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Assessment of competitiveness of goods

Each enterprise functioning in the conditions of the competition needs to have certain advantages to achieve a goal. Therefore each company pays special attention to the made goods to create the most attractive offer which realization will make the greatest profit.
Each enterprise functioning in the conditions of the competition needs to have certain advantages to achieve a goal. Therefore each company pays special attention to the made goods to create the most attractive offer which realization will make the greatest profit.

Essence of competitiveness of goods

Оценка конкурентоспособности товара For anybody not a secret that any goods brought to the market possess various characteristics which positive assessment does goods competitive, i.e. allocate it with the qualities surpassing similar production of competitors.
Competitiveness of goods represents a set of properties of production and level of satisfaction of needs of buyers in comparison with the properties inherent in goods of competitors.
The goods can lose to goods of the same look on one indicators, but surpass them in another. Considering it, the management of the enterprise makes the decision on improvement of weaknesses of goods or directs marketing efforts to advantages of the made production. The choice always remains for the consumer, and sometimes it happens absolutely unexpected. Therefore when developing the strategy directed on increase of competitiveness of goods it is necessary to place emphasis on those characteristics which are important for the potential buyer, to improve these indicators and to provide to the consumer full and the reliable information capable to help it to make the decision on acquisition of production. It is impossible to forget what exactly the consumer estimates competitiveness of goods, defining for themselves the fallen most in love brand. And parameters in which the goods are estimated, and degree of their importance can be different for each buyer. Market researches of opinion of consumers on production of firm are capable to calculate an average mark which clients gave these or those goods.

Indicators of competitiveness of goods


There are three groups of indicators which the buyer analyzes and compares with each other. These groups are illustrated in table 1.

Table 1

Indicators of competitiveness of goods

payment order
NameExplanationExample
1.The standardShow as far as the goods answer the norms and rules established legislativelyMinimum quality; compliance to state standard specifications etc.
2.The technicalRepresent the characteristics and properties which are directly directed on satisfaction of a certain requirement for the sake of which the goods and are acquiredCompliance of the declared characteristics to real parameters; simplicity of use; service life; aftersales service etc.
3.The economicMonetary assessment of expenses which the consumer will incur in the course of acquisition of goods and further useSelling price; the cost of expendables and spare parts if they are required for support of a condition of goods for operation to destination etc.
The general groups of indicators of competitiveness of goods to which it is possible to add the consumer's relation to production of concrete brand, availability of goods to acquisition, esthetic criteria and to that similar parameters are given in table 1. Special value for competitiveness of goods has an aftersales service, i.e. service. If the firm has no opportunity to give due technical support to the acquired goods, it loses important advantage. In such situation consumers look for the help at competitors, and then pass to them at all. Therefore at creation and practical application of the marketing strategy focused on competitiveness increase it is necessary to plan service, having provided various options of technical support.
Competently thought over aftersales service of goods will bring the following results:
  1. Creation of prospects of development of the new markets and positioning of own goods as goods with a reinforcement.
  2. Receiving additional profit, so expenses on technical support of goods many times exceed its retail cost.
  3. Adjustment of communications with consumers of the competitors who do not have own service base.
  4. Creation of positive reputation of manufacturing firm.
Considering competitiveness of goods from the point of view of the main indicators, it is possible to notice that the consumer assessment of each goods constantly decreases. This process is irreversible therefore when forming marketing strategy it is necessary to plan new competitive goods to replace the goods which lost interest in the market. For increase of competitiveness it is possible to improve technical indicators of goods, and it is possible to reduce the price. As practice shows, the second way yields the most effective results. However to reduce retail price of goods, without having lost thus an essential part of profit, happens very not easy. For this purpose it is necessary to look for ways of reduction of expenses on prime cost of goods, and also to use the new production technologies consuming less than energy and other resources.

Assessment of competitiveness of goods

Оценка конкурентоспособности товара For a choice of the optimum strategy directed on creation of the additional competitive benefits and development which are already available of firm often try to receive a quantitative assessment of competitiveness of goods. For this purpose there are some ways. The most widespread method of an assessment of competitiveness of concrete goods is the method of expert evaluations. For its application the special table in which the received data are entered is drawn. The example of such table is presented in table 2.

