Competitor analysis is a strategy that brands use to assess competitors in a bid to capture the market share and acquire knowledge on improving their products. As a business, you need to perform a comprehensive competitor analysis if you are to gain that competitive advantage in your niche.
This strategy can also help you identify and harness new opportunities that your competitors have not yet discovered. How do you do a comprehensive competitor analysis for your brand?
Well, let us delve in deeper and walk you through the key steps:
Classify your competitors
For starters, you ought to know that there are two types of competitors, namely direct and indirect competitors. Direct competitors compete with you for the same customer base and offer your customers the same product.
Indirect competitors provide identical products only to a different target market. So, you should start by researching and classifying these competitors. You can then monitor them closely. Some of them might shift from an indirect to a direct competitor.
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Make use of market research tools
Frankly, competitor analysis can be time-consuming, especially when you have many brands and with the evolving nature of business. Fortunately, there is excellent market research software to help you identify and discover more about your brand and competitors.
Some top research tools can help you save on time, improve the efficiency of your competitor analysis and provide you with invaluable insights.
Do a SWOT analysis
A SWOT analysis will help you determine your competitor’s weakest link and areas where they seem to be thriving.
You will also be able to identify opportunities that your competition has taken advantage of and uncover areas where you feel your competitor poses a threat to your brand.
Assess Competitor pricing, Customer service & Marketing strategies
Talking of doing a SWOT analysis, get to know what price your competitors are charging for similar products in your catalog. If you feel your products are superior, charge your clients a higher fee and explain why your products are worth the price tag.
However, if you think there is a need for more pocket-friendly products, you could charge less than the industry standards and reel more customers.
Research the unique perks your competitors offer and determine whether you can either match or outdo their standards.
You could find out how quickly your competitors respond to questions and negative comments on social media platforms such as Facebook and Instagram.
You can leverage social listening tools like Brand24, TalkWaker, Brand Moran, MediaToolKit, and the likes to find out what consumers are saying about your competitors. Use reviews and media mentions to gain insight into their customer experience and take note of any negative feedback.
You ought to also assess your competitor’s marketing strategies. You can do so by perusing through their website, social media pages, using media monitoring, and the likes. Find out if they post podcasts, webinars, or videos regularly and read through their FAQs section.
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A comprehensive competitor analysis will help you assess your space in the market. You can uncover the shortcomings of your competitors and provide you with a reference point against which you can measure your progress.
You will also monitor what your competition is doing right, enabling you to stay relevant and up to speed with the current trends.