What is the most effective method for conducting a competitor analysis for a new product category?
Before launching a new product in the market, every business does a competitor analysis.
Competitor analysis is a way to identify your competitors and evaluate their strategies to determine their strengths and weaknesses relative to those of your own business product or service.
The best way to do a competitor analysis is by creating a grid with three columns:
In the first column, list all of your competitors.
In the second column, write down what you think each competitor's strengths are.
In the third column, list the weaknesses of each competitor.
This will give you a good overview of the competition and help you determine how to position your product.
Once you have identified your competitors, you need to gather information about them. You can do this by visiting their websites, reading their marketing materials, visiting their marketing channels including social media platforms, and talking to their customers. Make use of Capterra and Trustpilot to support your decision-making.
Once you have gathered this information, you can begin to develop your own competitive advantage.
However, competitor analysis will vary depending on the product category and the associated market.
Here are the general effective tips on how to conduct a competitor analysis for a new product category to get the best results:
1. Research the product category thoroughly. This means understanding the key players in the market, the history of the product category, and any shifts or trends that are happening.
2. Identify your target market. This will help you focus your analysis on the competitors that are most relevant to your business.
3. Analyze your competitors' strengths and weaknesses. This includes looking at their products, pricing, marketing, and overall business model.
4. Use collected information to develop a competitive advantage for your own product. This could involve positioning your product differently in the market or marketing process, targeting a different audience, or offering something that your competitors don't have.
5. Keep tabs on your competitors regularly. As the market changes, so too will your competitors, so it's important to stay up-to-date on their latest developments. You may also rely on a marketing newsletter to gauge the trends.
Pro-Tip: Make sure, the new product is market-fit.
Here's related information that you may find helpful (Explore How Market Research Helps Business Grow And Prosper)
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