In today’s competitive market landscape, understanding your competition is crucial for the success of any new product. Conducting a comprehensive competitor benchmark can provide valuable insights into market standards, pricing strategies, feature offerings, and more. Here’s a step-by-step guide to help you effectively benchmark your competitors.

Introduction

Welcome! In previous discussions, we’ve delved into the essentials of creating a project business plan, crafting your first product brief, and the significance of early market feedback and product concept drawings. Today, we’ll explore how to perform a thorough competitor analysis and leverage this information to enhance your product development process.

Why Competitor Benchmarking is Important

Before you even consider suppliers or manufacturing (whether in-house or outsourced), it’s pivotal to gather data on the maximum price your market can bear for your product. This isn’t just about understanding costs; it involves knowing what your customer is willing to pay, what competitors are charging, and how your product stacks up in comparison.

Benchmarking your competitors forms a fundamental part of market research, helping you to not only understand customer needs and demands but also to identify and analyze your competitors’ strategies. 

Step-by-Step Guide to Competitor Benchmarking

• 1. Identify Your Top Competitors: Start by listing your top five or ten competitors, depending on your market size. Look them up online to analyze their product portfolios, and identify which of their products are the most direct competitors to yours. Document these findings in a spreadsheet for easy comparison.
• Gather Basic Competitor Information: Note down the competitor names, product ranges, family names, and commercial type numbers (CTNs). A structured spreadsheet, like Excel or Google Sheets, can help you format this information for better analysis.
• Analyze Features and Benefits: Document the features and benefits of your competitors’ products and compare them to your own. This will help you identify areas where you can differentiate your product. List this information vertically in your spreadsheet, starting with your product and following with your competitors for easy side-by-side comparison.
• Document Technical Specifications: List the technical specifications of your competitors’ products and compare them to your own. This step will vary significantly depending on the product type, such as electronics versus skincare products
• Check Certifications: Identify the certifications required for your product and check if your competitors meet these standards. This can reveal markets where competitors are present and help you understand regulatory requirements.
• Visual Comparison:    Having images of your product and your competitors’ products can be very insightful, especially if you are selling consumer goods that appear on store shelves. Analyze how your packaging looks compared to your competitors and see if it stands out.
• Identify Sales Channels: Determine where your competitors sell their products. Note if they sell directly to consumers or through specific retailers or distributors. This can provide valuable insights into their distribution strategies and potential partnership opportunities for your product.

Creating a Living Document

Your competitor benchmark should be a dynamic, evolving document. Continuously update it as you discover new information about your competitors. This will ensure that you stay informed about market changes and can adapt your product strategy accordingly.

Conclusion of why mastering Competitor Benchmarking for New Product Development is important

Maintaining awareness of your competition is essential for crafting a compelling marketing message and developing a product that truly stands out. The insights gained from competitor benchmarking can refine your project plan and support the overall product development process, leading to a more market-aligned and successful product launch.

If you’re interested in learning more about creating a project business plan, I offer a free on-demand training session that you can sign up for through the link in the show notes. This training provides additional tips on how to effectively create a robust business plan for your new product idea.

I hope this guide proves helpful, and I look forward to connecting with you soon. Thank you for reading!

**Note:** Don’t forget to continuously revisit and update your competitor benchmarks. This ongoing process will keep your market insights fresh and relevant, aiding in the longevity and success of your product development endeavors.

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