How Can Competitive Analysis Lead to a Strategic Pivot in Marketing?
In the dynamic realm of marketing, a Principal & Chief Brand Strategist reveals how a niche focus can dramatically shorten the business cycle, sparking a strategic pivot. Alongside industry experts, we've gathered additional answers that illustrate various instances where competitive analysis has reshaped brand strategies. These insights range from embracing uniqueness to adjusting pricing strategies, culminating in a deep dive into the strategic maneuvers that have given brands a competitive edge.
- Niche Focus Shortens Business Cycle
- Brand Positioning Pivot Educates Clients
- Personalized Subscriptions Boost Market Leadership
- Embrace Uniqueness to Differentiate Brand
- Target Underserved Demographics for Growth
- Trend Adoption Positions Company as Leader
- Craft New Messaging to Connect Deeply
- Adjust Pricing Strategy for Competitive Edge
Niche Focus Shortens Business Cycle
We were attracting a lot of interest from prospects before and through the pandemic. But beginning in 2022, it felt like it was taking longer to close new business. While we were already specific about the services we provide (horizontal niche), we would take on clients across multiple industries (verticals). We wondered if having an even tighter vertical niche made sense for us to shorten the business development cycle.
So, we did an in-depth analysis of nearly ten years' worth of client work. Based on the results of our analysis, we were able to make data-driven decisions about who our ideal target audience would be going forward, which in turn allowed us to begin developing new marketing strategies and services to attract our ideal target client. The result was a shorter business development cycle and more easily won new business.
My advice for anyone thinking about niching down your target marketing is to assess your past clients based on three specific areas: Were we personally or professionally fulfilled by the work, was our expertise valued, and were we profitable on the engagement or relationship? You can also look at this from two vantage points: by client and by industry. Assign a rating of 0-5 for each of the three criteria, and then add up the total. A high number (e.g., 9-15) would represent examples of clients with whom you likely want to work more. Conversely, low numbers (e.g., 0-6) are probably the types of clients to avoid.
Brand Positioning Pivot Educates Clients
Failing to analyze your competition is like trying to win a race without paying attention to what direction you're running in relation to your competitors. If you don't have a solid grasp of both your brand positioning and that of your competition, how can you ever know where, when, or how to pivot?
Over the past 20 years of being in this industry, we've made a few key pivots based on what our competitors were doing. The most recent one involved becoming more focused on brand positioning. We saw many agencies building and marketing websites, but they lacked diving deep into the brand and how to position it so it would stand out.
As a result of the pivot, we are given a golden opportunity to educate our small business clients about the importance of proper brand positioning and how they can benefit from having a solid blueprint in place for all their business and marketing initiatives.
Personalized Subscriptions Boost Market Leadership
In the organic juice market, we saw steady growth with our cold-pressed, single-serve offerings. However, competitor analysis revealed a rising trend towards personalized, functional blends with added vitamins and superfoods. We realized our focus on single-serve convenience might be limiting us.
We pivoted by launching a customizable subscription service. Customers could choose a base (kale, spinach, etc.) and add targeted functional boosters for specific needs (immunity, energy, etc.). This strategic shift resonated with health-conscious consumers seeking a more personalized approach to wellness.
Subscriptions boomed, and customer lifetime value increased. We also gained a reputation for innovation and catering to individual needs. This pivot, driven by competitor insights, not just imitation, transformed us from a single-serve player to a personalized functional juice market leader.
Embrace Uniqueness to Differentiate Brand
Conducting a competitive analysis can shine a light on where a company's product stands in the market, highlighting features or services that are not currently offered by others. This realization allows a business to embrace its uniqueness and deliberately carve out a niche. By focusing on these unique selling points, a brand can differentiate itself and create a refreshed marketing approach.
This can lead to the development of new advertising campaigns that emphasize the distinct characteristics that set the product apart from its competitors. Now is the time to assess your product’s unique features and redefine your marketing strategy to stand out in the marketplace.
Target Underserved Demographics for Growth
Through competitive analysis, a company might discover that there are specific groups of potential customers whose needs are being overlooked by the current market players. This awareness offers a significant opportunity for the company to target these demographics with tailored marketing strategies. By adjusting their approach to speak directly to these groups, they can tap into a new customer base and potentially increase market share.
Redirecting marketing efforts to cater to these underserved segments can result in a meaningful connection with new audiences. Consider reevaluating your target demographics to ensure you're not missing out on key audience sectors.
Trend Adoption Positions Company as Leader
By examining the competition, a company can detect emerging patterns and trends within the market that have not yet been fully leveraged. This insight enables a proactive shift in marketing strategy to get ahead of the curve, positioning the company as a leader rather than a follower. Adopting such trends early on can be a game-changer in terms of public perception and market dominance.
Responding quickly to these insights can position a brand at the forefront of innovation. Act now to integrate current market trends into your marketing campaign and lead the market in a fresh direction.
Craft New Messaging to Connect Deeply
A thorough competitive analysis might uncover areas where the market lacks certain messaging or emotional appeals that resonate with the consumer base. Identifying this void empowers a company to craft powerful new messaging that speaks to the hearts and minds of consumers. By filling this gap, a brand has the potential to connect with its audience on a deeper level and cultivate brand loyalty.
Adjusting marketing materials to fill these voids can make a profound impact on the effectiveness of a company's marketing. It's crucial to evaluate your current messaging and ensure it's fully addressing consumer desires and concerns.
Adjust Pricing Strategy for Competitive Edge
When a business understands the pricing strategies of its competitors, it can make informed decisions on how to position its own pricing effectively. This can mean adjusting prices to offer more value or using pricing as a competitive advantage. Insight into pricing can lead to strategies that underpin the perceived value of the company’s offerings in relation to the competitors.
A strategic pivot in pricing, coupled with strong marketing, can help a company stand apart in an often crowded marketplace. Review your pricing strategy to guarantee you're competitively positioned and ready to draw in cost-conscious consumers.