- October 27, 2016
- Posted by: Madrigal Admin
- Category: Tender Success Blog
When you put together a tender response you must have a tender bid strategy. The fundamental objective of a bid is to sell your product or service to one very specific client. It is not just a checklist of compliance with the RFT but a sales document. It is a marketing strategy with only one client.
Research your client for your tender bid strategy
Research is an essential part of a tender bid strategy. You need to collect information about your client, such as its tendering history, its public image, and its published policies. This research may reveal underlying buying behaviours and preferences that are not apparent in the documentation (such as a history of poor probity or high variation costs which will mean they want to avoid these risks in the future).
Determine your strengths and weaknesses
Try to objectively look at your strengths and weaknesses in delivering your product or service to meet the client’s needs. Your strengths are highly important in developing your strategy but knowing your weaknesses is even more important. If you can identify your weaknesses you can build your strategy to counteract any perceptions that the client may have about your ability to deliver.
Analyse your competitors
You may know who your competitors are in the bid process. Identify them at site visits or at the proposal briefing. You will not know definitely who is bidding but you should be able to get an approximate idea. Create a list of the strengths and weaknesses of your competitors to help determine where you have an advantage and what you need to do.
Characterise the environment
There are several other factors that can have an impact on the tender bid strategy. In particular situations environmental factors can have an affect on the organisation’s success. One way of assessing the external macro-economic factors is to use the PEST Analysis, an acronym for political, economic, social and technological factors.
Competitive advantage is key to your tender bid strategy
Once you have determined the clients needs, the strengths and weaknesses of you organisation and your competitors and the environment you are going to be delivering your product or service you can determine your competitive advantage. Your competitive advantage comes from: what you can offer that no one else in your industry can do or what everyone does but that you do that is clearly better. Is it better quality, lower price, higher value, lower risk or faster delivery?
Remember that every tender is different and that your bid strategy has to be developed and adapted for each proposal. Madrigal Communications can help you to create a winning bid strategy. Contact us, we can help.