Every successful brand should begin with a competitor analysis. It is a live document that discovers and assesses your competitors’ strategies.
It ascertains their strengths and shortcomings compared to your products and services. With this in mind, a competitive analysis may reveal your brand’s health as well as possibilities for improvement.
What is competitor analysis? How does it work?
To do a competitor analysis, you must first identify your industry’s competitors and examine their various digital marketing campaigns.
It is possible to utilize this data to discover your company’s strengths and shortcomings in relation to your competitors’.
You can do a comprehensive competitor analysis or focus on a single area of your competitors’ operations.
Who are my competitors?
You should keep an eye out for the following categories of competitors:
Direct competitors are the brands that spring to mind immediately when you consider your competition. They’re in your industry or neighborhood, and they’re selling similar product lines to yours. Your customer base is just like theirs. They’re targeting the same audience.
For example, if you own a meat shop, all other meat shops in your vicinity are your direct competitors.
It’s more challenging to identify competitors who operate in the background. The customers’ demands are met, but in a different way than your company does. There will be some overlap between your audience and theirs, but it won’t be a perfect match.
A supermarket may be viewed as a second-tier competitor to your meat shop. Although it does not specialize in selling meat products, it may provide low-cost meat delicacies.
Substitute competitors do not compete on the same level of product offering but rather on the level of customer expenditure. For example, coffee shops, delis, supermarkets, and bars compete for lunchtime trade in a particular area.
Competitors who are fresh to the industry are called “new entrants.” In some markets, new entrants will have an easier time establishing themselves than others.
Benefits of competitor analysis
Having a clear picture of your niche market’s landscape has several advantages, especially if the information is itemized.
For gadgets, for example, keeping an eye on your competitors’ items, price, staffing, and social media activity may be quite useful.
They can provide key insights into their business for a year and even more details over five years.
Conducting a competitor analysis has the following benefits:
- What you need to know about the marketplace
- Improved consumer profiling and customer service
- Forecasting the potential of a market
- Tracking of the economic environment
- Tracking competitors’ products and product development
- Competitor pricing
- Possible opportunities in the tertiary market
- Attracting new clients
- Identifying gaps in the market
- Tracking your market position
- Determining your competitive advantage
Regular competitor analysis can help your organization better adapt to its competitors, market, and clients.
The importance of comparing yourself to your competitors
Businesses of all sizes compete with each other daily. Emulation is the most straightforward way to make comparisons. Every so often, a phone maker releases a new flagship phone, and its nearest competitor does the same.
It’s something you’ll see a lot of. When a single firm unveils a new, intriguing, or inventive product or campaign, the rest of the industry quickly follows suit.
There is a de facto monopoly in the market for something of significant value or uniqueness provided only by your competition.
Replication of ideas and things are totally permissible if no property rights are involved. There is no legal barrier preventing a small firm from imitating a more successful rival’s product or business model. It’s this uniqueness that sets brands apart from one another.
As a result, emulating your competitors might be a mistake. A lack of uniqueness in your brand’s voice may lead to confusion, dilution, and a loss of market share.
Closely following your competition may lead to less time focused on what matters most: your customers.
How often should I conduct a competitor analysis?
To stay on top of your game, regularly keeping tabs on your competitors is critical to your success. The market is ever-changing.
You may not be as up-to-date on your competitors if you choose the yearly cycle. If you choose monthly, you may not have time to compare your efforts to those of your competitors.
That’s why it’s best to return to the drawing board every three months.
Competitor Analysis Expert
Keeping up with the competition and maintaining clients in a competitive industry requires constantly improving your strategy.
The value of competitor analysis cannot be overstated. Knowing your competitors is a simple yet efficient approach to keep up with their marketing activities.
It’s easier to develop a marketing tactic that grows your online presence when your competitor’s efforts are drowned out.
As part of a larger marketing plan, Lead Origin may aid you in doing a competitive study. Please don’t hesitate to contact us if you’d like to learn more about how we might assist your company.