Monitoring multiple competitors and hundreds or even thousands of products in-house, can prove to be very time consuming and expensive. You need someone to automatically monitor the online competitors’ information, benchmark each client’s product against their competition and empower themselves with relevant, timely and accurate data with which retailers can set their prices and increase sales. Retailers need to attract more customers with better offers and lower prices than their competitors. They should indulge themselves into analyzing price management. Additionally, brands should know when their prices are too low or too high, this data driven insight gives retailers the opportunity to react to competitive price changes as they happen.
Abstract retailer data is useless without understanding the competitive landscape. Retailer need to be committed into making competitive analysis fast and easy with relevant and timely information. In India there are not many price monitoring firm, but one that comes to mine is Profitero. Its current customers include Elena Pozuelo Andres, marketing manager of PCCity.es, who affirms "Profitero is helping us to build a strong price strategy in our online sales. But most importantly, we now have real time information about the prices and promotions of our competitors” The online market is constantly evolving & retailers need to have visibility into competitive information on thousands of products and dozens of competitors. It is crucial to efficiently gather reliable intelligence on your competitors' marketplace, strategy, and financial health which is critical to gaining the advantage in today's markets. Some businesses think it is best to get on with their own plans and ignore the competition. Others become obsessed with tracking the actions of competitors (often using underhand or illegal methods). Many businesses are happy simply to track the competition, copying their moves and reacting to changes.
Need for Price Monitoring
Competitor analysis has several important roles in strategic planning; To help management understand their competitive advantages/disadvantages relative to competitors, To generate understanding of competitors’ past, present (and most importantly) future strategies, To provide an informed basis to develop strategies to achieve competitive advantage in the future, To help forecast the returns that may be made from future investments
Sourcing Competitor data
In order to retrieve vital information of the competitor, one needs to undertake certain measures which can enhance the chances of their profitability.
Recorded data: this is easily available in published form either internally or externally. Good examples include competitor annual reports and product brochures; Observable data: this has to be actively sought and often assembled from several sources. A good example is competitor pricing; Opportunistic data: to get hold of this kind of data requires a lot of planning and organisation.
During this economic surge in the country, it is imperative to understand the necessities for a retailer to keep himself updated not only to the happening in the market & industry as well as the functioning of his competitor thoroughly.