Competitor Analysis: A Primer
So you've been tasked with running an analysis of what's happening in your competitive space, and you're not quite sure where to start or how to structure your review. Have no fear, we've got a quick and easy checklist to get you going (and looking super smart)!
Make a List of Competitors
To start, make sure that you consider players, not just in the same product categories and channels, but also those who are adjacent to your space. Think of items that could be substitutes; for example, if you are selling denim, you might think of activewear bottoms as a potential substitute for your product and thus an indirect competitor.
Who Is The Target Market?
To whom are you and your competitors selling and what share of that target market do each of you own? How do you reach each target market? Think carefully about each of the channels you and your competitors use and how your product offering and messaging differs for each.
Product + Pricing Profile
Here's where you break down your product category and price positioning. Here at StyleSage we help brands assess this with tools like the one illustrated below, which maps and tracks shifts in assortments and pricing over time.
SWOT Analysis
You've probably heard of this one before. A SWOT analysis tells you where your strengths, weaknesses, opportunities, and threats exist, relative to competitors in your space. This sheds light, both internally and externally, on the things you do best, areas where you need to improve, where growth opportunities in new markets and categories exist, and if there are emerging threats from players in and around your competitive space.
Be Clear on Competitive Advantage
What is your unique selling proposition (USP)? Keep in mind it needs to be a benefit that can be clearly communicated to the end user of your product or service.
Tie It All Together
Using these guidelines and visual tools will help to surface and clearly outline where opportunities exist. If you're interested in learning more about StyleSage tools that can streamline this process, get in touch with us at hello@stylesage.co