Distribution competition: How to beat the competitors?

Distribution competition: How to beat the competitors?

As a distributor, you need to gain an edge over your competitors. But in a crowded market, with increased e-commerce channels and manufacturers attempting to reach the stores, distribution competition has become a challenge, as explained in our article about ¨”Why do warehouse needs change?“. Price is one of the cornerstones of a strategy to beat the competition. But it is a mistake to rely too much on it because you could end in a price war that, in the end, will harm your profits. In this post, I will explore some of the tactics and approaches distributors use to stay ahead of their competitors.

Distribution competition rule 1: Understand your competition

To beat your competitors, you must understand who they are, what they offer, and how they operate. Distributors or manufacturers can use different strategies and techniques to understand their competitors. To research competitors, distributors or manufacturers can take a variety of approaches. These are some of them:

• One method is to conduct market research, which may include analyzing industry reports, focus groups, and conducting customer surveys.
• Use online tools to track the search volume for relevant keywords.
• Gain valuable insights into competitors’ branding, messaging, and marketing strategies. You can do this by analyzing competitors’ websites and social media channels.
• Monitor competitors’ pricing and promotions. You can do this by signing up for their newsletters or using pricing tracking tools.
• Get an idea of their customer service by looking at customer reviews and attending industry trade shows and conferences.

Distribution competition rule 2: Incorporate technology

Technology has become an increasingly important tool for distributors to gain an edge over their competitors. With software tools, hardware, and online tools, distributors can streamline their operations, improve efficiency, and provide better customer service. Here are some ways that technology can help distributors beat the competition:

• Improved inventory management: Technology can help distributors track inventory levels in real time, making it easier to manage stock levels and ensure that products are always available when customers need them.
• Automated order processing: Automation tools can help distributors to process orders faster and with greater accuracy, reducing the risk of errors and delays and improving customer satisfaction.
• Better customer insights: With the help of data analytics tools, distributors can gain deeper insights into their customers’ preferences and behaviors, allowing them to tailor their offerings and marketing strategies to meet their customers’ needs.
• Online marketplaces: Distributors can expand their reach by selling their products in online marketplaces, which offer access to a vast customer base.
• Improved communication: Technology can help distributors communicate more effectively with their suppliers and customers, providing faster and more accurate updates on order status, product availability, and other important information.

Distribution competition rule 3: Embrace AI

Distributors or manufacturers can incorporate AI tools to analyze competitors and stay ahead of the curve in an ever-evolving marketplace. AI can provide insights that may be difficult or impossible to obtain manually. For example, AI can help identify patterns in competitors’ pricing, promotions, and product offerings, enabling manufacturers or distributors to adjust their strategies accordingly. You can use Sentiment analysis tools to analyze customer reviews and social media posts, providing insights into how customers perceive competitors’ products and services. You can interact with customers and gather valuable data on their preferences and behaviors, by using AI-powered chatbots and virtual assistants. You can also analyze competitors’ websites and marketing campaigns, identifying opportunities to improve website performance and optimize marketing spend. The graphic below illustrates some of the existing tools that you could explore.

Distribution competition rule 4: Store manager satisfaction

Store manager satisfaction is an essential factor that can impact a distributor’s success in beating their competitors. Store managers are key decision-makers who can influence which products are stocked, how they are displayed, and how they are promoted. A satisfied manager translates into repeat business, word-of-mouth referrals, and product placement in the shelves, sales growth, and brand loyalty.

I hope this article has been helpful to you. I will continue to post information related to warehouse management, distribution practices and trends, and the economy in general. If you are interested in this article or want to learn more about Laceup Solutions, please subscribe to stay updated on future articles.

There is a lot of relevant information on our channel. Check out this video on some strategies to steal customers from your competitors.