Competitor research and analysis is as important as internal business review to keep a close track on competitor activities. A clear understanding of competitors’ launch strategies improves retailers/brands sensitivity towards market changes to further aid them in reviewing and formulating effective strategies. 

The Competitor Benchmarking module could help you to understand competitors and your own brand positioning and performance in the market. The research could be executed on a brand and category level. 

Step 1: Understand retailer/brand market positioning

Look into Retailer Analysis: Trade Performance tab, Trade Analysis card to view the breakdown of competitor positioning and performance activities. 

The Positioning section reflects three key marketing mix matrices:-

  1. Total Products
  • This matrix helps you to understand total products launched within the timeline selected.
  • It can be further broken down to Full Price and Discounted contribution by expanding the Total Product column.  
  • With this, you would understand the high level ‘Product’ strategy for each retailers/brands.
  1. Median Price
  • This matrix helps you understand further on competitors’ pricing strategy within the timeline selected.
  • With these insights, you gain a bird’s eye view of the retailers/brands price positioning in the market by comparing the median price across competitors. 
  1. Average Discount %
  • This matrix helps you understand further on competitors’ discounting strategy within the timeline selected.
  • With these insights, you could understand competitors’ reactivity towards the latest market condition by comparing their average discounts % offerings. 

Step 2: Understand retailers/brands’ performance

Similarly, this step can be done by referring to Retailer Analysis: Trade Performance tab, Trade Analysis card – Performance section. 

The Positioning section reflects three main performance matrices:-

  1. New In
  • New In matrix reflects the retailers/brands frequency in product launches within the timeframe selected. It provides an insight on the engagement of the retailers/brands with their customers via newness launches. 
  1. Replenished
  • Replenished matrix reflects the retailers/brands reactiveness towards out-of-stock products. It also acts as a key insight in understanding competitors’ product launches strategy, should they be focusing more on new-in or replenishment. 
  1. Total Sell Out
  • Sell out performance reflects the market reaction towards retailers/brands offerings, should it be above or below average benchmark rate. 
  • It can be further analysed by expanding the total sell out columns, to understand full price and discounted performance.
Step 3: Understand the relationship between retailers/brands’ positioning and performance

Further strategy insights could be gained by cross analysing the positioning and performance of retailers/brands

In this case, we will be deep diving into Asos. Observed among these three retailers/brands, Asos has a significant assortment offerings of 38.62%, with a higher mix of discounted products at 78.83%. This is further supported by the higher average discount rate at 40.35% vs All Retailers’ average at 37.17%. Nevertheless, it is interesting to observe that Asos is able to maintain a higher Median Price at USD26.48 despite the high discount rate offered. This provides an insight of the higher price positioning Asos has in compared to other retailers/brands.

Next, is to cross analyse Asos positioning with performance. 

Here we observed Asos registered a higher than average sell out at discounted price, which depicts higher demand on discounted products on Asos platform. This showed a higher customer appetite on discounted items in multi-brand retailers’ platform.

In terms of stock launches, observed Asos has been constantly injecting more New In than Replenishment to maintain customer excitement. This is an interesting insight in reflecting the importance of newness launches, be it on full price or discounted items for multi-label retailers to drive constant customer interest and increase sales conversions. 

Using the same analysis angle, you could cross compare the positioning and performance between retailers/brands to identify the difference in product, pricing and discounting strategies adopted. 

Key Takeaways

Understanding retailers/brands’ positioning and performance are crucial as an initial step of any analysis. With a better understanding of competitors’ strategy and its effectiveness, you could then formulate further strategies relevant to your target market. 

Hope you found this article helpful! If you have any questions or would like to explore the Omnilytics dashboard further, feel free to reach out to your respective Client Success Manager.

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