It is vital for every business to evaluate and understand their position in the market. A competitive product analysis will help companies to determine where they stand within the industry and also help businesses understand what needs to be done to outperform the competitors. Paying attention to what competitors are offering is important for everyone, but for product managers, it can be particularly valuable. Not only does competitive product analysis illustrate a product’s strengths and weaknesses in comparison to its peers in the market, but it also provides a better idea on how to sell and position it. In this blog, experts at Infiniti Research discusses the key steps involved in effective competitive product analysis.
How to do a competitive product analysis?
Before undertaking a competitive product analysis, businesses must have a thorough understanding of who their key competitors in the market are. Direct competitors are those who are selling similar products and share the same target market. Increased emphasis should be laid on understanding the market strategies of these companies and what can be done differently to gain more market share than these companies.
Undertake competitor research
Once the direct competitors are listed out, the next step is to start the competitor research. The best way to do this is through a professional market research study for each competitor. It helps companies to gain a better understanding of similar businesses in the industry and their strategies. Thereby, they can better market their company and product as the optimal choice for consumers.
Gather and analyze product information
The next step in a competitive product analysis is to gather comprehensive detail regarding the competitor brands in the market. This can primarily be done by reading their sales brochures, browsing their website and, going through their annual reports if available. These sources can provide a plethora of useful data such as how much the other businesses are pricing their products, how well they’re performing, and where the business stands against the competitors in the market.
Develop competitive strategy
The final step of competitive product analysis is to use the data collected to create an effective competitive strategy. The strategy should outline what sets the business apart from others in the market and what must be done in order to market the brand as a better consumer option than other products available. The competitive product analysis of the competitor must also be able to identify the competitor’s marketing strategies. This will help businesses enhance their product positioning and marketing strategies.