When was the last time you conducted a brand competitor analysis? In addition, do you know how to do it quickly and effectively?
If you aren’t certain, or if your last “study” consisted of a cursory look at a competitor’s website and social media presence, you may be overlooking crucial information that might assist your business expansion.
This comprehensive guide will teach you how to do a competitor analysis that will offer your company an edge in the market.
How Do You Conduct A Competitive Market Analysis?
Researching significant competitors’ products, sales, and marketing strategies is part of a competitive study. Conducting a competitive market study has numerous advantages, including fending off competitors and gaining market share.
To grasp how your competition works and find possibilities to out-perform them, conducting a competitive analysis can benefit your business strategy.
Your product will always meet or surpass industry standards if you keep an eye on industry developments and monitor your competitors’ products.
What Does Competitive Market Research Entail?
The primary goal of competitive market research is to locate and evaluate various key market indicators to better understand the distinctions between one’s own goods and services and those of one’s rivals. A solid sales and marketing plan is built on thorough market research. This research helps your organization stand out from the competition. What follows is an explanation of the steps involved in conducting an audit of your business.
Marketing Competitive Analysis: A Step-by-Step Guide
1. Make a list of your competitors
In order to accurately compare data, you’ll need to know who you’re competing against. It’s possible that what works for a competitor’s brand won’t work for yours. Where do you get the idea from? Identify your immediate and indirect “competitors.” Direct rivals are firms that offer a product or service that may be substituted for yours and operate in the same geographic area.
Direct competitors compete by offering similar products that do not satisfy customer needs or address the same problem as those provided by indirect competitor analysis.
It appears to be a straightforward matter. However, these two terms are frequently misunderstood. The only people you should be comparing your brand to are those who are directly competing with you. This is a mistake that many companies make.
2. Find out what your competitors are selling
Starting with the product or service you’re selling is a fantastic place to begin. Analyze all of your competitor’s products and services and the quality of each.
Take a look at their prices and any discounts they may be offering. What are some things to think about?
- Is this a cheap or expensive service?
- How much of their business is based on bulk purchases?
- What percentage of the market is theirs?
- What do their ideal clients look like, and what do they need?
- For online purchases, are they employing different pricing strategies?
- What sets this business apart from its rivals?
- In what ways are they able to sell their goods and services?
3. Research competitors’ sales strategies and results
When conducting an in-depth competitor analysis, there are a few things to keep in mind. How can I know if I’m getting a good grade?
- What are the steps in the sales process?
- How are they promoting their products?
- Is there more than one site, and if so, what are these advantages?
- Is this a growing company? Reducing in size?
- Is there a way for me to become a reseller for them?
- Why don’t their customers buy from them? Why did they sever their business relationship with the company?
- How much money does the company make each year? What about the overall dollar amount of sales?
- Is it common for them to offer discounts on their goods and services?
- How much involvement does a salesperson have?
To assist you to understand how competitive the sales process is and what information you need to give your sales agents to compete in the final buy stage, here are some helpful bits of information for competitor analysis:
4. Look into competitors’ pricing and features
You need to know how much your competitors charge for similar products or services to price your product effectively.
If you think your product or service has better features than a competitor’s, you may want to raise the price. Make sure your salespeople can explain why your product is worth the additional cost if you do this.
You may believe that there is a need in your sector for more cost-effective items. As a result, you may try charging less than your competition to attract customers who aren’t wanting to spend a lot of money on a good product.
In addition to other considerations of competitor analysis, it’s vital that you stay up to date on industry pricing to ensure that you are pricing your product in a way that feels acceptable to customers.
If your competitors are offering perks, look at how you can equal such perks in order to compete. Competitors may, for example, provide a substantial referral discount or a free trial version that lasts for a whole month. If you’re losing consumers because of these perks, you may want to think about how you may match or create unique perks of your own if your competitors don’t.
5. Make sure your delivery charges are competitive
As you may have heard, cart abandonment is most commonly caused by high delivery costs. Free shipping is a big feature that can entice customers to choose one brand over another. Make sure you’re meeting (or exceeding) the shipping costs of your competitors in any industry where shipping is a big component, such as eCommerce.
A free delivery may be viable for your organization if most of your competitors do. If free delivery isn’t possible for your company, consider other methods to stand out, such as loyalty programs, holiday discounts, or social media freebies.
6. Analyze your competitors’ marketing
The quickest approach to learning about your competitor analysis marketing strategy is to look at their website. If you notice something, make a note of it and save the URL for later use:
- Is there a blog for them?
- Are they writing white papers or e-books for their customers?
- Whether or if they have videos or webinars, I’d like to know.
- Is there a podcast available?
- Is static visual content like infographics and cartoons being used to convey their message?
- If so, where can I find it?
- Do you have any featured articles?
How Does Your Company Rank in Comparison?
You must first establish a standard against which to measure your competitors. Performing a SWOT analysis is made easier as a result of this. Use the measurements to evaluate your competition to look objectively at your business, sales, competitor analysis, and marketing reports.
Keep track of this data the same way you would for a rival and use it as a benchmark for future comparisons.