Strategic Marketing Week 7-8 Industry Analysis.pptx

PPT

1. Industry Analysis By Dr. Muhammad Zahid

2. Industry Analysis After economic analysis, we ask the question “which industries will benefit most from the upcoming economic environment?” This will lead to several industries, and our analysis will lead us to choose the one that we find to be best positioned.

3. What is an Industry? An industry is a group of companies which produce similar goods and/or services .

4. INDUSTRY GROUPS AGRICULTURE STEEL HEALTH CARE RETAIL AUTOMOBILES PHARMACEUTICAL FINANCIAL SERVICES HOTEL & TOURISM IT TELECOM UTILITIES PAPER & PRINTING BANKING FMCG INFRASTRUCTURE TEXTILE OIL AND GAS EXPLORATION

5. Standard Industrial Classification Code ECONOMIC SECTOR Manufacturing Distribution Services PRODUCT AND SERVICES List of what is offered by the industry GEOGRAPHIC SCOPE Local ,Regional, National, International

6. Computer industry Different Market Segments Personal Computer Micro Computer Mini Computer Mainframe Computer

7. Furniture industry Home Furniture Office Furniture Wooden Hosehold Metal Household

8. Industry Analysis tries to find out following answer Difference between return for alternate industries Future performance of currently performing company in one period Consistent performance over time Risk difference between different industries Risk variability over period of time

9. ECONOMY AND INDUSTRIAL SECTORS The economic performance of a country,to a large extent,determine Favourable and unfavourablable climate for its industrial participation

10. Reasons of industrial analysis Provide an awareness of market performance Identify investment opportunities Important part of company’s business plan Financial institutions

11. Data Requirement Product Line Complementry Product Product Growth Product Pattern (Seasonal,Cyclical) Econimies of Scales Suppliers Labour Market Buyer and their Behaviour Substitute Product Prices Marketing and Selling Cost Structure Logistic Department of Economic Analysis , Business Publication

12. Industrial Life Cycle It is Rise and Fall in Customer Interest

13. Industrial Life Cycle Rise and Fall of Customer Interest Depend on extent of technology and innovation Each phase passes from four stages Introduction Stage Growth Stage Maturity Stage Stability/Decline Stage

14. Feature of Industrial Life Cycle Marketing Manufacturing Competion Risk Margin Strategy High Advertising Skimming Pricing Under Capacity High Production Cost Low High High but low profit Increase Market Share High Advertising Under Capacity Shift to High Production Many Competitor Groth Vs Risk High and High Profit High Prices Change Quality &Price Image Market Segmentation Services Optimum Capacity Price Competition Low Low due to price war Marketing Effectiveness Low Advertising Overcapacity, Mass Production Exit,Fewer Very High Risk Low Profit Cost Control Introduction Growth Maturity Decline

15. TOOLS FOR INDUSTRY ANALYSIS Qualitative Cross sectional industry performance Industry performnce overtime Difference in industry risk SWOT analysis Competition over industry life cycle Quantitative Analysing employment data Analysis of emolument data Input output analysis Earning data analysis

16. Cross sectional industry performance Aimed at finding out variability in Rate of return among various industries in given time period compare performance in term of Sale profit market capitalisation dividend

17. Macro Environment Analysis

18. Category Attractiveness Analysis Product category defines set of competitors against which one most often competes on a daily basis.

19. Category Attractiveness Factors Aggregate Market Factors Category Factors Environmental Factors

20. Aggregate Market Factors Market Size & Market Growth Product Life Cycle

21. Attractiveness of Market Variables

22. Category Attractiveness over the Product Life Cycle Stage of product life cycle Category size Category growth Category attractiveness Introduction Small Low Low Growth Moderate High High Maturity Large Low Low/high Decline Moderate Negative Low Sales Time

23. Structure of Industry

24. Porters Five Force Model