How to conduct 3C analysis and tips

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[Complete version] How to conduct a 3C analysis? We explain success stories, tips, and important points to note!
2022-12-19 16:53
marketing

3C analysis is an essential framework for creating a marketing strategy. In this article, we will explain how to conduct 3C analysis, tips, and points to note using examples. Learn how to conduct 3C analysis and lead your business to success.



What is 3C analysis?


In a constantly changing market environment, including the COVID-19 pandemic and the weak yen, some people may be struggling to come up with marketing strategies.

In order to create an effective marketing strategy and make your business successful, it is essential to utilize a "marketing framework." If you can use the framework correctly and understand the key points, anyone can easily perform analysis.

One of the most well-known marketing frameworks is the "3C analysis."

3C analysis is one of the basic frameworks for marketing analysis.

The marketing environment can be broken down into the following three elements:

・Customer: Market, customer

・Competitor:

・Company: Your own company

We analyze what kind of people could be customers, what are the strengths and market share of competitors, and what strengths and weaknesses our company has, and derive the elements that will lead to business success.

By conducting a 3C analysis, you will be able to objectively grasp the environment surrounding your business and determine your company's position.

In this article, we will explain how to conduct 3C analysis, tips, key points, and things to be careful about to make your business successful, with examples.



Conduct a 3C analysis and acquire leads through the appropriate channels!
Lead approach for each of the four major channels

When conducting B2B marketing, it is important to acquire leads, which are the basis for the number of business negotiations and contracts.
However, even though we say "leads,"
there are various stages of consideration, from those who want to introduce the product/service immediately to those who have only just begun to become interested.
This document explains armenia cell phone number list the classification of these consideration stages and how to utilize channels for each lead.








From here, let's take a look at how to proceed with 3C analysis and some tips.

We will break it down into the three Cs: "customers/market," "competitors," and "our company," and explain how to proceed with each one and the tips for doing so. Keeping these in mind will also be helpful when understanding the case studies introduced in the second half of the book.



Step 1: Market and customer analysis


The first step in 3C analysis is to analyze the market and customers.

Think about the volume of the market surrounding your target products or services, and what preferences the customers who will use your products or services have.

The things to look at and the approaches to take differ depending on the market and the customers.

First, I will explain how to conduct market analysis using 3C analysis.

The trick to analyzing the market is to look at it from both a macro perspective (overall view) and a micro perspective (specific).

A useful tool for macro-level analysis is the PEST analysis.

In a PEST analysis, a market is broken down into four components: politics, economy, society, and technology, and information relevant to your business is collected for each component.

As an example, let's assume we are conducting a 3C analysis of a cafe chain and identify the PEST.



item
PEST Analysis

Politics
Subsidies and other support are available to companies that have been forced to scale back operations due to the COVID-19 pandemic.

Economy
The depreciation rate has worsened due to rising prices caused by the weak yen and the increase in the minimum wage.
Society
People have become accustomed to the coronavirus pandemic, which has continued for more than two years, and more activities are being carried out while taking measures to prevent infection.
Technology
Non-face-to-face customer service robots and accounting systems are becoming more common.



Let's look at how to analyze the market from another micro perspective.

"Five forces analysis" is useful when conducting micro-level analysis in 3C analysis.

The trick is to break down and analyze the threats your company faces into five forces: competitors, new entrants, substitutes, bargaining power of customers, and bargaining power of sellers.

Using the cafe chain mentioned earlier as an example, it would look like this:



item
Five Forces Analysis

Competitors
There are many cafe chains and competition is fierce.
New entrants
New entrants such as supermarkets and bakeries are posing a threat, with some setting up eat-in corners.

Alternatives
Convenience store coffee has become established and is becoming a threat.
Bargaining power of customers
Customers have high bargaining power because they can get cheap coffee from convenience stores and beverages from fast food restaurants.
Bargaining power of sellers
Investments such as variety of beverages and comfortable sofas are easily available to competitors, so sellers have low bargaining power.


Next, we will look at how to conduct customer analysis.

When conducting customer analysis using 3C analysis, it is a good idea to use surveys and interviews with your existing customers, as well as word-of-mouth on social media. If you want to obtain more information, it is also effective to use a research company to conduct a wide-ranging survey.

The trick to customer analysis is to gather objective information. To conduct an effective 3C analysis, you should not only use surveys collected by your company, but also use social media and online word-of-mouth to avoid collecting only information that is convenient for your company.



Step 2: Competitor analysis


The next step in the 3C analysis is competitor analysis.

We identify the strengths that competitors have in competing with the market and customers, and conversely, their weaknesses.

Information sources include company websites for products and services, and financial statements for sales and other performance information.

When analyzing competitors using 3C analysis, it is important to look at the information objectively. Don't think about whether it is good or bad for your company, just look at the facts.



Step 3: Analyze your company


The final step in the 3C analysis is to analyze your company.

Think about your company's position and how it can compete with the market and customers.

A useful tip for conducting a 3C analysis is to use a framework called SWOT analysis. In a SWOT analysis, a company's strengths, weaknesses, opportunities, and threats are broken down into four categories for analysis.

As an example, let's consider a fictional coffee shop chain.



item
SWOT Analysis

Strength

The company has a nationwide network of 1,000 stores and is well known.

Weakness
Its menu development capabilities are weaker than those of other companies, and it is unable to provide new value to customers.

Opportunity
Food delivery services like Uber Eats have become commonplace, making it possible to provide products to customers who cannot come to stores.

Threat
There is a risk that they will lose customers as eat-in options expand at supermarkets, bakeries, etc.