|
|
Service Area, Competitive Analysis, Market Share and Penetration
|
Service Area
Each business needs to ascertain its geographical scope which will determine the level of competitive analysis and market share and penetration study that is necessary. First, with your guidance and input, we need to establish the service area of your business. Sometimes that is easy, for instance, a restaurant that obtains 80% of its business from residents within a 10-mile radius and the remaining 20% from travelers thanks to the eatery’s proximity to major highways. Another example would be an assisted living facility to be constructed where a certain percentage of the residents would move from 6 to 7 zip codes within close proximity to the location or from within a 5-mile radius, a smaller percentage from a 10-mile radius, and an additional percentage from an extended distance based on a desire to be close to family members or due to high-quality services or amenities. Or, if the solutions offered by a business target a specific industry and regulations within a certain state, then its service area is that State. Sometimes, a business can focus on a region composed of several states. For other businesses, such as several of our technology clients, their service area includes the entire United States and sometimes the entire world via the Internet.
Competitive Analysis
Assessing the competition is quite another matter, often best completed initially by the client under our direction with our review, comments, and edits. We specialize in research that can establish the competition either locally, regionally, or nationally, depending on the goals and objectives of a particular Business Plan.
- Determine the top 3-5 competitors for each geographic scope the business entails and for each Market Segment, such as a company that sells two categories of products or services.
- Research the sales, profits, and competitive edge of each competitor.
Market Share
We are often asked to provide standalone market studies. This is an area of strong expertise, which includes nationwide support from our network of affiliates, consultants, and experts, including public relations experts, branding consultants and other team members. Once the Competitive Analysis is complete, businesses of substance need to draw conclusions through comparative analysis to establish Market Share.
Market Penetration Rate
Once we have established the Service Area, and then completed the Competitive Analysis and Market Share, research on a particular industry or business, as well as our experience in many different types of businesses, allows us to establish a Market Penetration Rate. The Market Penetration Rate is defined as a series of logical assumptions that determines what percentage of customers or consumers will utilize your Service(s) and/or Product(s) within your service area over a period of time and is closely aligned to your Strategic Marketing Plan.
Ask us for more information.
|
|
| |
|
|
|
|
|
