Bases of Competition

3. Bases of Competition • Customer-oriented Who they are – competition for same budget When they use it Why they use it- benefits sought • Marketing-oriented: advertising and promotion Theme/copy strategy Media Distribution Price

4. Bases of Competition cont. • Resource-oriented Raw materials Employees Financial resources • Geographic

5. Levels of Competition Beers Ice cream Tea Regular colas Diet lemon limes Diet-Rite cola Wine Product form competition: Diet colas Diet Pepsi Diet Coke Juices Fast food Fruit flavored colas Product category competition: Soft drinks Video rentals Lemon limes Bottled water Generic competition: Beverages Coffee Baseball cards Budget competition: Food and entertainment

6. Levels of Competition: Implications for Product Strategy Competitive Level Product Management Task Product Form Convince Customers that the Brand is Better than Others Convince Customers that the Product Form is Best in the Category Product Category Generic Convince Customers that the Product Category is the Best Way to Satisfy Needs Budget Convince Customers that the Generic Benefits are the Most Appropriate Way to Spend their Money

7. Energy Bar Competition Other Snacks Healthy Snacks Snack/Health Bars Energy Bars Odwalla Power Bar Balance Bar Clif Nutrigrain Bars Slimfast Bars Granola Bars Fruits Nuts Juice Crackers Chips Candy

8. PDA Competition

9. Super-Premium Ice Cream Competitors

10. Methods for Determining Competitors • Existing categories • Substitutability • Managerial judgment • Customer-purchase-based measures • Customer-judgment-based measures

11. Customer-Judgment-Based Measures • Overall similarity • Similarity of consideration sets • Product deletion • Substitution in use

12. Managerial Judgment of Competition Product/Services Markets Same Different A B Same C D Different

13. Brand-Switching Matrix Time t+1 Time t

14. Defining Competition with Brand Choice Data All brands National Regional Diet Regular Family brand 1 Family brand 2 Cola Non-Cola

15. Defining Competition with Perceptual Mapping • Moist • Needs refrigeration As a formal dessert • Custard mix Bakery pie • Bakery cake • Pudding mix • Tapioca pudding mix Homemadecake • • Homemade pie Local mix • • Layer cake mix Takes a long time to prepare • • Jell-O D-zer ta • • Cheese cake mix Bundt cake mix• • Frozen pie •• Chocolate torte mix • • Canned pudding • Frozen cake Boston crème pie mix “Light Style” cake mix • “Stir’n Frost cake mix • Individual pie Coffee cake mix • • Quick bread mix “Snackin’ Cake” mix • • Hostess cupcakes Date bar mix • Brownie mix • Homemade cookies Cookie mix • • Oatmeal cookies • • Pepperidge Farm cookies Bakery cookies • Pillsbury cookie dough • Good for a coffee break• • Between meal snack • Easy to carry with me In my school work lunch •

16. Defining Competition with Perceptual Mapping • Moist • Needs refrigeration As a formal dessert • Custard mix Bakery cake • Pudding mix • Tapioca pudding mix Homemadecake • • Homemade pie Local mix • • Layer cake mix Takes a long time to prepare • • Jell-O Dzer ta • • Cheese cake mix Bundt cake mix• • Frozen pie •• Chocolate torte mix • • Canned pudding • Frozen cake Boston crème pie mix “Light Style” cake mix • “Stir’n Frost cake mix • Individual pie Coffee cake mix • • Quick bread mix “Snackin’ Cake” mix • • Hostess cupcakes Date bar mix • Brownie mix • Homemade cookies Cookie mix • • Oatmeal cookies • • Pepperidge Farm cookies Bakery cookies • Pillsbury cookie dough • Good for a coffee break• • Between meal snack • Easy to carry with me In my school work lunch •

17. Methods Versus Competition Levels and Information Required

18. Enterprise Competition in Financial Services