Subject :- Marketing Management II

Topic :- Identifying the Competitor's Strengths and Weaknesses - Estimating Competitor's Reaction Patterns - Selecting Competitors to Attack and Avoid

Group Members Dhaval Shah Krunal Shah Sonali Patange Kanchan Jethwani Smita Patange Neha Ramwani

Learning Objectives
Learn how to understand competitors as well as customers via competitor analysis. Learn the fundamentals of competitive marketing strategies based on creating value for customer.

Competitive Analysis
Identifying key competitors

Selecting which competitors to attack or avoid

Assessing their objectives

Assessing strengths and weaknesses

Identifying key competitors

Every business has competitors, and you need to take the time to discern

who your customers can approach to get a product or service that fills the same need as yours does.
Looking at your primary competitors. These are the market leaders, the

companies who currently dominate your market. They are probably the ones who you find yourself bumping up against in your search for new customers.
Look for your secondary and indirect competitors. These are the businesses

who may not go head-to-head with you, but who are targeting the same general market.

Assessing their Objective

For each competitor in your analysis, you should try to identify what their

market objectives are and determine what types of strategies they are using to achieve them.
Are your competitors trying: To maintain or increase market share? To maximize short-term or long-term profits? To introduce technologically improved products into your market? To establish themselves as the market leaders? To protect their market share under attack by strong competition? To develop new markets for existing products?

Assessing The Strength & Weakness

After you've figured out who your competitors are,

determine their strengths Why do customers buy from them. Is it price? value? service? convenience? reputation?

 Strengths Resources that an organization possesses and capabilities that the organization has developed Both can be exploited and developed into a sustainable competitive advantage

Weaknesses Resources and capabilities that are lacking or deficient; and that Prevents an organization from developing a sustainable competitive advantage

Estimating Reaction Pattern

In general every company should monitor three variables when analyzing its competitor
(i)Share of market (ii)Share of mind

(iii)Share of heart

Cont.
Identification of competitors strangest and weaknesses help managers

to anticipate the competitors likely reactions to other companies' strategies. Most competitors fall into one of following four categories. 1. THE LAID BACK COMPETITORS 2. THE SELECTIVE COMPETITORS 3. THE TIGER COMPETITOR 4. THE STOCHASTIC COMPETITORS

Selecting which competitors to attack or avoid

Strong Versus Weak Competitors 1. Aim at the weak

2. Aim at the strong

Close versus Distant Competitors

 Good Versus Bad Competitors

GOOD COMPETITORS Play within Rules Make Realistic Assumptions Healthy Competitions BAD COMPETITORS Violate the Rules Manipulate the market Creating Un-fair competition.

A FINAL WORD
Schedule a competitive analysis on a regular basis. This is on-going, rather than a one-time process. You must remember that your competitive research and analysis is never

finished.
It's only when you clearly understand your competition that you can

evaluate your own market position.

Only then can you exploit their weaknesses to your competitive advantage

and seek to improve your own marketing efforts.

CASE STUDY

Coke Vs Pepsi

CASE ABSTRACT
When the cola giants, Pepsi and Coke, entered the Indian market, they

brought with them the cola wars.

The case also outlines battles fought on other fronts - conflicts with

bottles, product modifications, attempts to steal the rival's employees and other mini wars.
The case attempts to provide a comprehensive perspective regarding

the dimensions of the cola wars and the direction in which they are heading.

Market segmentations of Cold Drinks

Market Share in India

Marketing & Advertising

What's the Difference?

Commercial of Pepsi
C:\Documents and Settings\student\Desktop\Pepsi

Advertisement Ranbir Deepika.flv

Commercial of Coke
C:\Documents and Settings\student\Desktop\Imran

Khan in new Coca Cola Ad - Aaj ki Raat.flv

Pepsi Marketing & Advertising

Advertising Focuses On : Slandering Coke Youth Market Segment Pepsis Distribution: Exclusive Contracts with Franchise Bottlers and Independent

Distributors and Retailers Wal-Mart Agreements its competitors Unilever with Lipton Starbucks (Frapuccino, Double Shot).

Coke Distribution & Marketing

Independent Bottlers with Exclusive Contracts Coca-Cola Enterprises Wal-Mart & Powerade

SWOT : Strengths
COKE
Coke Brands Enjoy a High-Profile

Global Presence

PEPSI PepsiCo Brands Enjoy a HighProfile Global Presence.

Pepsi Owns the Worlds 2nd

Four of the top five leading brands Broad-based bottling strategy

Best-Selling Soft Drinks Brand.

47% of global volume sales in

Constant Product Innovation Aggressive Marketing Strategies

carbonates

Using Famous Celebrities.

A Broad Portfolio of Products

SWOT : Weakness
COKE
Carbonates Market is in Decline. Over-complexity of relationship

PEPSI
Carbonates Market is in Decline. Pepsi is strongest only in North

with bottlers in North America.

The existing distribution system

America.
They Only Target Young People

is not so efficient for noncarbonates

SWOT :Opportunities
COKE
Soft drinks volumes in the AsiaPacific region forecast to increase by over 45%. Brands like Minute Maid Light Growth in Healthier Beverages and

PEPSI
Increased Consumer Concerns

with Regard to Drinking Water.

Growth in Healthier Beverages Growth in the Functional Drinks

Minute Maid Premium Heart Wise are positioned well with the Health-concerned market.
Use distribution strengths in

Industry

Eastern Europe and Latin America

SWOT : Threats
COKE Growing "healthconscience"
PepsiCos Gatorade,

PEPSI Obesity and Health Concerns

Coca-Cola Increases

Tropicana and Aquafina are stronger brands.

Boycott in the Middle East

Marketing and Innovation Spending to $400M Globally

Relying on North America

and Protest against Coke in India

only is Bad

Alternative Beverage Consumption

Hot drinks (Canned and bottled tea)
Milk Bottled-water Energy drinks

What To Do Next ?

What Strategies Should Pepsi and Coke Pursue For Success in The Future?