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Just want to make sure I understand you ... you have two sites
Site A and Site B
Site A has the desired keyword phrase in the domain name
Site B does not have the desired keyword phrase in the domain name
Site B ranks higher in the search engines for the desired keyword than site A does.
Correct?
Well not knowing anything about either of the sites it's hard to say why but here are a few things you should consider ...
How old are the domains? Google tends to favor older domains. Can't really fix this and magically make domain a older than domain b. But it is a deciding factor.
Does site B have a listing in places like Yahoo and DMOZ directory? That tends to help. Not a lot mind you but somewhat. If so, try and get domain name A listed in these places.
What is the page rank of either site? I don't want to put to much emphasis on this because time and again I've seen lower page rank sites get better placement than higher page ranked sites but all the experts swear up and down page rank matters so does site b have better page rank? If so, try and improve your page rank.
Does site B have better meta and title tags? Page design and amount of content plays a large part in your ranking so look closely and try and see what site a is doing different than site b.
We already know that site A has the relevant keyword in the domain name itself and site b doesn't so that gives site a an advantage. From there just look closely at what they are doing that you aren't and you should be able to spot a few things you can improve to push you above them.
Does site A have their own IP address? Sometimes "virtual" or "shared" IPs from web hosting companies can hurt you. In short, if you don't have your own IP, get it.
Does site b have more content than site a? Search engines love content! Make sure site a has more relevant content for the desired keyword phrase and that in itself should help push you up there.
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