It is necessary to do a competitor analysis You may use their data to define your goals, marketing plans, tactics, new product lines, pricing, and more. Use competitor analysis to:
- Identify the strength and weaknesses of your convenience store competitors.
- Search for opportunities to distinguish your convenience store business from competitor.
- Set your product’s price.
The first step is to determine who your direct and indirect rivals are.
The direct competitors consist of other convenience store businesses that offer essentially the same products to the same people as you do.
Indirect competitors are other options that customers have besides direct competitors. These include supermarkets, grocery stores, pharmacies, and drug stores.
Once you’ve identified the competitors, concentrate on the direct, head-to-head competitors, since they are the most threatening to your convenience store business business — but keep an eye on the indirect competitors as well, just in case.
Provide an overview of each direct competitor’s business and detail their strengths and weaknesses.
You will be able to position yourself competitively in the market if you perform proper competitors research. Perform a SWOT Analysis to learn your competitors’ strengths, weaknesses, and competitive advantages in the following areas:
- Prices – Are they offering products on cheaper price than you, what value do buyers get for that price, and does shipping significantly raise the price?
- Quality – The quality products they provide, the perceived worth in the eyes of the customers
- Customer service – How they respond to their consumers, whether they treat them poorly or well, and the degrees of satisfaction customers show
- Reputation — The sum of everything mentioned above: their credibility, how loved the brand is, and the loyalty of their customers
The final section of your competitive analysis should include a list of your areas of competitive advantage. for example: Are you going to offer premium products? Will you offer unique products that your competitors don’t offer? Will you offer better pricing or will you offer greater customer support?
Consider how you will outperform your competitors and include them in this portion of your convenience store business plan.