http://www.stepchangemarketing.com/ In this Slideshare presentation: 1. Brand Box 2 - Know your market 2. Actions from insights 3. Defining your market 4. Competition is not always bad 5. Porter's 5 forces analysis 6. Market leader or challenger entrant? 7. Market leader or challenger entrant? cont... 8. Market leader or challenger entrant? cont... 9. Predatory marketing 10. Predatory thinking 11. Repositioning the competition 12. A case study on repositioning: Skins 13. Predatory tools of the trade 14. SWOT Analysis 15. Competitive mapping 16. Competitive mapping example: Hybrid cars 17. Competitive mapping: Gloria Jeans 18. Innovative entrant modelling 19. Competitor reaction modelling 20. Best practise, Next practise 21. Competitor match-up 22. Competitor duke out 23. Driver correspondence mapping 24. 9 Business growth strategies 25. 9 Business growth strategies cont... 26. Strategies 27. Strategies cont... 28. Implementing the strategies 29. Competitive environment 30. Futurist trends 31. PEST 32. Futures tunnel 33. Trends research 34. What's the future looking like 35. What's the future looking like cont... 36. The future: Consumer trends 37. Some consumer trends 38. The future: Technology trends 39. Technology trends 40. The future: Society trends 41. Society trends 42. Trend implications 43. A possible future where... 44. A probable future where... 45. Preferred future where... 46. 7 Technologies shaping the future of social media 47. Technologies shaping the Future of social media 48. Technologies cont... 49. Technologies cont... 50. Technologies cont... 51. Binary Analysis 52. Binary Analysis cont... 53. Coke vs Pepsi 54. Coca-Cola 55. Pepsi 56. Coke vs Pepsi cont ... 57. Coke vs Pepsi cont... 58. Coke vs Pepsi
Text of Brand Box 2 - Know Your Market - The Marketer's Ultimate Toolkit
KNOW YOUR MARKET KNOW YOUR MARKET 2 GROWTH Know Your Business Brand Architecture Branding Positioning Know Your Consumers Profiling Segmentation Insights Pricing Know Your Market Competitve Binary Analysis Predatory Thinking Whats the Big Idea? Launch or NPD Innovation Communications How to Say It Advertising Idea Tone & Messaging When and Where to Say It Media Strategy Connection Idea Channel Planning ACTIONSfromINSIGHTS
KNOW YOUR MARKET DEFINING YOUR MARKET 3 What category are you in? It seems such a basic question, but often the answer is not really considered. When you look at the difficulties of positioning in todays marketplace you need to make sure youre at the top of your market, and youve got enough people in it. Some talk about it as making sure your market is an inch wide and a mile deep. Defining your category is required before you consider your competitive set. Be very specific about your category as it will determine your audience and therefore shape your position within that market. The Market Defining your market is the most important business shaping decision you can make. Amongst other things it: Defines your competitors Defines your consumers Determines your position in that category Determines your strategy for growth Defining your Market
KNOW YOUR MARKET DEFINING YOUR MARKET 4 Competition is Not Always Bad A competitor, or two, or three, usually adds credibility to a category, which tends to broaden the market rather than hurt the specialist. Googles competitors A year ago, Google only listed two competitors... ...Now they have listed over ten by name. Why? Google have expanded their Internet services and in doing so moved onto the turf of competitors like Yelp. The boom of social networking sites is putting pressure on Googles advertising revenue. Specialist search engines like monster.com and kayak are becoming very popular. Theres also the emergence of mobile applications on platforms like the iPhone, which allow you to directly access a web product without using a search engine.
KNOW YOUR MARKET DEFINING YOUR MARKET 5 Porters 5 Forces Analysis In Porters famous model he outlines forces that can influence your business and prosperity. http://www.quickmba.com/strategy/porter.shtml Competitive Rivalry within an Industry Number and size of firms Industry size and trends Fixed vs. variable cost bases Product/service ranges Differentiation strategy Bargaining Power of Customers Buyer choice Buyer size/number Change cost/frequency Product/service importance Volumes Threat of New Entrants Entry ease/barriers Geographical factors Incumbents resistance New Entrant strategy Routes to market Bargaining Power of Suppliers Brand reputation Geographical coverage Product/service level quality Relationships with customers Bidding processes/capabilities Threat of Substitute Products Alternatives price/quality Market distribution changes Fashion and trends Legislative effects
KNOW YOUR MARKET DEFINING YOUR MARKET 6 Market Leader or Challenger Entrant? Where being a challenger can go wrong You only want to grow the market if youre market leader. If a challenger grows the market they give away a disproportionate share and strengthen the leaders position. First we will take you through how this happens, then we will show you how to use predatory marketing to gain market share from your competitors. 1. The first to market Owns 100% and obtains leadership positioning Gains Top Of Mind (T.O.M.) awareness, distribution and critical mass advantages Market Leader Market Share = 100%
KNOW YOUR MARKET DEFINING YOUR MARKET 7 Market Leader or Challenger Entrant? 2. Challenger entrant establishes market share Market Leader Market Share = 80% Challenger Market Share = 20%
KNOW YOUR MARKET DEFINING YOUR MARKET 8 Market Leader or Challenger Entrant? 3. Challenger often inadvertently grows market Over 55% of advertising is misattributed to the brand leader, giving T.O.M. awareness, distribution and critical mass advantages Market Leader Market Share = 90% Challenger Market Share = 5% Market Leader Growth
PREDATORY MARKETING How to grow at the expense of stronger competitors
KNOW YOUR MARKET PREDATORY THINKING 10 What is it? A concise definition of predatory marketing: Identifying the weakness that arises out of your competitors greatest strengths and using these to your advantage. It means growing at the expense of your competitors. This is a different way of thinking as there is a temptation to simply copy existing brands and communications; but you need to avoid merely looking for parity with your competitors. Comparing your strengths with your competitors allows you to focus on your relative strengths and grow them at your competitors expense. A good example of this is Burger King vs. McDonalds. Initially the market was dominated by McDonalds, whose key strength was their consistency. Burger King focused on this strength and grew their market by offering the ability to customise your burgers. Predatory Thinking Inflict the greatest damage and make response difficult.
