Every business will have its share of competition, albeit with its own competitive advantage. Most businesses are aware of their competition but fail to understand the core of their competition and analyze it to take the competition head-on. This is when a professional competitor analysis becomes relevant and helpful. Your business may be just a few months old or has got its feet wet over several years. A well-thought-out competitor analysis has long-term gains and will act as a strong tool to design a marketing strategy that helps sustainable business development over several years.
The objectives of competitor analysis are to study the changing market environment to predict market supply and demand. Based on this marketing research & feasibility study, adjust your business strategy to optimize for the new conditions.
What you Can Learn from competitor analysis?
- Identify your business’s strengths and weaknesses
- Understand your market
- Spot industry trends
- Set benchmarks for future growth
How to do a competitor analysis?
- Identify your competitors
- Direct, or primary, competitors
- Indirect, or secondary, competitors
- Create a competitor matrix
It provides an easy-to-read portrait of your competitive landscape and your position in the marketplace. The competitor matrix can be just a simple chart.
- Gather background information
- Company history
- Company size
- Company Revenue
- Focused Categories
- Target customers and audiences
- Their promotional activities
- Profile your competition’s target customers
- Your target audience refers to the specific group of consumers most likely to want your product or service, and therefore, the group of people who should see your site related information.
- The data used to define the target audience is usually:
- education background
- purchasing power
- social class
- consumption habits
Use scouting reports to create your marketing strategy
Consider competitive sports like cricket, football, etc and before the start of every big fixture, teams, coaches, team management and team owners spend an enormous amount of time, money, and talent analyzing past game footage and compiling a scouting report on every player in the opposite camp. This scouting report is competitor analysis in a business context throwing light on competitors, marketing strategies and comparing them with the strengths and weaknesses of your brand.
Competitor Analysis At Varying Levels
A competitor analysis can also delve into the marketing strategy adopted by competitors and dissect those strategies to unearth how they align with or contrast with your own strategies. Marketing research and competitor analysis can be done at a comprehensive level encompassing everything that a competing brand is doing or limiting the scope to just the aspects that impact your business. A clear and concise analysis of the strengths, weaknesses, opportunities, and threats that your business is experiencing, and comparing the findings with one or more competitors using the same metrics will make a good tool to devise your marketing strategy. A SWOT analysis of this nature can also be used to throw deeper light on how your business is faring within and against the competition.
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Apeiron Market Research and Consulting have consistently focused on providing accurate business and market intelligence tailored to what our customers need. We specialize in a wide range of services to help marketers achieve their goals through scientifically derived inputs. We specialize in market research, statistical data analysis by customer trends, feasibility studies, business plans, business expansion, and business consulting services.