Situation Analysis

Situation AnalysisSituation Analysis

Advertising CampaignsAdvertising Campaigns

Discovery StageDiscovery Stage

Identify emerging and relevant values and attitudes shaping behavior in order to make optimal marketing decisions.

Purpose of the Situation Purpose of the Situation AnalysisAnalysis

Answers the why are we here?Answers the why are we here? It provides a background on the It provides a background on the

factors that influence the company’s factors that influence the company’s functions and performancefunctions and performance

Sample QuestionsSample Questions

Who is our Who is our Target AudienceTarget Audience?? What motivates their behavior?What motivates their behavior? Where can I find them?Where can I find them? What message will be most What message will be most

meaningful to them?meaningful to them? How can I reach them efficiently and How can I reach them efficiently and

effectively?effectively?

Situation AnalysisSituation Analysis

Examine the current condition that impacts Examine the current condition that impacts the company and its business the company and its business environment.environment.

CompanyCompany ConsumersConsumers Product OfferingProduct Offering Competitive EnvironmentCompetitive Environment Market ConditionsMarket Conditions Other factors of influence: Legal, Political…Other factors of influence: Legal, Political… Problems/OpportunitiesProblems/Opportunities

Problem IdentificationProblem Identification

A brief statement that summarizes A brief statement that summarizes the core dilemma and/or challenge a the core dilemma and/or challenge a company must overcomecompany must overcome

Company AnalysisCompany Analysis

What the company is concerned withWhat the company is concerned with What it stands forWhat it stands for

– Usually this information is found in Usually this information is found in mission and vision statementsmission and vision statements

Company Analysis (cont)Company Analysis (cont)

Company’s mission (Company’s mission (Annual reportAnnual report)) HistoryHistory Sales and profitsSales and profits Market standing/category shareMarket standing/category share Product offeringsProduct offerings Key personnelKey personnel Capital resourcesCapital resources

Consumer AnalysisConsumer Analysis

Information that helps us gain a grasp on Information that helps us gain a grasp on the (current/potential) consumerthe (current/potential) consumer

Major questions to be answeredMajor questions to be answered– Who are they?Who are they?– What motivates them to buy?What motivates them to buy?– How do they use the product?How do they use the product?– What is important to them in a product?What is important to them in a product?– How do they look at life? How do they look at life? – Where are they?Where are they?

Research SourcesResearch Sources

Yankelovich Monitor:Yankelovich Monitor:

-Provides consumer trends for 25 -Provides consumer trends for 25 broad subjects and 102 specific broad subjects and 102 specific areas of interest.areas of interest.

-Helps determine strategic directions -Helps determine strategic directions for creative and media.for creative and media.

Research Sources cont’d…Research Sources cont’d… MRI-MediaMark Research Inc. National MRI-MediaMark Research Inc. National

Study:Study:-A national syndicated research study provides -A national syndicated research study provides

comprehensive demographic, psychographic and comprehensive demographic, psychographic and media usage data on target segments. Research media usage data on target segments. Research is based on the usage of specific is based on the usage of specific products/services, participation in leisure products/services, participation in leisure activities and shopping behavior, among others.activities and shopping behavior, among others.

-Used to understand the demographic, -Used to understand the demographic, psychographic, media usage and leisure psychographic, media usage and leisure activities/interest data of targeted audiences.activities/interest data of targeted audiences.

Research Sources cont’d…Research Sources cont’d…

Scarborough: Scarborough: -A comprehensive syndicated local -A comprehensive syndicated local

market study provides demographic, market study provides demographic, shopping, lifestyle and media usage shopping, lifestyle and media usage data for 75 measured markets. data for 75 measured markets.

-The study enables RJC to determine -The study enables RJC to determine and refine local market strategies and refine local market strategies and tactics.and tactics.


SRDS - Standard Rates and Data Services:SRDS - Standard Rates and Data Services:-SRDS provides contact information, -SRDS provides contact information,

descriptions and non-negotiated descriptions and non-negotiated rates for print, broadcast, out-of-rates for print, broadcast, out-of-home and online media. home and online media.

