Competitive pricing analysis

Transforming Data on Competitors’ Prices into a Competitive Edge for Online Stores

Today's e-commerce retail is evidently shifting because of customers’ awareness growth. UPS research states that 81% of customers pay much attention to the cost when shopping online.

What does it mean?

Pricing managers and category managers understand that a highly competitive market requires an effective pricing strategy, which can make the profitable store while still competitive. This is why an online retailer should react to market changes and quickly respond to competitors actions with cost adjustments on products, and product categories according to its pricing strategy and business goals.

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Competitor price analysis
SKU:
1,349
Stores:
12

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Defining goals of competitive price analysis

To rightly conduct price analysis and afterward the repricing you need to determine your goals and objectives and to counteract the strategies of competitors when they are willing to:

  • increase long-term or short-term revenue
  • increase or just maintain their market share
  • introduce improved products into the market
  • become the market leader
  • in case of intense competition—protect the market share
  • discover new markets for the products which already exist

The two divisions of competitive intelligence

Competitive intelligence is divided into two areas, active and passive. Passive or defending one is the process of protecting yourself from efforts of your competitors with the help of technical skills (for example, protecting your website from competitor’s web crawlers). Defence consists in this case in trying to determine what type of information competitors may be looking for, what data is competitively sensitive, and how to protect it.

Now when we’re clear about it, what about the active CI?

Establish Needs
Collect Data
Analyze Data
Communicate Intelligence
Take Action
Feedback
The CI process

Source: The Managers Guide to Competitive Intelligence. John J. McGonagle, Carolyn M. Vella

Active competitor price analysis

Competitor pricing analysis makes an “active” part of competitive intelligence. It aims at collecting data and analyzing it. It is also used as an input to improve decision making.

It’s the cycled process, which contains of constant data collection and processing, goal and strategy building, automation and—not less important—performance optimization and prediction.

Active competitive price analysis should be:

  1. Strategy-oriented, to support strategic-level decision making for the company management to better understand the competitive environment and what differentiate one competitor from another (categories promoted, marketing strategies, etc.)
  2. Tactics-oriented developed on current activities, it’s a detailed report on costs, sales and marketing events to optimize pricing and fine-tune marketing efforts. Data should be delivered and analyze here as fast as possible to:
    • determine what promotions competitors are running and where you should respond
    • get early alerts on competitors moves and market changes
    • improve a product and develop service and message targeting
competitor pricing analysis

Here is the screenshot of Competera dashboard providing you with the Price Index. This table will help you understand the cost of different products at the websites of your competitors and how their activities influence your sales.

Competera gives you:

timely data delivery (if data is required by 9 a.m. Competera delivers it at 9 a.m.), notifications on competitors cost changes and history analytics, price monitoring on SKU level.

Smart scraping/crawling
Smart scraping technology

that doesn’t trigger a website overload

Smart scraping/crawling
24/7 technical support

and client assistance

Smart scraping/crawling
Email notifications

and reports

Competitor Intelligence: how to do competitive pricing analysis

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The market leaders prefer to know everything about their main competitors and keep abreast of any market changes by employing a competitor intelligence of competitor price.

Regular competitor analysis is a great option for building, implementing, and maintaining an active pricing strategy for any online store.

Performance-driven pricing and category managers use competitive pricing analysis software to capture competitor insights.

Data crawling

Online fully automated competitor price tracking tool eliminates days of manual work and possible human error. It collects and updates information as often as necessary, with flexible configurations which allow for custom time settings for different categories

Competitive intelligence resources

Effective pricing managers use the most modern competitive intelligence tools to increase profits and gross margins of the online stores.

Usage of the most appropriate competitive analysis tools helps to gain a complete and definitive view of the market.

Competitor benchmarking is a great tool, which collects all the information on competitors’ price changes for all time.

Competera helps to analyze competitors' cost changes and gives access to a changelog within each separate item.

Providing competitive benchmarking, Competera compares the product categories, and highlights the products that need attention, and recommends specific actions for category/pricing managers.

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The process of developing and implementing a proper pricing strategy is easier and more efficient with Competera
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