The "Aam Aadmi" Guide to Competitor Analysis: Simple Steps for Big Results

In India, we're masters of "jugaad" – the art of finding ingenious solutions with limited resources. Why not apply that same spirit to understanding your competitors?

Let's break down how to analyze competitor strengths and weaknesses in the consumer category using simple models and practical steps:

Option 1: The "Field Trip" Approach

This method is all about getting out there and observing the competition in their natural habitat – the retail store.

Step 1: The “James Bond” Mission

Visit stores where your products and competitors' products are sold. Take note of the following:

• Visibility Score: How prominent is your product on the shelf compared to competitors? Is it at eye level? Are there any special displays?
• Offtake: Observe how often customers pick up your product vs. competitors. If possible, chat with store staff to get their insights.
• Pricing and Discounts: Note the prices of your product and competitors. Are there any discounts or promotions running?

Step 2: The SWOT Analysis

Based on your observations, create a simple SWOT table:

Competitor A

• Strengths: Strong brand recognition and a wide distribution network.
• Weaknesses: High price point and a limited product variety.
• Opportunities (for you): Offer better value and a wider product range to attract customers.
• Threats (to you): Competitor A could lose market share if they fail to adapt to changing consumer preferences.

Competitor B

• Strengths: Innovative product features and engaging marketing campaigns.
• Weaknesses: A smaller distribution network and lower brand awareness.
• Opportunities (for you): Expand your distribution network and build stronger brand awareness.
• Threats (to you): Competitor B's innovative products could disrupt the market and challenge your market position.

Step 3: The Trade Audit

Go beyond the shelf and talk to store managers or buyers. Ask about:

• Sales Data: How well is your product selling compared to competitors?
• Promotions: What kind of in-store promotions are most effective?
• Category Trends: What are the latest trends in your product category?

This information gives you a deeper understanding of the competitive landscape and potential opportunities.

Option 2: The "Digital Detective" Approach

This method leverages online tools and data to gather competitor insights.

Step 1: The Online Spy game

Use online resources to gather data:

• Competitor Websites: Analyze their product offerings, pricing, and marketing messages.
• Social Media: Monitor their social channels for customer sentiment, promotions, and engagement levels.
• Online Reviews: Read reviews on e-commerce platforms to understand customer perceptions of your product and competitors.
• Market Research Reports: Look for reports specific to your industry or product category to get broader market insights.

Step 2: The SWOT Synthesis

Compile the data you've gathered and create your SWOT analysis, just like in Option 1.

Step 3: The Data-Driven Decisions

Use the insights from your SWOT analysis to inform your business strategies:

• Product Development: Can you improve your product based on competitor weaknesses?
• Pricing: Are you priced competitively? Can you adjust your pricing strategy?
• Marketing: Can you differentiate your marketing messages based on competitor strengths and weaknesses?

Key Considerations:

• Choose the right model: The best approach depends on your resources and the type of product you're selling. A combination of both field and digital research is often most effective.
• Be systematic: Create a structured approach to your research to ensure you're gathering consistent and reliable data.
• Focus on actionable insights: The goal of competitor analysis is to gain insights that you can use to improve your own business.
• Identify competitor strengths. Are they masters of marketing? Do they have a superior product? Knowing their advantages helps you learn (and potentially counter).

The Final points to remember: 

• Don't just identify weaknesses, analyse them. Can you offer a better solution? Can you capitalize on their shortcomings?
• Don't just compete, differentiate. Find your niche, your unique flavour profile, and become the biryani everyone craves.
• Knowledge is power. Gather as much information as you can, from their website and social media to industry reports and customer reviews.
• Network, network, network. The more people you talk to, the clearer the picture becomes.

In conclusion:

Remember, analyzing your competitors isn't about imitation, it's about inspiration and innovation. Understanding your competitors is like playing a game of chess. It requires strategy, patience, and a bit of "jugaad" Since ,understanding your competition will either make or break you-spend maximum time and energy on this most critical element of your strategy.