Competitor analysis is necessary in order to: Create a product promotion strategy based on the strengths and weaknesses of competitors Analyze promising niches and bring a new product to the market Take a large market shareFind out the cost
— Price category and product uniqueness
— Brand metaphor
— Visual references
— Communication channels
— Competitor’s target audience
Positioning of competing brands on the map according to the most important parameters
In addition to the analysis of competitors, it is necessary to understand the current stage of market:
Parity points are associations that are characteristic of all products of a certain type or of several brands. They are not always unique and could be categorical and competitive.
Differentiation points - unique characteristics and advantages in relation to analogues of certain category
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To earn more without loss of a share on the market, it is necessary to carry out the analysis of competitors. This process begins with a research of the segment of the market, the description of all its elements interesting us.
For implementation of the full analysis of the competitive environment it is necessary to define:
- the main opponents in your target niche;
- the strategy of the companies with which your enterprise competes;
- ratio of parts of a niche which are occupied by your brand and competitors;
- unique selling proposition of the companies rivals in the market.
At the first analysis stage of competitors it is necessary as it is possible to study the potential buyer in more detail. It is important to know about preferences, the amount of income, the interests of the client what technologies he uses to what information sources he trusts. Having made a portrait of the potential consumer, you will be able to be realistic about target audience.
The content analysis — a research of actions of users on social networks and also their profiling can be the separate tool.
It is possible to apply to carrying out profiling at the same time economic, psychological, and sociological, and other cuts.
Use of models of grouping of consumers, positioning and advertising mechanisms will help to establish the volume of potential target audience, to define opponents in a competition for consumers.
For a research of the market different sources of information are used:
- state or public organizations (Central Bank, Rosstat, etc.);
- data on results of financial activity published by different firms;
- YandexWordStat — displays number of inquiries on the necessary subject;
- services for questioning and the analysis of «СA»: Surveymonkey, Google Forms, Qualaroo, Yandex. Audiences, Google Analytics, Yandex. Metrics, etc.;
- market analytics, bank websites;
- social networks (creation of advertising pages for the analysis of consumers and studying of coverage);
- Various profile agencies.
The listed sources will help you to understand, where to move further and also to determine market size.
Analysis of advertising platforms
At a research of advertising channels of the companies rivals it is important to find out what of them your opponents what target audience they attract use.
The analysis of platforms of advertising gives the chance to establish what of them apply competitive firms. It will also help to understand whether it is worth placing advertising in the sources used by rivals or it is better to develop other canals.
This analysis stage of the competitive environment assumes studying of a source of profit of your firm and opponents, calculation of the income brought by each client, establishment of a possibility of enticement of consumers at competitors. It is so possible to understand whether the enterprise will hold the positions what result we will receive as a result of fight against the competing organizations.
It is worth studying channels of involvement of buyers of firm’s rivals, specifying their approximate publicity expenses. Analyzing economy of opponents it is possible to understand what helps them to develop and go uphill to have an opportunity to repeat or even to surpass their success.
Sometimes it is more favorable to entice target audience at competitors, than to look for new, however it is possible to do it only in case of obtaining real benefit. At the same time market size is of great importance. Uninterested potential consumers can be attracted with good advertising.
Risks and restrictions
When choosing sales market where you plan to advance the products or services, there can be various nuances and risks.
The main aspects requiring attention at a research of market space:
- Time of increase in activity of buyers;
- Competition level;
- Difficulties in product sales in a certain region, existence of representations or need of addition of delivery in the list of the services;
- Features of weather conditions;
- Exchange rate (if depends on its changes how many the products will cost;
- Traditions of the population of the set territory.
The standard research of the competitive environment is based on SWOT analysis. Its advantage is considered a simple view of position of the enterprise, products, services in the industry. This method of strategic planning also helps to learn about weak and strengths of competitors, opportunities and risks because of what it belongs to the most known instruments of management of threats.
General check sheet
- Will reveal problems of clients which need to be solved.
- Will describe ways its decision.
- Will define audience with a similar problem.
- Will establish the size of target audience.
- Will select effective methods of advertising for involvement of potential consumers.
- Will calculate products economy.
- Will define the risks arising in operating time.
Without detailed research of the competitive environment you will go as if on the minefield, because analyze the market, using the advantages.