A competitive analysis involves making a comparison of the marketing strategies of your competitors. It is used to assess the strengths and weaknesses of different marketing approaches within an industry. Marketing analysis helps companies determine the potential benefits and barriers within a specific market or industry, and allows brands to monitor how direct and indirect competitors are implementing their strategies and marketing tactics, their pricing and distribution.
It is an essential component of market research and strategic analysis of a company.
Your competitive analysis plan can vary widely depending on what you want to learn about your competition. You can perform competitive analysis around a specific aspect, like a competitor’s website, for example, or you can perform a high-level review of their overall marketing approach and resources.
First, let’s take a look at the different types of Australia WhatsApp Number List information that businesses look for in this type of analysis.
If you want to perform a high-level competitive analysis, you need to consider the following questions, which relate to the positioning of competitors in your market:
Who are their target customers?
What unique added value do they offer?
What are the main characteristics they highlight in their sales materials?
Where is their price range?
How do they approach the shipping of their products?
All of these points will help you analyze what separates your competitors from each other and observe how they work to differentiate themselves from the competition within your industry.
If you want to take it a step further, you can consider adding additional study items:
Elements of the customer experience (payment facilities, customer support, mobile UX )
Copywriting tactics (product descriptions, calls to action, etc.)
Social media approach (channels used, frequency of publication, engagement)
How to do a competitive analysis
Once you are ready to launch your own competitive analysis, follow the 6 steps outlined below so that your research is well structured.
1- Select from 6 to 10 competitors
To identify relevant competitors to include in your analysis, start by researching Google about your product and the business idea that defines your business.
To compile a list of diverse competitors that will give you a good overview of your competitive landscape, it is a good idea to limit yourself to a group of six to ten competitors.
Here are the main features you should find in these competitors:
They market similar products
They have similar business premises
They are aimed at a market with similar demographics and at the same time slightly different
They can be both new to the market, but also more experienced
2 – Create a spreadsheet
As you collect data on this group of competitors, organize it in a table or spreadsheet that can easily be shared and updated over time. In this document, you will compare and oppose competitors based on the following different criteria:
Social media engagement
Content used for lead generation
Offers for new visitors
Any other criteria worth comparing
3 – determine the types of competitors
Start working on your spreadsheet by categorizing each of your competitors as a primary or secondary competitor. This will help you better determine how to gauge them.
Direct competitors, or main competitors, i.e. those who sell a similar product to a similar audience
Indirect competitors are secondary competitors who offer a high-end or low-end version of your product to a different audience.
Tertiary competitors are brands that can target the same audience, but do not sell the same products as you or are not in direct competition with you.
4 – Identify the positioning of your competitors
Positioning is one of the most important marketing tools for a business. Good positioning helps you connect with a target audience and build loyalty over time. It also allows your business to acquire a message, a brand image, values and a global commercial strategy.
It is for this reason that you absolutely must understand the positioning of your competitors, and especially learn to stand out and forge a favorable reputation in the eyes of your customers. Differentiation also helps increase brand awareness and justify your pricing, which necessarily impacts your bottom line and bottom line.
In order to determine the positioning of your competitors, analyze the following key channels:
Editorial content of the website
When looking to identify the positioning of your competitors, ask yourself the following questions:
How do they describe their unique value proposition?
What story do they tell customers?
How do they position their products?
If you can identify the communication framework of your competitors, you will be able to position yourself differently and stand out more easily.
5 – Determine the competitive advantage and the offers of your competitors
Once you get the message from your competitors, take a look at their competitive advantage and their offering. Most businesses are indeed based on competitive advantage.