Week 6 - Leases and Competition

Question 1

10 Goals od Competitive Intelligence

Answer 1

1. Improve your product features (esp. Price) and customer benefits
2. Improve your customer service
3. Find new ways to distribute your product/service
4. Improve your advertising and promotions
5. Develop more efficient production processes
6. Reduce your reaction and delivery time
7. Add value to your product or service
8. Find new alliances and strategic partners
9. Find new ways to grow your current product/service
10. Develop new product/service opportunities

Question 2

5 Steps to Building a Successful Niche Business

Answer 2

Create a Simple Service
Craft Your Niche Marketplace
Become the Niche's Leading Authority
Be Specific, Distinctive and Relevant
Copy, Paste, and Repeat

Question 3

4 P’s of Market Mix

Answer 3

Price
Place
Product
Promotion

Question 4

Distribution Methods

Answer 4

Directly to Consumer
Selling through Retailer
Selling through Wholesaler
Franchising
Licensing
Using an agent
Outsourcing

Question 5

A distribution system in which one company (the franchisor) grants the right to sell its products or services to another company (the franchisee). Usually involves selling a format or business process.

Answer 5

Franchising

Question 6

Distribution Considerations

Answer 6

Consumer goes to supplier
Supplier goes to consumer
Arms-length
Self-serve

Question 7

Increasing the number of ways in which a consumer can find your product or service has the potential to increase sales

Answer 7

Distribution Channels

Question 8

Drawn up by the property owner’s lawyer

The terms proposed are a starting point for negotiation

Answer 8

Lease

Question 9

Is expressed as $ per square foot

Based on average sales per square foot of retailers in the area

Answer 9

Basic Rent

Question 10

Re-writing a Lease

Answer 10

Escape hatch
Option to renew
Right to transfer or assign
Cost-of-living cap (rent increases based on inflation)
Percentage lease (base + % of gross sales)
Floating rent scale (increases as occupancy increases)
Start-up buffer
Improvement costs
Restrictive covenants (things you or your landlord can’t do)
Maintenance agreements

Question 11

Those companies or individuals that provide similar products services, or benefits, as perceived by your target customer.

Answer 11

Competition

Question 12

Types of Competition

Answer 12

Direct Competitors
In-Direct Competitors
Invisible Competitors

Question 13

Offer same products or services as perceived by your customer

Answer 13

Direct Competitors

Question 14

Provide the same benefit, as perceived by your target customer. Compete for “same occasion” dollars.

Answer 14

In-Direct Competitors

Question 15

People or businesses that have the capacity or desire to provide the same products, services, or benefits that you do.

Answer 15

Invisible Competitors

Question 16

Who is the Competition of Time Hortons?

Answer 16

Direct Competitor
Other Tim Hortons, Country Style, Starbucks

Indirect Competitor
Bakeries, breakfast restaurants, home brewers

Invisible Competitor
McDonalds

Question 17

CI – Competitive Intelligence

Answer 17

The process of learning, collecting, and using information about your competitors for the purpose of growing your business.

Question 18

Primary Research Sources

Answer 18

Customers
Suppliers
Employees
Trade shows

Question 19

Primary Research Techniques

Answer 19

Focus Groups
Be the customer
Surveys
Interviews

Question 20

An instance when the customer has contact with anything affiliated with the business:
products
advertising, packaging, public relations
building

Answer 20

Thouchpoint

Question 21

Competition Secondary Research

Answer 21

Competitors’ literature
Trade magazines
Business directories
Resource centres
Internet (company websites, discussion forums)
Franchise information

Question 22

Competition Primary Research

Answer 22

Analyzing customers’ perceptions of the competition to find out what benefits and features are important to them.

Question 23

Process of establishing unique benefits and features that the target customer values relative to the competition

Answer 23

Competitive Strategy

Question 24

Positioning Strategies

Answer 24

Niche Strategy
Differentiation Strategy
Cost Leadership Strategy

Question 25

Target a very narrow segment within a segment of the market (specialists)

Bearskin Airlines (geographic niche)
MapleArt Custom Furniture (product niche)
Other

Answer 25

Niche Strategy

Question 26

Maintain a unique perception of its product/service
Design/quality
Service
Image
Technology

Answer 26

Differentiation Strategy

Question 27

Some exceptions, but not usually a recommended strategy for small business
Success at this strategy is usually based on efficient production, distribution, and purchasing power
EXAMPLE: Walmart

Answer 27

Cost Leadership Strategy

Question 28

The Competition Lifecycle

Answer 28

Growth
Maturity
Decline
Embryo

Question 29

Your objective is to keep your product or service positioned in a growth market
How?

Answer 29

Change
Differentiate
Continuous learning
Constant addition of product/service benefits
Partnerships

Question 30

To avoid the Decline Stage, you must ______

Answer 30

constantly be in touch with the market and compete with the right strategies accordingly