If not for competition, the quality of goods would be much lower, and the price for them is significantly higher. It is thanks to competition that the market economy develops. In order for a firm to feel comfortable in this flow of goods and services, it is necessary to conduct a competitor analysis from time to time. With its help, you can eliminate the shortcomings of your product, as well as look for new ways to solve emerging problems.
Instructions
Step 1
Decide exactly who your competitor is. There are direct and indirect competitors, and both must be taken into account. With direct competitors, everything is pretty clear: these are companies that have the same target audience as you, and operate with you in the same production or sales area. Indirect competitors may produce a completely different product, but your target audiences will overlap. For example, you are a soda water producer. Your direct competitors will be other soda companies. But the producers of iced tea, juices, mineral water, etc. are indirect competitors for you.
Step 2
Check out the range and range of products offered by competitors. Carefully label the top products and the ones that are marginally popular. Check out the company's pricing policy. You must know the prices for each product. Based on the data obtained, it will be possible to conclude what the buyers are more guided by when purchasing competitors' goods.
Step 3
Determine the market share of each of the competitors. You must determine which market segment your competitor is occupying. Check out the sales figures. Do not forget to pay attention to the ways of marketing the finished product.
Step 4
Analyze your competitor's corporate identity. This is extremely important if you are just going to enter the market. The corporate identity includes colors, logo, slogan, uniforms, etc. Approach the problem psychologically. Watch how this or that color works, whether the slogan is easy to remember, what associations the logo evokes.
Step 5
Track where and how much your competitors are placing their ads. Perhaps their success depends on competent media planning, and not at all on the quality of the product. Analyze which communication channels are prevalent and which are not used at all.
Step 6
Find the strengths and weaknesses of your competitors and apply the information to the good of your company. For example, the weak side of a competitor is insufficient work on the formation of the image of a socially responsible organization. You can grab onto that gap and position yourself on that side. The main thing is to give the consumer something new, something that will set you apart from the general background.
