Competitor research is an integral part of business strategy, aiding in understanding the competitive landscape and identifying potential opportunities and threats. With proper implementation, it can be a game-changer for your business and give you a competitive edge in your industry. Let’s delve into this comprehensive guide on how to effectively conduct competitors’ research and leverage the insights to grow your business.
Understanding Competitors Research
Competitor research, also known as competitive analysis, is the systematic process of gathering and analyzing information about your direct and indirect competitors. This information could range from the competitor’s products, sales, and marketing strategies, to their customer engagement patterns and market presence.
Significance of Competitors Research
Conducting thorough competitor research offers numerous benefits:
1. Identifying Strengths and Weaknesses: It helps you benchmark your business against competitors, identifying your unique strengths and areas requiring improvement.
2. Market Understanding: It offers a broader understanding of the market, helping you grasp industry trends and customer preferences.
3. Spotting Industry Trends: It assists in identifying and adapting to emerging industry trends, ensuring your business stays relevant and competitive.
4. Setting Growth Benchmarks: It provides a reference point for tracking your business growth and progress against industry leaders.
Key Components of a Competitors Analysis
Competitors research usually revolves around the assessment of several key components:
1. Business & Company Metrics: Company overview, funding, revenue, customers, and other business metrics.
2. Product Features: Comparative analysis of product features, pricing, perks, and technology.
3. Customers & Awareness: Analysis of share of voice, sentiment, key topics, geography, and social media platforms.
4. Marketing Strategies: Detailed review of SEO, social media, advertising, influencers, content marketing, customer acquisition, sales, and customer service.
Conducting Competitors Research: A Step-by-Step Guide
Let’s outline a seven-step procedure to effectively conduct competitors research:
1. Identify Your Competitors
The first step is to identify your competitors, which can be direct, indirect, or replacement competitors. Use search engines, customer surveys, and market research to create a comprehensive list of competitors.
2. Create a Competitor Matrix
A competitor matrix helps to organize the data about your competitors. It’s a table or spreadsheet that allows consistent comparison of data across competitors, spotting larger trends and patterns.
3. Gather Background Information
Start with collecting basic information about your competitors, like company history, location, company size, etc. This information provides context to your research and helps in understanding the market landscape.
4. Profile Your Competitors’ Target Customers
Identify who your competitors are targeting. Understand their needs, preferences, behaviors, and pain points. Try to identify potential gaps between what your competitors offer and what the customers want.
5. Focus on the 4 P’s
Evaluate your competitors based on the 4 P’s of marketing: Product, Price, Place, and Promotion. This gives you a comprehensive understanding of your competitors’ business strategies.
6. Analyze Strengths and Weaknesses
Analyze the strengths and weaknesses of each competitor based on the collected data. Also, assess your own business’s strengths and weaknesses.
7. Monitor and Update
Competitor research is not a one-time activity but a continuous process.
Monitor the market trends, and competitor activities, and update your competitor’s research regularly to stay ahead.
Wrapping Up
Competitor research is essential for businesses aiming to thrive in a competitive environment. It offers valuable insights into the competition, helps to identify and capitalize on market opportunities, and aids in forming strategies that ensure business growth. By conducting thorough competitor research, businesses can gain a competitive advantage, optimize their strategies, and set a course toward business success.
