Why is Brand Competitor Analysis critical?
Competitor analysis is the process that involves defining your competitors, gathering information about them, and using that information to supplement your strategies for success. Defining your competitor’s can often be traced back to the early days of research usually completed before a brand launch.
A quick scan over social media and websites
Businesses employing this “quick scan” approach fail to obtain the insights that a complete competitor analysis offers. Competitive research is entirely legal. It is about collecting information available in the public domain, from financial filings to reports compiled by governing bodies. You can also find articles written about companies in local newspapers or other sources like the companies themselves. Nowadays, most of the needed information is available everywhere. All you need to do is look around carefully.
Competitor analysis can help identify threats.
The best way to approach a competitor analysis is to identify your business rivals and understand how they position their brand; it helps discover the gaps that you can take advantage of, sometimes known as the gap analysis.
Where do I start with Brand Competitor Analysis?
Every single company has that dreaded competitor. No matter what you do, they always seem to follow your lead, use your ideas, and poach potential customers. Whether you are a local, national, or international brand, there are probably groups of people in your company, mainly from your sales and marketing team, who can quickly rattle off your top competitor’s list as well as their USPs. Utilising their services is crucial. You are competing with dozens, if not hundreds, of companies going after the same group of customers.
There are two ways to approach your competitor analysis definition.
From your customers’ point of view
Step into your customer’s shoes and analyse from their perspective to focus on who they would consider and their flaws and weaknesses. We try and think as they would plan out their path to purchase as they go. When you find a competitor’s brand that your customer might choose over you, look at what makes them shine over you, then you can align your brand’s message to make it more appealing to the same demographic.
From your competitor’s point of view
Secondly, examine your competitor from the perspective of someone within their company will help you to understand their identity, positioning, USP and brand as a whole. The story behind their brand, their brand assets or the steps they have taken over the years to cement their brand positioning.
How to conduct a Competitor Brand Analysis?
Who are your competitors?
To perform a competitor analysis, you have to know who your competitors are.
If you fit into a new category and do not have any specific competitors yet, consider these questions. Who is the closest competitor option that your customers are currently viewing? Are there any other brands or products that are similar in tone? Think about which other brands could pose a future threat in the future.
What are your competitor’s strengths and weaknesses?
A simple SWOT (Strengths, Weaknesses, Opportunities, and Threats) breakdown of each brand highlights your company’s internal strengths and weaknesses—things that you have some control over and can change.
What are your competitors doing?
How are your competitors activating their brands? What kind of campaigns are they running, and on which channels? What language are they using? What prominent language are they avoiding? If you Google your competitors, who do you find? Take a walk along your customers’ path to purchase. Who else do they come across on Truelocal or Facebook?
Finally, look inwards.
How do you – or could you – accomplish things differently? What are your strengths when measured against your competitors? What is your main differentiator? Is it still unique when measured against your competitors?
What are the benefits of Competitor Analysis?
Competitive analysis is a big wide world out there. Getting a view of the landscape your brand lives in helps your brand live long and live strong.
What else is out there? Who else do your customers turn to if they do not choose you? It is not a once-and-for-all exercise, though. It would help if you kept watching your competitive landscape.
Identify a new niche (or chasm)
The marketplace and broader world are constantly changing, and competitor analysis can highlight new areas to align your product or service with your customers’ needs. This search for a breakthrough opportunity – or some competitive advantage – requires understanding both customers and competitors.
Acquire new customers and keep the ones you have
During a competitor analysis, you get time to think about acquisition and retention. For example, how are your competitors winning new customers or retaining them? What could you do to win customers from your competitors now that you have this broad view of the competition?