Brand competition can be defined as the competition between companies offering a similar product or service lines in the same target market and to the same target audience with the goal of having a higher market share, increased revenues, huge profits, and growth in comparison to the contemporary brand in the marketplace. One of the most important aspects in developing and implementing a successful company strategy is to thoroughly research and understand your brand’s competitors.
The element of Brand Competition functions as a driving factor for organizations to increase their sales volume, earning larger profits by maximally employing the 4 P’s of marketing, namely product, pricing, promotion, and location.
In every industry and marketplace, businesses face competition on a daily basis from established brands in the market, as well as new entrants. This forces companies to offer products and services that are innovative in both conception and execution in order to gain a competitive advantage and a factor of customer loyalty that lasts for an extended time.
With ever-increasing Brand Competition, market dynamics are constantly shifting, and brands must not only survive but thrive in order to do so. Top branding agencies in Malaysia must know the strengths and weaknesses of their competitors and plan their marketing, brand strategy, and overall business strategy accordingly so that the company’s objectives are met in an optimal and successful manner.
There is a lot of brand competition out there. However, we must make a clear distinction between business competition and brand competition. When a local firm competes only on the basis of pricing, that is all that is happening. There is brand competition when companies tell their customers that they are better than their competitors.
The Coca-Cola Company and PepsiCo, for example, have had a long-standing rivalry referred to as the “Cola Wars,” in which each company’s product lines, particularly its flagship colas, Coca-Cola and Pepsi, have been targeted for direct competition. As the competition heated up in the late 1970s and early 1980s, the term “Cola Wars” was coined to describe the resulting cultural phenomena.
Competition from established competitors and emerging entrepreneurs who continuously coming up with new and innovative ideas pose a constant threat to the firm due to the fact that brand competition is a constant concern.
As a result, it is critical for the brand to conduct frequent market research and studies to stay abreast of new competitors, what products and services they are offering, their brand strengths, and the features and attributes of their offerings, as well as what their unique selling propositions are.
In addition, the brand must keep a close eye on government regulations and legislation that could have an impact on business operations, as well as research into how customers’ tastes and preferences are changing.
No matter what the brand’s unique selling proposition is, it should always stay true to the brand promise that has helped the brand reach the pinnacle of success, whether it offers high-quality products, affordable products, or is recognized for providing excellent levels of customer service experience.