In order to be successful and take desired share of the target market, you need to know your competitors. Entrepreneurs, who believed in the uniqueness of their own product, often convince themselves that there are no real competitors of their products. However they are often wrong. Competitors need to know to study their proposals to explore and even to use their products.
The more familiar you are with any competitor, the better product you will be able to develop. Another important point is the study of the competitors’ audience. The fact is that similar products are often used by the same target audience. In this case when the market gets a new similar product, your audience can flow to your competitor. Someone of consumers will leave just to try it, and the others - for good. Target of the marketing manager is to develop the product, taking into account the expectations of the target audience and stay flexible for possible improvements and adaptation for a changing market. In order to have relevant information about the competitors, there should be regular monitoring of the market been held and update of the information (competitive analysis) about the major players.
Good marketer should have a relevant report with all needed data about the immediate and potential competitors, which includes the following:
1. Number and names of competitors, general data about them,
2. The main positions (products) offered by competitors
3. Level of promotional and advertisement activities of competitors,
4. The target audience, its distinction and loyalty,
5. Assessment of the prospects of competitors, their products and offers,
6. The strongest positions that need to pay attention in the first place in order to the development of one’s own product,
7. Advantageous position in compare to competitors,
8. Measures that can be implemented immediately in order to prevent the outflow of customers if the market will get unique offers or products, and evaluation of prospective developments that represent the greatest threat.
A detailed competitive analysis will help you to maintain your position in case of a similar offer coming into the market, and it will give you relatively complete picture of the situation in your market segment.
Artem Safarov is author of the section “People and Brands”. He is specialist in marketing and PR. He studied crisis management at World Technological University. He worked as manager and director of marketing and PR. He launched his first product in the market at his 20s.