To shoot out your campaigns for maximum outreach, it is a trending practise to keep track of competitors’ offerings in your target market and the market receptivity of the same. Performing product analysis will provide revealing insights during the pre-campaign phase.
Every shrewd customer will conduct a comparative analysis before purchasing a product. Conducting the same will result in huge cost savings for a business before it unfurls marketing campaigns. Modern day marketing managers spend as much time and effort in studying their competitors as they do in customer profiling and market segmentation.
Brand positioning against competitors
It is not mere selling that can get your business credibility and market share, but a staunch positioning of your brand. A product campaign carries the product as well the branding potentiality with it. Comparative product analysis will empower the business on:
- Current market trends that yield best results within the payback period.
- Strategic ways and means to educate customers on product utility and USP.
- When a competitor launches a new market, every business must immediately do a product analysis and ascertain the crowd-pulling potential of its existing products. In case of dearth in such potentiality, it will be difficult to position the brand of the product and corrective measures need to be taken.
How product analysis can widen markets
Analysing the product line of a business, means a methodical process of checking a product for its performance, market appeal, life, usage, attributes and other characteristics that are crucial in the purchase decision of prospective customers. The following tools and techniques are commonly worthwhile to invest in for conducting a comprehensive and end-to-end analysis of products:
- Comparative analysis of different product variants offered by the business itself. This will enable the business to ascertain if it caters sufficiently to all segments of the product market. For example, a footwear business can do a product analysis and check if all age groups, sizes and genders have been covered.
- Value analysis to ascertain if the products marketed bring about the promised value addition to customer that will total to more than money’s worth.
- Function analysis which will ensure that products live up to their promised functionalities. Control mechanisms must be embedded in the analysis process that can recommend corrective actions.
New ways to market your product
Only effective knowledge of competition can make your campaigns more sensational with go-to-market strategies incorporated in them. Evolving new and innovative means to market your product is the mission of competitor profiling and analysis.
- Competitor analysis is a tool to educate yourself on how to reach new and unexplored markets. Marketing strategies adopted by competitors will also throw light on what kind of products will appeal to new markets.
- Small and upcoming businesses who find themselves cash-strapped and involved in aggressive PR and branding campaigns can benefit from doing product profiling and competitor analysis.
Publicizing hidden features in product
When products are juxtaposed alongside their prime counterparts, one crucial factor that comes to light is customer preferences for certain unique and discerning features, that must be highlighted to convert leads into business.
- Feature-by-feature analysis will educate customers on various hidden features in the product that justify their cost and how different are they from those of competitors’.
- It is a way for businesses to improvise and optimize their product in case their products are found lacking in features.
- What customers look for in a product is easily brought out in comparative analysis of products, so that all future planning can revolve around building and promoting those features.
Analyzing competitor campaigns
As a next step to analysing the product portfolio of competitors, it is worthwhile to devote attention to the marketing and product placement endeavours of close competitors. It is important to get a sense of how competitors craft their high-yield product campaigns.
- Analysing the content marketing activities of competitors including their blogs, articles, newsletters, webinars and product guides will give a sense of how effectively product attributes are projected.
- Analysing their SEO and social media activities will throw light on the intensity of campaigns that are to be created, with optimum exposure to all segments of markets.
- It can lead to the creation and rolling out of perfectly curated campaigns with maximum visibility and impact on prospective customers and strategies to educate them on product profile of a business.
Collecting feedback on competitor evaluation
This is a practise that is recommended by product managers to focus on customers’ evaluation of competitor’s brand. This kind of intelligence activities yield more realistic results than a mere study of competitor website and core competencies:
- Potential users of competitor products may be approached and questioned on satisfaction.
- It is important to collect their feedback when the customers have finished using the product or service. Both positive and negative feedback on the products, campaigns and marketing activities can be a reservoir of actionable information for businesses.
Studying churn rate of competitors
In addition to analysing the market share of competitors, another aspect of competitor profiling is studying the churn rate suffered by them. This exercise can help businesses to focus on the pitfalls in the products of competitors, that has made customers to steer away from competition.
- Product improvement and optimisation can be launched on war-footing to grab those customers who are disengaging from competitors.
- All marketing campaigns can highlight the new features embedded as a result of analysis in order to appeal to these customers.
Competitor analysis is a step-by-step guide to become aware of competitor strength and market share. Knowing the competitor’s market is an attempt made by the business to educate itself on penetration and brand establishment possibilities. A study and analysis of products and customers of competitors will enable business to plan their campaigns better that can yield maximum conversion.