As a first step, you must choose the criteria to be used for evaluation (see example below). Then, the different brands that participate in the same market are evaluated by indicating their position on a grid that indicates whether they show strengths or weaknesses in each criterion.
The example shown below corresponds to mercado of frozen food for gourmets in the US in 1984. Obviously, the evaluation criteria will vary for each business sector and depending on the objective pursued with the Insights.
In the matrix, for reasons of space, the marks have been identified with numbers of different colors. The legend is as follows:
- Stouffer's Lean (Nestlè)
- Le Menu (Campbell)
- Weight Watchers (Heinz)
- Armor Dinner Classic
- Van deKamp and other ethnic
- Green Giant Stir Fry (Pilsbury)
Distribution and Advertising-Promotion; a less strong position in Low calorie position and Quality of the product; and a weak position in Ethnic Position.
The main use of this matrix is to define the competitive strategy For each of the company's products, assess its own situation, its strong and weak market positions, areas in which it must be improved, what strengths are available that can be exploited more effectively, and so on.
Another way to represent the comparison between a company product and the competition is the following matrix, in which the five elements of the expanded marketing mix have been used as criteria for comparison.
In this matrix, which we have limited to three brands, they have been replaced by letters: A, B and C.