Do you want to enter a new market or start producing a new product? Do you see that the demand for your products or the flow of new customers is decreasing? Why is this happening? Competitor analysis will help answer these and many other questions.
Regular competitor analysis is necessary for several reasons
- This makes it possible to determine phone number library what is the competitive advantage of your company or product today.
- Market and competitor analysis will help you set the right price for your product. It will give you a clear understanding of which price segment your product currently belongs to.
- Competitor analysis will help you determine what trends and changes are occurring in the market, how the needs of your target audience are changing, and how your competitors are responding to them.
- It will help you create a marketing plan to promote your product or service on the market.
- It will show you which sales channels you need to pay attention to.
- Will help you create unique offers for your customers.
- If you are entering a new market or launching a new product, it will help determine how much demand there is for this product and what level of competition you will face.
Which parameters of competitors’ activities need to
be analyzed depends on the objectives of google business and local search the analysis and the specifics of your business. The most common indicators considered are: sales channels, pricing, assortment, loyalty program, additional services, product characteristics, market presence, marketing, advertising, etc. In fact, all publicly available information about your competitors is consolidated.
Who are the competitors and what are they like?
Before starting the analysis, let’s define who the competitors are. A competitive product or service is a product or service that occupies a part of the market and may be of interest to current or potential buyers. So, competitors are companies that offer such products or services.
When analyzing competitors, it is necessary to take into account that they are:
- direct – that is, those that offer a similar product on the market,
- Non-direct – these are companies that belong to the same category but offer different products.
- Indirect – these are companies that meet the same consumer need, but with the help of a different type of product. During a deep comprehensive analysis, it is necessary to take into account all types of competitors as much as possible.
For example, let’s take an online store that sells leather accessories (purses, business cards, etc.). Its direct competitors will be companies that offer the same products. Indirect competitors may be stationery stores that offer fabric or plastic business cards, key chains, money clips. Indirect competitors are companies that sell all kinds of gifts, since accessories are most often purchased as a gift.
Where to start with competitor analysis
First , formulate a goal. This will cmo email list help you understand what information to look for and what tools to choose for the job.
Second , you need to determine how many competitors you will analyze. This depends on your business and market, but typically between 7 and 15 major competitors are analyzed.
Thirdly , you need to determine what tools and instruments you have for analysis. You can hire a marketing agency, use focus groups or conduct the analysis yourself. Are you ready to use paid services for analysis, or will you look for information in public sources? Will you conduct control purchases, that is, physically monitor the quality of products and the level of service from competitors, or will you use only available digital marketing tools for these purposes. This depends on which analysis methods to choose and how quickly you can get the result.
Fourth , you need to determine what you will do with the results of the analysis. Are you ready to adjust your pricing, expand or narrow your product line? Will you focus on promoting specific products, or will you change your customer communication strategy and brand positioning?
