When it comes to succeeding as a business, laying the foundations is just as important as creating flashy marketing campaigns. In fact, it’s these foundations that give you the insight and inspiration to ensure that your campaigns are effective enough to beat your competitors to the top - this is where your competitor analysis comes in.
What is a Competitor Analysis?
Competitor analysis is the process of researching, categorising, and evaluating the strengths and weaknesses of brands that you deem to be a potential threat to your business.
Problem is, within the marketing industry, there’s a lot of crossed wires about exactly when you need to conduct a competitor analysis; monthly, quarterly, yearly? One thing is for sure, a competitor analysis is not just a one-time affair - it needs to be repeated throughout the lifetime of your business so that you can keep your competitive advantage.
In this video, we're going to talk about competitor analysis and 3 times when you should always conduct one. But first, let’s consider the steps that you need to take to conduct a competitor analysis.
How to conduct a competitor analysis?
There is a tried and tested 6 step process that you should follow when conducting your competitor analysis:
Step 1: Map the context of your market
Step 2: Identify your competitors
Step 3: Record an overview of your competitors’ business
Step 4: Compare your products and services
Step 5: Use the R.A.C.E. acronym to analyse their content
Step 6: Act on your data
3 Times you Should Always Conduct a Competitor Analysis
Time #1: When starting a new business
According to Investopedia, the number 1 reason why new businesses fail is that owners do not investigate the market they are about to enter.
Time #2: When launching a new product
Each year more than 30,000 new consumer products are launched, and 80% of them fail. Why is this? According to the Harvard Business Review, "The biggest problem... is lack of preparation”.
Time #3: When there is a significant market shift
Competitor analysis during a significant market shift is vital to ensure your business does not get left behind through inaction.
Let’s delve a little deeper into these 3 scenarios, shall we? Click play on the video above to find out more.