Price and product availability are two key aspects that influence consumers’ purchasing decisions.
While the quality of the product remains an indisputable asset, price and availability are often the deciding factors in finalizing a deal.
Manufacturers are increasingly aware that effective management of pricing and product availability is crucial to boosting revenues.
We need to also add monitoring the activities of competitors as an indispensable part of any company’s business strategy.
However, what makes the most innovative manufacturers stand out is their ability to effectively monitor the pricing and availability of their products, as well as those of their competitors at their trading partners.
In the following sections of this article, we will focus on why monitoring the pricing and availability of competitors’ products plays such a key role in manufacturers’ business strategy and what benefits this approach brings.
Monitoring prices and availability of competitors’ products – what is the purpose?
There are many answers that’s why it is worth highlighting at least a few.
- Price competitiveness: tracking prices of competitors’ products allows manufacturers to adjust their prices in real time. This allows them to compete more effectively, keeping prices attractive and attracting customers
- Optimization of pricing strategy: competitor price analysis enables manufacturers to better understand the pricing strategies of rivals. This allows them to develop more effective in-house pricing strategies that take into account the price competitiveness of their own products.
- Product availability management: monitoring the availability of competitors’ products allows you to make marketing decisions about which products are likely to sell better in a given period of time- because your competitors don’t currently have them.
- More effective assortment management: the more effective the analysis of competitor products , the better the manufacturer will manage the product mix, eliminating less profitable products or introducing high-demand products.
- Monitoring competitors’ marketing activities: using available analytical tools like Semrush allows brands (manufacturers) to check PPC campaigns run by competitors are successful.
- Identifying Market Trends Tracking: prices and availability of competitors’ products allows manufacturers to understand markter trend better. Coolect and anlyze data, create pattern od price changeing, but also customer feedback – combain these elements enables brands to tailor their offerings to current customer preferences.
- Minimizing the risk of losing customers: by monitoring competitive products Manufacturers can minimize the risk of losing customers to competitors who may offer more attractive terms.
- Strategic decision-making: knowledge of the distribution of product prices and their availability in stores helps manufacturers choose trading partners and develop new sales channels.
- Attracting new customers: with competitive pricing and product availability, manufacturers can attract new customers who may have previously chosen competing brands.
- Enhancing customer relationships: customers’ preferences are changing and being able to customize offers achieves outcomes.
- Control over the market: with data monitoring manufacturers have chance to react quickly to changes, for example, by increasing the inventories of their retailers.
- Flexibility in purchasing decisions: a manufacturer that precisely monitors prices and availability of competing products is able to make more well-informed and flexible sales and production decisions. This avoids oversupply and reduces costs.
- Identifying market gaps: analyzing the prices and availability of competitors’ products can help manufacturers identify market gaps, that is, products or categories that are under-served by competitors. This creates opportunities to introduce their own products and capture a new market segment.
- Improving demand forecast accuracy: by monitoring competitive prices and product availability, manufacturers can more accurately forecast demand for their products. This makes production and supply planning easier.
- Preventing price violations: monitoring the prices of competitors’ products allows manufacturers to respond in real time to any undesirable price changes that may affect the market equilibrium.
Competitor report from 100Shoppers – a tool for manufacturers
Create your own Competitor Report with our solution. We give you a ready-made tool for data analysis, because as we mentioned at the beginning of the article: increasing your knowledge of your competitors is one way to strengthen your brand’s position in the market and maintain sales growth.
The report will allow you to analyze the key elements: price and availability of competitors’ products.
Watch the video and learn more about our solution.
If, on the other hand, you would like to see the product “live”, schedule a demo.
