The Importance Of Knowing Who Your Company Is Up Against

Share

A recent report revealed that consumer spending in 2009 was down by almost 38% from last year. As a consequence, competition is extensive across all sectors. This has accelerated a number of different trends; the rise of online discounting, price cutting and most importantly aggressive competitor activity.
From the point of company formation, it is extremely important that you take the time to identify, assess and research your competition. Not only does this enable you to define your company’s position in the market, it also provides you with all the information you need to differentiate your product and brand proposition. All promotional activity and business strategy should, to an extent, be informed by what your competitors are up to and what they are currently offering the consumer.
While many business analysts would suggest that openly undermining your competition is in bad taste, you can certainly identify the weaknesses in their strategy or proposition and use it to maximize your sales. One example of this is Tesco’s recent marketing strategy. Tesco’s is among the few companies who have recorded growth during the recession. Arguably, this is largely due to their strategic marketing campaign.
Brand consultant Ken Hobbs comments; “Tesco needed to change its brand perception slightly to align itself with discount retailers such as Asda and Aldi. They did this in a number of ways; creating their own discount brand within the store, devising a ‘credit crunch’ advertising campaign, but crucially, promoting competitor pricing on individual products in store and showing that they were cheaper.” This strategy was extremely effective.
While it is vital you keep an eye on your more established competitors by accessing marketing material and a company credit report, it is also important to be aware of any new brands entering the market. Learn from how they have positioned their offering and make sure your company is up to date with changing consumer demands.

Share