-SRDS books are used during the -SRDS books are used during the preliminary planning stages for rough preliminary planning stages for rough budgeting purposes.budgeting purposes.


SRDS - Lifestyle Market Analysis:SRDS - Lifestyle Market Analysis:-Provides market profiles for 210 DMA’s, -Provides market profiles for 210 DMA’s,

lifestyle profiles for 76 consumer interests lifestyle profiles for 76 consumer interests and segment profiles for 40 demographic and segment profiles for 40 demographic segments. segments.

-The Lifestyle Market Analysis provides -The Lifestyle Market Analysis provides attributes of various targeted audiences, attributes of various targeted audiences, in conjunction with the MRI study, provides in conjunction with the MRI study, provides in-depth target audience profile and media in-depth target audience profile and media usage data.usage data.

Sample of Marketing Plan Sample of Marketing Plan DevelopmentDevelopment

Understand What Truly Motivates Understand What Truly Motivates The ConsumerThe Consumer

-Intimate understanding of how people -Intimate understanding of how people live, work and playlive, work and play

-Understanding of their deepest and -Understanding of their deepest and most personal levels of motivationmost personal levels of motivation

Sample of Marketing Plan Sample of Marketing Plan Development cont’d…Development cont’d…

Determine What It Is About Our Determine What It Is About Our Business Offering That Resonates Business Offering That Resonates With The ConsumerWith The Consumer

-How does the product relate to the -How does the product relate to the consumer’s emotional needs and consumer’s emotional needs and desires?desires?


Translate Our Business Offering Into Translate Our Business Offering Into An Emotional Trigger (desires, An Emotional Trigger (desires, aspirations, etc.)aspirations, etc.)

-Build Upon the common denominators -Build Upon the common denominators that translate to trust.that translate to trust.


Use The Emotional Trigger To Build Use The Emotional Trigger To Build Consumer Trust (demonstrating an Consumer Trust (demonstrating an intimate understanding of what motivates intimate understanding of what motivates our consumers)our consumers)

-If it is fear, communicate security or safety-If it is fear, communicate security or safety

-If it is insecurity, communicate belonging-If it is insecurity, communicate belonging

-If it is stress, communicate escape-If it is stress, communicate escape

Discovery Nuggets (Examples)Discovery Nuggets (Examples)

Ice Cream RewardIce Cream Reward Milk GuiltMilk Guilt Real Estate HivingReal Estate Hiving Tourism Bounce BackTourism Bounce Back Donating AltruismDonating Altruism

BloodBlood

Consideration SetConsideration Set

Products on Products on a person’s a person’s mind when mind when selecting a selecting a good to good to satisfy a satisfy a needneed

I am thirsty!

Soft drink Beer Sports drink

Gas

Milk

No gas Water

Bottled

Tap

Pepsi

Coke

Indirect competitors

Categories

Direct competitors

Product AnalysisProduct Analysis

Focuses on the abstract and concrete Focuses on the abstract and concrete qualities of the company’s productqualities of the company’s product– Product attributes/functionsProduct attributes/functions– Positioning/Brand personalityPositioning/Brand personality– Cost/MarginsCost/Margins– PricePrice– PackagingPackaging– DistributionDistribution– Promotions usedPromotions used– Media spentMedia spent

Purchasing ProcessPurchasing Process

Folks Folks choose emotionallychoose emotionally and and validate rationally.validate rationally.

Case HistoryCase HistoryClient: Superstition MountainClient: Superstition Mountain

Background:Background: Much of new real estate growth in Much of new real estate growth in

the Arizona market has been the Arizona market has been centered around the Scottsdale area centered around the Scottsdale area with its plethora of shops and with its plethora of shops and restaurants.restaurants.

