The automobile industry is the most dynamic of all. Which means that it is also the most competitive of all. Competitive analysis is essential in this industry to stay ahead of the game. Therefore, the analysis needs to be more specific and precise. Data creates a bridge between the customers and companies who want to make a connection in the right direction.
The relationship between automobile industry and data has become quintessential. In recent times of advanced technology, increased customer expectations, and global policies, the automotive industry has redefined the way they use data intelligence and technology for improving the efficiency and efficacy of their operations. There are several factors from competitors that pose a challenge for the automotive industry such as consumer shifts, volatility, and saturated markets. Thus, it has become important to have detailed information for making strategic decisions based on competitor monitor.
What is Competitive Analysis?
Competitive analysis is the practice of identifying competitors in the industry and looking for different marketing strategies. This information can be used for competitive pricing analysis. It can help in identifying the company’s weaknesses and strengths related to each of the competitors in the market.
How is Data Analytics Used in the Automotive Industry?
Major players in the automobile industry use competitor price analysis for improving their performance, keep an eye on the relationship with suppliers, develop positive customer relationships, and decrease operational costs. During the automotive lifecycle, several processes and people collaborate for creating reliable and cost-effective products and services that customers wish to see.
These processes also include some data sets that must be analyzed for developing smarter and connected cars for the customers. It ultimately helps in improving the sales and marketing. It improves customer journey and leads to increase in the company profits. Furthermore, the automotive industry needs analyzing competitor cost prices and offers as well with the help of smart pricing analytics techniques. It helps them come up with competitive prices that help the business sustain in a competitive market.
Competitor analysis lies at the foundation of understanding the complicated datasets for achieving actionable strategies. In the recent years, the automotive industry has transformed into a data-driven industry owing to a large amount of data collected.
When Should a Competitor Analysis be done?
An automotive company should perform competitor analysis before launching a business. It is also useful every time a business decides to make strategic changes in the pricing or other aspects of the business.
It is to be known that competitive analysis in marketing plays a crucial role. Experts say that competitor analysis should be done at least twice a year. Even monthly or quarterly competitive analysis can prove to be useful.
Importance of Competitor Price Analysis in Improving Sales
1. Market Understanding
If you wish to understand what competitors are doing in the local market, competitor analysis plays a crucial role. It helps in understanding how competitor’s actions affect your business. If competitor price comparison is not used tactfully, some of the underlying information might remain unnoticed and you may lag behind in the market. Having clear and in-depth information about the market empowers the automotive parts supplier to make the right decision for the dealership.
2. Identify and Bridge the Gap
Researching about the competitors via competitive analysis tools helps the automotive industry to find and fill the gaps in the market where the competitor’s haven’t ventured yet. It can help in capitalizing on the first mover advantage.
3. Enhance Auto Dealership Marketing Process
With competitor analysis tools you can monitor the marketing strategies employed by the competitors for meeting their goals. Competitor monitoring offers an idea on how to position the services and inventory in the market. It helps in driving prospective dealerships opportunities.
Competitor research also helps in understanding the customer needs and behavior in a better way. With all the information obtained from analytics, the automotive parts supplier can reposition their brand for winning more customers and improve the revenue. It can also help in getting positive reviews online.
4. Go on Right Path
With the help of competitor analysis pricing the automotive company can get a clear idea about what strategies might work and what path should be taken for driving the customers. When automotive parts manufacturers move in the right direction, it simplifies the market resistance to the inventory and services.
5. Identify Opportunities and Threats
Competitive analysis enables you to discover the threats and opportunities in the target market. It also offers an idea on how the competitors are dealing with them. It not only helps in anticipating the threats and staying away from them but also reveals the opportunities that can be capitalized.
6. Improve Market Position
An automobile company can identify their position in the market with competitive pricing analysis. It helps in comparing your position as compared to where you actually want to stand and your position compared to the competitors. It helps developing strategies to beat the competitors and improve the sales figures.
How to Perform Competitive Analysis?
There are several ways of performing competitor analysis, but these four basic steps are important:
- The first step is to identify the competition which consists of direct competitors, indirect competitors, and substitute competitors.
- The next step is to collect information on various products and services as well as pricing for analysis. You must also collect data on the reputation and marketing tactics of the competitors to tweak your strategies accordingly.
- The third step is to compare the strengths and weaknesses of the competitors.
- The last step is to build on the competition’s strengths and weakness for creating a competitive advantage.
There are several pricing analytics software which can automate the process and make it easy to make strategic pricing decisions based on competitive monitoring.
It is to be known that SWOT analysis is a type of competitive analysis that helps in finding out and analyzing the strengths, weaknesses, opportunities, and threats in the market. However, competitor analysis goes beyond SWOT for creating new ways of increasing the market share. It is a proactive approach and not a reactive one. It enables the business to step out for leading the competition instead of simply making efforts to catch up.
Grow in the Right Direction with PriceIntelGuru
The automobile industry is fiercely competitive, and companies that want to thrive need to use every tool at their disposal to gain an edge. Competitor price tracking is one of the most powerful of these tools, providing businesses with the insights they need to outperform their rivals and dominate the market. By analyzing the strengths and weaknesses of their competitors, companies can identify areas where they can improve their own products and services, refine their marketing strategies, and gain a larger share of the market. If you're in the automobile industry and you're not already using competitor analysis, you're missing out on a vital source of information and a critical means of driving growth. Start using competitive analysis by PriceIntelGuru to propel your business to new heights of success! Book a demo now and discover how we can help you stay ahead of the competition.
