Definition and significance of 1. competitor research

Competitor research is a method of market analysis, which involves the systematic analysis and evaluation of the market environment, competitors' strategies, strengths, weaknesses, trends, etc., in order to provide reference and basis for their own decision-making. The purpose of competitor research is to enable companies to better understand their position in the market and how to effectively compete and cooperate with competitors.

The significance of competitor research is that it can help enterprises to improve their competitiveness and market share from three aspects:

Understand your strengths and weaknesses, identify gaps and opportunities. By comparing the performance of their products, services, brands, channels, costs, quality, innovation, customer satisfaction, etc., companies can clearly recognize their strengths and weaknesses, as well as gaps and potential opportunities with competitors. In this way, enterprises can improve their own weaknesses, or use their own strengths to differentiate, so as to improve their market competitiveness.

Anticipate and respond to competitors' moves and develop effective coping strategies. By analyzing competitors' goals, motivations, capabilities, resources, and behaviors, firms can predict possible moves by competitors, such as price changes, new product launches, market expansion, and cooperative alliances. In this way, companies can respond in a timely manner, or take proactive action to prevent the threat of competitors, or to seize the market space of competitors.

Discover and create new value propositions to enhance their competitiveness and market share. By observing and learning from the successes and failures of competitors, companies can discover and create new value propositions, products or services that meet customer needs and distinguish them from competitors. In this way, enterprises can attract and retain more customers, expand their market share, and even open up new markets.

Implementation Method and Effect of 2. Competitor Survey

The implementation method of competitor research mainly includes the following steps:

Determine the scope and type of competitors. The range and type of competitors can be divided according to different criteria, such as market share, product category, geographical area, strategic objectives, etc. Generally speaking, competitors can be divided into direct competitors, indirect competitors and potential competitors. A direct competitor is an enterprise that competes with an enterprise in the same market, product or service area; an indirect competitor is an enterprise that competes with an enterprise in an adjacent market, product or service area; and a potential competitor is an enterprise that has the potential to enter the market, product or service area in which the enterprise is located. Enterprises should choose the most important and influential competitors to conduct research according to their own goals and resources.

Collect competitor information. Competitor information can be obtained from a variety of channels and sources, such as public data and reports, industry experts and media, customer and supplier feedback, competitors' websites and social media, competitors' product and service experiences, etc. Enterprises should try to collect as much information as possible, while paying attention to the validity and reliability of information, to avoid outdated and wrong information.

Analyze competitor information. Competitor information can be analyzed from multiple perspectives and dimensions, such as competitors' strategies, strengths, weaknesses, trends, threats, opportunities, etc. Companies should use appropriate analytical tools and methods, such as SWOT analysis, Porter's Five Forces analysis, value chain analysis, strategic group analysis, etc., in order to systematically organize and evaluate competitors' information.

Develop strategies for competitors. Competitor's coping strategy refers to the targeted action plan that a company makes for itself based on the information analysis of competitors in order to increase its competitiveness and market share. The coping strategies of competitors can be divided into defensive strategies and offensive strategies. Defensive strategy refers to the strategy adopted by enterprises to deal with the threat of competitors in order to protect their existing market position and profits, such as reducing costs, improving quality, increasing services, strengthening brands, etc.; offensive strategy refers to the strategy adopted by enterprises to challenge the advantages of competitors in order to expand their market position and profits, such as innovative products, market development, joint cooperation, merger and acquisition, etc. Enterprises should choose the most suitable and effective competitor's coping strategies according to their own goals and resources.

In order to be more specific about the implementation methods and effects of competitor research, we can refer to some specific cases of clients served by Champ Consulting, as follows:

Case 1: A competitor survey of a home appliance company. The company is a professional production and sales of air conditioners, refrigerators, washing machines and other household appliances, facing fierce competition from home and abroad. Champ Consulting conducted a competitor survey for the company, which included the following:

Determine the scope and type of competitors. According to the company's product category and market share, Shangpu Consulting selected its five most important direct competitors, namely Midea, Gree, Haier, Siemens and LG, and two indirect competitors, namely Suning and Jingdong, as the research object.

Collect competitor information. Champu Consulting collects competitor information from a variety of sources and sources, including public financial reports, market research reports, industry analysis reports, news reports, customer reviews, social media, and competitor websites and products.

Analyze competitor information. Shangpu Consulting uses SWOT analysis, Porter's five forces analysis, value chain analysis and other tools to systematically analyze and evaluate the information of competitors, and compares the advantages and disadvantages, gaps and opportunities of the enterprise and competitors from the aspects of strategy, product, brand, channel, cost, quality, innovation and customer satisfaction.

Develop strategies for competitors. According to the information analysis of competitors, Shangpu consulting has formulated targeted coping strategies for the enterprise, including the following points:

Improve product innovation capabilities, develop products that are more in line with customer needs and preferences, such as intelligence, energy saving, and personalization, to enhance product differentiation and market competitiveness.

Strengthen brand construction and promotion, improve brand awareness and reputation, through advertising, public relations, activities, word-of-mouth and other ways to shape the image and value of the brand, in order to increase customer awareness and loyalty.

Optimize the layout and management of channels, expand the coverage and depth of channels, and improve the efficiency and effectiveness of channels through the combination of online and offline to increase product sales and distribution.

Reduce costs and improve quality, through the use of more advanced technology and equipment, more optimized processes and management, more reasonable procurement and inventory, more stringent quality control and testing to reduce product costs and improve product quality to increase product profits and customer satisfaction.

