Competitor analysis suggests directions to take to expand the product offering. For example, a large number of subscribers are interested in when a competing food delivery service will open in Russia. This idea can be used to study a regional segment in order to enter it before potential competitors. Market analysis is necessary in the case of scaling an existing business, namely, when creating a new product line or searching for distribution channels.
The process of studying competitors should be regular. It should be carried out before the start of active marketing events, the launch of updated product functions, during the design of new development strategies. The more thoroughly a business studies all competitors, the easier it is to build a development strategy and create a product that will be more popular with customers.
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Stages of Competitor Analysis
Determine who your competitors are
The mechanisms, methods and rules that work in a business similar to yours will work in your company. Therefore, it is extremely important to identify all similar manufacturers.
When analyzing the environment, you should focus only on direct competitors. For example, consider 2 services - Sticsh Fix and Fabletics. They offer a monthly subscription for clothes, so it may seem that they are direct competitors. But a detailed analysis of the products shows that the companies sell different things. Sticsh Fix's range includes stylish casual outfits, while Fabletics' arsenal includes only sportswear.
While the companies are meeting the need for monthly home delivery of fashionable models, they are not direct competitors, as they sell suits of different directions. Accordingly, Fabletics specialists will not study Sticsh Fix in detail due to the different target audiences of the services.
Determine what your competitors are selling
In the process of analyzing competitors in business, the entire model range and its quality are studied. Particular attention is paid to pricing issues and loyalty programs, discounts and promotions. When studying the products of competing organizations, the following main questions are used:
Are the costs high or low for competitors?
Does the organization operate on one-time purchases or does it prefer larger volumes?
What is the company's market share?
What are the needs of the firm's prospective ideal clients?
Are there any differences in pricing between online stores and offline outlets?
What are the main differences between the company and other competitors?
How does the company organize the distri