Markets change – Businesses must keep a close watch on these changes and adapt accordingly.
Competitor analysis definition
Competition is an inevitable part of a business. As the number of entrants into the market are gradually skyrocketing, an effective competitor analysis framework has become a necessity for modern-day businesses. Competitor analysis is a critical part of the marketing plan using which companies can establish what makes their products or services unique when compared to the peers in the market. This can be achieved by placing competitors in strategic groups depending on how directly they compete for the market share.
How is competitor analysis done?
Competitor analysis or competitor research is ideally carried out by listing out the products or service of each competitor or strategic group, their profitability, marketing objectives, growth pattern, organizational cost structure, and their current and past strategies. Some of the key questions to be answered by businesses here are:
- Who are your key competitors?
- What are the products and services that they deal in?
- What is their market share?
- What are the potential threats that they pose?
The US energy sector is facing unprecedented challenges like unpredictable government policies and regulations, growing competition, the aging workforce, modernizing grid infrastructure, and cyber-attacks. The target and policy measures agreed by the governments of many countries to reduce CHG emissions are exerting pressure to move away from fossil fuels consumption. This is resulting in an immense increase in the competition among the companies, especially in the US energy sector, and new research unveils that this competition is going to be even fierce in the years to come.
Increasing competition demands for more efficiency. It can become a roadblock for the entry of new players in the market. Additionally, it can also hinder the growth of a company if it is not able to analyze the competitors’ strategy. Therefore, the companies need to have a proper competitor analysis framework in place to gain actionable insights on current market position, end-consumers, and key competitors, and the credibility of their partners and associates.
At Infiniti Research, we understand the pain that companies in the energy sector face in the process of competitor analysis and competitor profiling. So, to help companies identify and profile the competitors in the target market while evaluating their strategies to determine the strengths and weakness of the services rendered, our team of experts has listed four crucial benefits that competitor analysis offers in the energy sector.
Benefits of Competitor Analysis for Companies in the Energy Sector
#1: Competitor analysis guide inaccurate forecasting of competitors’ move
Competitor analysis help companies to analyze and assess the next move of their competitors, which helps in better brand positioning. It helps companies in the energy sector to:
- Find new markets to enter or increase the presence
- Predict competitors’ actions
- Improve product development
- Beat competitors to market
- Improve and personalize consumer interaction
- Give consumers what they want and increase market share
- Find new products and tech that will disrupt the competitive landscape
- Identify political or legislative issues
- Stand out from the crowd with a distinct corporate identity and tone of voice
In a transitional world, brands are defined by the content they create and understanding what content is resonating with your competition is critical to the success of your business. Moreover, having a solid understanding of your competitors and how you differentiate yourself and your business paves the way to success. Being cognizant of your similarities is very important, especially when it comes to your marketing strategy and your consumers. This is where competitive marketing intelligence helps. It acts as a key to sound market research and helps identify your niche.
Want to know how competitive marketing intelligence can help you gain smarter insights and take real-time decisions? Contact us now!
Competitive marketing intelligence enables you to fine tune your content on what works for your market based on the successes and failures of your competitor’s content. Furthermore, it provides insights and intelligence on what is needed to thrive in the ever-changing world in which we work and live. In this article, we have talked about some of the effective ways competitive marketing intelligence can drive your marketing strategy and boost your ROI.
How can competitive marketing intelligence enhance your marketing strategies?
1. Helps in analyzing the content
If there are too many players in your marketplace, there is a lot of information that you can tap into to create a solid marketing strategy. Competitive intelligence helps you to identify what works for your target market. It helps in researching your content and makes your experiment more focused and the learning curve less steep. It also aids in unveiling the content that drives the most engagement. This way you can design your marketing campaign better.
2. Aids in price benchmarking
Competitive marketing intelligence helps you understand the pricing regime in your industry which allows you to deliberately pitch yourself as a credible alternative. By knowing what the top players in your industry charge vs their services vs customer loyalty, you can gain actionable insights into what the market values are and their existing business models.
3. Assists in formulating robust sales strategies
Sales strategy is perhaps the most crucial aspect to the success of any business. Competitor intelligence helps you to understand what your competitors are offering. This further paves the smooth way of engagement with the existing customers in your industry. This is also sometimes called a competitor displacement strategy. Acquiring new customers will also be easier if you spend time studying the successes and failures of your competitors.
