Using Secondary Research to Understand the Situation

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Using Secondary Research to Understand the
Situation

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Situation Analysis Purpose

• Recall
• Why are we there?
• The situation analysis provides a background on
  the factors that influence the companys business.

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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

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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

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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

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Industry Analysis

• Industry/Category
• size of the market in general
• growth trends

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Company Analysis

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

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Company Analysis

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

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Product Analysis

• Focuses on the abstract and concrete qualities of
  the companys products
• Product Attributes/Functions
• Positioning/Brand personality
• Cost/Margins
• Price
• Packaging
• Distribution
• Promotions used
• Media spent

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The Competitive Analysis

• Considers all options consumers might consider in
  their purchasing decisions
• Direct competitors (same category)
• Indirect competitors (different category)

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The Competitive Analysis

• In what category does the product compete?
• Who are the brands major direct competitors?
  Indirect competitors?
• What is the competitors brand position?
• What is the price of their product?

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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?

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Secondary Research Focused on the People

• Consumer
• The General Market

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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?

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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

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Secondary Research Focused on the Climate

• Climate pertains to issues external to the
  product
• It deals with concerns that could influence the
  products 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

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After the Situation Analysis
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Problems Opportunities Analysis

• Where are the internal and external trouble
  spots?
• Where are the untapped chances to improve the
  situation?

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Problems Opportunities Analysis

• Not recommendations of what should be done to
  solve the problem
• Rather, objective observations of past facts and
  future opportunities