Tracking how much the competitor is spending on their office space is irrelevant. It is important to decide the kind of business information you are looking for.
Tracking competitor prices offers insight into your opponents and the broader industry. Choose the key players from each category so you have a diverse range of brands to be monitored. Make a list of the competitors consisting of direct, indirect, and replacement. The list of competitors can be endless but you need to prioritize which competitors matter the most. The number of competitors you monitor depends on the resources. For a comprehensive competitor pricing strategy, a business needs to keep an eye on what all these competitors do. Replacement competitors are the ones that compete for the same budget as your brand, even when the product is different.įor example, a lipstick brand can consider another lipstick brand as its direct competitor, a lip gloss/ lip balm brand as its indirect competitor, and an eyeliner/ eye shadow brand as its replacement competitors.Indirect competitors are the ones that sell different products but target the same need.Direct competitors are the brands which offer the same product as you do.Competitors can be categorized into three: You need to consider even those competitors that are chasing your market. You should not only consider the direct competitors who are selling products that look like yours. For example, you make Coke and they make Pepsi, you make Nike and they make Adidas. For most companies, competitors are the ones that make what you make.
However, they only consider direct competitors. Most businesses feel that they are aware of the competitive prices. Key Steps to Identify Competitor Pricing Strategy 1. If you have a plan in place, competitor monitoring can become a cakewalk. The right strategies can come to your rescue. Competitor monitoring is a broader term that encompasses several aspects and helps in creating an excellent competitive pricing strategy.Ĭompetitor pricing intelligence helps in understanding whether your plan is sound or whether there is a need for some tweaks. There’s a lot that needs to be studied such as your competitor’s social media strategy, their PR and promotional strategies, how they deal with customer issues, etc. Competitor prices can help in developing your pricing strategy. It can benefit significantly to keep an eye on the competitors in the market. The key is to nail your business strategy by setting the right prices. In this competitive era, it is important to analyze and study the competitors to stay ahead.
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