I believe many businesses could sometimes don't realize the importance of competitor analysis. We assume that it has nothing to do with the marketing strategy. In fact, every marketer must do an assessment of the strengths and weaknesses of potential competitors to develop marketing strategies. The situation will become crucial when we are talking about entering a saturated market. By analyzing competitor puts the business in the next level of marketing and develop new strategies.
A few months ago I discovered a distinctive product that I love it. I found it on social media and decided to get more information about their products by following the update before made a decision to buy it. At first, all products seemed unique and as a potential customer, I could say they are good at this particular business. Everything they put on social media convinces me that I'll grab them soon. But it didn't take long after I saw the disturbing marketing strategy they applied. Immediately I made up my mind to unfollow and deleted their website and all contacts that were on my phone before. What happened and what is wrong with their strategy?
I was born and grew up in a remote village that most of the villagers worked as farmers. But many of them were also businesses owner and it was small family businesses that passed down from generation to generation. Since 11 years old, I worked in these small industries that thrive around my father's house. What I learned from them was that whatever businesses we are in, it must unique, different, and the most important thing is to go along with the competitors and do not spread hatred. There wasn't surprise, the competitor was not the enemy, instead, they even could work together as a partner and even became a best friend that would help to figure out their specialties, or sharing knowledge; especially when someone new in the same business, many business owners would love to share their proficiency with a newcomer, just asked them nicely. As a result, each product was unique and had its own market. Thus, make competitors walked along and became friends with the brand. That's what I call "healthy business." The big question is how could that happen?
Bringing back my experienced that I talked about early, what happened? The brand created unfair marketing. What does it mean? Do you had ever been read or heard about the "dirty" strategy in marketing? Me, personally, I do not like these acts. I encourage you if you are planning to open a business in a saturated market you would rather do analyze competitors in marketing than playing an unpleasant strategy. For instance, comparing your brand with a competitor brand by taking pictures side by side, using it as your digital marketing branding, uploading it in public, and talking "pussy" about competitor brands for example: "look at this brand X, you can see my brand is the best, their quality is bad, et cetera." Whatever your reason, it is neither a proper nor elegant move. This kind of action will give a bad impression on the customer's eyes. Moreover, it will damage your reputation because customers may think you are not professional; of course, it is an unprofessional business.
So, what should businesses do to develop new marketing strategies based on analyzing competitors?
1. What kind of business market you are in
You know, right, when you decided to start a business the first thing is what market you are involved in. Good for you if, only IF, your product is unique and no one else produces it. But everything changes when you want to sell something that much likely crowded in the market. What would you do? Here is the key that you must act fast to create a new strategy.
For instance, to understand how a new act will develop; let say you want to sell chips, it could be banana chips. There are abundant chips in the market, then what should you do? You can offer special chips with unique flavors; maybe banana chips with cheese or chocolate flavor. It sounds great and a better move to make your business different from others.
In this case, thinking out of the box will help to figure out what kind of business we are involved in. By offering something exciting for customers to try will put the business surpass their rivals in the market.
2. Who are your competitor
I know, might feel uncomfortable when talking about who is a business rival. Examining the competitors will lead a business to get an opportunity that might be unseen before. Instead of copying the competitor's strategy, a business must step forward and grab the chance. You have to make your own path rather than following the rival moves.
I remember when someday we visited a tiny town. I saw lots of diners offering the same menu; it was meatball soup with the same style. I could say they opened a business by following the existing market. Indeed, entering business must consider what a high demand that easy to make some profit. But, don't you think that business competition will be increasingly fierce? What should a business do?
If that happens to you as a newcomer in a saturated market, you can take a competitive advantage which means you can outperform your rivals in the same business. How to do that? First, you can offer a low price to the customers; or secondly, give the clients good quality products and services.
3. Who are the customers
When you decided to build a business, first; considering what market will you enter, right? If you can determine it then it should easy to know your potential customers and what they expect from the products.
Let's say your business is healthy products, it could be healthy snacks or organic foods. I am sure you can picture what kind of clients or consumers that will approach. If there is a 10 % market for vegan customers this is your chance to impress and make them your loyal customers.
4. What are the strengths
Talking about the key of business strengths which means we are speaking about price, consumers, or it could be services that related with the products. What make it is special and different from others that will effect marketing strategic. Using what the best products have to promote or advertise that will attract petential customers. Do not compare your products with other when promote your products that only make bad reputation. For instance, taking competitor's product picture and use it for your advertising by place it side by side with your products. Be careful, this is not professional moves.
In my view, the best marketing is that when we can show to the consumers what we are the best at; maybe a product with a good quality and lower price, or a product with a good quality and same price as competitors but offer 1 years or 2 years guarantee or give them discount or free side items.
For example: a brand new computer who want to enter market. What the new brand can offer to the potential customer in a saturated computer market? Giving the competitive price is one of the answer. But how to make a profit if the price is lower that the rivals. Here is the answer; selling computer accessories that buyer can't resist to buy when they buy the product ( a new brand computer). In this case, offer cheaper price is the product strength, and develop new strategic by selling computer accessories.
There are 4 ways to develop marketing strategies by analyzing competitor. By determining what business that we are involved, who are the compettitor is, what kind of customer we will face, and what the strenghts product have to surpass customer. All of those strategies will lead developing marketing strategic to outperform its competitor.
Note:
- Written by Acik Mardhiyanti
- Do not copy this article without permission