Superstition Case History cont’d…Superstition Case History cont’d…

Background cont’d:Background cont’d: Our client, Superstition Mountain, Our client, Superstition Mountain,

faced the isolation dilemma, located faced the isolation dilemma, located one half hour away from the hub of one half hour away from the hub of Scottsdale. In addition, Superstition Scottsdale. In addition, Superstition Mountain is faced with the Apache Mountain is faced with the Apache Junction conundrum, i.e. “take a left Junction conundrum, i.e. “take a left at the second trailer park and head at the second trailer park and head straight for the mountains.”straight for the mountains.”


Background cont’d:Background cont’d: To help overcome these and other To help overcome these and other

surmounting challenges, we began surmounting challenges, we began by creating the Superstition by creating the Superstition Mountain story based on the legend Mountain story based on the legend and lore of Superstition Mountain.and lore of Superstition Mountain.


The Story of Superstition Mountain:The Story of Superstition Mountain:The legend of Superstition Mountain centers The legend of Superstition Mountain centers

around the quest for an elusive gold mine around the quest for an elusive gold mine which dated back over a century.which dated back over a century.

The legend and lore captures the essence of The legend and lore captures the essence of the energy that awaits those who choose the energy that awaits those who choose to live at the foot of this towering summit.to live at the foot of this towering summit.


The Story cont’d:The Story cont’d: Superstition Mountain offers a very Superstition Mountain offers a very

tangible treasure—a rich lifestyle tangible treasure—a rich lifestyle with a small town experience, a with a small town experience, a scenic landscape with all the scenic landscape with all the attendant beauties of a pristine attendant beauties of a pristine desert environment and superbly desert environment and superbly built homes.built homes.


Objectives:Objectives: Create a point of differentiation Create a point of differentiation

within a category (Arizona Real within a category (Arizona Real Estate) which has been saturated for Estate) which has been saturated for quite a while.quite a while.

Overcome the “isolation” factor.Overcome the “isolation” factor.


Objectives cont’d:Objectives cont’d: Create awareness of Superstition Create awareness of Superstition

Mountain as a desirable Mountain as a desirable neighborhood/place to live.neighborhood/place to live.

Increase the number of inquiries Increase the number of inquiries received by 5%.received by 5%.

Increase number of sales by 3%.Increase number of sales by 3%.


Our Point of Connection:Our Point of Connection: Parallel the search for rich gold Parallel the search for rich gold

treasure to the search for a richer, treasure to the search for a richer, more meaningful life.more meaningful life.


Brand Promise:Brand Promise: ““You Can Discover the Treasure.”You Can Discover the Treasure.”

Target Audience:Target Audience: Primary: Adults 50-67 years of age Primary: Adults 50-67 years of age Secondary: Builders and realtorsSecondary: Builders and realtors


Positioning Strategy:Positioning Strategy: Superstition Mountain residents will Superstition Mountain residents will

find emotional comfort which is part find emotional comfort which is part of a balanced living environment; the of a balanced living environment; the serenity and security of a small town, serenity and security of a small town, along with a full complement of along with a full complement of activities which nurture friendships.activities which nurture friendships.


Reasons to Believe:Reasons to Believe: Superstition Mountain provides Superstition Mountain provides

access to activities including 36 access to activities including 36 holes of Nicklaus-designed golf, holes of Nicklaus-designed golf, healthy exercise, tennis and healthy exercise, tennis and swimming, and borders on 2.9 million swimming, and borders on 2.9 million acres of national forest.acres of national forest.

Superstition’s Case History cont’d...Superstition’s Case History cont’d...

Reasons to Believe cont’d:Reasons to Believe cont’d: Superstition Mountain is a sanctuary Superstition Mountain is a sanctuary

which offers eternal sunshine and the which offers eternal sunshine and the inspiration of the Arizona desert.inspiration of the Arizona desert.

At Superstition Mountain, residents At Superstition Mountain, residents will find a small community of people will find a small community of people who share similar life experiences, who share similar life experiences, interests and needs.interests and needs.


Reassurance:Reassurance: Living at Superstition Mountain Living at Superstition Mountain

provides a sense of well-being. It provides a sense of well-being. It represents the recognition and represents the recognition and reward they’ve earned for years of reward they’ve earned for years of hard work and achievement.hard work and achievement.

