To uplift your business, you need to keep insight into your competitors. This will help you to understand which tactics are being used by similar businesses. Review your strategies on why you’re gaining fewer profits in comparison to your competitors. This calls for a need of conducting a competitor analysis for overviewing all these factors.
5 Steps for Conducting a Successful Competitor Analysis
- Determine who are your competitors:
Identify who are your direct competitors selling the same product/service to the same audience. Find out your indirect competitors as well. They might be targeting the same people by selling different products or selling the same product but to a different audience. This will cause you to have various market perspectives about your business and customers.
- Evaluating marketing mix:
Properly research the four Ps (product, price, place, and promotion) of your competitor’s marketing mix. Compare the features of your competitor’s product, price policy, geographic reach, and marketing technique to engage with the audience. This comparison will open up new ideas for continuous improvements.
- Conduct SWOT analysis:
Once you gather details about your competitors, conduct a SWOT analysis of your brand. Identify your brand’s strengths and weaknesses and how you can overcome them. Focus on the points in which your company is doing well. Grab those opportunities and be ready to save your company from any threats.
- Review what makes them better than you
Analyze your competitive advantage by summarizing what lets a customer choose your product rather than your competitor’s brand. Work what makes you preferable to your competitors. Bolster up your good points in such a way that it overshadows your weaknesses and nobody gets a chance to notice them.
- Tracking results
As you perform your competitive analysis, it is necessary to track your results to determine if the changes made by you are right or not. You can easily measure your sales by reviewing the profit and loss that your company is making.
Concluding it
Do not fall behind the competition and learn from the mistakes your competitors are making. Stay alert about any new trends that they are executing in their marketing plans. Conducting a competitive analysis is always a good option for keeping an eye on what new profitable changes your competitors are making.
