Understanding your competitors’ launch strategy can help you identify opportunity gaps.

The Calendar module enables brands and retailers to study their competitors’ overall market strategy and their reactiveness to the market.

Step 1: Identify similarities and gaps between competitors’ new launches strategies

Individual competitors’ new launches are reflected in the Calendar tab. In this case, we have selected both Nike and Adidas to understand how their launch strategies differ.

In reference to the lighter blue section for new-in SKU launches, observe that Nike increased its launch volume significantly in 2020 in light of Covid-19.

When the pandemic hit, Nike took immediate measures to shift its business focus online with high newness to keep track of changes in consumer buying behaviour. Constant newness has been introduced throughout the period, especially during seasonal launches. In this case, approximately 24.3k new SKUs were launched across Nike platforms in the US for the AW20 seasonal launch. 

Nike’s agility allowed it to swiftly adapt to market changes ahead of Adidas. The activewear giant’s quick reaction to its external environment strengthens its position in the market against its main competitors.

Step 2: Identify similarities and gaps between competitors’ discount launches strategies

Next, dive into the competitors’ discount launch strategies over the last 12 months. With the same example, observe that Nike and Adidas launched a high volume of frist discounts in March through June 2020 to entice consumer spending at the height of Covid-19. However, Adidas reduced discounts from July onwards while Nike maintained its discount volume.

The effectiveness of both discounting strategies can be further validated by looking into the Retailer analysis: Trade Performance tab in the Competitor Benchmarking module.

Step 3: Validate competitors’ discount launches strategies effectiveness

Select the ‘First Time Discount’ filter under Price Status filter to gauge the effectiveness of both brands’ discount strategies for July and August. 

Nike registered a higher sell-out rate on discounted products, proving that Nike’s strategy is more effective at driving conversions. the first time discounts SKUs. This proved that Nike has a stronger discounting strategy in comparison to Meanwhile, Adidas focused on launching full price products, which did not translate into strong sell-out performance.

A deeper analysis can be done by referring to the Trade Analysis card. Looking at the total sell-out column, Nike accumulated a higher sell-out rate at 91.61% vs Adidas at 67.65%. This reflects the promising customer reaction towards Nike’s discount launches within these two months.  

Key Takeaways

By comparing competitors’ new-in and discounting launches strategies, you can gain a wider perspective on competitor reactiveness to the market. The opportunity gaps identified helps you formulate your own brand strategy for a new collection or markdown activity to improve speed-to-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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