Whether you are starting a new business or those who already have a consolidated brand, getting to know your competitors is vital . Competitive analysis is a common practice in the market and can be done in different ways. Competitive analysis definition
You’ve probably already logged onto a competitor’s website or Facebook to see what they’re up to. However, it is possible to go far beyond that and analyze your competition systematically and strategically.
Why do competitive analysis
It’s easy to think of a number of advantages competitive analysis can bring to your business. Understanding the market scenario, finding out how you are positioned in relation to your competitors and finding opportunities, points of improvement and challenges are some of them.
By observing how other companies are planning and acting, you can assess which strategies and actions are working and understand which ones would make sense for your own business.
But is this correct? Many people wonder this, figuring that watching the competition may sound unethical. If this is a concern for you, know that it is not only correct, it is totally necessary and encouraged by great authors and entrepreneurs. Competitive analysis definition
How to do a competitive analysis
There are different ways and methods for you to analyze your competition. I will present those that I consider essential, but remember that this can change depending on the particularities of your market or your company.
Definition of competitors
It may seem obvious, but the first step in analyzing your competition is to define who your competitors are. And this is not necessarily a simple task.
First, identify your direct competitors, that is, those that have the same products as yours and that compete for the same market as your brand. Next, define your indirect competitors, which are those that offer similar products to yours, or that satisfy the same need or desire as yours. Indirect competitors compete for the same consumer profile as you.
When defining your direct or indirect competitors, it is important to seek to identify which ones compete more fiercely with your business. They can be companies that are geographically located closer or that practice communication strategies similar to yours. Competitive analysis definition
For example: imagine you have a pizzeria. Theoretically, all other pizzerias in the city are your direct competitors. But those located in the same neighborhood are certainly more competitive with yours. Also, a burger parlor on the same street can pose a greater threat than many other pizza parlors.
On the other hand, a supermarket that sells frozen pizzas, at first, can be considered an indirect competitor, since it sells a similar product. But it is necessary to appreciate that the person who buys a frozen pizza in a supermarket has a different objective than the one who goes to your pizzeria, in search of good service, a wood-fired pizza and a cool environment.
With this example, it is clear to understand that defining competitors is not always simple. But it doesn’t have to be a seven-headed beast either. After defining your list of competitors, let’s go to the analysis of the competition itself. Competitive analysis definition
How to analyze your competitors
The objective of competitive analysis is to find information, data and indicators that show what the company is doing to stand out in the market, how it communicates with its target audience, how it promotes its products and what types of results it is having .
Thus, it is necessary to make a detailed mapping of the brand that is being analyzed at different points and in different ways.
See some examples:
Hear what consumers have to say about your competitors. Do they consume these brands? In what way and how often? Are you satisfied or would you be willing to change brands? What qualities and defects do consumers point out to each of your competitors?
These and many other answers can be gleaned from competitive market research. The tip to be successful, in this case, is to do the research with an audience of exempt consumers. Therefore, using a Panel of Respondents , in this case, is the best option. Competitive analysis definition
Websites and social networks
Understanding the competitor brand’s digital presence is also very important. Evaluate the site and how information and products are being presented there. Is the language younger and colloquial or formal?
Discover all the social networks the brand is present on and identify how to communicate in each one, the number of followers, the type and frequency of posts and the audience’s engagement with the posts.
SEO, or Search Engine Optimization, is the set of techniques and strategies that companies use to improve their organic positioning in search engines like Google.
According to the survey we conducted on the e-consumer buying journey , 61% of Internet users start their searches for products and services on Google and 97% always or sometimes use the tool to find more information about something they want to buy. Competitive analysis definition
With this data, it is possible to understand the importance of SEO for any business that intends to survive. Since you and your competitors compete for the same positions as Google, it’s easy to understand why SEO can’t be left out of your competitive analysis.
Here, it’s important to understand which keywords your competitors are working on and the search volume for each of them. Identify their placement and yours for each of these words to predict your chances of overtaking them. There are different tools that can help you with this task, and I list some of them at the end of this post.
Ratings and comments
Find out what consumers are saying about competitors. Search for comments and ratings on sales sites, social networks, forums, Complain Here and others.
In addition, it is very important to note how companies position themselves in the assessments. Do they respond, solve the problem, or leave the customer unanswered? Competitive analysis definition
By reading the press releases about your competitors, you can discover many things. In addition to identifying whether the company has a strategy aimed at the press, such as advisory services, company spokespersons and official releases, news can also contribute a lot to the competition’s day-to-day activities.
You can find information about billing, number of employees, product launches, brand image crisis, change of directors, relevant actions and even legal issues.
What are the company’s advertising strategies? In which vehicles does it advertise? What is the focus of the campaign? What formats? Invest in paid online media? All of this needs to be factored into your competitive analysis so you can plan and act.
After this complete and detailed survey, gather the information clearly and objectively and perform a thorough analysis. Identify your competition’s strengths and weaknesses and also determine where your company is in each of them.
4 tools for competitive analysis
There are many free and paid online tools you can use to improve your competitive analysis. Here are the 6 that I consider most relevant: Competitive analysis definition
1. Opinion Box
It’s not just because you’re on the Opinion Box blog that we’re suggesting this tool. When it comes to competitive analysis, Opinion Box’s market research platform really is the most complete and user-friendly option you’ll find on the market.
That’s because our platform allows you to create your market research questionnaire without leaving your computer with photos, videos and different types of questions. In addition, the platform is integrated into a panel with more than 150,000 respondents in more than 3,000 cities in all regions of the country.
Thus, you can choose the profile of the people who will respond to the survey and hear the opinion of your target audience in relation to your brand and that of your competitors. The price of surveys starts at 200 reais and varies according to the number of interviews, the size of the questionnaire and the complexity of finding the target audience. Competitive analysis definition
To create a market survey on Opinion Box, simply register for free .
2. Similar Web
The Similarweb an excellent tool to analyze the site of its competitors. It reports the number of visitors and other traffic statistics from different URLs. The tool graphs the variation over time so you can gauge whether that business is growing or decreasing its online presence.
Similar Web can be used for free, but it has several advanced features that are exclusive to paid customers.
The SEMRush is a tool focused on generating SEO insights of its competitors. It offers organic and paid keywords, SEO rankings, keyword traffic and lots of other detailed information about you and your competition.
To get the information, just type in the URL you want to analyze and the information will be immediately provided to you. Competitive analysis definition
The tool has some free functions and some paid ones.
4. Google Alerts
The best way to keep track of whether your competitors are being quoted on the internet is with Google Alerts . Just schedule it to notify you by email every time a word, phrase or phrase appears on the internet.
You can put the name of your company, your competitors and other keywords relevant to your business.