Falcon Invoice Discounting: The best investment platform in india for investors
3.3 market resarch & intelligence gathering.pptx
1. Market Research
and
Intelligence Gathering
This presentation is made possible by the support of the American People through the United States Agency
for International Development (USAID). The contents of this presentation are the sole responsibility of
Rasmussen International and do not necessarily reflect the views of USAID or the United States
Government.
2. Power of Information
• Strong market
research is very
important
• Allows you to make
plans with real data
• Attack big markets
• Minimize competitive
threats
3. Market Research Sources
• Primary, direct:
– Conducting qualitative interviews
– Informal talks
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Customers,
Prospects,
Suppliers & vendors
• Secondary, indirect:
– Published sources help you gather general information
about your target market, industry, and competition
5. Secondary Sources
• Traditionally: expensive industry reports
(Gartner, Forrester, IDG)
• Now: publicly accessible records
– Local/Regional markets & industry sectors:
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Business Associations & Chambers of Commerce
Trade Associations & Industry groups
Business journals & Academic institutions
– International markets, add to the above:
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Chambers of Commerce of your target country
Embassies and Consulates
6. Types of market intelligence
• Quantitative:
– Size of market
– market demographics & cohorts
– business characteristics, trends
• Qualitative:
– Understanding customer behavior,
– Perceptions and buying patterns
– Market opportunities & threats
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Product/service features
Are expectations met/going to be met?
Perceptions on competitive advantage?
Follow up – any action items to tweak product/service?
7. Major Corporate Assumptions and Future Goals
• Assumptions:
– What do they believe about their reputation and capabilities?
– Who are their key decision makers? Functional backgrounds?
– What is their attitude toward change and risk?
• Future Goals:
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Financial goals (ROI, share price, sales volume?)
Incentive systems for management?
Who is on their board of directors?
What are their governmental constraints?
Where can you obtain these answers? Public and private…
8. Product Positioning
Positioning Methods:
• By attribute
– BMW known for engineering, Volvo for safety & durability
• By price & quality
– Walmart vs. Neiman Marcus
• By application
– Morning blend coffee
• By user type
– Johnson & Johnson baby shampoo repositioned for adult use as mild
shampoo
• Vis-à-vis competitor
– Avis – “We’re #2 so we try harder”)
• As solution provider for a specific problem
9. Positioning Measurement
• Perceptual Mapping
Spatial mapping of brand perception by various individuals
• Positioning to a Segment
includes all the options a target market has to fulfill need for a
product/service, including substitute products
• Positioning Map
chart different products & services to enable comparison and
contrast easily
axes of map – price vs. quality, comfort vs. price, expertise vs. price
any gaps on the map can point to areas of new product development
10. Positioning Statement
Positioning statement breaks down into 4 parts:
1. Target Market
2. Your Product/Service
3. Frame of Reference/Category
includes all the options a target market has to fulfill need for a
product/service, including substitute products
4. Point of Difference or Uniqueness
the benefit that buyers get from your product uniquely
11. Construct a “Day in the life”
• This is the story telling part of what you do…
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What your customers need and what they care about
How they will use your type of product/service
How they gain value
How they will be happy to pay you
12. Research Methods
QUANTITATIVE: CONJOINT
ANALYSIS
Helps analyze thought
process behind preferences.
Identify & describe levels of
product attributes or
characteristics.
Measure relative utility and
relative importance of the
attributes.
The relative value of product/
service attributes can be
analyzed statistically.
13. Research Methods
QUANTITATIVE: KEY DRIVER
ANALYSIS
Survey method that uses
statistical linear regression to
measure strength of multiple
attributes (variables) relative to a
strategic characteristic
(dependent variable).
Useful in answering:
• What is driving the brand it its
market segment?
• What would make its market
share rise?
• What makes a competitor’s
market share rise?
14. Competitive Analysis and Frameworks
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Investors ask: Who is the competition?
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Capabilities:
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Products and Services offered
Marketing and selling
Dealers and distributors
Facilities and locations
Operations
Technology
Overall cost position
Financial strength
Organizational culture
Managerial capacity
Strategy
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Corporate portfolio and SBUs
Political ties and other special advantages
Strategic direction? Growth, harvest…?
15. Typical two-axis diagram
• You define the
axes to show
your strengths
• You’re always
in the top right
corner
You
17. Competitive Analysis:
The Porter Model
Potential
Entrants
Who is your
Competition?
Suppliers
Current
Industry
Structure
(rivalry amongst competitors)
Substitutes
Customers
18. Thinking through the Porter Model
• Minimizing Substitution Effects:
Potential
Entrants
Suppliers
Current
Industry
Structure
Customers
(rivalry amongst
competitors)
– How easy is it for a customer to
substitute your product/service?
Substitutes
Potential
Entrants
• Minimizing Supplier issues:
– How easy is it for Suppliers to drive up
prices?
Suppliers
Current
Industry
Structure
Customers
(rivalry amongst
competitors)
Substitutes
• Reducing bargaining power of
customers
Potential
Entrants
Suppliers
Current
Industry
Structure
(rivalry amongst
competitors)
Substitutes
Customers
19. Building Barriers to Entry
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High capital investment
Specialized service delivery processes
Special distribution channels
Unique image or brand awareness
Patented or difficult to copy features
Geographical location advantages
Specialized sources of supply (supplies and labor)
Special purpose machinery or software
Special financing techniques
Experience curve knowledge
Results in higher profitability and less risk
20. Conclusion
• Understand
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Target market and segment,
Your industry,
Your customers,
Your competitors
• Know how to position yourself and your products and
services to pinpoint your messaging
• Reduce business risk and increase revenue & profitability