After analyzing your target group’s needs and wants, you should do some competition analysis. It is not enough to see how you can satisfy your customers because there might be another company trying to do that as well. After reading this blog post, you will know which factors to consider when making your brand stand out from the competition.
Before the analysis, you should do research on businesses operating in your target market doing the same things or solving the same problems as you are. The more specific your definition of the target market, industry and target group, the easier your competition analysis will be. This way you will be able to narrow the analysis down to your most important competitors.
1. Is your competition better at what you do?
The first things you should look at are corporate ability and expertise. If you have more experience in your field than your competition, you should communicate that. You can also stand out from the competition through emphasizing the quality of your equipment or software, for instance. Here are more things you can ask yourself when thinking about the expertise and ability of your competitors:
- Does your competition have more skilled experts than you?
- Does your competition have more customer references than you?
- Does your competition have more certificates than you?
- Does your competition have more awards than you?
2. Are your competitors’ products and services better than yours?
Secondly, you should look at features and benefits that your competition is offering through its products and services. If your offering is of higher quality in terms of materials or results produced, for example, you should communicate that to your target group. Here are more things you can ask yourself when comparing your products and services with those of your competitors:
- Are there similarities between your products/services and those of your competitors?
- Are there differences between your products/services and those of your competitors?
- Do you offer more benefits than your competition?
3. Does your competition offer customers more value than you?
The next thing to consider is your relative value compared to that of your competitors. This is related to the price and distribution of your products and services, but also to your brand awareness and reputation. Here are some things to consider when assessing your value against that of your competition:
- What is your price range (low-medium-high)? Is it more or less than your competitors’ price range?
- Is your offering easier to access/purchase than your competitors’?
- Is your reputation better than your competitors’?
4. Does your competition satisfy your target group’s needs better than you?
Finally, you should put the above things into perspective. Is your offering more attractive to your target group than your competitors’? Is it more suitable for the target group’s situation? Do you offer benefits to your customers at a better price than your competition? Is it easy enough for your target group to access or purchase your products and services?
By considering the above four aspects of your competition, you should be able to make your brand stand out and offer more suitable solutions for your customers’ problems.