This question seems simple, so much so that we immediately begin to list the brands that operate in the same segment, even in the same positioning.
It turns out that we tend to associate the term “competitors” with other operations that share the market with ours, competing for the same purchase decision.
But it's not quite like that.
There are cases in which your competitors can help us sell more, and there may be operations from another segment hindering more than any competitor.
Bugged?
That's the advantage of being here, we'll help you understand the market like no one else.
neighbourhood
Let's think about which brands we would like to have nearby, those that give prestige to the business address.
Nobody wants a secluded store, it's much better to be among others.
For this reason, we are always looking for “central places”, commercial regions where the customer can find everything and a little more.
On the other hand, we cannot choose who will be there, everyone who can afford the rent will want it too, and then other operations in their segment arrive, such competitors.
Thinking on the consumer side, the more options the better, they can compare offers, bargain.
On the competitors' side, the more customers the better, isn't it?
So we found here a possibly greater benefit than the idea of exclusivity, which is attractiveness.
Car stores, pharmacies, appliances, furniture, lighting, music, construction materials, and so many other segments benefit from the association with competitors.
Without competitors, if the consumer does not want to buy from you today, they will have to search for another region, moving even further away.
So, before bothering yourself with the arrival of a competitor, calculate how much they can add up to you, attracting more customers.
Be very careful with situations that push customers away, such as problems with access, convenience, safety, and environmental comfort.
An example of this is a store that is on the same street as a large school.
Every day, at lunchtime and in the late afternoon, the street is jammed with families picking up the children.
This creates a repulsive scenario for the store's customers, who start to avoid those hours and, finally, avoid the store entirely.
Going back to the competitor, they will teach you a lot about where you can improve, knowing how to differentiate your offer, whether in the quality of the product or service, in the price or in the promotions, you can get a lot out of living with them.
Someone may say that this text is a small talk, that competitors get in the way and take away sales.
That person wouldn't be totally wrong, especially if their operation is on the weak side of consumer preference.
Those who understand the profile of the target audience and know how to differentiate themselves can open stores without fear, provided that proper care is taken to measure the available market potential.
Most brands are still expanding without in-depth studies, if any.
This leads to irrational situations, in which there is no market for so many operations.
This scenario reading is not limited to competitors in your segment, as there are also substitute offers and the possibility of people restricting their consumption in certain periods of crisis or seasonality.
When the market is restricted or irrational, the advantage is that it has what we call a “dominant point”, the best place to intercept consumers, which would be the ideal place in the buying journey, when the need is most latent.
Its main objective is to understand the location profiles of your consumers in relation to yours, as this is much more difficult to change.
Be very careful and move on to the next article in this series: How to calculate my Market Share.