7 Easy Steps on How to Perform a Competitor Analysis

Summary

In this informative video, digital marketing professional Morgan from Life Marketing guides viewers through the crucial process of competitor analysis. Morgan explains the importance of understanding what competitors are doing right and wrong, identifying market gaps, and establishing a unique value proposition. She recommends performing an in-depth analysis at least annually, with a walkthrough using a fictitious 'Morgan's Cafe' to demonstrate practical application. The video covers finding competitors, evaluating their offerings, sales processes, pricing strategies, and digital marketing tactics, culminating in a SWOT analysis to inform business strategy.

Takeaways

• 😀 Regular competitor analysis is essential for staying ahead in the market and not just reacting to changes.
• 🔎 Competitor analysis involves examining everything visible about your competitors to understand how your business compares.
• 💡 The purpose of competitor analysis is to gain insights into what competitors are doing right, wrong, and how your business can fill gaps or differentiate itself.
• 📅 It's recommended to perform an in-depth competitor analysis at least once a year, or even better, every six months.
• 🔍 Start by identifying direct competitors who offer similar products or services in your area or digital space.
• 🏢 Outline what competitors offer by browsing their websites, social media, and other online presence to understand their products, services, policies, and offers.
• 🛒 Analyze the sales process by walking through it as a customer, observing product pages, checkout processes, and customer interactions.
• 💰 Investigate competitor pricing and product structuring, noting how they present their offerings and compare to others in the market.
• 📊 Examine their digital marketing strategies, both paid and organic, to understand their social media presence, content types, posting frequency, and engagement.
• 📚 Read customer reviews, comments, and complaints to gain insights into customer experiences and expectations that can inform your own business strategies.
• 📈 Conclude with a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to synthesize the information and plan marketing strategies or product development.

Q & A

What is the main purpose of a competitor analysis?

The main purpose of a competitor analysis is to understand what your competitors are doing, both correctly and incorrectly, to identify gaps in the market, establish your unique value proposition, and stay ahead of market changes and customer needs.

Why is it important to perform a competitor analysis regularly?

Regular competitor analysis is important to stay ahead of the curve in the market, adapt to changes, and avoid reacting to shifts in customer needs or market conditions. It helps in continuous improvement and strategic planning.

How often should an in-depth competitor analysis be conducted?

An in-depth competitor analysis should be conducted at least once a year, but it's recommended to do it every six months to keep the information relevant and up-to-date.

What are the key aspects to consider when performing a competitor analysis?

Key aspects to consider include identifying what competitors are doing right for inspiration, spotting their mistakes to find market gaps, understanding your unique value proposition, assessing customer feedback, and analyzing their sales process and digital marketing strategy.

How can you identify your direct competitors?

Direct competitors can be identified by searching online using business types or keywords that customers would use to find your product or service. This includes looking at search engines, social media, and considering businesses within your digital space.

What information should you gather about your competitors' products or services?

You should gather information about the competitors' products or services, including their offerings, shipping policy, return policy, and any freebies or offers they provide.

How can you analyze your competitors' sales process?

Analyze the sales process by walking through the steps as a customer would, from browsing products to the checkout process, and observe the packaging and shipping times. Also, consider subscribing to their newsletter and looking at customer reviews and feedback.

What is the significance of looking at competitors' pricing and product structure?

Analyzing competitors' pricing and product structure helps you understand how they position their offerings in the market, which can inform your own pricing strategy and product offerings to stand out.

How can you assess a competitor's digital marketing strategy?

Assess a competitor's digital marketing strategy by examining their social media presence, the type of content they post, their engagement levels, the time of day they post, and their response to comments. Also, look at their search engine presence and any paid advertising efforts.

What is the role of customer reviews and feedback in competitor analysis?

Customer reviews and feedback provide insights into the competitors' customer experience, common complaints, and areas of satisfaction. This information can be invaluable for identifying opportunities to improve your own offerings and customer service.

What is a SWOT analysis and how does it fit into the competitor analysis process?

A SWOT analysis stands for Strengths, Weaknesses, Opportunities, and Threats. It is conducted at the end of the competitor analysis process to synthesize the collected information, identify strategic directions, and develop new marketing strategies or product offerings based on the analysis.