1Market Planning – Internal Analysis #1 Today I will be: Exploring the concept of Market PlanningSo I can: Fully understand the value of having a planI will know I’m successful when: I am able to properly execute an internal analysis of a companyText Book needed todayEntry task: Without asking anyone or referencing anything write down step-by-step driving directions from the KW senior parking lot to the Tacoma Dome. You may use words and/or images.Moral of the story – have a plan, THINK, get help when needed and make it a good one
2SWOT analysisA business can analyze its strengths, weaknesses, opportunities, and threats using a process called a SWOT analysis.A SWOT analysis can be performed internally or externally (an outside agency)Why would a company involve an outside firm?To get an objective opinion.
4Internal Strengths and Weaknesses Strengths and weaknesses are internal factors that affect a business operation. The analysis centers around three Cs:CompanyCustomersCompetition
5Internal Strengths and Weaknesses When evaluating itself, a company must analyze these areas:StaffFinancial situationProduction capabilitiesThe Four P’s (which are? . . .)Product, Price, Place, Promotion
6Customer Analysis What pleases or dissatisfies customers? Buying patternsusing surveys or interviewing their target markets.
7Competitive Position Ask the following questions: What market share does the company have?What advantages does the company have over its competitors?
8Assignment:Using the scenario below, conduct the internal portion of a SWOT analysis. Use the probing questions from pages 31, 32, 33 to help you. We will then:Work with your elbow partnerUse “basket of destiny” to share our results to classLosing Market Share: Futura Fashions, Inc., is a hypothetical 100-store chain that caters to a teenage market. The stores carry male and female clothing and accessories. Sales at Futura have declined in recent months, and its stock price has dropped 30 percent. An analyst who follows the stock believes that the decline is due to a loss of talent in buying and merchandising. As a result, Future has lost market share to its competitors, American Eagle and Aeropostale, who have had increases of 14 and 27 percent respectively. … The teenage clothing market is difficult to evaluate. Trends are important. Either you catch them or your business suffers. So, Futura has recently hired an experienced fashion buyer and merchandise manager. The economy is strong. Consumer confidence is up and so is consumer spending. Recent reports indicate a decrease in jobless claims and an increase in employment. However, inflation is increasing slowly, so the Federal Reserve has increased interest rates, which could make consumers less inclined to spend.