(a series of notes for inspiring brands)
People always have a choice. They can go to a competitor (direct), use a different solution altogether (indirect), choose to do nothing, or choose you. Does your brand simplify their decision?
Take Action:
It’s surprising how often I come across business owners believing they have no ‘real’ competition. Knowing all your competition is vital to any brand gaining an understanding of how, and why consumers make the choices they do. Done properly, it involves digging beyond the obvious companies that provide a similar service or product to yours. For example, if Company 1 offers high-end, one-of-a-kind, custom desks made using specially sourced, reclaimed wood from Europe, manufactured by hand, by a specially trained artisan, it is understandable they might say no one offers the same thing. This is not the same as having no competition.
- Company 2 offers beautiful, custom desks made of locally sourced reclaimed wood.
- Company 3 offers very cool, and custom desks made out of salvaged steel.
- Company 4 can deliver a custom desk, as well as design and manufacture the mantel for your fireplace, saving you from sourcing another supplier.
- Company 5 offers desks made from new wood treated to resemble reclaimed wood beams and, at half the price.
- Company 6 offers mass manufactured desks at a tenth of the price—huge savings.
- Company 7 rents desks.
- Company 8 sells standing desks, and claims they are better for your health.
If that weren’t enough choice, the potential customer might be given a desk as a gift, find one at a yard sale, decide she wants to wait a year and save up, or realize she loves the one currently in her office. There will always be a choice, and armed with the knowledge of your audience, and what the choices are, you can clearly communicate how you are special and, at the very least narrow the choices they are considering.
Great Resource:
Market Competition 101: The 3 types of competitors to keep an eye on by Daniel Burstein