What to address in your competitor analysis

• Names of competitors - At first glance, this may seem like an exercise in list-making. Obviously, if you sell ice cream by the cone, your competitors include other ice cream vendors. However, you're also competing with other dessert treats offered by grocery stores as well as other items competing for consumers' discretionary funds. So, list all of your competitors and include information on any that might enter the market during the next year.
• Summary of each competitor's products - This summary should also include their location, quality, advertising, staff, distribution methods, promotional strategies, customer service, etc.
• Competitors' strengths and weaknesses - It's important to see your competitors' strengths and weaknesses from your customer's viewpoint, not yours. List their strengths and weaknesses. State how you will capitalize on their weaknesses and meet the challenges represented by their strengths.
• Competitors' strategies and objectives - This information might be easily obtained by getting a copy of their annual report. Probably, however, you will need to do some detective work or conduct an analysis of many information sources to understand competitors' strategies and objectives.
• Strength of the market - Is the market for your product growing sufficiently so there are plenty of customers for all market players? Or, is the market so tight you are selling primarily to your competitors' customers? (If so, you need to have a strong competitive advantage.)

Ideas for gathering competitive information

• Internet - Read Researching on the Internet for more detail about this powerful tool.
• Personal visits - If possible, visit your competitors' locations. Observe how employees interact with customers. What do their premises look like? How are their products displayed? Priced?
• Talk to customers - Your sales staff is in regular contact with customers and prospects. Your competition is also in contact with these people. Learn what your customers and prospects are saying about your competitors-and about you, too!
• Competitors' ads - Analyze competitors' ads to gain information about their target audience, market position, product features and benefits, prices, etc.
• Speeches or presentations - Attend speeches or presentations made by representatives of your competitors.
• Trade show displays - View your competitor's display with a critical eye and from a potential customer's point of view. What does their display "say" about the company? Even observing which trade shows or industry events competitors attend provides information on their marketing strategy and target market.
• Written sources:
  • General business publications
  • Marketing and advertising publications
  • Local newspapers and business journals
  • Industry and trade association publications
  • Industry research and surveys
  • Computer databases (available at many public libraries)
  • Annual reports
  • Yellow Pages

Hint: Create a file for each competitor. As you run across things like their marketing literature, tips from sales people or customers about them or articles that mention them, place it in their file. Then, when you're ready to conduct or update your competitor analysis, you will already have some relevant resources.