Lesson II: MARKET ANALYSIS

- Market Survey - Generating New Product/Service

- Competitors - SWOT Analysis

Prepared by:
Maria Irish M. Pabalinas
Learning Outcomes:

• Describe the unique selling proposition and value

proposition that differentiates one's
product/service from the existing
products/services
• Determine who the customers are in terms of:
 Target Market
 Customer requirements
 Market size
• Validate customer-related concerns thru:
 Interview
 Focused Group Discussion
 Survey
Market Analysis:
• the activity of gatherin
g information about c
onditions that affect a
marketplace.
• Through all of these
analyses, the
strengths,
weaknesses,
opportunities and
threats of a company
can be identified.
Sample survey questionaire:
Sample survey questionaire:
 Sources of New Products

1. Consumer
- Monitor potential ideas and needs
from customers and formally arrange for
consumers to express their opinions.

2. Existing Products and Services

- Analysis of products abd services
uncovers ways to improve offerings that ay
result in a new product and services.
3. Distribution Channels
-channel members can help suggest and market
new products
4. Government (Patent Office)
- Files of the Patent Office can suggest new
product pssibilities
5. Research and Development
-Conduct research on your market and your
customer needs. This results to the development and
identification of new and improved product and
services.
 Methods of Generating New
Products/Services

a. Focus Group
- a moderator leads to a group of 8 to 14
participants through an open, in-depth
discussion in a directive or nondirective
manner. This is an excellent method for
generating and screening ideas and
concepts. It allows people to be stimulated
to greater creativity
2. Brainstorming

- Good ideas emerge when the

brainstorming effort focuses on a specific
product or market area.
• Rules of brainstorming:
i. No criticism of ideas or suggestions. Every
idea even the wildest, non-feasible idea is
accepted
ii. Freewheeling discussion is encouraged
iii.Quantity of ideas is desired
iv.Combinations and improvements of ideas
are encouraged
3. Problem Inventory Analysis

- Consumers are provided with a list of

problems and are asked to identify products
that have those problems. Results must be
carefully evaluated as they may not actually
reflect a new business opportunity.
 Two Scenarios in Generating New
Product/Service

a. Conventional Business Scenario

 Start a business that you are familiar with

 Start a business due to the needs of exixting
business contacts
 Gain business inspiration from your hobby or
interest
 Explore the possibility of import business
b. Innovative Business Scenario

 Gain inspiration from the needs and wants of

customers
 Gain inspiration from the problems and issues
that bothered you and your peers
 Study the usual or existing solutions and
venture in the alternative solution
 List down existing products and find out their
other uses aside from what was stated.
 Competitor/s

• Any person/entity which is a rival against

another. In business, a company in the
same industry or a similar industry which
offers a similar product or service.
Types of Competitors:

1. Direct Competitor
- competitors which essentially offers
the same product as your.

2. Indirect Competitors
- are those who offer a product or
service which is pretty different than yours,
but ultimately they solve the same problem
or have the same purpose.
3. Perceived Competitors
- This category of the competitors is the
most difficult ones to identify. These are
competitors may not offer an identical product
like yours or belong to the same industry, but
they compete for the equivalent resources a
customer might need to enjoy your product.
- Careful monitoring is required and is the
ONLY way to identify this type of competitor.
4. Phantom Competitors
- also one of the most difficult to track;
they vary dramatically. Remember you need
to track your potential cusltomer closely, like
where they spend their money on instead of
buying what you offer.
5. Partner Competitors
- Strategic partnerships in the business
world are very common thing in the
business era. While the business is
changing, your business partners MIGHT
TURN into competitors as they consider
expanding now, the fact that they feel and
know what you do is a great growth
opportunity.
 SWOT ANALYSIS
(Strengths, Weaknesses, Opportunities and
Threats)

- is a framework for identifying and

analyzing the internal and external factors
that can have an impact on the viability of a
project, product, place or person.
Elements of a SWOT analysis

• Strengths:
Internal attributes and resources that
support a successful outcome.

• Weaknesses:
Internal attributes and resources that work
against a successful outcome.
• Opportunities:
External factors that the entity can
capitalize on or use to its advantage.

• Threats:
External factors that could jeopardize the
entity's success.
 When and Why should do a SWOT
Analysis?

A SWOT analysis is often used at the start

of or as part of a strategic planning exercise.
It enables an entity to uncover opportunities
for success that were previously
unarticulated or to highlight threats before
they become overly burdensome.
- This can also identify a market niche in
which a business has a competitive
advantage or help individuals plot career
success by pinpointing a path that
maximizes their strengths while alerting
them to threats that can thwart achievement.
 EXAMPLE of SWOT analysis of a New
Business in Relation to Competitors
My Proposed Business Competitor A Competitor B

Strengths Production likely to be sited Good brand image Product is cheaper

close to retailers than can and range of than A and sells well.
deliver at short notice. products. They offer good
margin to retailers.

Weaknesses Difficult to find good Products more Poor quality product,

packaging. expensive than B. poor label design.
Uses synthetic colors Supplis are irregular
and preservatives. and not always the
amount ordered, as
per retailers.

Opportunities Retailer say demand for Strong promotion by Appears to be

products without additives is A. expanding deliveries
increasing. Can produce to new areas accdg. to
without added colors newspaper reports.

Threats There are few wealthy Cheaper products May have over
consumers and price is most than B. -expanded distribution
important factor. I am not yet network and failing to
sure of production costs. make deliveries.
END.