Basics of PricingBasics of Pricing

Price = Fixed costs + Variable costs Price = Fixed costs + Variable costs + Margin+ Margin

Margins differ by industriesMargins differ by industries– Luxury productsLuxury products– CommoditiesCommodities

Volume is also importantVolume is also important– Profit = Margin x Sales volumeProfit = Margin x Sales volume

Competitive AnalysisCompetitive Analysis

Considers all options consumers Considers all options consumers might think about in their purchasing might think about in their purchasing decisiondecision– Who are the brand’s major direct Who are the brand’s major direct

competitors? Indirect competitors?competitors? Indirect competitors?– What is the competitor’s brand position?What is the competitor’s brand position?– What is the price of their product?What is the price of their product?

Competitive Analysis (cont)Competitive Analysis (cont)

What is the respective market What is the respective market share?share?

What is their communication What is their communication strategy?strategy?

How much do they spend on How much do they spend on media?media?

Where is competitive media Where is competitive media spending concentrated?spending concentrated?

Market AnalysisMarket Analysis

Helps planners identify which Helps planners identify which geographic areas are keygeographic areas are key

These areas are important due to:These areas are important due to:– The strong position the advertiser The strong position the advertiser

enjoys in the regionenjoys in the region– The problems associated with doing The problems associated with doing

business in the regionbusiness in the region

Market Analysis: Market Analysis: Development Development IndexIndex

Brand development index (BDI)Brand development index (BDI)

Category development index (CDI)Category development index (CDI)

If BDI>100, …If BDI>100, … If CDI>100, …If CDI>100, …

% of a brand’s total US sales in a market x 100% of total US population in a market

= BDI

% of a category’s total US sales in a market x 100% of total US population in a market

= CDI

Calculating CDI for genderCalculating CDI for gender

GenderGender % of US % of US Pop.Pop.

% of % of category category

expenditureexpendituress

CDICDI

MaleMale 48.948.9 75.975.9 155155

FemaleFemale 51.151.1 24.124.1 4747

(51.1/24.1)*100= 47 75.948.9

X 100

Macro-Environmental ConsiderationsMacro-Environmental Considerations

Industry/categoryIndustry/category– Size of the market in generalSize of the market in general– Growth trendsGrowth trends

Demographic trendsDemographic trends Economic trendsEconomic trends Technological issuesTechnological issues Political/legal issuesPolitical/legal issues Socio/cultural trendsSocio/cultural trends

Looking for InformationLooking for Information

A Word About SourcesA Word About Sources

Primary sources: Primary sources: – Quantitative:Quantitative:

ExperimentsExperimentsSurveysSurveys

– QualitativeQualitativeOne on one interviewsOne on one interviews

– ConsumersConsumers– EmployeesEmployees– CompetitorsCompetitors

Focus groups Focus groups

A word (or two) about sourcesA word (or two) about sources

Secondary sourcesSecondary sources: : – Librarian at ZimmermanLibrarian at Zimmerman– DatabasesDatabases

Industry, consumer news: ABI Inform, Lexis-Industry, consumer news: ABI Inform, Lexis-NexisNexis

Market research: Marketresearch.com, Market research: Marketresearch.com, EuromonitorEuromonitor

Demographics: 2000 CensusDemographics: 2000 Census

A word (or three) about sourcesA word (or three) about sources Periodic publicationsPeriodic publications

– Tracking data: Arbitron’s Company & BrandsTracking data: Arbitron’s Company & Brands– Company’s annual reportCompany’s annual report– Industry trends: Standard & Poor’s Industry Industry trends: Standard & Poor’s Industry

surveyssurveys– Consumer spending: NSP’s Household Consumer spending: NSP’s Household

SpendingSpending– Market share: Gale’s Market Share ReporterMarket share: Gale’s Market Share Reporter– Product usage: MRI’s product usage dataProduct usage: MRI’s product usage data– Consumers: Lifestyle Market Analyst’s Profile, Consumers: Lifestyle Market Analyst’s Profile,

The Right SiteThe Right Site

Documents

Situation Analysis