Calling all product managers who need to create a benchmark overview for their new products. First, let’s talk about why you should create a competitive benchmark overview for your new products.
Why should you create a benchmark overview?
The first reason is you need a clear overview to be able to position your products correctly compared to your competition. And compared to your current product portfolio. And second, it helps you define your value proposition.
So, two important reasons why you should create a benchmark overview.
How to create a benchmark overview for your new product?
- Open a spread sheet like Excel.
- Start with creating six or seven columns.
- On the top row, in the second column you create squares where you can position the image of your new product or product drawing.
- And next to your product image you add the images of your competitor products.
- Now below those images, you’re going to mention the product name, the commercial type number, maybe the family name, and a short description of your new product. Do the same for your competitor products.
Where to find competitor information?
Competitor information can be found on the internet. Maybe you can talk to customers who use your products and your competitor products. Or you can go to the store and look for some more information on pricing, packaging, features and benefits of competitors.
Technical specifications & product certifications also need to be evaluated.
Next step is to describe the features and benefits of all the products.
Add more details on your product like resolution, pixels, or voltage.
It differs per product category, what you should include in technical specs.
Below those technical specs, you can note down the product certifications. Where can your product be sold? What kind of certification does it have: CE, UL, BIS for India or KCC for Korea, or CCC for China.
Find out what product certifications your competitor products have. It’s a very important factor to take into consideration where you should be able to sell your product. So, you also list the countries of the regions where you can sell. This can be a competitive advantage.
If your product is worldwide available for international customers, it can be very interesting that they use the same products for all their businesses.
If you have this spreadsheet ready you’ll have a clear overview of what sets you aside from the competition.
Packaging and Pricing
Because you added product images, you can see visually how your product looks compared to the competition. You can also add an image of the packaging if this is an important aspect in presenting your product on the shelf at retailers.
If the packaging is not really an issue, because you’re in b2b and the packaging’s are simple brown boxes an image of the packaging is not relevant
Pricing is very interesting topic to add to your benchmark overview. You can differentiate your pricing per region. I can imagine that in Asia, you have a different price point compared to South America or North America or Europe. Look at that as well. And try to find out if your competition does the same.
Check out my blog for next week about price positioning if you like to more on this topic by clicking here.
Distinguish your product from competition
Mentioning the benefits and the features really help you to distinguish yourself from the competition. Think about how you want to position your product.
Comparing the technical specs is interesting to see where you deviate from the competition, and what makes your product better or maybe less attractive.
It’s important to put time and effort in this research but it’s worthwhile doing so. You can compare your product to the competition and position it much better. It also helps to explain your price point. If your product provides added value, you can charge a higher price.
Use this benchmark overview as a source of information to help you position your product, work out your product strategy and your marketing materials like technical data sheets and product leaflets.
Like to learn more on how to become an excellent product manager? Sign-up here for my wait list for my online product management course and be the first to know when doors are open.
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