micromarket study

MICRO MARKET STUDY

Tuesday, March 17, 2015

MBA in Health

AGSB – MBA in Health

What is a micro market?

• Is a market that is clearly defined, specific and detailed.

• If macro is the “big picture” then this is “small picture”.


Three Components of the Micro Market

Micro Market


Customer Analysis – Tools for Profiling

Demographic Segmentation (Structure of Society)

• Age ( stages in life cycle influence buying behavior)

• Income levels ( high, upper middle, lower middle, low.)

• Ethnicity and Religious beliefs (affects certain cultural behavior)

• Occupation (indicator of what goods and services may be availed of)



Psychographic Segmentation (How consumers think and feel)

• Motivation ( physiological and psychological)

• Perception ( defines action to be taken through the human sense)

• Preferences ( through exposure, experience and expectations)



Technograpic Segmentation (Different levels of expertise or

sophistication)

• Novice ( Beginner, entry level)

• Regular ( Day to day user)

• Professional ( for competitive advantage, high level)



• The key is customer intimacy• knowing exactly who the market • How they behave• Being able to react quickly, if not anticipate

their needs and wants


HOW HE / SHE EXACTLY


Location Analysis – Tools for Evaluation

Economics– Cost of buying or renting

– Cost of renovating

– Probable volume of customers: traffic

– Sales conversion ratios

– Estimated profits



Image desired– Upscale image– Middle class appeal– “Flea market” attraction

E.g.• Is a Medium Rise Building

for class B located at floodway ( DEFG) correctly located

• Is a jewelry store correctly located in a high criminality neighborhood



Exact fit to Target Customers– Traffic is generally composed of customers

being targeted– The specific profile of the potential customers

in the area matches the product or services that the company offers

– More value for perfect fit



Clustering or

Non-clustering of Competitors– Clustering may result in

drawing a bigger market due to a wider range of choices

– Is it more advantageous to have wider choice or a monopoly



Neighborhood Conditions– Aesthetics

– Sanitary conditions

– Peace and order situation



Future Development Program– May not have correct economics in the short run– Potentials that may improve or depress the area



Fiscal and Regulatory requirement– Favorable tax systems

– Good governance

– Excellent infrastructure

– Great public service• EPZA

• Cyber City• Technoparks• Freeports



The key is knowing your exact location inside out as well as its surrounding conditions. You should be able to determine whether such location is beneficial to your business or not.


Competitor Analysis – Tools for Benchmarking

Product/services offered– How does it compare with your “menu vs.

their menu?

– Do they offer a complete line?

– How superior or inferior are you in terms of quality?



Price/Cost advantage – Are you more expensive or cheaper in

terms of price?

– Are you a lower or higher cost producer?



Customer servicing– What is their customer service level?

– How accommodating and helpful are their staff?

– How customer –friendly are they?

– How ‘FAR” will they go for their customer?



In-store ambiance– How does their

store look like? – How does their

store “feel like’?– Do they have good

music, lighting, art decorations etc.



The key in knowing very well your competitors like the back of your hands. The ability to determine their strengths and weaknesses would eventually serve your business in good stead.

MICRO MARKET STUDY EXAMPLES


Golf resort project

* No similar project* New* A property in Batangas owned by Roxas

Competitive study* Resort lots in Batangas at P 1,500/sq.m* no development

Batangas – sea frontHistorical - old Spanish fort


Customers Study - FGD with existing - Ayala customers

(for children)- They said idea is OK

Positioning* Golf course resort* 500 lots only @ 500 – 1000 sq.m* ½ - facing China sea* ½ facing golf course


TUTUBAN Center - no similar project

- old tutuban station was up for rehab

Competitive Study- Existing 3 x 3 stalls @

P 1,500,000- No improvement- No amenities


Location

– High traffic

– Near Divisoria

Customer Study

- did a FGD about 2000 said yes

- In law of Danny Antonio ( former president of LANDCO) – a Chinese


POSITIONING

– 25 year lease of P500,000.00

– With CR, aircon, amenities

( vs. competitor who had none)


NEW FRIED CHICKEN

• Competitive study (re-negatives)

– Studied positives

– Nothing came out (P300,000 was spent)

– NED Roberto PhD was consulted “ ASK THE NEGATIVES


WHAT DON’T YOU LIKE ABOUT LEADING BRAND?”

1. Serving too small

2. Blood in the fried chicken

3. CR – no urinal for children

POSITIONING FOR THE PRODUCT

• Large Serving

• Removal of blood in the fried chicken

• CR urinals for children


IT WAS A SUCCESSFUL LAUNCH

• New product brand coming out of competitor NEGATIVES!


A NEW SCHOOL SUPPLY STOREWhat irritates you?’

– Children are in the habit of asking parents to buy school materials @ 9 pm when stores are closed.


STORE POSITIONING• Open for 8pm-12 midnight• Stocks frequently looked

for last minute school supplies, paste, fastener, art paper, illustration board, manila paper, colored paper

• Prices are stiff 40% higher


WAS IT A SUCCESS?

YOU BET.Who says you have a perfect product?

Who says there is no chance for new business

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