WF SEM II 4.05 CEmploy marketing-information to develop a marketing plan.

a. Explain benefits of preparing a competitive analysis.

b. Identify sources of competitive information.c. Describe components of a competitive

analysis.d. Demonstrate procedures for conducting a

competitive analysis.

• A competitive analysis is one of the most important documents in product planning. A competitive analysis describes the conditions in the market in which you want to operate --- from competitor strengths and weaknesses to competitor tactics and goals. To carry out a competitive analysis, you must gather information on your potential competitors and present this information in a concise, easy-to-read fashion.

• Competitive analysis can be useful for marketing, pricing, managing and other strategic planning for retailers.

Read more: http://www.ehow.com/how_8770735_carry-out-competitive-analysis.html#ixzz32HHC45SL

Competitive Analysis Questions• Where is your competitor located?• What are the competitor's strengths?• What are their weaknesses?• What are your competitor's annual sales?• What is the company's product line?

• How do the products compare to yours, in terms of quality, appearance and any other criteria?

• What is their price structure?• What are the company's marketing activities?• What are the company's supply sources for

products?• Is the company expanding or cutting back?• What do they do better than you?

• To answer these questions, retailers will need to do some detective work and gather competitive intelligence.

• There's no need to hire someone to do what you can do yourself, but consider employing research firms to find information that isn't available publicly.

Here are a few tools for acquiring competitive intelligence.

• Online Searches are a quick method of finding competitive information. However, this search will only provide information that has become public.

• On-site Observations of the competitor's parking lot, customer service, volume and pattern of suppliers' deliveries, etc. can yield useful information about the state of the competitor's business.

• Surveys and Interviews can yield plenty of data about competitors and products. Research surveys and focus group interviews generally provide more in-depth perspectives from a limited sample.

• Competitive Benchmarking is used for comparing the organization's operations against those of the competitor's. In making specific comparisons within an industry, an organization gains information about common marketing practices, available work force, and suppliers.

• http://retail.about.com/od/competition/a/comp_edge.htm

1. Note the names of your competitors in the market you want to enter. If you want to break into a local professional or retail market, ask people in town who the top five biggest names are. If you want to break into a more national or international market, read publications that review products in the market and write down the names of the 10 most frequently mentioned companies. Read more: http://www.ehow.com/how_8770735_carry-out-competitive-analysis.html#ixzz32HHZJaGN

2. Visit your competitors' websites and review their products' features. If they are selling a physical product (e.g., an electronic device), note the physical features, such as size, materials, storage space, speed and memory. If they are selling a service or intangible product, note the service features, such as the refund policy and the availability of help desk access.

Read more: http://www.ehow.com/how_8770735_carry-out-competitive-analysis.html#ixzz32HHyuXzu

3. Write down the prices listed by your competitors. Include prices for every product or service offered by your future competitors and use this information to determine which products or service you will offer to differentiate yourself in the market.

For example, if your competitor is already offering popsicles at $2 each, use a competitive strategy like offering a different flavor of popsicle at $2 each or selling similar popsicles at $1.75 each.

Read more: http://www.ehow.com/how_8770735_carry-out-competitive-analysis.html#ixzz32HIKxUjR

4. Write a list of strengths and weaknesses for each competitor. Strengths include low prices, high-quality materials (e.g., high-quality metal or wood), high-quality features (e.g., large storage capacity, high speed) and ease of access to customer service assistance. Weaknesses include high prices, low-quality materials, limited features and weak customer service.

Read more: http://www.ehow.com/how_8770735_carry-out-competitive-analysis.html#ixzz32HIjollj

5. Write a list of competitor strategies and goals. Read each competitors' press and advertising material and take note of the apparent strategies contained in each report. • For example, note which demographics your

competitors try to appeal to, which pop culture icons (if any) they use in their advertising material and what kinds of cultural memes they allude to in written and filmed advertising.

Read more: http://www.ehow.com/how_8770735_carry-out-competitive-analysis.html#ixzz32HIzrukQ

6. Present your observations in a final written report. Include a cover page with your name, your business's name, the words "competitive analysis" and the date. Explain your purpose for carrying out this competitive analysis. Include each category of observations (product features, prices, competitor strengths plus weaknesses and competitor strategies).

Summarize the market conditions in which you will be operating, taking into account the size of the market and the number of firms with which you will be competing.

Read more: http://www.ehow.com/how_8770735_carry-out-competitive-analysis.html#ixzz32HJKhe1U