Introduction
As an entrepreneur, we have always realized that being in business means being competitive among others. Unquestionably, value and appeal are always uppermost in people’s minds. Whether you are the biggest kite in the sky or not, you need to know how your competitors operate in the market.
Do you want to know their secret sauce? How do you do that?
Well, marketing analysis is the answer! Here you examine and identify information about a business or product while assessing its individual merits and shortcomings.
Do you know analysis and researching your competitors can reveal very insightful particulars that you might have overlooked? In fact, this information can help your business grow significantly and bring in new customers. Knowing your competitors helps you stay a step ahead and creates an awareness of their inaccuracies.
Well, many entrepreneurs conducting competitive analysis try to comprehend how their product, brand, or business is positioned in the market. How do they build a strong online brand? They’re trying to understand: “How do our product lines compare? How does our pricing compare? How does our distribution model compare?” Ultimately, these questions can be answered by completing a competitive analysis.
In today’s jam-packed marketplace, you want to give customers a reason to choose your brand over anyone else. A competitive market analysis defines effective ways to reach your customer base, unfold opportunities to outperform the competition and identify where your strengths and resources are most in demand.
Now, on to…
What is a Competitive Analysis?
Competitive analysis is the process of acquiring, analyzing, and comparing data on your competitors in relation to your business. Businesses do competitor analysis for many reasons—branding, digital marketing, online market strategy, SEO, pricing, product/services, website, etc.—and you can certainly utilize it for UX and conversion optimization as well.
If you invest in competitive analysis, you will reap the rewards of legibility and conviction. Your competitive analysis is unbeatable if you wish to respond to inquiries like:
- What is the specialty of my business? What makes it unique?
- What do customers think of my business compared to competitors?
- How is the user experience of my website compared to competitors?
Comprehensive, regular competitive analysis can yield a wealth of benefits, including usability insights, design advantages, a stronger value proposition, and of course, generating testable hypothesis ideas.
Bearing the above pointers in mind, here are five steps to running a great competitive analysis:
How to Conduct a Competitive Analysis? Let’s Explore…
Recognize Your Competition
Finding out who your competitors are is the first step in any competitor analysis. Start by scanning your market for businesses that offer goods or services comparable to yours. It is important to take into account both direct and indirect competitors.
Businesses that are your direct competitors offer the same products or services that you do. In contrast, those that are your indirect competitors offer products or services that are comparable to yours but not necessarily the same.
Once you’ve determined who they are, list the names of your competitors and note any pertinent information such as their size, location, target market, and market share. Using this knowledge, you will be able to understand the competitive landscape better and identify any potential threats.
Analyze Their Website and Seo Content Focus
The second step in the process involves a more in-depth analysis of your competitors’ websites. Your competitors’ websites can provide you with important details about their market position, strategy, and messaging. The elements listed below require your attention:
Website Design & User Experience
Consider the website’s look and feel, navigational simplicity, and overall user experience. Describe any features or functionality that make them stand out from their competitors.
Content
Check out their published blogs, articles, videos, case studies, and whitepapers to see what kind of information they’re providing. Determine any content strategy holes by analyzing and exploiting their band message and tone of voice.
Social Media
Determine whether they are active on social media, how many followers they have, and how engaged they are with their followers.
Products & Services
Pay close attention to the products and services that are offered, as well as the prices, the way they are packaged, and any special deals or discounts that might be offered.
You can spot any areas of their websites where they are succeeding and any gaps that you can fix by examining those of your competitors.
Evaluate Their Online Marketing Approach
The third stage of conducting a competitor analysis is evaluating your competitors’ marketing strategies. As a result, you’ll better understand their position in the market and the brand voice they’re using to appeal to their target audience.
Analyze their digital marketing and advertising campaigns first. Look for any trends in their communication and note any specific words or phrases they frequently use. To analyze their organic and sponsored search traffic and determine any keywords they are focusing on, you can also utilize tools like Semrush or Ahrefs.
Next, evaluate their online presence. Take a look at the posts they make, how frequently they do so, and the levels of participation. Determine any tactics they may use to engage with their followers and grow their following.
Lastly, consider any sponsorships or activities they are taking part in. Evaluate the success of these activities and look for any trends in the events they support or attend.
Identify Their Abilities and Shortcomings
After conducting an in-depth analysis of your competitors’ websites and marketing strategies, the next step is to assess their business strengths and weaknesses. This will help you to identify any opportunities to differentiate your brand and gain a competitive advantage.
Start by analyzing their strengths. Consider their unique selling proposition, any awards or accolades they have received, and any features or functionality that set them apart from their competitors. Identify any areas where they excel and that you can learn from.
Next, evaluate their weaknesses. Look for any gaps in their product or service offerings, any negative reviews or feedback, and any areas where they are not performing well in the market. Identify any areas where you can capitalize on their weaknesses and gain a competitive advantage.
Build Your Marketing Strategy Plan
The final step in conducting a competitor analysis is to use the insights you have gained to develop your strategy. Based on your analysis, identify any areas where you can differentiate your brand and gain a competitive edge. Consider the following:
Product or Service Offerings
Identify any gaps in your competitors’ offerings and use this information to develop products or services that meet unfulfilled needs in the market.
Brand Voice
Use the insights you have gained from analyzing your competitors’ messaging to develop your brand voice and brand strategy that sets you apart from the competition.
Pricing
Analyze your competitors’ product or service pricing strategies and use this information to develop a pricing strategy that is competitive and appealing to your target audience.
Promotions & Discounts
Consider any promotions or discounts that your competitors are offering and use this information to develop your own promotions and discounts that will attract customers.
Online Platforms
Make a splash on social networks; yes, social platforms are an essential way for users to interact and share their content, but everyone utilizes it a little differently. So, how do they show up on social platforms? What do their profiles say? What are they posting and reposting? How frequently? Do they use photos or images?
Equally important, who is following them? Who do they follow? In fact, every social media platform has its own criterion, so check out the similarities and differences between YouTube, LinkedIn, Twitter, Instagram, Facebook, Pinterest, and Snapchat.
Use these insights you have gained from analyzing your competitors’ online presence to develop the online marketing strategy that engages with your target audience and sets you apart in the crowded marketplace.
Conclusion
In summary, performing a competitive analysis is an essential first step for every company or brand that wants to stay one step ahead in the market. You can gain a competitive edge and set yourself up for market success by identifying your competitors, examining their websites and marketing tactics, determining their strengths and weaknesses, and devising your strategy.
Keep in mind that this is a continuous process, so it’s crucial to keep an eye on your competition and adjust your plan as necessary. Why do you wait until your competitors launch their new products or services before changing your strategies?
While you can analyze by seeing how the results of your competitive analysis fit in with your business marketing strategy plan. Moreover, you may identify a new area of opportunity—a “sweet spot” you can capitalize on or a gap you can make to take your business to sky-high heights.
Do you need some more guidance on conducting your competitive analysis? Jay Mehta, a successful digital marketing entrepreneur, can provide you with practical solutions and personalized advice, empowering you with the information and tools to manage each function of your business confidently.
