Swot Analysis and Strategic Planning

A SWOT analysis is one of many valuable business tools that public relations and marketing professionals can use as part of determining brand messaging. SWOT takes a look at a company’s Strengths, Weaknesses, Opportunities and Threats, which can be used to help define the company’s target consumers, unique selling proposition, key messages and relevant news angles.

STRENGTHS
Strengths are used to identify a company’s competitive edge over its competition. What sets the company apart from another? What are the elements that add value to the product or service?

• Sample strengths could include:
• Strong brand name recognition
• Innovative product or service
• Unique health benefits
• Cost advantages

WEAKNESSES
A weakness is defined as anything that is or can be harmful to the business. In some cases, a weakness can also be the flipside of a strength. Established companies should consider customer feedback, competitors’ remarks, or any negative press coverage. Sample weaknesses could include:

• Lack of product or service availability
• No advertising
• Lack of understanding benefits
• Poor reputation
• Price

OPPORTUNITIES
Opportunities are external factors that can influence or impact a business for profit or growth. Sample opportunities to consider:

• New technology that may affect production
• Growing trend
• Consumer education
• Co-branding or integrated marketing

THREATS
A threat is an external factor that may arise and prove harmful to the company. Sample threats might include:

• New competitors
• Shift in consumer trends
• Current competitors retail strength
• Crowded market space

SAMPLE SWOT

Let’s take a fictitious company, Votre Vie Water, a zero-calorie, antioxidant, calcium, vitamin and electrolyte enhanced bottle of flavored and non-flavored water with limited distribution in the US. A portion of proceeds benefit the Clean Water Association and Recycle This! (both fictitious charities).

STRENGTHS

• Innovation
• Health benefits
• Attractive / unique packaging
• Superior performance
• Two corporate social responsibility (CSR) components
• Middle price point
• Easy to carry

WEAKNESSES

• Lack of distribution
• Crowded market place with other enhanced waters
• No advertising budget
• Lack of awareness
• Pronunciation
  

OPPORTUNITIES

• Own the enhanced water category
• Celebrity endorsements
• New placement in grocery stores
• Communicate CSR messages
• Partnerships (Spas, Gyms)

THREATS

• Big brand competitors with bigger budgets
• Competitors with larger distribution

Now that we’ve outlined the SWOT, we can begin to define the target consumer. We can assume the consumer is active, healthy and fitness inclined, and may be image conscious, hip and trendy. The unique selling propositions include hydration, anti-aging antioxidants, zero calories, bottle portability and environmental sensitivity.

Key messages might be:

• Votre Vie Water offers an innovative line of enhanced waters that provide essential vitamins and nutrients that a healthy body needs.

• One bottle of Votre Vie Water provides the daily recommended amount of vitamins and calcium. Drink your daily dose!

• Votre Vie Water is partnering with Recycle This!, a nonprofit organization dedicated to encouraging people to recycle.

• Though our partnership with Recycle This! we hope to promote a program in which Votre Vie fans will collect and mail in their used bottles that will then be turned into a useful product.

Now that we have our key messages in place, we can begin to formulate our pitches and news angles. For Votre Vie, we might consider:

• You Are What You Drink – A comparison of bottle waters and other enhanced drinks
• New Innovations in the Beverage Aisle
• Thirst Quenching Post-Workout

Understanding how SWOT analysis works can help a company with many steps of its strategic planning process. Since this is a subjective tool, this shouldn’t be used as the only method, but can act as a jumping off point to help you start thinking about your company’s brand messaging.