Direct competitors, including strengths and weaknesses of each:
Transcontinental
Strengths
- Economy of scale (distribution, cost of printing)
- An established sales force with a large client list
- Clients generally do not want to leave a long-term relationship
Weaknesses
- Only work in print
- No longer locally owned or operated
- Not marketing experts
Morgan Printing
Strengths
- Customer service and relationships
- An established and locally owned business
- Clients generally do not want to leave a long-term relationship.
Weaknesses
- Only work in print
- Not marketing experts
Flexo-pak
Strengths
- Diversity of work (promo)
- Clients generally do not want to leave a long-term relationship
Weaknesses
- Only work in silk screening and alternative (promo)
- Not marketing experts
Staggs Signs
Strengths
- Diversity of work (promo)
- Clients generally do not want to leave a long-term relationship
Weaknesses
- Only work in silk screening and alternative (promo)
- Not marketing experts
UPS
Strengths
- Convenience and low one-off costs
Weaknesses
- Only work in print
- Not marketing experts
- Terrible customer service
Indirect competitors including strengths and weaknesses of each
-Rogers Cable 9, Yellow Pages, Sterling Press, Radio:
As listed with direct competitors, each of these businesses are stuck in one advertising medium and are not able to offer objective marketing consulting. Their strengths, similar to the direct competitors above, are generally that of being established and having long-term client relations, equaling trust.
– Internet:
There are no Internet marketing firms operating locally.
Price leader:
Data to determine the price leader is not available. Each competitor has a unique value proposition. I doubt anyone has ever conducted an objective, price-reach audit for Central Newfoundland advertising.
Quality Leader:
Data to determine quality leader is not available. Quality = Value / Price or is calculated through some other less objective means. Therefore, each competitor has a unique quality proposition. I doubt anyone has ever conducted an objective quality (advertising impact and result) audit for Central Newfoundland advertising.
Why do customers purchase from the competition?
- Long term relationship (up to 75 years of business partnering)
- No marketing plan. Decisions may be arbitrary or based on and equally arbitrary personal relationship with an employee or owner of the business.
- They may not know any better. The expert group was quick to point this out.
Strategy to Compete
DHMD will be offering a unique service – complete marketing consultation. The primary strategy, as pointed out by the expert group, will be through word-of-mouth advertising from successful cases: marketing campaigns for clients.
Competitive price, better quality, more personal and hands on gives the best customer service (this feasibility study will test the need for customer service in the B2B market).
The ability to operate with low overhead and to work a “day job” while the business grows. Unlike the competition, no one has to man the store 9 am to 5 pm.
See FABs on page 2.