Table 2

Assessment of competitiveness of goods
Goods /
Indicators
Goods 1Goods 2Goods 3
Compliance to the established standards and certain norms
Safety of use
Compliance of the declared technical characteristics to real properties
Simplicity of use
Existence of possibility of an aftersales service
Quality
Service life
Reliability
Expenses on transportation and acquisition
Expenses on use of goods
Retail price
Total
Indicators of this table can be expanded depending on a type of goods and its main functions. For the studied goods in each parameter a mark is given, and the general point is calculated then. On the basis of the obtained data the conclusion about is drawn what goods possess the greatest competitiveness, what goods have key advantages and what characteristics leave much to be desired. Depending on the received data strategy of increase in competitiveness which results are estimated on the same method is developed. For obtaining more objective data it is recommended to consider opinions of several experts.
Other method of a quantitative assessment of competitiveness is calculation of an indicator of competitiveness of production by division of a quantitative assessment of quality into the sum of all costs of acquisition of production. This formula offers only general idea about competitiveness and emphasizes that the greatest demand goods with the highest quality and the lowest price deserve.
Also for calculation of competitiveness of goods it is possible to use a basic sample and to compare the estimated goods according to the leading characteristics to it.

Consideration of competitiveness of goods on a concrete example

Оценка конкурентоспособности товара The firm "D" is the producer of household appliances. This company for a long time operates on the market and during this time managed to prove as the successful and serious enterprise. The firm "D" has regular customers and the share of profit necessary for development and existence of the company. An assortment number of firm "D" consists of several commodity groups one of which is called "Washing machines". For the analysis of competitiveness of each model it is necessary to allocate the main criteria for the analysis, and then to estimate them on a five-point scale, comparing them to goods of competitors.
For an example we will estimate competitiveness of the washing machine of the model No. 1 made by firm "D", comparing its properties to the characteristics of washing machines of models No. 2 and No. 3 made by rival firms. Results of this research are given in table 3.

Table 3

Assessment of competitiveness of models of washing machines
Goods /
Indicators
Model No. 1Model No. 2Model No. 3
Functional features 
Technology of washing544
System of additional water supply435
Invertor management533
Sensor of loading of linen555
Water temperature sensor555
Acceleration sensor443
The postponed start525
The indicator of the remained time355
Indicator of implementation of the program352
Modes545
Installations of speed of an extraction454
Installation of temperature of washing445
Convenience of the display532
Total575253
Safety 
Safety of use543
Leak sensor534
Modulation sensor445
Blocking from children453
Malfunction indication235
Total201920
Specifications 
Compactness453
Weight345
Engine235
Diameter of a door453
Total131716
TOTAL (general competitiveness)908889
Proceeding from the data presented in table 3 it is possible to draw a conclusion that the model No. 1 made by firm "D" has the biggest point of competitiveness (90 points). However, goods analogs lag behind the studied goods not much more. The model No. 2 gained 88 points, and model No. 1 – 89 points. Objectively to estimate competitiveness of model No. 1 in comparison with models No. 2 and No. 3, it is necessary to consider intermediate points on each group of the studied criteria.
The model No. 1 surpasses the competitors on 4-5 points in functional features. Safety level at each model the approximately identical. But according to specifications the model No. 1 gained the smallest point that means excessive bulkiness and a neudobnost of the washing machine.
On the basis of the drawn conclusions it is possible to define the directions of improvement of competitiveness of model No. 1. These directions are illustrated in figure 1.
Оценка конкурентоспособности товара
Fig. 1. Improvement of competitiveness of model No. 1
In figure 1 both the main directions of improvement of competitiveness, and additional are shown. Indicators, the deserved satisfactory and unsatisfactory estimates, and to additional – the criteria which received good marks were carried to the main directions. It is necessary to notice that prime measures should be taken concerning the safety level as any criterion from this group did not receive an excellent assessment.
Summarizing the above, it is possible to draw a conclusion that competitiveness of goods is the integral component on the way to success.
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