Brand Strategy Series I: Know Your Competitors
First up in our Brand Strategy Series is getting clarity on who your competitors really are. Why exactly? Understanding your business competition will equip you with the knowledge to strengthen and improve your own brand. It can help you to distinguish your business from competitors in the marketplace and communicate more effectively with your target audience.
Firstly, it is important to understand the kind of competitor they are. This includes any business that might deter a potential customer or client from choosing your brand. A direct competitor is a business that has essentially the same product or service and revenue goal. Because of these reasons, they are competing for the same potential market. For example, the direct competition of a residential interior designer would be other residential interior designers. However, an indirect competitor offers a similar product or service and still meets the same need in an alternative way. In the case of an interior designer, this could be interior stylists or property staging professionals for residential homes. A third type of competitor that you might not have heard of is a substitute competitor, defined as a business that sells a product or service that's different in category and type than you, but one which your customers could choose to spend their money instead. Using the example of the interior designer, a substitute competitor could be a business offering DIY online decorating courses.
Secondly, understanding how your competition positions themselves is so important when it comes to your own branding. As they say; there’s no standing out from the crowd if you have no idea what the crowd is offering. The more you know about your competitor’s positioning, the more you can differentiate yours from it and make your brand stand out. Some questions to consider could include: Do they appeal to a particular demographic or niche? Are they a luxury service or targeted to the budget conscious? Are they positioned as a sustainable brand? The more you know about your competitors’ positioning, the stronger you can make yours. If you’re a new brand, doing this competitive research first will ensure that you’re not entering the market with a value proposition that’s already been taken. On the flipside, if you’re already an established brand this process can assist you in refining your current strategy and redefining your brand positioning if necessary.
It is also crucial to understand your competitor’s strengths and weaknesses. Ask yourself the question – what do customers like about their brand or offering? You can then determine if this is something that you could incorporate into your own brand. Or if not, then you’ll be able to define what areas you can effectively compete for customers in. Alternatively, knowing the weaknesses of your competition can assist you in determining what strengths to highlight in your own marketing and brand messaging.
If this is something you need to add to the ‘to-do list but would like guidance in, please get in touch with us. As part of HA Creative’s brand package, we include a brand strategy that clarifies your own brand values and goals, as well providing an in-depth competitor analysis. Simply fill out an enquiry form here to get started.
