One of the first steps in developing a successful marketing strategy is to identify and analyze your competitors. This can be done by conducting detailed market research. If you don't know who your competitors are, chances are that someone else will gain a competitive advantage. For example, a competitor may have a website that is easier to use, or offer the same product at a lower price. After identifying the competitors, you must continue to monitor the products and offerings provided so as not to fall behind during business competition.
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Part 1 of 2: Doing Research
Step 1. Examine your main products or services
You will be competing for customers with other companies using these products. List your products in a column of worksheets and a sheet of paper. While you may have a tangential product or service that can increase sales, your company is not competing with other companies in selling those products or services.
- For example, you might be able to include a bonus keychain with the company name for every t-shirt that is sent to the customer. Keychains are a bonus to customers, and don't set you up against a stationary store.
- More generally, let's say you run a pizza restaurant. You serve pasta, but the profit from selling pasta is meager. Pizza is your biggest source of income. That way, you're not competing with a restaurant that specializes in pasta, but with fellow pizza restaurants.
Step 2. Find a company that sells products or offers services
Pretend to be a visitor. Search for products or services using phone books, the internet with more than one search engine, and online marketplaces and social media. Write 5-10 names of business competitors in the column of your paper or program worksheet. While most of the competitors found were local businesses, anyone selling a product competed with sellers on the internet.
- The phone book can help you find local competitors. Social media will help find competitors that are new and growing.
- It is important to look for competitors locally as well as nationally. As a result of the increasing global economy, there may be companies overseas that offer products similar to yours. You probably won't be able to keep up with the low prices of your overseas competitors, but knowing the company's presence can help you focus your local marketing program.
Step 3. Identify your competitors
The types of products and services offered determine who your competitors are. Competitors are divided into your industry, market and strategic group. Your industry is made up of business units that offer the same or similar products or services. Markets are locations where products and services can be bought and sold. Strategic groups are made up of business units that share a business model similar to yours. Perhaps your competitors are in more than one of these areas. You need to evaluate the company's strengths and weaknesses when assessing key competitors.
- You can determine industry competition based on the services provided, for example imported tea suppliers.
- You can determine the market based on the tea sellers in your area.
- You can define a strategic group of all stores that offer the same price and marketing strategy as you in selling their tea
- It's also a good idea to consider your demographic or geographic market. The demographic market is made up of people of various ages, socioeconomic classes, and genders. The geographic market consists of people who come from different cities, countries and continents.
Step 4. Do some word of mouth market research
Ask customers around and within your store about where and what type of product or service to buy. Word of mouth is often the best way to find out about other businesses' success. Ask your friends and family, then consider hiring a market research company to conduct surveys on a variety of people.
This research may reveal the logic of various customers when choosing products or services in various situations. For example, you may find that customers choose your restaurant because of the family atmosphere. However, the same person can eat at another pizza restaurant when hungry in the middle of the night
Step 5. Do a simple survey
Don't just survey your customers, but also those of competitors. Just a few people are okay. Asking a competitor's customer will reveal why they chose a competitor's product or service over yours. Also, this survey will show you the things you can focus on stealing your competitors' customers. There are several areas to consider when compiling your survey:
- Customer satisfaction
- Competitor performance
- Customer expectations and desires
Step 6. Determine whether your market or industry is growing or declining
You must know the performance of your company and other similar companies. This way, you can find out whether the product or service being offered is stable enough to be offered into other equal markets for additional revenue and profit. Maybe you also need to redesign the products and services offered if they are no longer selling.
- Follow local and national news developments. Read the business section of the newspaper. Sometimes articles appear about your market sector or industry.
- Contact the Central Bureau of Statistics for data. It is likely that they have and publish data on all areas of the Indonesian economy.
- Read history books. If a business selling your product or service has been around for a long time, you can learn about the general trajectory, decline, and rise in sales by studying the history of your business.
Part 2 of 2: Assessing Competitors
Step 1. Determine the competitor's competitive advantage
Review your listings and use the market research that has been done to determine a competitor's competitive advantage. For example, competitors offer promotions, packages, free shipping, extra services, and so on. You should find out if competitors are offering similar offerings or slightly different products. Knowing the competitive advantages and disadvantages of key competitors will give you a head start on crafting your local marketing program.
Step 2. Investigate competitors' sales processes
It is important to determine how the competitor's entire sales process works. This is easier to do in some business units, for example a retail company. If you can't analyze a competitor's sales through a website, read reviews and look at the Better Business Bureau website.
Step 3. Use business software to monitor competitors' success
There are various tools on the internet that allow you to monitor how often a business is searched on the internet, and what keywords are used. Some of these tools are free, and high-quality ones are usually paid for. This tool is useful for knowing the location and time of the customer when accessing a competitor's website.
- This sales process includes determining the products to be sold, customer requests, appraisals, and how to deliver goods or services to customers. Knowing how competitors think at each stage of the sales process will help define your competitive advantage and that of your competitors.
- If you are looking for a local company that offers the same product or service, please contact them and ask about their sales practices. Do not pretend to be a customer, as this business practice is considered unethical.
- Look at competitors' social media so you can more or less know the competitors' marketing strategies. Your competitors may offer something special and give customers the opportunity to express what they like and don't like. Because this platform is intended to be used by anyone, there are no ethical violations in this research.
Step 4. Sign up to receive a competitor's catalog, mail, or email
Try to get to know your competitors at all times because businesses are always changing and growing. If you know what your competitors can offer, and how your company can do better, this will certainly help during the sales process. This will keep you up to date with special offers and other advertising programs that competitors are using
This is still ethical because you receive a letter that a competitor sends to anyone who enters their email address. However, if you are contacted by a competitor and asked about the interests of their company, do not lie or be misled
Step 5. Compare yourself with your competitors
Include each competitor's strengths and weaknesses that have been studied side by side. Be honest about how well you can compete with your competitors so that you can strengthen your weaknesses and develop a marketing strategy. It's a good idea to target target customers who match your competitive advantage, and reduce your efforts in areas where you are less profitable.
Complete a SWOT Analysis. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats (strengths, weaknesses, opportunities and threats). Perform this analysis to help you identify issues that need attention
Step 6. Look for companies that have a competitive advantage
Your key competitors are responsible for capturing your customers, even if the products or services being sold are not exactly the same. Before starting to develop a marketing program through print and electronic media to offer a unique advantage or service, make sure you are the only business unit providing that benefit or service.
For example, your pizza restaurant competes with other pizza restaurants and fast food restaurants
Step 7. Determine if you have any barriers to competing with other business units
There are many kinds of obstacles in business. Pay attention to your business and identify potential obstacles. For example, is the location of your business a barrier? Do you have all the permits to do business? Are there potential problems with the supply chain?
