In fact it would be almost impossible for any brand to establish an effective unique selling proposition (USP) without first analysing the strengths and weaknesses of its competitors. A brand’s competitor analysis should form part of its category positioning strategy. 

Leron Varsha, CEO of Fore Good, explains: “Market research begins with an investigation into the size of your category, what competing brands are in that category and how your product is going to be strategically placed within the market. Through analysing the strengths and weaknesses of competing brands, you will be able to gauge how your USP compares and whether or not you already possess, or alternatively can create a competitive edge.” 

Varsha gives us his top points to note when introducing a new brand into the market:

• A brand’s USP; the point that gives the brand leverage over their competitors, should not be based on something subjective or intangible, such as flavour because these are ideas that are difficult to substantiate, rather give consumers a specific differentiating benefit that can be seen, described, measured and grasped, such as lower cost or improved functionality. Sometimes the USP is not particularly noticeable, in which case it is necessary to make it obvious to the consumer.
• New brands who want to establish themselves in an already saturated category should be aware that consumers have preconditioned expectations of a specific product and price point.
• In competitive categories you should further ensure that your brand has a strong proposition, so ask yourself if it can improve on existing products which are already available in the market, and if it can’t you need to decide whether it is in fact worthwhile entering that category at all.
• A brand that is moving into an entirely new category or sub-category has the opportunity to develop a completely unique identity and offering with its own original brand strategy.
• If you are entering a developing market or category, resources such as sufficient data and information may be unavailable therefore you might find it necessary to analyse complimentary products and apply these findings to your product.
• It is important to determine which products can act as complimentary products, as this is not always obvious and in order to establish this you need to understand how the consumer shops in this category, for example, if the price of tuna increases across brands, the consumer might replace it with another product entirely, such as chicken.

Varsha concludes that, in order to remain ahead of the game, this research should be constantly updated. Brands which are not vigilantly tracking the movements of their competitors are sure to be caught unaware.