It is necessary to do a competitor analysis. Because you may use their data to define your goals, marketing plans, tactics, new product lines, pricing, and more.
4 Use competitor analysis to:
- Identify the strength and weakness of your vending machine business competition.
- Search for opportunities to distinguish your vending machine company from competitors.
- For setting your product’s price.
The first step in competitive analysis is to determine who your direct and indirect competitors are.
The direct competition consists of other vending machine businesses that offer essentially the same services or to the same people as you do.
Your indirect competitors are other options that customers have to purchase from you that aren’t direct competitors.
This includes grocery stores, pharmacies, and quick-service restaurants.
Once you’ve identified the competition, concentrate on the direct, head-to-head competitors, since they are the most threatening to your vending machine business— but keep an eye on the indirect competition 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 competition research. Perform a SWOT Analysis to learn your competitors’ strengths, weaknesses, and competitive advantages in the following areas:
- Prices – Are they offer lower prices or more costly than you and other competitors, what value do buyers get for that price?
- Quality – Are they offer premium products, 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 excellent customer service culture, highly competitive prices, reliable and easy to use payment option or Will you provide superior products?
Consider how you will outperform your competitors and include them in this portion of your vending machine business plan.