Big budget campaigns from one’s toughest competitors tend to make marketers queasy, and rightfully so. How should one respond in situations like these – what if my competitor’s breakthrough campaign slices off a sizable chunk of my market share?
What should I do? Should I go on the offensive?
It is often easier said than done, especially when the marketing budget is already tied up in other plans. If I were to request for additional advertising budget, I would need approval from the top, and the C-suite would want to see something concrete before authorising multi-million-dollar campaigns.
Discounts and price slashing could be a viable option, but again, that is an extreme measure few are keen on as it will hurt the premium feel of the brand – not to mention the profit margin.
A common business challenge.
Let’s place ourselves in the driver’s seat – say we’re the marketing manager of one of Japan’s top-selling automotive brands in Southeast Asia. And hypothetically, our toughest competitor – another Japanese automotive brand – suddenly books 12 successive billboards on one of the busiest roads near our flagship showroom. To add insult to injury, they even got a giant hot air balloon that is visible from all parts of the city!
In situations like these, the urge to respond with grand spectacles can be overwhelming because one does not simply sit still when the competition is on a branding spending spree! Nobody wants to see their brand slide off the number one spot. So, we make calls to the flashiest agencies in town, giving them a multi-million-dollar budget, and hope everything will work out OK.
Now there is an issue with this scenario.
Traditional agencies are adept when it comes to reporting soft return-on-investments (ROIs) like brand awareness and social media engagement. But when asked about sales conversions, or even the change in footfall, such as the number of people coming into our physical stores, the room suddenly goes silent, and everyone is trying to avoid eye contact.
All this is normal, because traditional agencies are not built for meeting or reporting hard metrics – like increasing footfall into your stores by 70% or increasing sales conversions by 50% – they simply do not have the means or data to tell if ours or our competitor’s campaign is working.
But thankfully, we at ADA do. Thanks to the big data gathered using our proprietary telco-powered Data Management Platform (DMP) Xact, we are able to access granular data on customers, along with their demographic, persona, gender, age group, interest, income group, and beyond.
The best part: the data on Xact is not limited to your own consumer profiles – we have the data on your competitors’ customers as well!
Thanks to over 250 data scientists, industry experts, and machine learning engineers, ADA visualises and predicts the movement of both yours and your competitors’ customers using the Retail Business Insights Dashboards (Retail BIDs) – these were designed for the automotive, mall, and petrol industries.
In short, Automotive Business Insights Dashboard (Automotive BID) can see footfall resulting from your competitor’s campaign, amongst other things. For example, if their campaign is generating an increase in footfall, we can see a spike in traffic from our dashboard. If they are gnawing at your market share and attracting footfall that would normally be directed to your showrooms, we can see that too. This way, we can tell if your competitor’s campaign is working or not, and if there’s a reason to counter with another campaign.
Know what other players are up to.
Another beautiful thing about data is that anomalies and deviations from the norm are easily detected. Even if it this isn’t your typical ATL (above-the-line) campaign, we can tell if your competitors are running clandestine below-the-line promotions.
Here’s another scenario.
Let’s assume your competitor is an upscale European automotive brand instead of a Japanese one. The thing about posh brands is that their customer base is usually small, and they are part of an elite high-income group. In such cases, it is financially viable to create highly exclusive members-only events for networking.
Since such events are usually not publicised to the masses, if there is an abnormally large spike in the footfall to your competitors’ showroom as a result of a below-the-line, members-only activation campaign, we can let you know in real-time.
Now this might all sound a bit futuristic, so we’re happy to walk the talk. Feel free to get in touch for a demo, and we’ll be happy to show you what we can do.
These insights were drawn from the ADA Retail Business Insights Dashboards (Retail BIDs), a suite of solutions that provides actionable insights for retailers to compare their market share, customer behaviour, and footfall against their competitors by a geographic area.
These dashboards allow retailers to zoom in to specific areas to track changes in trends, consumer demographics, and personas to ensure the best targeting for marketing and sales strategies. These dashboards include data from automotive, mall, and petrol stations.