Conducting a competitive analysis is an important first step if you want to improve your advertising. We have been the best advertising agency in Gurgaon by following this approach. This blog will walk you through the steps of studying your competitors’ strategies and using that information to improve your advertising.
In a small and regular business, the competition will be higher.
There’s why competitor analysis comes into the picture. In marketing, analysing your business is important but analysing the market and your competitors are far more important.
What is competitor analysis?
Competitor analysis or competitive analysis is the facts and data-driven research of your competitors’ business i.e. their strengths, weaknesses, assets, liabilities, and other resources.
It is the process where you compare your business with your competitors so that you can grow your business and add more benefits to your customers’ lives.
The objective of competitor analysis
To identify your company’s strengths and weaknesses
For analysing your competitors’ strengths and weaknesses, so you first know your own.
Taking feedback from your loyal and potential customers about your product or services, you can make a sheet of all points, where you’re good at, and where you’re not. Through competitive analysis, you can find out your position in the market.
After that, you not only have to work on your weaknesses but also improve your strengths. And for that, you can see what the others are doing for solving such problems.
To understand the market
There’s a very popular saying, “Not everything that glitters is gold.” It means not everyone around you, who is selling the same product or service is your competitor.
Well! You’ll profoundly identify your targeted market and customers, and do competitive analysis.
And for that study, you first question yourself how can our product benefit the customers or impact their lives?
After doing all this research you are able to understand your market as well as your competitors.
To be the bridge and fill out the gap
Through conducting this analysis, you are able to find out the exact gap between what your competitors are serving and what the customer wants?
And if you find that gap you can take the first move and stand out from your competitors.
Then accordingly you can improvise yourself and be that bridge to fill that gap.
To make strategies in future
Competitive analysis is also very helpful in making future strategies. Because data is a very powerful tool. You can use this data not in manipulation but in actually benefiting the customer.
After a perfect analysis accordingly, you can build new tactics for your business.
How to do competitive analysis?
Figure out your competitors
There’s a very popular saying, “Not everything that glitters is gold.” It means not everyone around you, who is selling the same product or service is your competitor.
Through the proper survey, you can finalise the main list of your competitors. There are mainly two types of competitors:
1) Direct competitors
Direct competitors are competitors who have the same product/services and the same targeted audience.
Ex: Maggie and Ching’s Chinese Noodles
2) Indirect Competitors
Indirect competitors are those competitors who sell different services but the targeted customers are the same.
Ex: We can say YiPPee instant pasta is the indirect competitor of Maggie.
Organise data in a structured fashion
Before you start competitor analysis, make sure you make an excel sheet where you stored all the data in a structured fashion.
Because without the proper organisation of data, it’s just excessive information.
Collect all fundamental information
Start your competitors’ analysis by gathering the basic information about your competitors. Personally check out their website, products, all social media platforms, blogs, news articles, etc.
Track their regular posts, and comments on these posts. Also, patiently understand their mission and vision statement.
To understand their present positioning clearly go through a history
Don’t miss out on the background details of your competitor. Do a quick research about their company’s history, where they’ve been started.
Learn about their company’s size to understand their market positioning.
Understand your competitors’ targeted customers
Understand your competitors’ customers. Ask questions about what they are serving where we are lacking.
Then you can find the small differences or gaps where the chance to fit in.
4 P’s of comparison
Now you have identified your targeted competitors it’s time to deep dive into the actual analysis of comparison.
The great marketer Philip Kotler had introduced the 4 P of marketing. These four P’s are actually the most powerful tool in marketing.
# Product
Compare your product with their product. And ask these questions:
· What are they actually selling?
· What are the features of their product/ service?
· What are the weak points of their product/service?
# Price
· What are they charging for their product?
· Do they also offer discounts and other coupons?
· What quality are they offering at that price? Does the quality of the product reflect the pricing range?
# Place
· Where and how do they sell their products?
· Are they reaching directly to the customer or do they involve the third party in between?
· Do they also sell their product online?
· Do they have different outlets or franchises at different locations?
# Promotion
· How do they promote their product/ service? What are the marketing strategies for promoting it?
· What’s your competitor’s USP (unique selling point)?
· How do they brand their product? Or what’s their brand story?
· What message do they give through their product on different social media channels?
