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Market Mapping

Setting out the key features of the
market on a diagram




          Unit One Market Mapping
Lesson Objectives

   To analyse customer buying habits and
    preferences
   To outline how businesses can identify
    market segments
   To demonstrate how businesses can map
    their market to set out the key features
    of the market they are planning to
    operate in and identify a market gap
What is Market Mapping?
 Identifies   the gaps in the
  market
 Shows where a sector is
  overcrowded
 Businesses spend
  substantial amounts to get
  it right
What is a Market Map?
A grid that measures two
 different aspects of the
 brands within the market
 (e.g. young/old
 compared with
 luxury/economy)
Fill in the Market Map…
      Turkish Delight 80p Milk Tray £4.50 Cadbury Snaps 70p Mars 60p Dairy
      Milk 55p Smarties 60p Crunchie 65p Maltesers 65p Twix 65p Snickers 65p
       Galaxy 70p Kit Kat 65p Cadbury’s Caramel 65pThornton’s classics £1.49
                             Luxury Chocolate



                                            12
                                                  13
                                      11

                                                           14
                         1       2     10
Filling chocolate                                               Light chocolate
                             3                         9



                    4
                                            7
                                                       8
                     5       6



                             Everyday chocolate
Chocolates to add to the
     Market Map

                  Milk Tray o   Cadbury Snaps
 Thornton's
                  Crunchie o    Cadbury’s Dairy Milk
  Classics
                   Galaxy
                            o    Snickers
 Mars         
                            o    Kit Kat
 Turkish         Twix
                            o    Cadbury’s Caramel
  Delight         Smarties
 Malteasers
Luxury

                                                      Milk tray

                                Thornton’s Classics
                                                                  Cadburys Snaps




Turkish Delight     Caramel        Galaxy                            Maltesers



 Filling                                                                 Light
                         Mars                                       Crunchie




    Snickers
                                            Kit Kat


    Twix                                                                 Smarties
                  Mars           Everyday
Answers
1.    Turkish Delight
2.    Cadbury’s Caramel
3.    Cadbury’s Dairy Milk
4.    Snickers
5.    Twix
6.    Mars
7.    Kit Kat
8.    Smarties
9.    Crunchie
10.   Galaxy
11.   Thornton’s Classics
12.   Milk Tray
13.   Cadbury Snaps
14.   Maltesers
While you think….
Back to the Market Map…
        Turkish Delight Milk Tray Cadbury Snaps Mars Dairy Milk
        Smarties Crunchie Maltesers Twix Snickers Galaxy Kit Kat
                  Cadbury’s Caramel Cadbury’s Celebrations
                            Luxury Chocolate



                                           12
                                                 13
                                     11

                                                          14
                        1       2     10
Filling chocolate                                              Light chocolate
                            3                         9



                    4
                                           7
                                                      8
                    5       6



                            Everyday chocolate
What does this map show?
   Mars is good at filling, everyday
    chocolate
     Snickers

     Twix

     Mars

But people are worrying about
 their weight. So are they
 buying…
Did you get it?

 Theyare buying       Lighter
 chocolate e.g.
   Crunchie

   Maltesers

   Cadbury    Snaps
Thinking time…Is there room for a new
chocolate product??

 Isthere room for something
  new in the market?
 What could it be?

 Why would you launch it?
Identifying Market Map Key Factors

 High priced/low priced
 For the young/for the old

 Modern/traditional

 For men/for women
   If you were to draw a market
    map for soft drinks, what factors
    could you use?
TASK: In pairs raw a market map
     for soft drinks on A3 paper

                  ??




??                             ??




                  ??
Add these soft drinks to your
     market map

   Coke                    Lucozade
   Fanta                   Milk
   Pepsi                   Tesco brand cola
   Innocent Smoothies      Ribena
   Red Bull                Robinson’s orange
   Appletiser               squash
   7-up
                            Freshly squeezed
                             orange juice
   Pepsi Max
                            One bottle water
Share your work with another
group
   What conclusions can be made?
Homework Task
   Using the computers to research
   Create a market map for either of the following two items:
      Computer consoles :
       http://www.reviewcentre.com/products75.html
       or
      Cars:
       http://www.whatcar.com/
   Use these factors on your market map:
      Young – old

      Cheap - expensive
Think about…
   Explain two benefits a firm might gain
    from studying a market map?
   Are there any reasons why a gap is not
    reliable indication of a successful new
    product?
   From your market map, what two
    conclusions might you reach from this
    market?
   What would you do if you were a
    company who had falling sales? (e.g.
    Lucozade?)

