Gilad Krein is an entrepreneur and online businesses advisor. Among his articles and blog posts, He says that due to a lack of competitive research, many business owners fail and go out on business. That happens often because they do not understand the market they are working on and by losing to competitors. Competitors that they have never even heard of.
So, we asked the Gilad Krein to help us understand the importance of knowing what your competitors do to succeed.
What is competitive market research, according to Gilad Krein?
You evaluate your competitors’ products and services and their strengths and weaknesses through competitive research.
Gilad Krein explains that identifying your most prominent competitors can help you identify their strengths and weaknesses. As a result, you’ll be able to identify industry trends you may have missed in the past.
Steps to competitive research Identify potential competitors
Analyzing your competitors is the first step in conducting a competitive analysis. A competitor can be direct or indirect.
Your direct competitors offer similar products and services. A competitor who doesn’t directly compete with you sells similar products but targets a different customer market.
Researching your indirect competitors can give you a fresh perspective on what you do or who your customers are. It can also greatly benefit when writing your initial business plan.
Analyze the products offered by your competitors:
You want to be confident in your approach if you’ve wondered what your competitors are doing. You can check on your competition in several ways that are entirely legal.
The 3 P’s: Price, product, and presentation
You can keep track of your competition’s online business by paying proper attention to their products. Take note of what they are offering to their customers.
Comparing products means trying to reach the price and presentation of the product, quality, and packaging of the products. Compare and try to understand the branding and the naming of the products. By doing so, you can analyze your own position in the market.
Are they low-cost or high-cost providers?
Another thing you should compare is the price range of their products that are like yours. It is essential to monitor the price of products sold online to ensure healthy competition. Those are some of the essential factors that help in growing your online business.
Do they mainly deal with volume sales or one-time purchases?
Take note of their strategy if you want to succeed. Gilad Krein explains that an online business should concentrate on the method of sales, such as enhancing their online websites. Or they invest most of their time in making sales in their outlets.
What is their market share?
To analyze the market value of your competitors, you must consider the shares of your competitors in the market. And try to determine their share values in the market.
It is the best way to find the market value of the product in an online business.
Who are their ideal customers, and what are their needs?
The product value in the market changes dramatically due to the customers’ choices and preferences. For any entrepreneur in any field, Considering the characteristics of your competitors’ ideal customers would be a good idea to start.
Look at your competitor’s pricing, as well as any perks they offer:
Knowing how much your competitors charge for similar products or services is essential to pricing your product correctly.
When you believe your product has superior capabilities to your competition, you may be able to charge a higher price. It is, however, up to the sales reps from your company to justify the extra expense.
In addition, maybe you feel that affordable products are needed in your industry. A high-quality product might not be worth breaking the bank for prospects who don’t want to spend a fortune.
Keeping up with industry pricing is imperative, so your product is priced in a way that feels reasonable to prospects.
In addition to industry pricing, there are other factors to consider when pricing a product.
You might also consider matching the benefits your competitors offer to compete. There might be a month-long free trial version or a significant referral discount from your competitors.
Gilad Krein says that if along the way you lose customers to your competitors, consider matching their perks or providing some of your own.
Analyze how your competitors market their products:
Analyzing their website is the easiest to gauge your competitor’s marketing efforts. You may want to copy down the URL for future reference if you see any of the following items:
- Is there a blog on their website?
- Is there a whitepaper or an eBook being created?
- What kind of videos and webinars do they offer?
- Does the company have a business podcast?
- Does their content include static images such as infographics or cartoons?
Gilad Krein recommends creating a SWOT analysis
Gilad Krein says it is best to take the time to perform a simplified SWOT analysis while you evaluate your competitor analysis (business, sales, and marketing). In assessing an overall score, you’ll consider your competitors’ strengths, weaknesses, opportunities, and threats.
Let’s start with these questions:
- Is there anything your competitor does well? Product development, content marketing, and social media.
- What is the competitive advantage your brand has over your competitor?
- Which area of your competitor’s business is weakest?
- What are the benefits your brand has over your competitors?
- Could they be improved in any way?
- What are the areas where this competitor poses a threat to you?
- What opportunities have your competitors identified in the market?
By comparing their weaknesses to your strengths, you will be able to identify areas for improvement. It will help you uncover areas for improvement within your brand and help your company succeed.
Establishing a baseline before you can accurately compare your competitors would be best. When performing a SWOT analysis, this is also helpful.
When evaluating your business, sales, and marketing reports, utilize the exact metrics you use to assess your competitors. If you lose customers to your competitors, consider matching their perks or providing some of your own.