When was the last time you analyzed the market and main competitors? And I’m not talking about just “running over competitors and seeing the prices of basic goods”.
I’m talking about a full-fledged marketing analysis of the market, with full-fledged visits of a secret buyer of 3-5 competitors, with full-fledged sound recordings and compilation, for example, of SWOT-analyzes.
Most likely, if they did, it was not so detailed or very, very long time ago.
Of course, part of the analysis for many is “sand boxing,” and for many it’s better to make money than to look around. And still believe us, you need it!
One of our clients is a company engaged in the wholesale of children’s knitwear. Its main supplier is the Turkish children’s clothing factories.
The owner conducted a full analysis, drove through the main competitors (by the way, he has 7 of them). He conducted surveys among his clients and came to the conclusion that it is necessary to expand the range of domestic products.
He found some good children’s factories and became their representative. As a result, he has well expanded his product line and separated from competitors.
And now our client does not depend on one supplier. And that means if something goes wrong with our client, it will not lose as much in sales as its competitors. Because literally he was able to assess changes in the market and warn them.
ANALYSIS CONSISTS OF 6 STEPS
Let’s look at what should be in the report “a good analysis of the market and my main competitors” Analysis of your :
5. Analysis of marketing products (your and competitors);
6. SWOT analysis
Now in detail about each item.
1. Analysis of your sales
1.1. For a basic understanding, it must be done in the last 3 years.
By year and monthly. In your analyzes for better visibility you need to build graphs. So you can better see all the ups and downs.
In addition, a prerequisite is to understand whether there is seasonality in your business, as well as how much you grow or fall in relation to last year.
1.2. Naturally, you will also need to conduct a secret buyer in your company.
To do this, you can ask friends or hire a specially trained person. Mandatory sound recording and a detailed report. You can learn a lot about your employees and how they are sold
2. Analysis of your customers
2.1. Owners usually tell what they know their customers and what they need. I always cite one example, which I remember very much.
We conducted a sales seminar for distributors, at which the owner also purchased from whom they bought everything.
And when we started to take feedback on the product and the work of the client, the whole seminar turned into a discussion of the advantages and disadvantages of its product, its sales managers and service.
It lasted about an hour and during this time we received just invaluable feedback, on the basis of which we improved the service and work of the staff.
The owner, of course, was in shock, because he had been in this business for more than 10 years and thought he knew what his distributors breathed, but it was not there.
Market and competitor analysis what to do
2.2. In addition, you can always conduct a survey among your customers.
You can be sure that a survey will help you a lot, and clients will be more willing to answer it if you use one phrase:
— We conduct a survey in order for you to improve service and quality of service.
3. Analysis of your products
Very important tool. Competently carried out analysis of your products will allow you to understand which product is selling best, which product brings you the most money. For example, in the opt, this is called “ABC analysis”.
I will give a simple example on a coffee shop and analysis of its menu. In the analysis, we used the model of Mile Casavana and Dale Smith.
And now I’ll just tell you what you should get and what conclusions you should draw using this approach.
This is how the breakdown of dishes by categories in our client’s coffee shop should look like.
- Low yield and high popularity of dishes
- Example: Americano, Burger, Sandwich
- High yield dishes
- High popularity of dishes
Example: hamburger, cappuccino
- Low yield and
- low popularity of the dish.
Example: wings, nuggets
- High yield,
- but low popularity of the dish.
Example: designer tea, pancakes
Conclusions you should get:
Workhorses are popular dishes among customers.
And it means you need to come up with some options for pre-sales, well, or raise the price to 10% (not always), as people will take
Stars — this is what the main income comes from.
Your main task is to maintain high sales and low cost without compromising quality
Riddles — profitable, but not popular dishes.
To do this, you need to stimulate their sales, introducing additional motivation among your staff.
Dogs — it is best to refuse such dishes from the menu or look for substitutes for them.
By the way, a correctly analyzed menu, conclusions drawn from it, that is, the removal of some positions, a written script for the staff on the sale of certain items, help to increase sales in a cafe / restaurant by 7-10%.
In fact, a similar analysis can be carried out on any business, be it a restaurant, wholesale or clothing store. The only condition is the availability of detailed reporting and analytics.
And if the topic about the product matrix has become more interesting for you, then I advise you to study this article.
4. Analysis of your competitors
Just a stumbling block. Usually, owners simply drive through competitors, collect prices, compare prices, and calm down on this analysis.
Yes, prices are important, as well as:
Pay attention to advertising (where a competitor is advertised, what advantages it tells about)
To conduct a secret buyer, to see how the staff works, to assess the level of service, location. Naturally, all this should be done with sound recordings and filling out checklists on issues of interest to you.
Life hacking! Come to the customer’s shop in the morning, buy any trinket, save the check, make the purchase again in the evening before closing. See the difference in the numbering of checks, multiply by the average check.
Voila! Turnover for the day! It remains only to multiply by the number of working days in the month and get an approximate turnover. Such a system can be a lot of where to crank.
As a result, you need to make a list of pros and cons for each competitor. Starting from having a parking lot and ending with an undelivered check for a purchase.
By the way! A very important point — you need to analyze exactly the right of your competitors.
5. Analysis of marketing products
A very important point. For example, if you are engaged in wholesale business and send out price lists, then price lists should be sold for you.
Therefore, they must be selling.
Regular price lists of an average company are unloading from 1C to Excel on 20-40 pages. That is one like the other.
This is how we finalized the prices of one of our clients and how it began to look.
Modify your price list. Hire a photographer, pay the programmer for making changes to 1C.
When you make changes, your conversion after sending the price to the purchase will increase by 15%.
6. SWOT analysis
Yes, not everyone’s favorite SWOT analysis, which we heard or even studied at the institute, and did not understand why it is needed.
In fact, it is a very important tool that helps to show what state you are in now, what strengths and weaknesses you have. By the way, it is as follows:
Below, I gave an example of how we conducted a SWOT analysis for our client, who sells luxury jewelry.
Swot market and competitor analysis
The main thing is to correct weaknesses and threats, to develop Opportunities and not to lose your strengths.
The main conclusion you have to make is how the market feels (for example, all the wholesalers of satellite dishes have long come to believe that their market has no more than 3 years to live), whether it is expanding or shrinking.
What place do you have in this market and do your sales grow from month to month, from year to year.
And the most delicious, for which you conducted an analysis of the market and major competitors, what can you do to increase your sales? But this will help you SWOT –analysis