What is a Brand Competitive Analysis?
A brand competitive analysis is a process for assessing the strengths and weaknesses of your brand in relation to your competitors. By carefully evaluating your brand’s performance, you can develop strategies for improving your position in the marketplace.
The process of conducting a brand competitive analysis can be divided into four main steps:
- Defining your brand’s goals and objectives
- Conducting research on your competitors
- Analyzing your findings
- Developing a plan of action
Each of these steps is important in its own right, but together they provide a comprehensive framework for understanding and improving your brand’s competitive position.
There are many different ways to conduct a brand competitive analysis, but at its core, the process boils down to three key questions:
- How does my brand compare to my competitors?
- What are my competitors doing better than me?
- What can I do to improve my brand’s competitive position?
By taking the time to answer these questions, you can develop a clear understanding of where your brand stands in relation to its competitors and make informed decisions about how to improve its performance.
FINDING OUT YOUR COMPETITION
Before you can begin to understand how you stack up against your competition, you first need to determine who your competitors are. This can be tricky, especially if you’re in a new or niche market. Here are a few tips to help you identify your competitors:
- Look at who is advertising in the same places as you. If you’re advertising in the local newspaper, chances are your competitors are too.
- Search for companies that offer similar products or services. This can be done by searching online or by visiting competitor websites.
- Ask your customers where they shopped before finding you. This can give you some insights into who your customers view as your competition.
- Keep an eye on new businesses that move into your area or enter your market. These companies could quickly become your biggest competitors.
It can be helpful to compare your own strengths and weaknesses to your competitors as you conduct a brand competitive analysis. This will give you a clear idea of where your brand stands in relation to the competition. It’s important to be honest in your assessment- try to look at your brand objectively and avoid being too self-critical or overly positive. Once you have identified your brand’s strengths and weaknesses, you can start to develop strategies for marketing your products or services more effectively. If your brand is weaker in certain areas, you can focus on promoting its strengths more heavily. Conversely, if your brand is stronger than the competition, you can choose to focus on maintaining that advantage. By carefully evaluating your brand’s position relative to the competition, you can develop an effective plan for moving forward.
You can also gain competitive insight on your brand’s industry through our BAM™ mobile app for both iOS and Android!
TYPES OF COMPETITORS
Direct Competitors
Direct competitors are businesses that offer the same product or service as you do. They are your main rivals in the market, and you’ll need to keep a close eye on them in order to stay ahead of the game. To identify your direct competitors, start by making a list of all the businesses that offer products or services similar to yours. Then, research each one in order to get an understanding of their strengths and weaknesses. This will give you a good idea of where you stand in relation to your competition and what you need to do in order to stay ahead. Keep in mind that direct competitors can change over time, so it’s important to stay up-to-date on the latest changes in your industry.
Indirect Competitors
Indirect competitors are businesses that offer similar products or services to your own, but are not in direct competition with you. For example, if you are a car manufacturer, your indirect competitors might be public transport providers or bicycle manufacturers. indirect competitors can be a major source of competitive pressure, even if they are not offering the same product or service as you are. This is because they may be able to poach customers from your target market by offering a cheaper or more convenient alternative. As a result, it is important to keep an eye on indirect competitors and be prepared to adjust your pricing or offer additional services to stay ahead of the competition.
Tertiary Competitors
Tertiary competitors are companies that don’t directly compete with each other, but they may still impact each other’s business. For example, tertiary competitors could be makers of complementary products or services. If one tertiary competitor raises its prices, it could cause indirect price pressure on the other companies in the market. Tertiary competition is often found in industries where there are just a few dominant firms. In these markets, the tertiary competitors may be smaller firms that are trying to carve out a niche for themselves. While they may not pose a direct threat to the market leaders, they can still have an impact on the competitive landscape.
IMPORTANT FACTORS TO INCLUDE:
Feature Matrix
A feature matrix is a table that helps you keep track of different features of a product, project, or system. It can be used to help you compare and contrast different options, or to simply keep track of what features are available. For example, if you were looking at different software programs, you might create a feature matrix that includes the price, platform compatibility, ease of use, and number of users. This would allow you to quickly see which program offers the features that are most important to you. Likewise, if you were working on a project with multiple team members, a feature matrix could help you keep track of who is responsible for each task. In short, a feature matrix is a helpful tool for organizing and comparing information.
Pricing
When running a business, one of the most important aspects to consider is pricing. After all, this is what will determine how much profit you make on each sale. There are a few different ways to approach pricing, and the method you choose will depend on a variety of factors such as your target market and the competitive landscape. For example, if you’re selling unique products or services, you may be able to charge more than your competitors. On the other hand, if you’re selling commodity items, you’ll likely need to match or undercut the going rate. Whatever approach you take, it’s important to make sure that your prices are in line with your costs and that you’re making a profit. With careful consideration, pricing can be a simple and effective way to boost your bottom line.
Unique Selling Point
Every business needs to find ways to stand out from the competition. After all, there are only so many ways to differentiate yourself from the other guy. This is where unique selling points come in. A unique selling point (USP) is a feature or aspect of your business that is not offered by your competitors. It is what sets you apart and makes you more appealing to potential customers. USPs can be anything from an innovative product to superior customer service. The important thing is that it gives you an edge over the competition.
There are numerous benefits to having a USP. For one, it can help you attract new customers. If you have something that no one else does, people are going to take notice. It also allows you to charge premium prices. After all, if you are the only game in town, people are going to be willing to pay a little extra for your services. Finally, it helps to build brand loyalty. If customers have a positive experience with your business, they are likely to stick around even if a competitor comes along with lower prices. In today’s competitive market, unique selling points are more important than ever before. Any business that wants to succeed needs to find ways to set themselves apart from the competition.
Customer Feedback
Customer reviews provide valuable feedback that can help businesses improve their products and services. By taking the time to read and respond to reviews, businesses can show their customers that they value their input. In addition, research has shown that customers are more likely to purchase products from companies that actively monitor and respond to customer feedback. Reviews also give businesses the opportunity to address negative experiences and turn them into positive ones. By acknowledging customer complaints and taking steps to fix the problem, businesses can build goodwill and increase customer loyalty. In today’s competitive marketplace, customer reviews can be a powerful tool for improving your business.
Why you should conduct a competitive analysis
As the business world becomes increasingly competitive, it is more important than ever for companies to take a close look at their rivals. A competitive analysis is an important tool that can help businesses to identify their strengths and weaknesses in relation to their competitors. By conducting a competitive analysis, businesses can develop strategies to improve their position in the market. Additionally, a competitive analysis can help businesses to find new opportunities for growth. For these reasons, it is essential for businesses to conduct a competitive analysis on a regular basis.