Understanding your competition and what they are doing is very essential from a marketing perspective for any successful business. Conducting a competitor analysis often offers an opportunity to glance at your competition with a detailed eye on their marketing efforts and provides useful insights that can be used to make the marketing strategy of your startup achievable. Essentially, a competitor analysis framework does two very important things – it identifies the strengths of your competitors by determining their best performing areas and their focus point and helps determines their weakness. It is very important to know what your competition is doing, how they are reaching their customers, where they are marketing, and what they are providing, especially if you are a startup. This knowledge facilitates you to see where your competitors are falling short in their approach to marketing and there you can highlight the benefits of your own services or products. Here we have formulated a few easy steps to help you to create the perfect competitor analysis model from three different perspectives, marketing, pricing, and product.
Undoubtedly, the packaging is one of the most lucrative industries with immense growth potential. But the market share is not evenly distributed, and smaller suppliers are usually struggling to compete with larger suppliers due to their wider reach and presence across a wide variety of sectors. This helps them to undercut on products without having to compromise on their overall profit margins. Therefore, it can be said that it is a tough, competitive landscape for smaller packaging companies but, nonetheless, there are various competitor analysis tools that can help them take on the big players in the industry. This is where developing a competitor analysis framework plays a very significant role. Packaging companies, With the aid of competitor analysis, can adjust their own prices according to industry standards, boost brand loyalty, and identify up and cross-selling opportunities. In this article, we have explained the three ways packaging companies can improve their customer relationships with competitor analysis.
Benefits of a Competitor Analysis Framework
Adjust your prices accordingly
In today’s competitive market, even the smallest difference in price can turn a loyal customer into the competitor’s new acquisition. Packaging is a cost-driven market and customers in this industry are in the dollar seat. If there is news that one particular supplier is offering cheaper goods elsewhere, customers will undoubtedly move on. Therefore, without the right competitor analysis framework to help you assess the buying behavior of customers, your response time will become slow and you’ll lose your customers. So, it is very important to take complete advantage of technology to gain greater insights into the health of your business to make you act decisively and fast.
Overview of Online Grocery Industry in the US
While revenue for marketers in the Online Grocery industry fell during the recession, the industry’s overall performance was not seriously marred over the period. Americans’ affinity for the internet has accelerated online grocery shopping.
Broadband connections have developed, and the number of mobile internet connections skyrocketed, strengthening demand for online retail services. While the percentage of consumers shopping from the online grocery store has just starting to grow, the online shopping trends seem to be indicative of a new wave of buying behavior that is sure to shake up the grocery retail industry and online grocery shopping as a whole. Looking ahead, the next five years promise strong growth for the grocery industry.
What is a Competitor Analysis?
A competitor analysis deals with an in-depth review of a wide range of market data and its interpretation that exhibits your competitors’ strategies and tactics, as well as their positives and negatives in comparison to your own product/service offerings.
A competitor analysis framework assists organizations to outsmart the global competition by capturing and keep tracking of the current state of the market. A detailed competitor analysis framework offers a starting point for the development of competitive marketing strategies in order to stay ahead of the game.
About the Client
The client is one of the leading grocery retailer based out of the US.
Interested to know more about the current shopping trends? Continue reading to know how the competitor analysis framework helped the online grocery store or Request a FREE proposal.
The client, a leading online grocery store with business operations spread across the globe, wanted to gain an in-depth understanding of the competitors, their services, and efficiently analyze their current and future market share within the industry space. The client approached Infiniti Research to adopt a suitable competitor analysis model to drive growth across economies.
The experts at Infiniti Research conducted an in-depth competitor research. With the help of this data, our experts further evaluated the growth potential of new markets and gauged the competitive landscape within the market.
This helped reveal the competitive advantages and disadvantages in relation to its competitors. As a result of our solutions, the company was able to gain comprehensive acumens in their strengths and weaknesses, relative to the competitiveness in the market.
Why Infiniti Research?
Established in 2003, Infiniti Research is a leading market intelligence company with proven capabilities to produce actionable granular insights across the globe. With the use of statistical, scientific methods and scientific experiments, Infiniti Research assures intelligent business approaches.
To know more about the current online grocery shopping trends or the importance of competitor analysis framework. Request more information.