Competition is commonplace in the business world. However, that shouldn’t stop you from starting a business or launching a new product. Competitors research is a solution that needs to be done for your business to survive in the onslaught of competition.
There are still many business people who do not understand the proper competitors research strategy. They tend to get a gray picture of competitors so they follow the wrong strategy in doing business. We provides you with an effective way to conduct competitive research. Check out the full discussion in this article.
What is Competitors Research?
Competitors research or analysis is the process of identifying the strengths and weaknesses of your business competitors. The competitors referred to in this case are companies that share similarities in terms of products, industries, or target markets. In competitor research, you need to analyze your marketing strategy, prices, advertising channels, market potentials, and other details related to marketing.
Competitor research is useless so you can mimic the strategies of similar companies. You can take different advantages and apply the appropriate strategy so that your business can move forward. You also shouldn’t neglect your company’s original vision, values, or goals because you’re too busy trying to be better than your competitors.
8 Ways to Research Competitors Effectively
When researching competitors, you need to use the right method to make the process effective. Here are the steps and ways you can analyze your competitors.
1. Determine Research Objectives and Main Focus
Many things can be analyzed by competitors, but you must have the focus of the research. This focus can be in the form of sales, brand awareness, marketing, products, market potential, or other things. Also, align this focus with the research objectives so that you can more easily strategize against competitors.
2. List Your Competitor Profiles
Next, you can create a list of competitors to watch. Start by writing a list of companies that sell similar products or services in your niche or city.
You can also divide your competitors into three levels for simplicity, namely upper level (competitors above your company), middle level (at the same level or potential market share), and lower level (companies that can overtake your company). in competition).
3. Identify The Implementation of The Marketing Mix
After getting competitive profiles, you can observe the marketing mix implementation strategy that will be carried out. Start by implementing the 4Ps (product, price, place, and promotion) as this is a fundamental thing in business. Marketing mix information can provide a deeper understanding of your competitors.
4. Analysis of Business SEO Strategy
This step is very important if you want to reach a broader target market. The SEO strategy is not only useful to know the website performance in SERP, but also your business position through local search. You can find out your competitor’s ranking by entering keywords that describe their business activities.
5. Communicate With Competing Customers
This method can be done to find out the target market’s preferences over competitors. Just do this as neutrally as possible and do not bring your efforts into the conversation. You can understand their expenses in making a purchase, their reasons for using competitors, and the advantages and disadvantages of those competitors.
6. Use a SWOT Analysis
Strengths, weaknesses, opportunities, and threats (SWOT) analysis is often used by companies to analyze competitors. SWOT is useful so you can compare your company to competitors as a whole. This metric also gives you information about competitors’ shortcomings.
7. Find Business Opportunities Through Competitor Bottlenecks
The results of the conducted SWOT analysis will show the shortcomings of your competitors or your business. The shortcomings of these competitors can be used as an opportunity for your company to be superior. You can also find new, more interesting strategies to compete with your competitors.
8. Create a New Strategy From The Analysis Results
Competitive research will be more successful if you create a strategy to compete with competitors. You need to create a new strategy that is more relevant to the analysis results and business goals. Make sure the strategy supports your business activities in generating profits.
The Importance of Competitors Research for Businesses
You may still be thinking about why competitive research is so important for businesses. Below are the benefits of competitive research.
1. Strengthening Brand Positioning
Competitive research is useful to understand the level of your business product. You can understand the uniqueness and advantages of the product compared to competitors even though you are in a similar industry. Brand positioning is also useful so that customers have compelling reasons to choose your product.
2. Understand Market Trends
You can also understand market trends after conducting competitive research. Market trends can provide information about the popularity or interest of customers in a marketed product. You can use different gaps in the industry to produce products that are more useful to customers.
3. Understand Customer Preferences
Customer tastes and preferences can be identified by conducting competitive research. Through this activity, you will also learn the reasons for customer satisfaction when using competitor products. For this benefit, you need to chat with competitors’ customers or look at the positive and negative reviews on their sales platforms.
After seeing the above reasons, you must have understood the importance of conducting competitive research for business development. Also, follow the steps described when conducting competitive research so that you get satisfactory results.
One of the most important tips for conducting competitive research is to analyze the SEO performance of the website.