http://www.business.govt.nz/tools-and-templates/educational-resources/competitor-research ACTIVITY 1 Understanding the value of competitor research Read through the competitor research topic hand out with the class before asking students to name some of the most important or innovative products they know of. Once a list of at least five examples has been recorded, discuss with students what market assumptions on the part of the product manufacturer’s competitors might have led to the manufacturer developing and introducing the product. To start the ball rolling, suggest some examples: - Honda’s introduction of small motorcycles into the US: based on American competitor assumptions that there was no market for them. The Honda brand subsequently defined the market and went on to enjoy massive expansion in the US. - Apple’s introduction of the iPod with its click wheel system: based on competitors’ assumptions that the size of portable digital music players was more important than ease of use. The iPod launched the Apple brand as one of the most valuable of the 21st Century. ACTIVITY 2 Putting theory into practice Students can carry out the following task individually or in groups. Each group must pick an industry, which they will then research and compile a competitor analysis report on. Depending on class resources, they must: - Decide on an industry and target market for a fictional start-up small business. - Accurately identify their five most important competitors in the industry (based on target market analysis). - Research each competitor by employing at least two of the methods outlined in the Competitor research hand out. Students can create their own survey questions or use the survey template provided. - Report back to class with a presentation detailing their findings and how they have influenced the development of their fictional start-up’s points of difference. For further credit, students could individually develop a start-up business plan expanding on their research. Resource - www.business.govt.nz/tools-and-templates/educational-resources/competitor-research/Student%20handout.doc - www.business.govt.nz/tools-and-templates/educational-resources/competitor-research/Competitor%20research%20survey%20template.doc - www.business.govt.nz/managing/marketing/market-your-point-of-difference

1. Competitor Research

2. Competitor research…
… is the practice of
researching and analysing
your business competitors
It can involve pretending to
be a competitor’s customer –
but it’s not spying
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3. Benefits of knowing your competitors:
- You can make better
planning decisions
- You can target
competitors’ weaknesses
- You can identify your own
weaknesses and improve
them
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4. Methods of competitor research:
- Research website
- Survey own customers
- Test customer experience:
- Phoning
- Mystery shopper
- Research public records
- Buy industry reports
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5. Step one: Identify competitors
Choose them by similarities in
target markets between your
own company and your
competitors, not by broad
product categories…
… Drive-throughs and five-
star restaurants don’t share
target customers, for example
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6. Step two: Define parameters
What questions do you need
answered? For example…
-What are they good at?
-What are they bad at?
-How long does it take to be
served?
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7. Step three: Plan your tactics
- Create customer
surveys
- Prepare phone scripts
- Find mystery shoppers
and brief them
- Automate web research
with alerts
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8. Step four: Maintain records
Follow up research on a
regular basis and update
records as new information is
found
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9. Find Out More
Facebook.com/business.govt.nz
Twitter.com/business_govtNZ
Linkedin.com/company/business-govt-nz
Slideshare.net/MED-Business
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