How to conduct a competitive product analysis, and why you should

Think about the last purchase you made. What made you choose one product over another? Its look? Its ease of use? The price point?

Consumers have to weigh many options any time they make a purchase. So it pays for your brand and products to stand out against the competition.

But what does make your offerings stand out? And how can you be “the only choice” against your competitors? This is where a competitive analysis for your products comes in. It’s the best way to understand how to outpace your competitors, and where you may be falling behind.

All of the information you need is at your fingertips—you just need the right tools to access it. We’ll walk you through how to do a competitive product analysis today to inspire your offerings and brand positioning for tomorrow.

What is a competitive product analysis?How does a product competitive analysis help businesses?How do you analyze competitor products?What to look for during a competitor product analysis

What is a competitive product analysis?

A competitive product analysis is the process of researching and analyzing your competitors’ products to determine how prolific they are in the market, gaps they leave and what threats they pose to your products.

This process enables you to:

Determine what features competitor products haveWhat your target market likes and dislikes about competitor productsWhat products your competitors are not offering that you can offer

This process can be done for any type of product, including physical products (toys, games, tools, appliances, etc.), digital products (digital tools like Sprout Social or applications), experiences (museums, bars or restaurants) and services (cleaning services or moving services).

Conducting a product-focused competitive analysis should be done when you’re creating or considering new offerings, but also to optimize and improve upon what you already offer.

How does a product competitive analysis help businesses?

It’s competitive out there. And the process of a product competitive analysis helps businesses gather competitive intelligence to stay ahead of the competition and differentiate themselves in the market.

Here are a few actionable ways a product analysis of your competitors’ offerings is integral to your business.

Establish your unique selling propositions (USPs)

Establishing your USPs is a crucial piece of setting your offer apart from competitors’.

Conducting a competitive analysis will help you determine what differentiates your products, which will help you set them apart in marketing materials and beyond.

This could be as simple as differentiating your product by price point or feature. For example, AllBirds and Nike both offer sneakers. But what differentiates AllBirds is their core focus on extra comfort and sustainability, which is a big part of their message and brand.

https://www.facebook.com/weareallbirds/posts/pfbid02fYoesSZTYjQBpJ5XkenaEda6jLq8K3orys65kkxC5Dh29kmGhBCmu9DuYqKPHYbDl

While Nike differentiates their shoes and products by focusing on sports, activewear and performance—like this video highlighting how their product performs in cold, winter conditions.

@nike

What do you wear to keep your winter runs going? 🤔 #NikeRunning #WinterRuns #AllWeatherConditions

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