KNOW YOUR MARKET PREDATORY THINKING 11 Repositioning the Competition Nutri-Grain was winning the battle between these two cereals by using the positioning of Nutrition vs. Iron Man Food. Weet-Bix looked at their relative strengths and found the following piece of information: Weet-Bix = 3.2 % sugar Nutri-Grain = 32% sugar They then used advertising, comparing the amount of sugar in Nutri-Grain to various unhealthy snacks to reposition the battle towards low sugar vs. high sugar. VS. It ran for 10 days, they spent $1 million media: $50 million to bottom line The result? Sugar ContentLow High Weet-Bix Nutri-Grain
KNOW YOUR MARKET PREDATORY THINKING 12 A Case Study on Repositioning: Skins Objectives To increase sales per year by 100%, to increase distribution, to become market leader in the athletics undergarment category by 2006 and to make the brand famous. Skins decided it needed to break away from the elite athlete market and attract the much larger audience of gym junkies, runners, tennis players and cricketers. To do this they would have to overcome the following challenges: Limited budget - their annual budget was equivalent to one monthly spend for some of the competition High product cost - cost per unit was $50-60 higher than the competition Getting men into tights Getting the brand known Battling against the big name competitors The campaign was based on two insights: Sports stars as a group are not our heroes and weve become a little cynical about celebrity endorsements. Skins doesnt pay sport stars to wear their products, elite athletes pay Skins. The Result The result was an ROI of 694%. Skins sales were up on average 454% year-on-year and the total number of annual distribution outlets 570%.
KNOW YOUR MARKET COMPETITIVE ENVIRONMENT 13 Predatory Tools of the Trade When taking on the market leaders in your category, you need the right tools. The tools on the following pages will help you structure your business and marketing for maximum predatory impact. They are: SWOT Analysis Competitive Mapping Innovative Entrant Modelling Competitor Reaction Modelling Best Practice, Next Practice Competitor Match-Up Competitor Duke Out Driver Correspondence Mapping
KNOW YOUR MARKET COMPETITIVE ENVIRONMENT 14 SWOT Analysis STRENGTH WEAKNESS OPPORTUNITY THREAT A SWOT analysis is a great tool to help forge a direction for your company in the context of your current market situation. Conduct a SWOT analysis for yourself and also for your competitors, allowing you to predict and prepare for their next move while making your own.
KNOW YOUR MARKET COMPETITIVE ENVIRONMENT 15 Competitive Mapping You can use this tool to help map out exact- ly who are your competitors. This will help you gain a better picture of exactly who your competitors are. Direct Competitors same noun and verb Economic different noun/verb Alternative same noun different verb Substitute different noun same verb Noun = Name Verb = Action
KNOW YOUR MARKET COMPETITIVE ENVIRONMENT 16 Competitive Mapping Example: Hybrid Cars Direct Competitors same noun and verb Economic different noun/verb Alternative same noun different verb Substitute different noun same verb Noun = Name Verb = Action Honda Civic Hybrid Toyota Prius Carbon Banking Green Housing Holden Astra Ford Focus Public Transport Scooter Bicycle Walking
KNOW YOUR MARKET COMPETITIVE ENVIRONMENT 17 Competitive Mapping: Gloria Jeans Coffee Direct Competitors same noun/verb Espresso Coffee Economic different noun/verb Alternative same noun different verb Quick Coffee Substitute different noun same verb Caffeine Hit Noun = Name Verb = Action Starbucks McCafe Coffee Club Michels Local cafe Snacks Soft drinks Better lunch Petrol Cigarettes Instant coffee Filtered coffee Caffeine soft drink Tea Easy Way bubble drinks