BRAND DEVELOPMENT

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5C ANALYSIS

We use 5C Analysis as a brand audit technique to conduct corporate situation analysis. Conducting such a situation analysis is one of the important steps in identifying the brand problem.

A situation analysis involves examining the external environmental factors and internal organizational capabilities that impact how a company or brand operates.

 

5C Analysis is one of the most popular and useful frameworks in understanding internal and external environments.

 

5C is an extension of the 3C Analysis that originally included:

  • Company,
  • Customers, and
  • Competitors.

Collaborators and Context were later added to the analysis to make it more comprehensive.

This integrated analysis covers the most important areas of marketing, and the insights generated can help identify the key problems and challenges facing the organization.

 

The 5C-Aspects are:

  • Company—The company analysis studies an organization’s vision, strategies, capabilities, product line, technology, culture, and objectives. It is useful in understanding the existing and potential problems with the company’s business.
  • Customers—Understanding customers is a key part of situation analysis. It involves knowing the target audience, their behaviour, market size, market growth, buying patterns, average purchase size, frequency of purchase, and preferred retail channels.
  • Competitors—Competitor analysis is critical in understanding the external environment in which the firm operates. This analysis involves knowing the competitors’ strengths, weaknesses, positioning, market share, and upcoming initiatives.
  • Collaborators—Collaborators are the external stakeholders who team up with the organization in a mutually beneficial partnership. Agencies, suppliers, distributors, and business partners are typical collaborators. It is important to understand their capabilities, performances, and issues to better identify business problems.
  • Context—Context analysis is the evaluation of the macro-environmental factors affecting the business. PESTEL analysis can be used to analyze climate—political, economic, social/cultural, technological, environmental, and legal scenarios are included in PESTEL.

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