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Market mapping

  • 1. Market Mapping Setting out the key features of the market on a diagram Unit One Market Mapping
  • 2. Lesson Objectives  To analyse customer buying habits and preferences  To outline how businesses can identify market segments  To demonstrate how businesses can map their market to set out the key features of the market they are planning to operate in and identify a market gap
  • 3. What is Market Mapping?  Identifies the gaps in the market  Shows where a sector is overcrowded  Businesses spend substantial amounts to get it right
  • 4. What is a Market Map? A grid that measures two different aspects of the brands within the market (e.g. young/old compared with luxury/economy)
  • 5. Fill in the Market Map… Turkish Delight 80p Milk Tray £4.50 Cadbury Snaps 70p Mars 60p Dairy Milk 55p Smarties 60p Crunchie 65p Maltesers 65p Twix 65p Snickers 65p Galaxy 70p Kit Kat 65p Cadbury’s Caramel 65pThornton’s classics £1.49 Luxury Chocolate 12 13 11 14 1 2 10 Filling chocolate Light chocolate 3 9 4 7 8 5 6 Everyday chocolate
  • 6. Chocolates to add to the Market Map  Milk Tray o Cadbury Snaps  Thornton's  Crunchie o Cadbury’s Dairy Milk Classics Galaxy o Snickers  Mars  o Kit Kat  Turkish  Twix o Cadbury’s Caramel Delight  Smarties  Malteasers
  • 7. Luxury Milk tray Thornton’s Classics Cadburys Snaps Turkish Delight Caramel Galaxy Maltesers Filling Light Mars Crunchie Snickers Kit Kat Twix Smarties Mars Everyday
  • 8. Answers 1. Turkish Delight 2. Cadbury’s Caramel 3. Cadbury’s Dairy Milk 4. Snickers 5. Twix 6. Mars 7. Kit Kat 8. Smarties 9. Crunchie 10. Galaxy 11. Thornton’s Classics 12. Milk Tray 13. Cadbury Snaps 14. Maltesers
  • 10. Back to the Market Map… Turkish Delight Milk Tray Cadbury Snaps Mars Dairy Milk Smarties Crunchie Maltesers Twix Snickers Galaxy Kit Kat Cadbury’s Caramel Cadbury’s Celebrations Luxury Chocolate 12 13 11 14 1 2 10 Filling chocolate Light chocolate 3 9 4 7 8 5 6 Everyday chocolate
  • 11. What does this map show?  Mars is good at filling, everyday chocolate  Snickers  Twix  Mars But people are worrying about their weight. So are they buying…
  • 12. Did you get it?  Theyare buying Lighter chocolate e.g.  Crunchie  Maltesers  Cadbury Snaps
  • 13. Thinking time…Is there room for a new chocolate product??  Isthere room for something new in the market?  What could it be?  Why would you launch it?
  • 14. Identifying Market Map Key Factors  High priced/low priced  For the young/for the old  Modern/traditional  For men/for women
  • 15. If you were to draw a market map for soft drinks, what factors could you use?
  • 16. TASK: In pairs raw a market map for soft drinks on A3 paper ?? ?? ?? ??
  • 17. Add these soft drinks to your market map  Coke  Lucozade  Fanta  Milk  Pepsi  Tesco brand cola  Innocent Smoothies  Ribena  Red Bull  Robinson’s orange  Appletiser squash  7-up  Freshly squeezed orange juice  Pepsi Max  One bottle water
  • 18. Share your work with another group  What conclusions can be made?
  • 19. Homework Task  Using the computers to research  Create a market map for either of the following two items:  Computer consoles : http://www.reviewcentre.com/products75.html or  Cars: http://www.whatcar.com/  Use these factors on your market map:  Young – old  Cheap - expensive
  • 20. Think about…  Explain two benefits a firm might gain from studying a market map?  Are there any reasons why a gap is not reliable indication of a successful new product?  From your market map, what two conclusions might you reach from this market?  What would you do if you were a company who had falling sales? (e.g. Lucozade?)

Editor's Notes

  1. Slides to accompany Unit One Starting up in Businesses pages 15 - 17
  2. Page 13 Companies use market mapping to set out the key features of the market on a diagram, then plotting where each brand fits in.
  3. Page 15 The info on the grid is based on the opinions of thousands of customers. It allows the company to make decisions, such as decisions to work on a new product.
  4. Hyperlink to the drumming gorilla…
  5. Turkish Delight Cadbury’s caramel CDM Snickers Twix Mars Kit Kat Smarties Crunchie Galaxy Celebrations Milk Tray Cadbury Snaps Maltesers
  6. A group activity
  7. Page 16 Companies decide on the “right” factors after careful market research.
  8. Adapting the questions on page 17 for classwork/homework