Evaluate the execution and effectiveness of competitors' coping strategies. Shangpu Consulting provides the enterprise with the evaluation service of the implementation and effect of the competitor's coping strategy. Through regular tracking and monitoring, it compares the market performance of the enterprise and the competitor, and evaluates the effectiveness and improvement space of the competitor's coping strategy.

Through the competitor research services of Champu Consulting, the company achieved the following results within one year:

The innovation ability of the products has been significantly improved, and a number of new products welcomed by customers have been launched, such as intelligent air conditioners, frequency conversion refrigerators, fluorine-free washing machines, etc., which have enhanced the differentiation advantages and market competitiveness of the products.

The popularity and reputation of the brand have been greatly improved, and the image and value of the brand have been shaped in a variety of ways, such as the slogan of "professional home appliances, quality life", as well as cooperation with stars, sports, public welfare, etc., which have increased customer awareness and loyalty.

The coverage and depth of the channel have been significantly expanded. Through the combination of online and offline, the efficiency and effect of the channel have been improved. For example, the cooperation with Suning, Jingdong and other e-commerce platforms, as well as the construction of specialty stores, counters and experience stores across the country have increased the sales and distribution of products.

The level of cost and quality has been significantly improved, through the use of more advanced technology and equipment, more optimized processes and management, more reasonable procurement and inventory, more stringent quality control and testing, reducing product costs and improving product quality, increasing product profits and customer satisfaction.

Market share and profit margin have increased significantly. According to the latest market research report, the market share of household appliances such as air conditioners, refrigerators and washing machines of the enterprise has reached 15%, 12% and 10% respectively, up 3%, 2% and 2% respectively over the previous year, while the market share of its competitors has declined or stagnated. At the same time, the company's profit margin also reached 8%, an increase of 2% over the previous year, while the profit margin of its competitors declined or remained unchanged.

Case 2: A competitor survey of a catering company. The enterprise is a professional Chinese fast food business, facing competition from various forms of catering. Champ Consulting conducted a competitor survey for the company, which included the following:

Determine the scope and type of competitors. According to the company's catering type and market positioning, Shangpu Consulting selected its three main direct competitors, namely McDonald's, KFC and Pizza Hut, and two indirect competitors, namely Haidilao and Xiabuxiabu, as the research object.

Collect competitor information. Champu Consulting collects competitor information from a variety of sources and sources, including public financial reports, market research reports, industry analysis reports, news reports, customer reviews, social media, and competitor websites and products.

Analyze competitor information. Shangpu Consulting uses SWOT analysis, Porter's five forces analysis, value chain analysis and other tools to systematically analyze and evaluate the information of competitors, and compares the advantages and disadvantages, gaps and opportunities of the enterprise and competitors from the aspects of strategy, product, brand, channel, cost, quality, innovation and customer satisfaction.

Develop strategies for competitors. According to the information analysis of competitors, Shangpu consulting has formulated targeted coping strategies for the enterprise, including the following points:

Improve the quality and taste of products, pay attention to the selection and processing of ingredients, and adopt healthier and delicious recipes and seasonings to enhance product differentiation and market competitiveness.

Strengthen the quality and speed of service, pay attention to customer experience and satisfaction, and adopt more convenient and efficient ordering and distribution methods to increase customer loyalty and return rate.

Optimize the price strategy and structure, pay attention to the customer's needs and budget, and adopt more reasonable and flexible pricing and discount methods to increase the customer's consumption and profit.

Expand the variety and function of products, pay attention to the diversity and personalization of customers, and adopt more rich and innovative dishes and packages to increase the choice and satisfaction of customers.

Evaluate the execution and effectiveness of competitors' coping strategies. Shangpu Consulting provides the enterprise with the evaluation service of the implementation and effect of the competitor's coping strategy. Through regular tracking and monitoring, it compares the market performance of the enterprise and the competitor, and evaluates the effectiveness and improvement space of the competitor's coping strategy.

Through the competitor research services of Champu Consulting, the company achieved the following results within one year:

The quality and taste of the products have been significantly improved, and a number of new dishes welcomed by customers have been introduced, such as spicy beef, mushroom chicken, cheese cake, etc., which have enhanced the differentiation advantages and market competitiveness of the products.

The quality and speed of the service have been greatly improved, and the customer experience and satisfaction have been improved in a variety of ways, such as online ordering, take-out delivery, self-service food pick-up, member points, etc., increasing customer loyalty and return rate.

The price strategy and structure are more optimized, and the customer's needs and budget are met through a variety of methods, such as single-point discounts, package discounts, holiday promotions, coupon gifts, etc., which increase customer consumption and profits.

The variety and function of the products are more abundant, and the diversity and personalization of customers are satisfied through a variety of ways, such as breakfast, lunch, dinner, midnight snack, dessert, beverage, etc., which increases the choice and satisfaction of customers.

Market share and profit margins have increased significantly. According to the latest market research report, the company's Chinese fast food market share reached 10%, an increase of 2% over the previous year, while the market share of its competitors has declined or stagnated. At the same time, the company's profit margin also reached 15%, an increase of 3% over the previous year, while the profit margin of its competitors declined or remained unchanged.

Conclusion

Competitor research is an effective method of market analysis, which can help enterprises to improve their competitiveness and market share from three aspects: first, it can help enterprises understand their own advantages and disadvantages, identify gaps and opportunities; second, it can help enterprises predict and respond to competitors' actions and formulate effective coping strategies; third, it can help enterprises to discover and create new value propositions, increase their competitiveness and market share. Through the specific cases of Champu Consulting serving its customers, we can see the implementation methods and effects of competitor research, with a view to providing reference and inspiration for companies interested in conducting competitor research.