37. Competitor Pricing – Competitor PositioningBy Roger Bryan
Not only is it vitally important to know as to which segment of people or customer base you are catering to but it also vital that you know the same about your competition. Just like you would dig deep into analyzing who your audience are and what they want, it is worth every penny if you look deep into the strategies of your competition and include those in your business plan.
There are two aspects with respect to your competitor positioning which you can utilize to your advantage. The first is by highlighting the weakness of the competition, locating their customer base and highlighting ways to differentiate your business idea from the competition. By highlighting the fresh and new aspect of your business plan backed by accurate competitor positioning, you can craft out an impressive lead.
In your business plan, analyzing competitor positioning can also help you portray the efficacy of your product against the competition. For e.g. if you know that your competition targets a segment ‘A’ of the population, then you may chart out facts which convey that your product can cater to demands of customer buying ‘A’ and also another segment ‘B’ of the same niche. This would mean a wider customer base and increase investor confidence. This would also ensure that the risk factor is reduced with respect to your business plan.