We can say that competitive analysis is the basic steps in the marketing plan. If it was not the first step that should be taken when starting a business, it would not be enough to browse the websites of the competing company every once in a while to convince yourself that you are familiar with your competitors. There are steps you need to follow to get results from your competitors' analysis, and that's what we will talk about in today's article.
What is the analysis of competitors?
It is a business strategy to identify competitors, analyze their strengths and weaknesses, and study their products, sales and marketing strategies in order to create a strong marketing strategy that outperforms them.
Benefits of analyzing competitors
When you analyze your competitors, you monitor all the stages of their work. Throughout the process you will find weaknesses and strengths that you can take advantage of both. However, the weaknesses are more constrained because you will work to remedy the shortage they have in your company's products and services and thus attract your target audience.
For example, when analyzing competitors, you will know what distinguishes your products from their products and shop for them taking into account the unique value of your product. Or maybe develop new products that solve problems that your competitors have not noticed in the target audience. Studying the failed strategies of your competitors going down the same path will also save you a lot of time and money. Furthermore, competitor analysis provides you with a benchmark by which you can measure your growth.
How to perform the analysis of competitors?
You can perform competitor analysis with ease by following these steps that focus on both sales, marketing and strategies:
1. Identify competitors
Before everything, you need to know who your competitors really are. Divide competitors into two categories: direct and indirect.
And here's the difference.:
Direct competitors: companies that offer a product or service similar to your products or services and can be substituted for them, and also operate in the same geographical area as you.
Indirect competitors: companies that offer products that are not similar to your products but can meet the customer's needs and solve the same problem as your products solve for him.
When you perform a competitor analysis, you can focus on direct competitors; however, watch your competitors are indirect because they may turn to competitors directly any time.
2. Identify products offered by competitors
The core of any business is its products or its services, so you should start after selecting your competitors. Analyze their entire product line, in addition to the quality of the products and services they provide, analyze the prices and check if they have additional services for customers after purchase.
Here are some questions that you can ask at this stage:
Do competitors' sales depend on huge sales or purchases?
How much is their market share?
How does the company stand out over their competitors?
How does the company distribute its products or services?
3. Search for methods and results of selling competitors
At this phase, ask the following questions:
What does the sales process look like for competitors?
What channels do they sell through? Do they have multiple locations?
Are their businesses expanding or shrinking? Do they have partners?
How much is their annual revenue?
Do they offer discounts regularly?
What are the reasons that prompted some customers to terminate their relationship with them?
Answers to these questions will give you useful information about competing in sales and what you should do to improve your sales. You'll find the answers in the company's annual reports and by communicating with the clients of those companies.
4. Check prices with competitors and the privileges they offer
One of the main factors that intervene in the pricing of your products is the prices charged by your competitors compared to a similar product. If you are confident that your product offers more features than competitors, make sure that your sales representatives and marketing campaign managers are ready to explain these features that deserve an extra price. In addition to the above, check out the privileges offered by your competitors and try to find privileges that are superior to them, for example, they may offer a large discount, gift to regular customers or a trial version for a month, and choose a unique franchise that attracts the audience to you.
5. Meet competitive shipping costs
Did you know that exorbitant shipping costs are the number one reason shoppers leave the e-cart? Free shipping is a major advantage right now for anyone who wants to attract customers. Check shipping rates with your competitors. If most of your competitors offer free shipping while you cannot, you can offer features via other methods such as free gifts or rebates.
6. Look for how competitors market their products
Do your competitors have websites? You can measure your competitors' marketing strategies by analyzing their websites.
Do they have a blog? Do they share e-books? Do they spread instructional videos? Do they use podcast marketing? Do they support a particular cause?
7. Competitor content analysis
After doing the research in the previous step, you lose the content you found, do they have copious content? Do they publish regularly? How good is the content? If not of high quality will not lead to any interaction.
8. Check their accounts on the social media and other platforms
Check out the platforms where your competitors are. is there a platform you don't use? Might be useful for your business. You'll find your competition in at least two of the following locations:
Facebook
Instagram
Snapchat
Twitter
YouTube
Pinterest
Next, write down the following data about each platform:
Number of followers.
Share content (do followers comment and share posts).
The average of likes and catchphrases that they get.
9. Analysis of the level of companies in the content of competitors
How do your competitors attract customers? Check out comments, posts and likes on their platforms and focus on the following:
Do they have certain topics that are highly admired?
What hashtags do they use?
10. Conduct SWOT analyses to identify strengths, weaknesses, opportunities and threats
Allows you to SWOT analysis note strengths, weaknesses, opportunities and threats in your field. Ask the following questions:
What do your competitors do so well? (Products, content marketing, media...)
What does your brand stand out from your competitors?
What areas threaten your business?
SWOT analysis identifies your competitors ' strengths and weaknesses and makes comparisons; hence, you will discover new things to help you grow your business.
Now you are ready to start analyzing competitors and start your successful business. If you have questions, you can contact UFUK Foundation team. We provide our advertising, marketing and publishing services to companies, organizations and business owners with world-class standards, high quality and competitive prices.
Are you looking for models ready to competitors? You can afford this form prepared for you by UFUK Foundation team and just answer the questions in it to get a complete analysis of your competitors!
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