By adding the matrix analysis method to the conventional process, adding the market size and the sales of competing products to the simple sales “data” makes it “information”, and matrix classification is performed on the two axes of Pareto’s law and competitive advantage. By doing so, we can turn them into meaningful “knowledge” and to make them “wisdom”. By mastering this series of processes and putting them into practice, you will be able to create “value”.
“Reasons #3 to urgently switch to a regional strategy”
If you only look at the overall market, you may misunderstand the competitive environment, and there is a danger that the sales reps will execute the wrong business plan.
If you only think about marketing, you tend to focus on “differentiation” from competing products.
But strategy is not just about differentiation.
In market share theory, there are four major strategies: “non-differentiation strategy”, “differentiation strategy”, “concentration strategy” and “niche strategy”.
You need to choose these four strategies correctly from the 3C perspective.
I will introduce an example of analysis using dummy data, using a competition between two parties as an example.
Suppose that the market share of competing products is 52% and the market share of your own product is 48%, and the competitive environment is in a state of rivalry.
According to the matrix analysis method, only 4.9% of customers are in the “competitive state” of your company, and the contribution rate to sales is only 4.8%.
Allocating all sales resources to this frame will not work, and 95% of the resources will be wasted.
On the other hand, for competing products, 12.2% of customers fall under the category of “competitive”, contributing 29.1% to sales, and occupying 23.8% of the total market, which is a large value compared to our company.
In other words, if competitor implement a differentiation strategy in the same way as your company, the effect will be overwhelmingly large.
Your company’s loyal customer rate is 34.1%, and the contribution rate to sales is extremely high at 75.4%.
Maintaining this frame will lead to stable sales, so the non-differentiation strategy lead to nullify the differentiation strategy from competing products.
A strategy must be chosen correctly according to its purpose.
Anyone can easily analyze and plan the matrix analysis method, and it is a very effective tool for area marketing.
“Reasons #2 to urgently switch to a regional strategy”
In many companies, it is a enhancement type that adds a new method using digital instead of conversion while keeping the conventional strategy plan / marketing plan method as it is.
What is really required, however, is a fundamental shift in strategy.
As the market shrinks, conventional strategic plans/marketing plans will be forced to change.
Even in Ansoff’s growth matrix, which is used as a textbook, “market penetration” is the frame of the growth strategy during the period of market contraction.
You will give top priority to maintaining existing customers, win over competition in a shrinking market, and expand your market share.
Business expansion and unreasonable diversification will dilute the brand image of the company, and the sameness that makes it difficult to differentiate will progress further.
The matrix analysis method can realize quantitative and visual strategy planning from the viewpoint of 3C.
“Reasons #1 to urgently switch to a regional strategy”
In a game-type competitive market, there will be winners and losers, so moving ahead of the competition is an overwhelming advantage in gaining a competitive advantage.
Daiichi Sankyo has announced that it will reorganize its marketing and sales divisions to strengthen its area marketing functions.
Not only are sales activities by MRs returning offline as the coronavirus crisis subsides, but it has also become difficult to respond to the uneven distribution of the market and the diversification of customer needs with a business plan based on centralized management at the head office.
Essentially, strategic planning/marketing planning should analyze external environmental factors and decide relatively based on the internal environmental factors affected by them.
In other words, external environmental factors are regional characteristics themselves, and a strategic plan/marketing plan should be established for each area with a different market environment.
Until now, even with the strategic plan/marketing plan centrally managed by the head office, we were able to succeed depending on the expansion of the market. But it can be said that a serious problem has been exposed.
In addition to Daiichi Sankyo, an increasing number of companies have strategic managers in their regional strategy departments and branches.
However, there is no standardized process for area marketing methods, and we have no choice but to rely on planning based on the experience and intuition of each person in charge, and consultations for new solutions have increased.
Anyone can easily analyze and plan the matrix analysis method, and it is a very effective tool for area marketing. Please contact S.I Lab for regional strategies.
A loyal customer is a customer who is attached to a product, service, or company and does not switch to a competitor.
As the 1:5 rule and the 5:25 rule indicate the importance of loyal customers, cultivating and maintaining loyal customers is an important point for sustainable growth of a company.
In particular, when the market shifts from maturity to decline, the importance of this will increase even further.
Customers who are close to loyal customers include “best customers” and “top sales customers,” but they should not be confused.
In order to maintain and nurture loyal customers, we must select appropriate loyal customers from among our customers.
LTV, RFM, NPS, and CPM are used to define loyal customers, but none of them are sufficient.
Because loyal customers are customers who do not switch to competitors, it is necessary to consider competitive factors in their selection. By using matrix analysis, you can complete the process of selecting appropriate loyal customers, analyzing the purchase motivations of the selected loyal customers, and maintaining and cultivating them based on the analysis results.
“It is important to decide the main battlefield in a decentralized market”
Depending on the therapeutic class, a large number of competing products may enter the market, forming a decentralized market where each product has a small market share.
In such a situation, it is important to determine the main battlefield in which market you will be No. 1.
For example, your own products are brand-name drugs, and GE and AG coexist in the same market.
In that case, it is to decide whether to aim for No. 1 in the overall market, No. 1 among brand-name drugs, or take market share from a specific competing product.
Where, with whom, and how to fight, that is, to decide the strategy.
The matrix analysis method can analyze data of any granularity according to the strategy.
Sequel “Matrix analysis is a strategy tool for any industry # Banks”
As with the previous private classes, I thought about using it at a bank (this is also an assumption, not an example of my own experience).
This time, we created dummy data for loading with the loan amount by industry.
Using the matrix analysis method, we clarify which industries will be our loyal customers and which industries should be expanded in the future.
If you are in the loyal customer industry, we will provide low-interest loans, and if you are expanding, we will develop and provide new services such as products limited to the target industry.
Since our competitors are clearly identified, we should be able to compete with our competitors with lower interest rates and better products.
We will be able to increase our market share through a dominant strategy to expand No. 1 in the market segmented by industry.
The matrix analysis method is a valid theory and process regardless of industry/industry.
“The matrix analysis method is a strategy tool for any industry # private classes”
So far, we have introduced strategic planning using the matrix analysis method, focusing on the pharmaceutical business, but the market share theory, which is the basis of the matrix analysis method, is a theory that can be widely applied regardless of industry.
As an example, I assumed a private classes (I’m imagining it because it’s not my own example).
Student retention is an important aspect of a private classes.
First, you will perform a matrix analysis method for each school district as a segmentation, and at least secure No. 1 in the school district where private school is located.
If you want to gain a competitive advantage by further subdividing the market, conduct a matrix analysis for each grade as targeting and subdivide the market.
Once the re-focus market is clarified, it will be possible to arrange the optimal curriculum and the optimal instructors for positioning.
If the strategy based on STP analysis yields results, it will become the brand image. The matrix analysis method is a valid theory and process regardless of industry.
