Competitor monitoring: Is your brand doing it right?
by Joanna Foyle on 26 Dec 2022 (4-minute read)
If you are one of the 40% of sellers on large marketplaces who also sell on your own
and/or store and wonder how you can compete with the right businesses to stay ahead,
got you covered.
• Understanding the types of competitors is crucial to identify the right
• Direct competitors offer similar products at similar prices and must be
• Indirect competitors offer different products that satisfy a similar need and
will give valuable insights into your customer base
• Replacement competitors offer entirely different products that your customer
spend on instead of yours and they should be monitored to prepare for market
• The retail industry is ever-growing and aggressively competitive. It’s not
to keep track of every competitor but is also not cost-effective or time
is crucial that you identify the right competitors to track and compete
• To accurately identify your competitors, you not only need to know your
product segment, and audience base, but you also need to understand the
competitors, the different factors you must track, and how often you need to
Competitors for retail business can be broadly divided
Let’s take a brief look at who they are, how they might affect your business, and
often you should monitor them to stay competitive, relevant, and profitable.
Direct competitors are those who offer products and services that are similar to
They are the ones you could quite easily lose your customers to if you don’t
continuously monitor their products, prices, and promotion strategy and counter
Some examples of direct competitors are Pepsi and Coke in the soft drinks
Tanquery and Bombay Saffire in Gin, and Mcdonald's and Burger King in the fast
Why monitor direct competitors
Direct competitors are the immediate threats to your business. So, it is crucial
monitor their price, promotion, and stock status and tweak your business
price and promotion strategy to stay ahead.
What to monitor
Key aspects of direct competitors that you must monitor are,
Product, so you are always aware of your direct
Price, so you can price your products competitively
Promotion, so your existing customers get the best
while also attracting new customers
Ratings and reviews, so you know what your
customers are thinking, expecting, and loving so you can learn from it and do
Inventory status, so you can stay aware of demand
and optimise your inventory and prices accordingly.
Since direct competitors are your business’ immediate threat, you must ideally
them on a daily basis so your response to any change is quick and effective!
Indirect competitors are those who offer products that are different from yours
target your audience and satisfy a similar need.
For example, a company selling skincare products is an indirect competitor to a
that sells make-up products. Both companies target people who want to look and
beautiful and confident. Another example of indirect competitors is restaurant
grocery stores or Amazon and Etsy/Instagram.
Why monitor indirect competitors
You need to monitor your indirect competitors to understand your audience better
inspiration from them since you are trying to convince the same people to buy
products and services. Additionally, while they might not be a major threat to
business right away, they could become a direct competitor when you expand your
What to monitor
Key aspects of indirect competitors that you should stay on top of are,
Sales and promotion tactics, since they are
audience and satisfy a similar
need, it could work for your business too.
Customer experience, this will help you understand
customer better and give them a
Price, because this will tell you more about your
Customer acquisition strategies, again since you
audience, their strategies can
be adapted to your business.
Although indirect competitors are not immediate threats, monitoring them can give
wealth of information that will help you make impactful strategic business
Track them on a biweekly or weekly basis so you do not miss out on any major
These are businesses whose products or services are entirely different from yours
your customers might choose to spend on their product instead of yours.
An example of replacement competitors are cinemas and streaming services. While
have to offer is entirely different in terms of cost, experience, etc. depending
situation (social, economic, political, etc) a customer might choose one over
and not both.
Why monitor indirect competitors
The main reason to monitor replacement competitors is to be aware of any major
the industry or segment so you can be prepared for the eventuality that your
may choose them and have a plan to recover your customers. You don’t have to
Way forward with competitor monitoring
Now that you have a fair idea of the types of competitors, it’s time to take out
list of competitors and start mapping your competitors as direct, indirect, and
replacement. Once you do this, you will be able to prioritise and spend your
more effectively to monitor your competitors.
The bottom line is, whether they are direct, indirect, or replacement
important to monitor them. However, monitoring all your competitors to the same
is not only impossible but also wasteful of your resources. Since your direct
indirect competitors have the most impact on your revenue, leveraging technology
effectively monitor them will prove profitable for your business.
Some exclusive features of Pricechecker can help
identify your top competitors and undertake the monitoring process in the best
possible. Match rate helps you to find how many competitors match the products
To learn more about how you can take advantage of these benefits check out our