What Are The Key Steps To Conducting A Competitive Analysis In Map Pack?

Conducting a competitive analysis map rank checker requires careful focus. The following six steps will guide you in the process. Before starting, define the objectives of your analysis. Ensure that any additional research areas you include align with these goals.

Know Your Industry Competitors

To identify potential competitors, consider where your customers might go if they did not purchase from your company. A simple approach is to search for your product or service category on Google or another search engine and examine the results. Additionally, you can gather insights by surveying

or interviewing your current customers to understand which alternatives they considered before choosing your offering.

Once you have a list, ensure it includes a range of companies for a comprehensive view of the market. It is essential to consider businesses across the three categories of competitors:

Direct Competitors

Direct competitors offer a similar product or service to the same audience and location targeting. These companies are likely the first to come to mind. For example, a local gym might consider other fitness centers, such as Gold’s Gym or Anytime Fitness, as direct competitors.

Indirect Competitors

Indirect competitors provide different products or services but target an audience similar to yours. For instance, a gym might view home workout apps like Peloton or fitness equipment stores like Dick’s Sporting Goods as indirect competitors, as they cater to consumers who want to stay fit but may not seek a traditional gym membership.

Replacement Competitors

Replacement competitors offer products outside your category that fulfill a similar customer need. This could include health-conscious meal delivery services like HelloFresh or personal trainers who provide one-on-one sessions for a gym. Identifying replacement competitors can be more challenging, but it is essential for assessing potential threats.

While direct and indirect competitors should be the primary focus of your analysis, noting potential replacement competitors is also essential for understanding the broader competitive landscape.

Develop A Comprehensive Competitor Analysis

Before beginning your competitor analysis, it’s essential to organize your approach. A competitor matrix, or competitor grid, is a useful tool for compiling your research in a structured way. This allows you to compare data across competitors and identify broader trends efficiently.

Start by allocating one row or column to each competitor you’ve identified. On the other axis, list the specific data points or categories of information you aim to gather. If you’re unsure of what to focus on initially, don’t worry. You can always add additional categories as your research progresses.

Gather Background Information

When you have your list of competitors to analyze, you must clearly understand competitors’ businesses. The general pattern should start with general information before moving to the detailed information section. You begin by reviewing the company websites, social media profiles, and any posts you can find about them. The most desirable basic information include the following;

Company History

These aspects are the founding dates, sources of funds and mergers, and acquisitions related to the company in question. This can be obtained from the bottom of its website or in the Press Release section under ‘About.’ By seeing how competitors transformed over time you will have significant insights on their business models and development.

Location

Competitor locations are likewise different regarding industry classifications. E-commerce companies could probably operate internationally, whereas regular companies could only operate regionally. However, it is crucial to establish this information or rather, their competitors’ geographical areas of operation and places of business.

Company Size

You cannot start by not knowing your competitors’ size. Platforms like LinkedIn and Glassdoor can provide insights into an organisation’s workforce. Secondly, consider whether they employ few customers or have a great revenue ratio. Big corporations can easily provide such information, while small or privatized companies may have to provide estimates. Knowing your competition’s size gives further meaning to some measurements.

Identify The Key Customers Of Your Competitors

A company’s success is highly interrelated with the understanding and serving of its customers. Insights into who your competitors are targeting can give you a significant edge in crafting your business strategy. It helps you understand market trends, gaps, and opportunities that you may otherwise miss. To determine accurately who is the target customer for any business, do the following:

Look through their mission statement: A company’s mission statement usually includes its key values and objectives, which can help you determine the customer the company seeks. The mission statement also provides an overview of long-term objectives and what to prioritize first among other customers.

Analyze their messaging approach: Review their marketing materials’ tone, language, and content. Are they promoting luxury, affordability, or lifestyle? This could help you better understand the types of customers they are appealing to based on emotional appeal, benefits from the product, or value propositions.

Observe their social media interactions: Pay attention to how customers interact with their posts. Are they answering customer inquiries, sharing user-generated content, or exhibiting certain demographics? Social media can be a great way to judge who interacts with your brand and can provide direct insights into your target market.

Check if they highlight existing customers in their content. Many companies feature testimonials, case studies, or customer success stories to build credibility and trust. By studying these examples, you can better understand the types of customers they have successfully attracted and the characteristics of their ideal audience.

Collecting this information will help you build a clear and detailed profile of the audience your competitors are trying to reach. Since your competitors in the same industry will likely target similar customer segments, these profiles will likely overlap with your own target market.

However, noticing even the subtle differences in the profiles is imperative. These subtleties might point to unseen opportunities or nuances you could utilize to better serve your customers. By being aware of such differences, you can better market your offerings.