The Industry Analysis
Purpose of the Analysis
• Develop your secondary data research
skills.
• Why? Effective B2B Marketing
requires that you understand your
– customers,
– competitors, and
– market trends.
• This understanding must be based on
quality information.
Requirements
1. Pick an industry
2. Acquire specific information
about the industry
3. Examine
1. The competition
2. The supply chain
3. The industry’s customers
4. Communicate your findings
Potential Information Sources
•
•
•
•
•
•
•
•
•
•
•
General Encyclopedias
U.S. Industrial Outlook
NAICS Manual (or SIC)
Standard and Poor’s Industry Survey
Predicasts Basebook
Annual Survey of Manufactures
Ward’s Business Directory
Market Share Reporter
State/Regional Industrial Directories
Corporate Annual Reports
Industry-specific Trade Journals
Continued on next slide
Potential Information Sources
• Beware the Internet!!
• Although it depends upon the
industry you select, the vast
majority of the information
required may be accessed
–In the Houston Cole Library
–Via the Houston Cole Library’s
electronic databases
Picking an Industry
• Must be (to a large degree) a B2B industry
• If you insist on a consumer product
industry, you MUST analyze the B2B
aspect, NOT the B2C aspect.
• Helps if you are interested in the industry
• Consider choosing a basic, well-defined
industry
• Address each of the questions that follow
• In your introduction, clearly define your
industry
Industry Specific Knowledge
1. What 3 historical events have shaped
the development and growth of the
industry?
2. What was the value of shipments for the
U.S. in the latest year reported?
3. What are the values of imports and
exports for the last 5 years?
4. What was the average annual growth
rate over the last 3 years?
5. What is the forecasted annual growth
rate of the industry?
Continued on next slide
Industry Specific Knowledge
6. What are two other industry statistics
that are important for your industry?
Why are these important?
7. What is the most appropriate NAICS
code for your industry?
8. Identify the industry’s trade association,
if one exists.
Major Competitors
1. Who are the top 5 companies in the
industry?
2. What are their most recent sales
revenues?
3. Describe the industry leader (explain
why it is the leader).
4. Describe potential competition arising
outside the industry.
5. Why would any competitor outside the
industry serve as potential competition?
Supply Chain
• The supply chain includes all
organizations involved in the production,
distribution, and sale of products.
Upstream
Suppliers
Direct
Suppliers
Producers
Intermediaries
Buyers
Supply Chain
•
Describe the supply chain in the industry.
1. What type of suppliers provide the basic raw
materials?
2. What type of suppliers provide component
parts?
3. What type of manufacturers produce the
finished product?
4. What type of intermediaries are involved in
the distribution and/or sale of the product?
5. What other type of firms influence the supply
chain in the industry?
Continued on next slide
Supply Chain
6. What companies supply important inputs to
the industry?
7. What products do they supply?
8. What major factors influence their ability to
provide these products? Why?
Customers
1. What type of customers buy the
products this industry produces?
2. Describe the major buying
processes used by EACH of these
customer groups.
o This includes their key buying
criteria
3. How do the buyers use the
products?
Continued on next slide
Customers
4. Is it possible for the customers to
produce the products themselves?
– If yes, why?
– If yes, why are they not now producing
themselves?
– If no, why?
5. Identify and describe the major
customers for the industry’s
products.
Communicate Findings
• The Report
– Type and double-spaced.
– 12 point font, Times-New Roman
– 1 inch margins
– Try to avoid exceeding 10 pages.
– Cover page should ONLY include name of
industry and your name.
– Must be SECURELY bound in some way.
• In a manila folder is NOT securely bound
– Put tables, graphs, charts, etc. at end
– Page numbers required
Communicate Findings
• The Format
–Cover Page
• Industry name & your name ONLY
–Introduction
• Identify and describe the industry
–Industry Specific Knowledge
–Major Competition
–Supply Chain
Continued on next slide
Communicate Findings
• The Format
– Customers
– Conclusion
• Make a prediction regarding the future of the industry.
• Justify your prediction
– References
• Follow Journal of Marketing format
• In-text citation
Bingham and Gomes (2001) or (Bingham and Gomes 2001)
• Reference Section
Bingham, Frank G., Jr. and Roger Gomes (2001), Business
Marketing, 2nd ed., Chicago, IL: NTC/Contemporary Publishing
Group, Inc.
• Tables, Graphs, Charts, Etc.
Industry Analysis Grading Form
Grading Criterion
Performance
Weight
Spelling, Grammar, etc.
5
1.00
5
Format
5
1.00
5
Introduction
5
1.00
5
Industry Specific Knowledge Completeness
5
2.00
10
Industry Specific Knowledge Quality
5
2.00
10
Major Competitors Completeness
5
2.00
10
Major Competitors Quality
5
2.00
10
Supply Chain Completeness
5
2.00
10
Supply Chain Quality
5
2.00
10
Customers Completeness
5
2.00
10
Customers Quality
5
2.00
10
Conclusion
5
1.00
5
Was paper late? (10 point penalty per day)
TOTAL POINTS EARNED
No
Pts Earned
0
100