Competitor analysis as a crucial step in marketing strategies

Competitor analysis is the fundamental of marketing strategies. 

Whether creating a new brand or working to improve your existing brand’s performance and increase your profits, you should first consider evaluating your competitors’ strengths, weaknesses, and other factors. 

Below, we will explain what competitor analysis entails and how you can perform this step yourself.

What is meant by competitor analysis in marketing? 

It is a crucial step in strategic marketing planning, undertaken by every marketer or brand owner. 

It begins with studying market trends and competition, identifying competitors, analyzing competitors’ market share, examining market data, and monitoring competitors.

This is done through various methods such as:

• Market surveillance.
• Reviewing competitors’ strategies.
• Utilizing technology for competitor analysis.

3 Types of Competitors to Consider in Your Competitive Strategy:

1. Direct Competitor: 

This competitor offers the same product or service as you and targets the same audience, typically within the same geographic area.

2. Indirect Competitor: 

This competitor provides a product or service similar to yours that could serve as an alternative but is not identical. 

They may target the same audience as you or a different one.

3. Potential Competitor: 

This competitor offers a product or service related to yours and may, in the future, develop their brand to provide the same as you alongside their existing business. 

Thus, they can become a direct or indirect competitor.

             Therefore, you should always be engaged in market and competitor research.

How to Identify Your Competitors?

Identifying your competitors is the first step in competitor analysis. 

For instance, before analyzing competitors’ strengths and weaknesses, you must first recognize their existence through:

• Researching Brands: 

Look for brands that offer the same products or services as you.

• Geographic Location: 

Identify brands in the same geographic area as your brand.

• Customer Opinions: 

Gather and consider customer feedback.

You can also identify competitors through digital competitive analysis by:

Online Research: 

Search for brands on the internet.

Keyword Analysis: 

Investigate the keywords they are targeting.

Digital Tools: 

Use AI-powered tools for assistance.

After analyzing the market and competition among different brands, you should have identified your competitors. 

Additionally, you should categorize them into direct, indirect, and potential competitors if you find them.

With this information, you will be well-prepared to start your competitor analysis.

What Are the Steps in Competitor Analysis?

While competitor analysis cannot be confined to a fixed set of steps, certain key procedures ensure competitive differentiation. 

Here are some essential steps:

1. Identify the Competitor’s Product or Service:
   • Understand all aspects of the competitor’s product or service, including quality, price, and other attributes.
   • Compare these aspects with what you offer to identify areas for improvement.
2. Understand Competitor Sales:
   • Knowing your competitor’s sales helps you understand their marketing strategy and target audience.
   • This insight allows you to exploit market opportunities and outperform your competitors.
3. Analyze Competitor Content:
   • Examine the language, terminology, and presentation of their content on social media and other platforms.
   • Use this analysis to develop your own content strategies, considering engagement metrics and customer feedback.
4. Evaluate Competitor Pricing Strategies:
   • Research the pricing for each product or service your competitor offers.
   • Be aware of the quality and benefits provided at those prices to adjust your offerings accordingly, even if your prices are higher.
5. Study the Competitor’s Website or App:
   • Digital competition analysis is crucial as most customers now shop online.
   • Analyzing your competitor’s online presence helps you identify their digital marketing strengths and develop your own strategy.

Read more about : E-Marketing and Its Impact on Traditional Marketing

6. Conduct a SWOT Analysis of Competitors:
   • SWOT stands for:
     • S – Strengths
     • W – Weaknesses
     • O – Opportunities
     • T – Threats
   • Create a SWOT table to analyze your competitors’ strengths, weaknesses, opportunities, and threats. 
   • This will provide a comprehensive view of where they stand in the market.

By following these steps, you will have completed the fundamental aspects of competitor analysis, regardless of the market you are in.

:The Best Tools for Competitor Analysis

There are many tools available, each serving a specific purpose, but all are aimed at helping with competitor analysis and identifying competitors advantages. 

Some of the top tools include:

• SEMRush: 

Provides comprehensive data on SEO, PPC, and competitor strategies.

• Ahrefs: 

Offers in-depth insights into backlinks, SEO performance, and content analysis.

• Similarweb: 

Delivers data on website traffic, user engagement, and market trends.

• SpyFu: 

Focuses on competitor keyword strategies and paid search data.

• Owler: 

Provides information on competitors’ company news, financials, and industry trends.

• Google Alerts: 

Monitors and notifies you of any new mentions of competitors across the web.

• KwFinder: 

Helps in keyword research and finding SEO opportunities.

Why is Competitor Analysis Important for Brand Success?

Competitor analysis is crucial for several reasons:

1. Market Positioning: 

Understanding where you stand relative to competitors helps you position your brand effectively in the market.

2. Identifying Opportunities: 

It reveals market gaps and opportunities that you can capitalize on to differentiate your brand.

3. Improving Strategies: 

Insights into competitors strategies allow you to refine and enhance your own marketing, product development, and customer engagement strategies.

4. Staying Ahead:

 Continuous analysis helps you stay ahead of industry trends and adapt to changes before your competitors do.

5. Optimizing Resources:

By knowing what works for your competitors, you can allocate your resources more efficiently to strategies that are likely to be successful.

Understanding and leveraging these insights can significantly contribute to your brand’s success and growth in a competitive market.

That’s why, at GRAND, we help you with market research and competitor analysis for your brand. 

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