Market Analysis

Market = Geographic

Target Market = Population Segment

andGeographic Area

Focus on Geo. Targets- Media Allocation- Creative Thrusts

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Research Tools

• Nielsen• Simmons• BPI• SRDS• BDI• CDI

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Research Tools

Nielsen SCANTRACK = info for food, grocery and general merchandise.

Nielsen PROCISION = info for health and beauty aids

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Research Tools

Simmons Market Research Bureau

(SMRB) = info on 800 brands by usage and geography.

Mediamark Research, Inc. (MRI) =

Competing company with similar data

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Research Tools

BPI = Buying Power Index

From Sales & Marketing Management’s

Survey of Buying Power• Helps predict sales potential

–Population–Disposable Income–Retail Sales

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Research Tools

Standard Rate and Data Service(SRDS)

• Media rates• Market Data

–Population–Households–Disposable Income–USA/Regions/States

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Research Tools

BDI CDI

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Research Tools

Brand Development

Index = % Brand’s US Sales in

Market x 100 % US

Population in Market

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Research Tools

Category Development

Index = % Category US Sales

in Mkt x 100 % US

Population in Market

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Research Tools

BDI greater than

100 CDI greater than

100Suggest receptive markets

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Research ToolsPhilly accounts for 1.25%

brand’s sales and 1% USA population.

BDI = 1.25 x 100

1.00Index = 125

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Research ToolsNY accounts for 3.00% brand

sales and 4% USA population

BDI = 3.00 x 100

4.00Index =75

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Research Tools

Why would index be low?

•Distribution•Local Promo Support•Right Target

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Research Tools

Higher BDI than CDI is good if both are 100+

Means brand is strong

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Research Tools

Lower BDI than CDI

Means competition is stronger

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Implications

High BDI & High CDI =

Increase Media Spending to Protect Share of Market

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Implications

High BDI & Low CDI =

Maintain Media Budget

(Unless CompetitionIncreases SOV/Media Weight)

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Implications

Low BDI & High CDI =

Investment Spending toCapitalize on Opportunity DMA’s

• Added weight• Promos/Distribution

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Implications

Low BDI & Low CDI =

Limited Media Support

due to ROI

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Research ToolsDemographics & Psychographics

• Choice III (Simmons/MRI)• PRIZM (Claritas, Inc)• ACORN (Caci Systems, Inc)• Lifestyle Market Analyst• Sourcebook of Zip Code

Demographics

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Product/Brand AnalysisThe More MATURE a brand is…

The More Strategic Focus shifts from

Physical Qualities to Intangibles

From “contains x, y or z” to “ a name you can trust!”

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Product/Brand AnalysisCustomers Perception IS Reality

The Essence of the Brand

Ex: Cadillac = Prestigious, Classy, $$

but…it’s what old folks drive

Overcome that with younger actors, celebs, active lifestyle…Build or rebuild the brand

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Product/Brand AnalysisBrand Loyalty is GoalProcess =

• Awareness – Advertising Media• Acceptance – Attributes (Copy)• Preference - Functions• Insistence - Benefits - Personality

A Brand Personality Framework

Sincerity

Down-to-earth

Family-oriented

Honest

Sincere

Whole-some

Cheerful

Excite-ment

Daring

Trendy

Exciting

Imagina-tive

Unique

Up-to-date

Compe-tence

Reliable

Hard-work-ing

Intelligent

Successful

Confident

Sophistica-tion

Upper-class

Glamorous

Charming

Feminine

Smooth

Rugged-ness

Outdoorsy

Masculine

Western

Tough

Rugged

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Brand Personality

Categories are not absolute:

Take ten other brands and create a word that fits their personality or place them into:

• Sincerity - Sophistication

• Excitement - Ruggedness• Competence

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Competitive AnalysisStart with the other 3 P’s

Price–Higher/Lower–Why?

• Ingredients• Market• Promo• Elasticity

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Competitive AnalysisPlace–Distribution

• Greater than or less than• Types of Outlets• Placement of Retail• Quality of channels

– Wholesalers– Jobbers/agents– retailers

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Competitive AnalysisPromotion–Ad Budget Mass Media

(CMR – Competitive Media Report or LNA – Leading National Advertisers)

–PR–Social–Digital–Message – Tone–Sales Promo

• Coupons/Incentives/Discounts/POP

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Competitive AnalysisProduct ComparisonsPerceptual Mapping - Image

• Where brand is in Consumers Mind

• Four Quadrants–High/Low–Physical/Functional/

Psychological–Limited to two dimensions–Purely Judgmental but….Perception IS Reality!