When designing buyer personas, guidebooks often recommend gathering information by finding people to interview. They talk about searching for candidates on sites like Craigslist. They even suggest offering an incentive in…
Competitive Product Analysis
A formal, competitive product analysis is expensive.
Using a third party market research firm to perform competitive product analysis certainly has it’s place, but it’s so expensive, you’ll often blow your whole budget before you get to the drawing board. For brands looking for an effective way to analyze competitors’ products without breaking the bank, a product review analysis may be the ticket.
You probably already know the answers to many questions:
- What is my competitor’s target market?
- Are they profitable?
- How long have they been in business?
- How is my company different?
- What is their marketing strategy?
- What is their pricing strategy?
- Do they have a specific geographic target area?
Analyzing product reviews can answer the most important questions:
- What are the positive attributes about my competitors’ products in the eyes of consumers?
- What are the negative attributes about my competitors’ products in the eyes of consumers?
These last two pieces of information can help you perform a SWOT analysis to understand what your competitive advantage is (or should be). You should match and improve upon what your consumers love about your competitors, and you should improve upon and promote what they dislike about competitive products.
Ready to monitor your competitors? Request a demo.
How Real Brands Use Reviews: Water bottles don’t fit coffee machines
A coffee mug company was looking at seven of their closest competitors with the Channel Signal platform. This competitive product analysis revealed a common theme recurring in many reviews about their new vacuum sealed coffee mugs: they would not fit under their coffee making machines. Specifically, the new “k-cup” style machine such as Keurig was the problem. Is a person more likely to replace their coffee machine or their coffee cup? The cup is much more fleeting, decidedly. With these insights, the company was able to look into a new vertical with a shorter style vacuum sealed cup.