Who are my competitors?
This is the question that a company must answer before launching a new product. The main goal of analyzing your competitors is to know whether to enter the market or not. If your competitors are too strong for the new product you want to launch you’d better not enter the market because you are likely to fail. Not only companies have to know the names of its competitors, they also have to know a detailed overview of its competitors. You have to know their strengths, their weaknesses, their strategies, and tactics. Strategies and tactics have a specific word in terms of marketing; this is the marketing mix, the 4Ps. The 4Ps stand for Product, Price, Place, and Promotion. You’ll be able to find more details about it in the next tab of the menu.
Those four features of your competitors are significant to know. Knowing the products in competition helps you to create a competitive advantage (something your product has and other competitors’ products don’t have, something that will convince customers to buy your brand instead of another one). Knowing their prices helps you set your price. You can set up a higher price for your product only if you deliver more customer value. Knowing where they are selling their product can help you choose where you have to sell yours. Usually marketers do not sell where there is no market. Your product must be competitive and be visible and convenient for customers. If you sell your product in one retail store and do not advertise it, fewer people will be aware of your product, meaning fewer sales and profits for you.
My understanding of the competitor’s analysis rose when I had to do it for my marketing plan for this class. You can find the link to the marketing plan my team did this semester below. First, I identified several competitors and then by snooping on their websites I found precious information about their strategies and tactics. That way I can more easily find the points that will make the difference for customers, which is the key to success.
(If you cannot open the previous link, here is the PDF version: marketing-plan-part-i)
Image’s reference: http://www.blueorange.co.in/?p=290