Using Secondary Research to Understand the Situation

1. Using Secondary Research to Understand the Situation

2. Situation Analysis: Purpose • Recall: • “Why are we there?” • The situation analysis provides a background on the factors that influence the company’s business.

3. Sections Included in The Situation Analysis • Situation Analysis • Industry Analysis • Company Analysis • Consumer Analysis • Product Analysis • Competitive Analysis • Market Analysis • Other Considerations • Social, Legal, Economic, Political, Technological

4. The Situation Analysis • Conducting secondary research in order to better understand the background comes down to investigating 3 distinct areas of a situation: • Product • People • Climate

5. Secondary Research Focused on the Product • Understanding the product and the issues that have direct impact on its success mean giving attention to • The Industry • The Product • The Competition

6. Industry Analysis • Industry/Category* • size of the market in general • growth trends

7. Company Analysis • Company Analysis • what the company is concerned with • What it represents

8. Company Analysis • Company Mission • History • Sales and profits (annual reports) • Market standing/category share • Product Offerings • Key personnel • Capital Resources

9. Product Analysis • Focuses on the abstract and concrete qualities of the company’s products • Product Attributes/Functions • Positioning/Brand personality • Cost/Margins • Price • Packaging • Distribution • Promotions used • Media spent

10. The Competitive Analysis • Considers all options consumers might consider in their purchasing decisions • Direct competitors (same category) • Indirect competitors (different category)

11. The Competitive Analysis • In what category does the product compete? • Who are the brand’s major direct competitors? Indirect competitors? • What is the competitor’s brand position? • What is the price of their product?

12. Competitive Analysis • What is their respective market share? • What is their communication strategy? [recent ad campaigns] • How much do they spend on media? (LNA) • Where is competitive media spending concentrated?

13. Secondary Research Focused on the People • Consumer • The General Market

14. Consumer Analysis • Information that helps us gain a grasp on the (present or potential) consumer • Who are they? • What motivates them to buy? • How do they use the product? • What is important to them in a product? • How do they look at life? • Where are they?

15. The Market Analysis • The market analysis helps planners identify which geographic areas are key • These areas are important either due to • The strong position the advertiser enjoys in the region (e.g., Maverick in the SE U.S.), or • The problems associated with doing business in the region

16. Secondary Research Focused on the Climate • Climate pertains to issues external to the product • It deals with concerns that could influence the product’s success, but over which the product, brand or company has no direct control • Sometimes called Macro-environmental Considerations • Demographic Trends • Economic Trends • Technological Issues • Political/Legal Issues • Social/Cultural Trends

18. After the Situation Analysis…

19. Problems & Opportunities Analysis • Where are the internal and external “trouble spots?” • Where are the “untapped” chances to improve the situation?

20. Problems & Opportunities Analysis • Not recommendations of what should be done to solve the problem • Rather, objective observations of past facts and future opportunities