What is in a competitive analysis?
What is competitive analysis? It’s important to know why your competitors are successful. If you don’t, then it will be difficult to match them or give yourself an edge over them.
Conducting a competitive analysis is way deeper than just looking at what your competitors offer but is the best way to get this information so that you can improve your own company and stay on top of what your competition is doing. In this article post, we will explore why conducting a competitive analysis matters and how it can help you succeed in business and beat your competitors!
“The value of being proactive rather than reactive in the field of competition analysis is critical to a company’s success.“
What makes an effective Competitive analysis study
An effective competitive advantage study can help us narrow our choices, spot opportunities that other businesses are missing, and determine how to expand our business to take advantage of those gaps. It may also assist with keeping an eye on our rivals while still looking at the competition.
You may be confident that you can get tens of thousands of Pounds. -> If you aren’t already, you should be. Why is it important and how do you go about doing it and how you compare to your competitors?
We’re going to show you how to do it, so make a mental note of everything we say.
Why do Competitive Analysis?
The goal of a competitor study is to understand your competitors’ strengths and shortcomings in comparison to your own, as well as to discover a market gap. It is essential to any social media or SEO plan and will help you reach your target customers.
It’s critical to conduct competitive research to reach your target customer
- It can assist you in recognising how you may improve your company plan.
- It will show you how to outdo your competitors in these areas so that your consumer’s attention doesn’t wander.
- This will lead to a competitive advantage over others in your sector.
- Help you effectively hit your target audience and beat your major competitors focus.
Competitive analysis in marketing can also help you determine the best ways to expand your business. It will show you where there’s room for improvement and how to go about doing it so that others don’t get in on the action first.
An effective competitive research can prevent a lot of wasted time, money, and effort when starting or expanding a business.
Importance of competitor analysis: The need to compare yourself to rivals has never been more critical.
Direct and indirect competitors broken down
Before you can begin, you must first identify your competitors. But how can you do this? The easiest method to determine if a rival firm is a key competitor is to ask yourself the following question:
- What is their service like? Is it the same or different from you?
- Are you looking at the same demographic? Look at their case study. What size of clients do they work with?
You’ll have your usual local competitors, but you’ll also have those competing for the same keywords as you.
A direct competitor offers the same products and services to the same target market and customer base in a direct rivalry, with the goal of profit and market share growth.
This means that your direct competitors are targeting the same audience as you, selling the same products, in a similar distribution model like you.
Some of these maybe much larger competitors in the market but don’t shy away from noting what they are doing to increase revenue.
How to find your Direct competitors?
This will allow you to create a list of 5 to 10 direct competitors. you can then begin to pick these apart.
An indirect rival is another firm that sells similar products and services, but the ultimate objectives are different.
For example, in the field of digital marketing, a lot of IT firms provide comparable services to their clients frequently through white label so they are an indirect competitor.
Another company offering a product or service to your customers that you also provide.
Once what sort of competitors you would like to be compared against has been considered, it is important to understand how you stand out. That’s the next part of the analysis.
PRO TIP: Always be looking for new local potential competitors that are popping up.
Further reading: Keyword research the ultimate guide
Why knowing your market share is essential to your business
What is market share?
In business, two products are competing in a market when they share customers. One of the products has a larger share of the customers than the other product, and therefore can be said to have greater market share. Market share is a ratio that quantifies the size of a business in a specific market based on units sold or some other metric.
Why you need to know my market share?
Market share is a useful performance metric in your competitive analysis to understand the relative size of your company in a different markets and marketshare changes over time help you build a picture of the market trends.
It gives me an idea about where my business stands within entire industry or market. If i am able to identify that why my company faces challenges in capturing market share, then it will be easier to plan for future.
How to calculate your market share?
Market share is calculated by dividing the total sales of one particular product or industry by the sales of one company over the same period of time.
When your firm enters a new market, it will have no measurable market share. When you begin to sell your products or services in this new market, you will have to estimate the size of that market using industry trends stats and then divide your total sales by that number.
In your competitive analysis, you should be asking the following questions:
- Is your company’s product the same as or similar to your competitors? (You could be missing potential customers)
- What differentiates you from your competitors?
- The Positioning Strategy
- How does your company’s positioning compare to that of the competition?
- Do you have many advantages over them in this area, or do they have an edge on you? This includes factors such as pricing and distribution strategies.
- Does their brand target the same audience as yours?
- Do they have a similar name that could be confused with yours?
- What is the messaging around their brand, and does it resonate with your target market?
- The Marketing Mix
- How do they allocate their budget across traditional channels such as TV, radio, print or online advertising?
- Are they doing any digital marketing that you’re not doing
- Who do competitors target? What are rival firms doing you are not?
- Are there a lot of mentions of their brand on Google?
- What channels do they use to market these products?
- Do they sponsor any events or have a strong social media presence?
- What kind of PR efforts are they doing?
- Are They Innovative?
- Does your company offer anything new that the competition doesn’t?
- Is their product better, faster, or cheaper than what’s currently available on the market?
- Do they have a presence on social media? If so, how are they utilising it? Take a look at the content, followers, activity, and engagement.
- Do they have marketing materials like a podcast, webinars, blogs, eBooks or anything else?
- What campaigns are they running? (both online and offline)
- What kind of content are they writing? Is this something you can replicate or do better?
- What tone of voice do they use?
- What social media platforms are they using?
- Are they doing any search engine optimisation?
- What is their website made with (you can use the tool Built With to identify this)
- Is their website easy to use?
- Do they have a mobile app??
- What other technologies do they use that that you you don’t?
- What is their website page speed like? You can check your website speed by taking our free SEO Audit
- What other sites are linking back to your competitor’s site, but not yours?
- What is there sales process and how does it give them the competitive edge?
- Do there social media channels have live chat?
- Do customers engage with them? How do they communicate?
- What sort of content do they respond well to?
- What platforms are they using to engage?
- Are they vocal about their experience with the competitor?
- Competitors are constantly changing and evolving, so you must do too. Keep your competitive analysis up-to-date to ensure that you’re always one step ahead.
Competitor Analysis Framework Template
Below is a competitor analysis framework template you can use to get started. This will help you gather all the information you need to make a well-informed decision about how to compete against your rivals.
This can then be converted into a competitor analysis report to help you make an informed decision on your marketing strategy.
Competitive analysis template
How Often Should I Perform a Competitor Analysis in marketing?
It depends on the industry you’re in. If your competitors are constantly releasing new products, then it’s worth conducting a competitor analysis once every quarter or so to see how this impacts their market share and sales.
Keeping up-to-date with what they’re doing will not only give you an advantage but also help create strategies for your own business. Why do a competitor analysis should be evident now?
How Blue Moxie can help you with your competitive analysis and other Digital marketing tactics.
Blue Moxie Digital Agency can assist you with a competitor analysis as part of your broader marketing plan. We provide SEO, Social media and more Kent digital marketing services. Don’t hesitate to contact us if you have any questions about how we may assist your company.