Strategy for dealing with copycat competitors, and positioning your business in the market.

[Bleu]

Hi,

I am new to the forum and this is my first post. I hope someone can share some insights or advice.

My wife and I own a small business that is about 5 years old. We have had double digit growth each year (even in a 'bad economy' although not without some foresight and careful planing) and we anticipate grossing a million this year. Its not without a lot of hard work.. the usual blood sweat and tears, along with our life savings. But we stick with it because we love what we do!

We were the first of our kind in the local market, and filled a niche that was greatly under-served. Apparently our success inspired others to start up some local competition. As they say, competition is healthy and it has kept us on our toes. We keep our ear to the ground and usually know well in advance when another coming on to the market. We plan for the worst and hope for the best.

Despite a half dozen or so competitors popping up, (and many quickly fading away) we have stayed on top. In fact, I credit them with giving us validation to shoppers who compare and find us a favorable choice and not just the only option. Currently just two direct competitors are in the market against us. Increasingly, they have been actively copying and mimicking us.

A few examples:
We announce a sale on a particular weekend - The next day they announce the same thing, but 10% lower.
We host a customer appreciation party - They host one nearly identical shortly after.
We introduce a new service for VIP customers on our blog - As we predict, they put up a blog post stating that all their customers are VIP's.

They have also recently been mimicking our facebook/twitter activities, with almost identical wording in status updates.

The latest tactic has been to send friend requests to all the friends and fans on our facebook accounts. First I just thought it to be a coincidence, but then I find this included people outside our industry, old schoolmates, relatives, even my own fake account setup to track marketing towards our target demographic. (I have since changed the privacy settings so they cant see a full listing of friends)

In a way, I see this as having them right where I want them -in second place, chasing us, just trying to keep up. I can respect some of the actions as being shrewd. Others, petty, desperate and unethical. (they have also posted fake negative reviews online) This last one, trying to befriend all my contacts, really irks me. Its beyond business, and literally personal, being my friends and family.

I'm debating posting a status update calling them out on it, although not by name.


So, I am hoping to find some advice. They haven't done anything illegal that I know of, and we are not the litigious type anyway.

What are the best ways to deal with copycats. How can we beat them at this game? What are some strategies for positioning your business in the market?


One way we have beat them at the game was with our blog. We launched a new site with a integrated blog. They soon added a blog. We doubled our efforts and took up the task of blogging daily. Within a month or two they fell back and faded to posting less than once a week.


Thanks for reading and for your insight. I look forward to everyones tips and ideas, be they specific or broad.

--Bleu

[Carlos™]

I went through the SAME exact thing, and only in just 2 years of running my website which is now a corporate company.

Everyone wanted to tarnish my website's reputation through and through - it all failed because I've been pre-established. I've been working hard, researching the market through and through.

1 year after they tried to tarnish my reputation, they mimicked EVERYTHING I did. I mean, everything. I started up a blog, a few months after they noticed it - they put their own. They now have a twitter, they want to be a network. I announced I have formed a corporate company (although, at the time, I only did a business license application - it got approved). They followed up with the same kind of announcement. The only difference is that they were doing LLC, and I'm incorporating my company. This actually tells me they don't have the full confidence to follow through with their plans or obligations.

So, my point is, keep going. Do not worry about these copycats. Copycats fail within' the first year they start it. They don't have the same qualities you do, or don't have the same kind of determination you do. They haven't even researched the market before goin' into business.

[StephenG]

I can feel for you. I was in the interior business for several years and a lot of my promotions were done with window coverings, mini blinds, verticals shades etc. I started near the begaining of hot streak these blinds were about to take off on so copy cats were comming and going almost weekly. At first I let it get to me seeing my slogans coppied, " one call does it all" "one stop shopping" and a few others we still see today. I decided all I could do was be the best at what I was doing and charge a price I knew I could survive at. I lost a few customers but gained a lot more loyal ones and my refferal business still keeps me a little bit busy almost 20 years after selling the shop. Sounds like you guys are on top of it, just keep doing what you are doing and do it better than they do. If there are venders involved put some pressure on them to recognise your position as a leader and don't be shy about looking for some favortism. Steve