Brands and manufacturers often experience the mercy of price fluctuations of raw materials required for manufacturing, shifting exchange rates, and global demand pressure. It is simple to experience powerlessness.
However, there is a solution: Competitor Price Intelligence (CPI), which helps manufacturers and retail brands understand competitor actions discover rising trends in CPI data to warrant proactive attraction, predict competitor pricing, and integrated CPI insights into regular decision-making by supporting workforce using the required data to compete with effective pricing in the minor investment.
In this post, we'll cover how to use MAP monitoring, and competitor pricing intelligence, for all business aspects, from sourcing raw materials to product marketing and sales in the target market.
What is the meaning of Competitive Price Intelligence?
Competitive Price Intelligence is the ability of competitor price monitoring with the help of multiple marketplace channels to earn competitor insights, manage costs, and predict competitor actions and margins. Most businesses must have this ability to grow their business.
What is the reason for using Competitive Price Intelligence?
Fluctuation in Product Prices
On any day, your rivals do anything to earn more profit. This means price adjustment for raw materials and parts in the United States. While in other global markets, it means changing product prices to reduce demand pressures in the target market. Your rivals do the same as you do to increase profit margins.
Production Cost
It is expensive to run a business. Further, to effectively beat the competition, you must understand the scale of variable cost, where it is going, and what it is.
Expansion of Product Line
For a few product manufacturers, competing in product price is the primary step to expanding their product line. Firstly they study non-price factors like the demand-supply gap to determine whether a new product is acceptable. If the supply for a specific product line is tight and demand is high, its manufacturer may expand the offered range by offering extra product lines. Working on product line expansion is a significant competitive pricing power source to allow you to grow market share by replacing competitors.
Searching Strategic Partners
Manufacturers and brands find strategic partnerships widely valuable. But many companies underestimate the impact of partnerships on pricing. Often, a product manufacturer will create a strategic addition to its supply chain entity or explore a similar process for product manufacturing. It helps the manufacturers to supply raw materials at less cost than the expected one to pass on to its consumers.
Decision-Making with Competitor Pricing Data
Some product manufacturers can use competitor pricing in decision-making, raw material procurement, part sourcing, pricing setup, study of sales trends & volume, dynamic cost adjustment, and price movement prediction about critical products. With this competitor pricing data to help in strategic decision-making, product manufacturers can run their business effectively and gain the most value from their proprietary process.
Using Competitor Pricing Intelligence For All Business Aspects
Learning what competitors did can help you understand the threats and opportunities they are experiencing. If their price changes on specific raw materials, you may need to investigate whether to increase production of those product parts or discover alternative suppliers.
You may need to adjust your marketing tactics if you experience any coincidence in competitor price changes with your peak sales time. Studying competitors' actions can help you find market threats and opportunities, and this knowledge may lead to differences in competing product prices.
Using CPI Data to Make Decisions
Multiple product manufacturers have been accessing competitor pricing intelligence data as a tool over the years for their businesses and effectively maximizing profitability. But most of them don't know that they can utilize CPI data as a strategic tool to continuously improve the value proposition of consumers, adjust their positioning efforts, anticipate competitor actions, and place themselves to earn more profit from competitor actions.
CPI Information is Timely, Cost-effective, and Accurate
Competitor Price Intelligence is an efficient tool to help make informed decisions in the business. It is the most affordable, up to 90 percent cheaper than other CI tools that require substantial IT resources. Further, using Competitor Price Intelligence data can drastically improve a company's profitability and sales results, allowing it to make data and value-driven decisions depending on live market intelligence. You may not have that data otherwise.
How do Product Manufacturers Access CPI Today?
Check out the following examples of companies recently using competitor pricing intelligence.
Production Cost
The CPI information tells you where you are spending more in the production cost. It will help you better negotiate raw material costs if competitors buy materials from the same suppliers. By studying the raw material cost impact on your business and learning where your rivals are supplying their products, you can efficiently manage the costs and margins of raw materials.
New Product Development
Understanding your competitors' pricing strategies on new products and knowing whether these products will threaten your products or service can help you take action.
Supply Chain Management
SCM is significant in product manufacturing and distribution with cost management. By studying your supply chain to find the best material sources, you can get material at an affordable cost.
Inventory Management
You can make value-driven decisions by monitoring changes in competitor inventory levels and finding what they do with extra inventory. If your competitors face an understocking, they may need to reduce prices to liquidate that stock and vacate the room for upcoming inventory stock.
Expanding Product Line
When a rival offers a unique product line, you can consider it a signal that it will offer the product to your existing customers. Learning your competitor's offerings will help you understand whether that new product line suits your business.
Onboarding Strategic Partners
Discovering the best strategic partners for the business can help you to take advantage of their customers and expertise, effectively growing your business. Strategic collaboration enhances both companies' profitability, even if a single partner controls most of the business share.
Conclusion
Brands and businesses grow by maximizing profitability using Competitive Pricing Intelligence, MAP monitoring, supply chain and inventory management, strategic partnerships, and more. You can do the same at Product Data Scrape using our data scraping and Competitive Pricing Intelligence services. Contact us to know more.
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