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Warm Up - MATH
Click HERE to get your math warm-up.
Do NOT Start until I say GO!
Quick Discussion & Review
What should you have completed before this lesson?
Did you finish your Cereal Project - Product Description & Planning Guide?
Did you make sure to link your data in your Planning Guide?
Did you analyze your data BEFORE completing the Planning Guide?
Did you email it to Mr. P?
If you answered YES to all the above.....COOL! Move on. If not, Go back and fix.
Competition - Direct vs. Indirect
When you create a product, you will encounter competition. Some competition is direct, while some are indirect. Check out this video for more details. (You may only get halfway thru before they ask you to sign-up for an account. NO NEED. Simply close the video.)
Here is another good video on Direct vs. Indirect Competition.
Now that you have watched a couple of videos, lets make sure we understand the key concepts.
Every business has both direct and indirect competitors. A direct competitor is a company that offers the same primary services to the same customer base. An indirect competitor is a company that offers the same or similar services as part of a wider service offering, or that offers a good or service that can serve as a viable substitute. Both types of competitors can draw business from a company, and a good business plan should account for both types of competitors.
One of the primary differences between direct and indirect competitors is the business type. In order to be considered a direct competitor, the competing business must be in the same specific industry as the company under consideration. For example, direct competitors of a movie rental store would be other movie rental stores and rental kiosks, or Netflix. Direct competitors serve the same customer base.
Indirect competitors, on the other hand, would be stores that offer the same product or service, but not as their primary service. In the case of a movie rental store, this might include grocery stores or other retailers that include movie rental departments. Similarly, in the case of a fried chicken restaurant, this might include the prepared foods section of a grocery store.
Now take a look at your cereal that you are planning to make. Think about your cereal's description and what it will taste like. Who is YOUR direct competition? Who is your Indirect Competition? List at least Three Direct and Five Indirect.
Cereal Market Share
Market Share - A company's percentage of total sales volume generated by all companies in that given market
Below is a graphic showing the breakdown of cereal market share as of December of 2014.
When you start your cereal company, and produce your first cereal, how much of the overall market do you think you'll capture? 1%? 5%? 20%? Justify your answer.
Create Your Presentation
Look at the CEREAL CREATION PROJECT and the PRESENTATION RUBRIC to begin setting up your presentation. Try to finish this today. Set up slides/sections for each heading. It's OK if there is nothing on the slide except for the titles, we will add to them as the classes go on.
By the end of this lesson, you should have finished the following slides:
Title Slide
Introduction--Product Description
Introduction--Description of Need
Introduction--Why this cereal should go to market
Competitive Analysis--General industry data
Competitive Analysis--Direct and Indirect Competition
The rest of the slides should be created today, and will be filled in later as we continue through the lessons.
Here is a BLANK SHELL for a presentation if you wish to use it...
Extra Resource - Cereal Creation
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