Landscape analysis
When we start a new project at Revelation a crucial first step is truly understanding the lay of the land when it comes to our client’s marketplace. Known by a few names such as competitive landscape analysis, market mapping, market research, and so forth, the result of these phrases is we ultimately become experts in the field we will be working within.
A very important part of this process is interacting with your customers or potential customers as they often know who your true competition is. On many occasions, we have seen an inconsistency between what a future customer says and what the business owner/marketing director perceives as their competition, and this can be an important learning point early on. Of course, there is always the Steve Jobs approach where you tell the market what they want but if you don’t have unlimited dollars to spend then it is far easier to just align with your customer’s wants and needs.
This exploration helps us identify your competitors, their strengths and weaknesses, and the opportunities and threats they pose. It is an essential component of forming a successful brand.
Here are the key elements of a successful landscape analysis:
1) Identifying Competitors: The first step is to identify and list the direct and indirect competitors in the industry or market segment. Direct competitors offer similar products or services to the same target audience. In contrast, indirect competitors may have different offerings but still compete for the same resources, such as budget or attention.
2) Assessing Competitive Strengths and Weaknesses: Analyze the strengths and weaknesses of each competitor. This may involve examining their market share, financial health, brand reputation, product quality, pricing strategy, distribution channels, and other relevant factors.
3) Market Positioning: Determine where your company stands in relation to competitors. Are you a market leader, challenger, follower, or niche player? Understanding your position can inform your strategic decisions.
4) SWOT Analysis: Conduct a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) for your own business and for each competitor. This helps identify internal and external factors that can impact your company’s competitive advantage.
5) Customer Analysis: Understand your target customers and their preferences, needs, and pain points. Evaluate how your competitors are addressing these customer needs and whether there are unmet needs you can capitalize on.
6) Competitive Strategies: Examine the strategies employed by your competitors. This includes their marketing and advertising tactics, pricing strategies, product innovation, and any unique selling propositions.
7) Market Trends: Stay up to date with industry trends, market shifts, and emerging technologies. These factors can significantly impact your competitive landscape.
9) Barriers to Entry: Identify any barriers that may prevent new entrants from easily competing in your industry. These could include regulatory hurdles, high capital requirements, strong brand loyalty, or economies of scale.
10) Competitive Advantage: Determine your own unique competitive advantage or differentiating factors. How can you stand out in the market? This could be through innovation, cost leadership, branding, customer service, or other strategies.
11) Scenario Planning: Develop scenarios for potential future competitive landscapes. Consider how the competitive environment might change and how your business can adapt or capitalize on these changes.
The goal of this landscape analysis is to provide a clear picture of the competitive forces at play in your industry and help you make informed strategic decisions. It can also guide product development, marketing strategies, and resource allocation to maintain or improve your competitive position. This then gives you a great stepping point into the formation of your brand’s voice and visual identity.
Author | Tyler Vaughn
