatmeal cookies •Pepperidge Farm cookies • Between meal snack •Easy to carry with me

Custard mix •Tapioca pudding mix

Methods Versus Competition Levels and Information Required

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Enterprise Competition in Financial Services

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