For businesses to succeed in today's fiercely competitive business environment, a deep grasp of the marketplaces in which they compete is essential. Market mapping can help with this. Businesses utilise the market mapping technique to comprehend the competitive environment of their sector and spot growth prospects.
In this blog post, we will explore the value of market mapping with examples from McDonald's and Coca-Cola.
Learn more by watching the video and reading the blog post below:
What is market mapping?
Market mapping is a process used by businesses to analyse the competitive landscape of their industry and identify opportunities for growth.
The market mapping process involves several steps:
The first step in market mapping is to define the target market, which includes identifying the industry, segment, and customer base the business is focused on.
The next step is to identify the main competitors in the market, including their strengths, weaknesses, and market positioning.
The third step is to analyse market trends, including changes in consumer preferences, emerging technologies, and other factors that may impact the industry.
The fourth step is to segment the market into different categories based on customer needs, preferences, and behaviors.
The final step is to create a visual representation of the market, including the various segments, competitors, and trends. This visual representation, often referred to as a market map, allows businesses to identify gaps in the market and opportunities for growth.
Benefits of using market mapping in business:
Businesses can make better decisions about how how to compete in the market by evaluating the advantages and disadvantages of rivals. For instance, if a company spots a deficiency in its rival's customer service, it might concentrate on offering superior customer service to stand out from the competition.
Businesses can modify their strategy to stay competitive and take advantage of new opportunities by keeping up with market developments. For instance, if a company notices a trend towards more environmentally friendly items, they might change their product lineup to reflect this trend.
Businesses can decide where to concentrate their resources by investigating the size of the market, the degree of competition, and the needs of the target audience. For instance, a company might decide to engage in research and development to produce new vegan snack products if they notice a growing market for vegan snacks.
Businesses can create a strategy that sets them apart from their rivals and prepares them for success in the market by knowing the competitive landscape. To stand out in the market, a company can decide to concentrate on creating high-quality items if it notices a competitor's deficiency in product quality.
Businesses can foresee potential risks and create backup plans to lessen their impact by examining the competitive landscape and market trends. A company might decide to invest in its e-commerce skills, for instance, if it notices a trend towards online purchasing in order to reduce the risk of losing clients to online rivals.
How McDonald's and Coca-Cola have used Market Mapping
McDonald's has utilised market mapping in the UK to find expansion prospects and adjust to shifting consumer preferences. For instance, McDonald's added salads and fruit smoothies to their menu in the UK as soon as customers began to demand better eating options.
Analysing regional variations in consumer preferences is another way that McDonald's has used market mapping in the UK. For instance, in 2020 McDonald's released the "McSpicy" burger to the UK market after it had proved popular in other places. McDonald's recognised an opportunity to appeal to UK customers who enjoyed hotter food by researching the burger's popularity in other areas.
Coca-Cola has also employed market mapping to expand its operations in the UK. The business revealed plans to introduce a new line of Coca-Cola energy drinks in the UK in 2020. Coca-Cola identified a chance to diversify its product offering in the UK market by examining the rising demand for energy drinks among customers there.
Market mapping has also been utilised by Coca-Cola to spot new trends and adjust to shifting consumer preferences. For instance, the business released a variety of flavoured sparkling waters under the trade name "Smartwater" in the UK market. Coca-Cola recognised an opportunity to appeal to health-conscious consumers in the UK by examining the rising demand for flavoured water and the popularity of the Smartwater brand in other regions.
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