In my eyes, production supervisor (1)--How to do competitive analysis

"Summary" Kotler the words: "Marketing is about the difference between art."

Competitive analysis is the definition of such differences.

Which phone do I choose? Millet cost is high. Or a high iphone?

Which restaurant do I choose? Hunan or Cantonese?

What kind of financial products do you choose? Stocks, futures, funds, etc.?

The scene of life is very common, casually stroll a large supermarket. No matter what a product is inside. Almost always a bunch of brands, vying to squeeze in the shelves medium you pick. Shampoo, facial cleanser, milk, beef jerky ... Lots and lots. Then. Which one would you buy?

As a product manager, competition is what we have to deal with. When defining a product, how do you conduct a competitive analysis?

1, what is a competitive productBefore we analyze, we have to be clear about who our competitors are and who we want to analyze. How do we define competitive products?

One way to define this is: "The opponent we meet in Sales is our competitor". It is obvious that everyone is competing for the same money, which is naturally a competitor. But such a definition is afterwards. After the product comes out, the ability to define so precisely.

I think there's another definition that might be more precise: "The product that solves the user's problem is a competitor."

The understanding of this sentence has both general and generalized two kinds of comprehension.

For example, who is the competitor of the high-class sedan Mercedes? In a general sense. Other Premium Sedans: BMW, Rolls-Royce, Lincoln, etc. Broadly speaking, Mercedes-Benz solves problems that have overtaken the car itself. But the status of the identity of the embodiment. From that level. Its rivals are other luxuries, such as Rolex watches, parker pens ... Wait a minute.

In the actual analysis. We do it in general. are competitive analysis in the general sense.

2. The essence of competitive analysisBefore we discuss how to conduct competitive analysis, we need to figure out why we do this, and what kind of results does the competition analysis hope to achieve? Then backward from the result, we can clearly define how we achieve the goal.

3, the purpose of competition analysis. To gain a competitive advantage.

The above sentence. is the essence of competitive analysis. Competitive analysis is to define product variances. And finally gain a competitive advantage. Think of the example of Gorgon cake, so many shops where the branch, why customers will come to my store to buy my?

4, from the market segmentation StartIt is important to understand the nature of competitive analysis, which tells us that competitive analysis is about finding differences. And it can establish the difference of competitive advantage of our products.

We'll ask further. What is the difference between this difference? How do we find it? We look at the east, take other people's products and their products than a ratio, find out?

Let's take a look at the result: we've analyzed a bunch of differences. But consumers think it's nit-picking. There is no difference between the products you offer.

Why is that? Very clearly. Because we do it from our own point of view. It is in our own view that some aspects are very important and imposed on consumers, but consumers do not necessarily know that. So, the right approach, obviously from the consumer to understand directly. Take a look at their ideas.

But the consumer's understanding is often different. Some people think that the price is important, some people think that some function is important, some people feel that service is important. Such. That's no way to compare. For example, a customer feels that service is important. There is also a customer who feels that service is relatively less important.

Then for the two products, different service levels, which is more competitive advantage? Obviously different customers have different conclusions.

So the first step in competitive analysis. is from the market segmentation start, Market segmentation for the influential factors affecting the market. A division has been made so that different segments of the market have the same values. Just under the same values. Different product comparisons make sense.

5. Competitive Analysis Model $appealsNow it is clear that to do product analysis, we need to establish a customer value assessment model, for different market segments may be different. In IPD, there is a systematic evaluation model: $APPEALS, this is from IBM. I have seen relevant information in the UCPM Alliance. In the material, IBM said to $appeals very clearly: "To establish a common framework for understanding customer andcompetitive priorities that would DR Ive product development. This process would enable us to define Winning products, that would delight our customers and increase we market share. "

$: What is the customer's willingness to pay for this product, referring to the price?

A: Refers to the availability of access. Customer's entire purchase experience, including the channels they purchase

P: Refer to Packaging, visual evaluation/bundling

P: what function/performance do you need to refer to performance?

E: Refers to ease of use. The composition of ease-of-use. Like installation, management, etc.

A: Refer to the guarantee. Provided by the entire product/service

L: Refers to the life cycle cost. What life cycle cost considerations affect customers ' purchase of products?

S: Refers to the level of social acceptance, what "image" can promote customers to buy our products? How did the customer get the information?

Such a model is also very well understood. IBM is also very clear about why split into several factors: "Retrace the End User's buying decision to determine all who influence the offering attributes."

6. The first step of the competitive analysis process:

According to this model. Need to understand the main factors in each dimension of customer care

Step Two:

Differentiate these factors into b/s/a three categories:

Basic: is to solve customer problems when the basic function of all products, without this function can not solve customer problems, customers will not buy;

Satisfactor: Applicable to some customers

Attractor: For a small number of customers

Step Three:

Define a customer value weight for each dimension.

for different market segments. should be different.

Fourth Step:

Score your products and the most basic (Bestof breed) competitive products in each subdivision dimension. 1-10 minutes, respectively, represent for example the following:

10-Absolute Best (absolutebest Possible)

9-Obviously a leader (Clearleader)

8-Within the top 2 (one of TOP2)

7-Located in the top 3-5 (Parity withtop 3-5)

6-Generally considered "good" in the market (typical "good" for the marketplace place)

5-Most customers can accept (Acceptableto most)

4-There are 25%-35% of buyers who cannot accept (notacceptable to 25-35% buyers)

3-Most buyers cannot accept (Unacceptableto most)

2-very uncomfortable (Extremelyhigh level of dissatisfaction)

1-Totally unqualified (totallyinadequate)

Fifth Step:

Calculate your own products and competitors in each dimension weighted score and get a whole data for each product

Sixth step:

Calculate Customervalue differentiation factor value, which allows us to understand the difference.

Seventh Step

For some of the most important dimensions, we need to ask 3 questions:

1) Why do our customers feel that their competitors have met their needs well in XX?

2) Why do our customers feel that we have no competitors in XX to meet their needs so well?

3) Why do we and our competitors not fully meet the needs of our customers in XX?

It is important that the first and third steps emphasize direct research of the customer.

7, how to conduct researchWe see in the competition analysis also involves to the customer research. This part of the study is divided into two parts:

The first is to form a general view of the issue through focus groups.

The second is to delve deeper into detailed questions through in-depth interview.

8. Difficult ChoicesIn fact, the most critical part of this is the process of researching and acquiring information.

Due to the very many constraints. We are very difficult to obtain complete information, the information is always fragmented, broken, and we have to make decisions in such circumstances.

The point is. Even if the decision you make depends entirely on one-sided information. But at least this is one-sided information, if true, and it is first-hand.

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In my eyes, production supervisor (1)--How to do competitive analysis