For years, sales information has been used to define competition for consumer products. But when we bring products into the home and incorporate them into our everyday routines, competition is no longer determined by shelf location.
Competition is more accurately defined by a much broader range of products that can be used to satisfy our needs in the particular "situation" we are experiencing. For instance, how many times have you had something different for breakfast: coffee, a glass of milk or juice, cereal, nutrition bar, eggs, yogurt, toast with peanut butter and even leftovers from the night before. All these products compete for your attention at breakfast.
Similarly, when you are looking for entertainment what do you choose? Do you play video games, surf the web, write a blog entry, talk to friends or family through the phone, IM or email, read a magazine, watch a DVD, or even go to a neighbor's house for a cocktail? These are all forms of entertainment.
What you ultimately decide depends on what is happening in the environment around you at the time, your immediate needs, and how you expect to feel after the situation passes. This means the products that compete in any situation are almost limitless as anything in the home may be used whether or not it’s considered part of your brand’s category definition. In some instances, competition extends beyond the home if an acceptable option can be found at a near-by restaurant, retailer, neighbor’s house or convenience store.
For years, technology companies have focused on developing innovation through convergence. They look at what features and benefits new software and product platforms deliver and what should be integrated into their brands based on how they are used in everyday situations. We see this in the continuous evolution of technology products every 6 months. How often do you see a cell phone that just makes phone calls, PDAs that just replace paper planners or digital music players that just plays music?
Like technology companies, all consumer products have the opportunity deliver innovation through convergence by understanding the actual competition for common situations we all experience everyday.
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