Note: when we do product or brand marketing, it is important to find out what your real competitors have, so that we can do well in advance to keep the users.
For example, there are fewer and fewer guests in a restaurant, and many people think they just snatched their guests from the opposite restaurant. But when the opposite shop was gone, it was not seen that the guests in their shop could return to the original number. Now that they are not snatched their guests from the opposite store, who are they taken away from?
It is not clear if someone is snatched away from his own user, let alone marketing strategy. Because one of the prerequisites of a good marketing strategy is to understand what your product’s competitors will have and make some early countermeasures.
For example, if you know that your competitors are not just the opposite store, and the US regiment / starving platform, then you can’t just take a price war marketing approach, but you may also consider enhancing the experience of your own shop (attracting users who prefer to use a regiment for dinner), or with the United States. Group / hungry, etc. platform to cooperate and other measures to prevent the loss of guests.
Is there any way to better find out what competitors will have?
The monster is first in this article to share an analytical tool for you to find the Potter five force model proposed by Michael Porter (Michael Porter) in a more comprehensive way.
That is to say, your product will usually be affected by at least five competitive forces. The following are:
- Direct competitors in the same industry
- The threat of potential new entrants
- Substitutes’ substitution ability
- Purchasers’ bargaining power
- Bargaining Power of suppliers
The biggest role of the five force model is to broaden the scope of thinking for us – knowing what the competitors will have, doing well in advance, and increasing the accuracy of the marketing strategy. For example, you used to know that your competitors were opposite that shop, but through the analysis of the model, you found that there were other competitors such as the reservation platform, the supplier, the consumer concept, and so on.
Let’s talk about the five – force competition model and share the countermeasures to you so that you can find out what your competitors will have in a more comprehensive way.
1. a direct competitor of the same industry
This competitor is easy to find and is our most common competitor. For example, you are a western restaurant, and you have opened a western restaurant opposite to you. This restaurant is your competitor in the same industry.
In the increasingly mature market, there will be more and more direct competitors in the same industry. For example, mobile phone products, we often hear apple, HUAWEI, millet, vivo, oppo and so on, but there are also hammer, Meizu and Jia Jia mobile phone brands. It can be said that there are many direct competitors in the mobile phone industry.
In the face of these direct competitors, what are the best ways to retain their users?
There are many ways that monsters share a way of thinking here – to find the core competencies of their own differentiation, rather than to do better than the other competitors.
For example, you do the same business platform, you do not want to do a more than a Taobao category, a cheaper price platform, but to find out which entry points are not done by Taobao and so on. For example, vip.com’s global brand sale mode and jumei.com’s focus on cosmetics are different from Taobao’s platform.
In the past few years, a lot of failure of the e-commerce platform, apart from improper operation and other reasons, one of the very important reason is to blindly use their own shortcomings to follow the strong point of Taobao. Because of limited resources, the strategy of differentiation is more effective.
2. potential new entrants
Originally, you sold fruit, and suddenly opened a fruit shop nearby, which is a new entrants. Before you enter, these are potential new entrants.
So what strategies should be adopted to deal with these new competitors?
Here is a way of thinking: strengthen your strengths, increase value-added services, and improve the threshold of new entrants.
For example, your fruit shop in order to prevent new stores from grabbing guests with you, you can maintain or enhance the freshness of the front and bottom, take XX hours to door-to-door service. If you think the cost will be high, before new competitors enter, consider a membership system to bind their own users not to be taken away by new entrants (for reference).
SF express, for example, emphasizes faster delivery speed. At the same time, we should strengthen our advantages and provide more value-added services. For example, 1 hours of door-to-door receipt (other fast general 2 hours) or free delivery package, such as value-added services, to retain their own users, to improve the new entry into the “faster delivery” of the market competition threshold.
Of course, if you are in the same business district, you can also take alliance Marketing – that is, a coalition of existing peers to raise the threshold of the new entrants in the area (this is limited to a regional business area).
