Market research and competition analysis are essential steps that companies take at the beginning of their operations. Their goal is to understand the strengths and weaknesses of competitors and identify opportunities and threats to the business. A meticulous approach to competitive analysis and conclusion helps avoid costly mistakes and increases the chances of achieving a strong market position. Check if the process of gathering and analyzing market data is yielding the expected results.
How to conduct market and competition research?
Regardless of your industry, understanding customer preferences and market trends is crucial for business success. Analyzing business data and developing growth strategies based on solid data, rather than subjective beliefs, can prevent risky actions. While intuition plays a role in business, it must be supported by in-depth market knowledge.
Market analysis is crucial at every stage of a company’s life. It enables effective adaptation to changing customer needs, competition, technological environment, and brand image. The results and insights from market analysis facilitate informed decisions regarding production optimization, process improvement, innovation implementation, or even expansion into foreign markets.
How to effectively conduct competition analysis?
Start by identifying the main competitors in the market. Use available sources such as company websites, industry reports, and industry blogs to learn about their strategies and actions. Monitor their activities regularly, for example, through LinkedIn analysis, Senuto, SEMSTORM, or Surfer.
After identifying competitors, proceed to analyze available sources of information about them. These sources can include:
- Company websites: Review their official websites to learn about their latest products, marketing strategies, company missions, and more.
- Industry reports: Reports prepared by research institutions and industry analysts provide deeper insights into trends and competitive analyses.
- Industry blogs: Blogs and industry forums are where experts and consumers share opinions on various products and brands.
- Industry press: Read articles and reports on industry events that may contain significant information about competitors’ actions.
Competitive analysis provides valuable insights into the steps your company can take to remain competitive and avoid mistakes made by competitors.
Market Research Elements – Customer Research
Conduct an online survey to gather data from current and potential customers and to track the latest market trends. Use survey platforms like Vivelio to collect information about customer preferences and opinions on current efforts to improve service quality and products. Utilize the capabilities offered by Vivelio, such as conducting Insight analysis using decision paths and behavioral indexes. You can read more about Vivelio here.
If you don’t want to limit yourself to theoretical considerations, you can test our tool by creating a free trial account. Test it without providing credit card information. After the trial period, you can decide whether you want to continue using the Vivelio survey tool.
In surveys, you can ask questions about:
- Brand and product preferences.
- Key factors influencing their choices.
- Expectations regarding product features and qualities.
- Purchase frequency.
- Opinions on pricing and availability.
After collecting responses, analyze survey results using Vivelio for statistical analysis or data visualization to identify key trends and patterns.
Market Trends Research and Analysis
Keep an eye on the latest industry trends, such as new technologies or market preferences. Read industry blogs and reports to stay up-to-date. Based on information gathered from blogs and industry reports, analyze dominant trends. Check if there are new technologies, processes, or innovations gaining popularity. Develop a plan for incorporating market trends into your business strategy. This may include introducing new features that align with current trends or adjusting marketing efforts.
Analysis of Available Market Data
Use data available on research agency websites such as Statista or IDC to obtain information about market size, shares, and forecasts. Analyze collected market data using charting tools and statistical analysis to understand the current state and trends of the market. Analyzing competition, customers, market trends, and market data are essential elements of effective market analysis. This information will help you better understand how the market operates, adjust your strategy, and make more informed business decisions.
Summary
Before starting a business, market analysis helps assess the chances of success and develop an entry strategy. If you’re seeking investor support, grants, or funding, it provides data that legitimizes your business. Additionally, market analysis can help identify development obstacles, key success factors, new markets, customer segments, and growth opportunities. Don’t delay conducting a thorough analysis. Research and utilize the data collected in the Vivelio survey system to better tailor your product to the dynamically changing market. Want to learn more about market research and launching a new product? Check it out.