Frequently, organizations want to gather and analyze information about their competitors and their market position. Oftentimes, that kind of competitive information isn't readily available within the organization. We bring in valuable outside data and create predictive models that can use the data to answer questions about the competitive environment and more.
(Client names have been removed in accordance with our non-disclosure agreement.)
Challenge: What initiatives are our competitors taking that will impact their market position?
Solution
We created a set of competitive predictive models to examine customer attraction patterns and measure the impact of marketing efforts. And we developed tools to monitor competitor web sites and identify new concepts appearing in web or text-based publication.
Benefit to Client
Having current information about key competitors' plans, activities, and offerings allowed this client to take the guess work out of their marking plans, establishing sound, strategic direction for their marketing initiatives that take into account the competitive environment in which they'll be working.
Challenge: How will a rumored competitor moving into our market impact our business?
Solution
When a client heard rumor that a competitor planned to locate in one of their regions, Business Insight developed a gravity model based on ten years of competitive activity (other competitive sites being established) so they could see the impact of competitor activity in the past.
Benefit to Client
The client was able to put actual numbers to the potential impact of a competitor locating in their region and restore internal confidence in their ability to withstand the change.
Challenge: Faced with shrinking economics and looking at various ways to increase profitability, a business line manager asked how a proposed price change would impact current sales in various markets. And, similarly, how changes in manufacturing efficiency would impact profitability?
Solution
IHBI developed models to assess costs of raw materials, manufacturing efficiency, and market price elastics for a four-year period by quarter. Externally obtained projections of material costs were incorporated to project the economic profit for the next two years as a function of price.
Benefit to Client
Now this customer can develop a pricing strategy and manufacturing strategy that offers the most profit potential for the organization.