Purpose of Competitor Research

The purpose of competitor research is to understand the basic situation and data of competitors, analyze competitors' competitive strategies and core competencies, find competitors' strengths and weaknesses, assess competitors' threats and opportunities, and develop their own competitive strategies and differentiation advantages. Specifically, competitor research can help companies achieve the following objectives:

Understand the market pattern and competitive situation, determine their own market positioning and target customers;

Identify the characteristics of competitors' products and services and compare the advantages and disadvantages of their own products and services;

Analyze the price strategy and profit level of competitors, and formulate their own price strategy and profit target;

Observe the competitor's channel strategy and distribution network, choose your own channel strategy and distribution channel;

Study the marketing strategies and communication methods of competitors, design their own marketing strategies and communication programs;

Predict the future trends and development trends of competitors, and formulate their own countermeasures and development plans.

Content of competitor research

The competitor research mainly includes the following aspects:

Basic information of competitors, such as name, address, size, date of establishment, shareholder structure, management, organizational structure, business scope, major customers, major partners, etc;

Financial data of competitors, such as operating income, operating costs, operating profit, net profit, asset-liability ratio, current ratio, gross profit margin, net profit margin, sales growth rate, market share, etc;

Products and services of competitors, such as product types, product characteristics, product quality, product innovation, service content, service quality, service innovation, etc;

Competitor's price strategy, such as price level, price range, price elasticity, price change, price promotion, etc;

Competitor's channel strategy, such as channel model, channel number, channel coverage, channel management, channel cooperation, etc;

Competitors' marketing strategies, such as marketing objectives, marketing mix, marketing activities, marketing effectiveness, marketing innovation, etc;

Competitor's brand strategy, such as brand name, brand logo, brand positioning, brand image, brand proposition, brand value, brand communication, brand loyalty, etc;

Competitor's competitive strategy, such as competitive advantage, competitive disadvantage, competitive goal, competitive means, competitive response, competitive cooperation, etc;

Competitor's development strategy, such as development goals, development direction, development steps, development difficulties, development opportunities, development threats, etc.

Methodology for competitor research

There are several main methods of competitor research:

Documentation: access to basic information and data about competitors by consulting publicly available literature, such as industry reports, news reports, official websites, annual reports, prospectows, etc;

Observation method: through direct or indirect observation of competitors' products, services, channels, marketing activities, etc., to understand their characteristics and performance;

Interviews: through interviews or questionnaires with competitors' employees, customers, suppliers, partners and other relevant personnel to obtain their internal situation and external evaluation;

Trial method: to evaluate the quality and performance of competitors' products or services through their own trial or testing or commissioning of third-party institutions;

Simulation: By constructing a model or scenario of a competitor, simulating its possible behavior and reactions, and predicting its future movements and impact.

Competitor Research Cases

The following are three examples of competitor research reports provided by Champ Consulting to clients.Abstract：

Case 1: A competitor research report provided by Champ Consulting for a new energy vehicle company.

ReportAbstract: This report analyzes the market pattern, development trend, policy environment and consumer demand of the new energy automobile industry, focusing on the basic information, financial data, products and services, price strategy, channel strategy, marketing strategy, brand strategy, competition strategy and development strategy of Tesla, BYD, Weilai and Xiaopeng, the strengths and weaknesses of each competitor, as well as the threats and opportunities to customers, are evaluated from multiple dimensions, and targeted competitive strategies and recommendations are proposed.

Case 2: A competitor survey report provided by Champ Consulting for a milk tea brand.

ReportAbstract: This report analyzes the market scale, growth rate, consumption characteristics, consumption scenarios, etc. of the milk tea industry, focusing on the basic information, financial data, products and services, price strategy, channel strategy, marketing strategy, brand strategy, competition strategy and development strategy of the four main competitors of Naixue's tea, Xi cha, a little bit and tea Yan Yue, the strengths and weaknesses of each competitor, as well as the threats and opportunities to customers, are evaluated from multiple dimensions, and targeted competitive strategies and recommendations are proposed.

Case 3: A competitor research report provided by Champ Consulting for an education and training institution.

ReportAbstract: This report analyzes the market demand, development trend, policy influence and consumption preference of the education and training industry, and focuses on the basic information, financial data, products and services, price strategy, channel strategy, marketing strategy, brand strategy, competition strategy and development strategy of the four main competitors of New Oriental, Good Future, Xueersi and Ape Counseling, the strengths and weaknesses of each competitor, as well as the threats and opportunities to customers, are evaluated from multiple dimensions, and targeted competitive strategies and recommendations are proposed.

Frequency and timing of competitor surveys

The frequency and timing of competitor research refers to how often and under what circumstances a company should conduct competitor research. The frequency and timing of competitor research should be based on market changes, competitor dynamics, business needs and resources and other factors, neither too frequent nor too late, to maintain appropriate sensitivity and flexibility to achieve the maximum value of competitor research. Here are some guidelines and recommendations for choosing the frequency and timing of competitor research:

According to market changes: the market is the stage of competition, changes in the market will affect the pattern and results of competition. Therefore, companies should adjust the frequency and timing of competitor research according to the degree and speed of market changes. In general, the faster the market changes, the higher the frequency and timing of competitor research should be, and vice versa. For example, when there are major changes in the market such as new technologies, new policies, new demands, and new competitors, companies should conduct timely competitor research to respond to market changes and challenges.

According to competitor dynamics: competitors are the object of competition, and the dynamics of competitors will affect the advantages and disadvantages and direction of competition. Therefore, enterprises should adjust the frequency and timing of competitor research according to the dynamic changes of competitors. In general, the greater and faster the dynamics of competitors, the higher the frequency and timing of competitor research should be, and vice versa. For example, when competitors launch new products, new services, new prices, new channels, new marketing, new brands, new strategies and other major developments, enterprises should conduct timely competitor research to deal with the dynamics and threats of competitors.

According to the needs of enterprises: enterprises are the main body of competition, and the needs of enterprises will affect the objectives and means of competition. Therefore, enterprises should adjust the frequency and timing of competitor research according to their own needs. In general, the greater the change in demand, the faster the frequency and timing of competitor research should be higher and more timely, and vice versa. For example, when companies need to make or adjust their products, services, prices, channels, marketing, brands, strategies and other major decisions, companies should conduct timely competitor research to support their decisions and actions.

According to enterprise resources: enterprises are the executors of competition, and their resources will affect the efficiency and effectiveness of competition. Therefore, enterprises should adjust the frequency and timing of competitor research according to their own resources. In general, the more adequate and stable a company's resources are, the higher and more timely the frequency and timing of competitor research can be, and vice versa. For example, when a company has sufficient human, financial, material, and information resources, it can conduct more frequent and timely competitor research to improve the quality and effectiveness of competitor research.

In short, the frequency and timing of competitor research should be based on market changes, competitor dynamics, business needs and resources and other factors, neither too frequent nor too late, to maintain appropriate sensitivity and flexibility, in order to achieve the maximum value of competitor research.