In short, improving entry threshold is one of the effective ways to prevent new entrants, for reference only.
3. alternative alternatives
Substitutes are users who have other products or services that can replace your products.
For example, the sale of instant noodles in recent years has dropped. The main reason is that there are healthier fast food and takeaway platforms instead of instant noodles. And the emergence of social networking products such as WeChat is also an alternative to China Mobile / Unicom’s short message products.
There are a lot of strategies to take in the face of alternative competitors, and here share a method introduced by a monster before the article – the addition strategy of the product. That is, the product adds more relevant demand, which makes users feel comfortable, considerate and considerate than alternatives.
For example, chewing gum products, some users feel too high sugar is not conducive to health, or buy other products to replace it. Later, Yida launched xylitol chewing gum to reduce users’ concerns about high sugar content, so that users could continue to buy your products instead of substitutes.
4. purchasers’ bargaining power
The choice and bargaining power of buyers is also a competition.
For example, if you open a coffee shop, your buyers may have low and middle consumption groups like cheap coffee, high-end petty bourgeois groups or white-collar groups. If they do not choose to come to your store for consumption, these groups will have the possibility of bargaining for your products, and you will naturally reduce your product profits.
No one buys your stuff, many people often cut prices, which makes business worse. Because your buyer has a bargaining power.
How can we avoid such an impact and improve our business?
The same can be done to find out their own differentiation competitiveness and strengthen their competitiveness. For example, your coffee shop, based on the analysis of local population characteristics, is based on white-collar groups as the main target users, as a small capital cafe, and constantly strengthening the orientation of their own, forming a strong local competitive competitiveness.
Even if not all the people come to your store, you have their own high viscosity buyers – to reduce the buyer’s bargaining power and keep the users better in other ways.
5. supplier’s bargaining power
The supplier of your product is also an invisible competitor that affects your business and user choice.
For example, if you are a restaurant, if your raw material supplier serves many guests like you at the same time, then the supplier will have room for bargaining. At this time, you are passive receiver, which will naturally affect the cost of your product. As a result, your product has no advantage in price and easy to lose customers.
At this time, you should be better prepared in advance, for example, to find a few more suitable suppliers, or to sign a corresponding long-term cooperation agreement, to reduce the impact of the supply side on you.
Similarly, there will be similar problems in the source of e-commerce or micro dealers. For example, if you do a clothing store, when choosing a supplier of clothes, if the source is single and there is no cooperation agreement, it is easy to enter the passive choice (the supplier says how much cost price, you can only accept it).
So, make more use of the Internet channel or the wholesale market under the line to find a more suitable supplier – to increase your choice, improve the competitiveness of the product, and attract more consumers to buy your product.
Of course, the real business will be more complicated. For example, business is not good, users no longer buy your products, apart from their own internal and “five forces” influence, there are political, economic, social, technical and other macro environmental aspects (there may be more factors). Marketers or business people need to constantly discover and make judgments based on different situations.
With the development of commercial society, some people put forward the “six force model” and so on. In any case, the most important thing in this “five force model” is to give us an additional range of thinking, to know what the competitors will have, to do well in advance and to increase the accuracy of the implementation of the marketing strategy.
For example, the competitors in the restaurant used to be the same restaurant on the opposite side of the restaurant. Now it is clear that there are some catering platforms such as the US regiment and the change of consumer’s consumption concept, which may be the “competitor” of your business. At this time, we can find out early and make timely countermeasures, for example, to cooperate with the United States and the hungry platform, or to make the experience of the offline store better to attract / retain the consumer.
The content of the five force model is not just about these contents. Interested readers can go online to learn more about the five force model.
About the author
Monster first Sen, WeChat public number: Monster ID:Mister-shou. Concerned about internet marketing, good at writing product copywriting and brand marketing consultation. People oriented, analysis of the nature of the problem, and strive to make marketing more simple and practical marketing people.