[ibimage==40434==Medium==none==self==ibimage_align-left]Companies small and large conduct competitor reviews on average at least once a year, and some as often as every day. Some companies have full-time staff members who’s sole job is to watch competitors and report any changes to their strategy, messaging, marketing tactics, sales and more.
When I was in my young consulting years, I admittingly thought that a competitor analysis was a task that included simply gathering a list of companies that claim to sell the same products or services as you. I now know that like anything else in marketing strategy, a competitive analysis ties back to the main question of success for a business “Are you solving an unmet want/need or underserved market with your products/services?”
Here is how I now develop a competitor analysis:
1. I start by digging deep into my clients positioning, their main benefit, their unique value propositions, their main supporting brand pillars and attributes. I learn what problem they are trying to solve, what their industry category is, their potential target markets, and most of all – their capabilities.
2. I then do hundreds of Google searches using any and all keywords remotely related to my clients company, products, services, positioning, main benefit, attributes, etc. and develop a long list of any company that could be a possible direct or indirect competitor. Do this I ask myself “would my customer include this company on their decision making list when looking for a solution to the problem that I am trying to solve for them?”
3. Next, I go through the long list and one by one analysis each potential competitor to determine if they are a direct, indirect or none competitor. I use this legend to decide:
a. Direct competitor – sells the same products as you, and has the same benefits and attributes (think Coke vs. Pepsi).
b. Indirect competitor – sells the same product as you but has a very different positioning (think bottled water vs. Britta)
c. None competitor – sell different products.
4. Then, I analyze each direct competitor and record their positioning, UVP, main benefit, main attribute and main target market.
5. Finally, I compare the direct competitors profiles to my clients to ensure that my clients brand is truly unique and solving an unmet want/need or underserved market in their space.
If done well, a competitor analysis can help a company turn its direct competitors into all indirect competitor!
