At my son’s school talent show, he was the very last act. I could tell he was nervous as we waited. The acts that came before him were incredible—a dance group that had the whole room moving, a magician with tricks that had everyone gasping, and a singer whose voice gave the room goosebumps. By the time it was his turn I could see the pressure on his face.
My son has played the violin since he was five years old. But, tonight he wanted to be a juggler. All he talked about for months was juggling. He’d never done it before but every waking moment was dedicated to tossing things in the air. It didn’t go well. As a back up plan, we agreed he’d bring his violin. One thing about going last is that it gives you a chance to see what works and what doesn’t. My son noticed that while the audience loved the big, high-energy acts, they seemed ready for something fresh and calming. When it was finally his turn, he handed me the tennis balls, walked out onstage with his violin, and took a deep breath.
As soon as he started playing, the room went silent—they were mesmerized. His solo was soft and emotional, completely different from anything before him. When he finished, the applause was deafening.
The whole night reminded me of what we do in a competitive audit. It’s like watching what everyone else is doing and figuring out how to connect with people in a different way. My son didn’t try to be louder or flashier than the loud and flashy acts; he studied them and chose a different path. Going last turned out to be his secret weapon.
What is a competitive audit?
All companies are affected by their competitors. Brands are competing more than ever across different industries. A study by Crayon, a market research company, found that 94% of companies say their industries have gotten more competitive in the last four years, and more than half (57%) say the competition has grown a lot.
There’s few things more damaging to your brand than being redundant. Copycat brands blend into the background. They become forgettable. Picking apart your competition is important if you want to be relevant. You have to become a detective gathering evidence about their products, brand, content, and the things that make them appealing. You need to investigate what they do well, what they could do better, and what makes them stand out. A competitor audit is your chance to step back and connect the dots between patterns and seemingly unrelated bits of insight from your category. But most of all, it’s an exercise in choice.
You can’t compete against everyone. There will always be something pulling at people’s time, attention, and dollars.
A competitive audit is a time to get real. It’s common to think your offerings are so good that you have few, if any, competitors or that you compete against more options than you do. You can’t compete against everyone. There will always be something pulling at people’s time, attention, and dollars. By limiting your audit to the top three to five options your audience may consider, you put your brand in the best arena to compete.
But here’s the kicker—your competition is not always who you think it is.
Direct versus indirect competitors
The mix of acts that night of my son’s talent show were his competition. They all had something special. He had to navigate the things they offered to figure out where he fit in the show. Your competitive landscape is made up of all the options your audience has other than you. This landscape has direct competitors—or companies that offer the same things you do.
Direct competitors are companies in the same industry that offer the same, or a very similar, product or service to yours. For example, McDonald’s and Burger King are direct competitors in the fast food category. Both offer nearly identical products, but in their own way. Direct competitors usually have similar quality, prices, and target the same audience. If any of these don’t match, they might not be your direct competitor. But, depending on your industry, audience, and problem you solve, you also have indirect competitors.
Indirect competitors are companies that offer different products or services but still solve the same problem or meet the same need for customers as you do. These competitors may not be in your industry, or they could be somewhat related. For example, Domino’s Pizza indirectly competes with McDonald’s and Burger King despite offering something completely different than burgers and fries. Indirect competitors are the alternative options that people might choose instead of your brand. It’s important to understand how they meet the needs of your audience and if they could edge in on your market share.
For example, as more people focus on health and wellness, low and no-alcohol drinks are becoming popular. The growing need isn’t about getting rid of alcohol completely—it’s about having more choices. Long-standing companies in this space have scrambled to offer non-alcoholic versions of their popular beverages. But, the question to focus on isn’t, “how do we replace alcohol?” It’s, “What new habits and traditions are people creating?”
That’s why we see indirect competitors like hemp-derived drinks, adaptogenic cocktails, and mushroom-fueled mood boosters entering the conversation. These options signal the rituals and experiences people are craving. The power indirect competitors have is they can ride cultural waves into new beaches. Meaning, as culture shifts, the barriers to entry shift. It opens greater opportunities for other brands to satisfy people’s needs.
How to do your competitive audit
During the strategy phase of our collaboration, we send you our Thinkbook—a workbook to help you and your team brain dump all your collective knowledge about your brand. Here you’ll be asked to identify your top three to five competitors, the things they do well, not so well, and what advantage you have over them—think of it as a mini SWOT. The goal is to get a firm baseline of the arena you compete in.
Why just three to five? Because any less than three isn’t a complete story of the challenges you face. Any more than five, and you’re diluting your competitive advantage. Three to five is a sweet spot that gives us the right boundaries to play in.
Selection is key. When picking your competitors, think about what they sell, how good their products or services are, their prices, and who they’re trying to reach. Start by looking at companies that you lost clients to and any emerging trends in your category. We’re all familiar with disrupters like Airbnb or Uber. But, often major competitors come from well-known sleeper companies who are quietly boosting their capabilities and partnerships. Then, one day, bam! They’re steamrolling through the industry.
Once you’ve identified your competitors and given us a basic overview of what you know about them, we go further. We deep dive into ways your competitors express themselves visually and verbally. We scour their website, reviews, and social media pages—picking apart messaging for bold claims and reasons to believe. We collect imagery, colors, fonts, and pieces of visual language. We dissect each competitor’s positioning and prime value propositions for gaps and opportunities.
This is all housed in our one-of-a-kind Brand Seasoning competition board. This allows us (and you) to zoom out and take a big-picture look at the pieces of your competitors’ brand and how they work together. It gives us a better grasp on trends we see and gaps we can pursue. Comparing your competitors means we are better equipped to craft an identity that is aligned with your organization and distinct from your competition.
What makes your competitive landscape important
When my son chose to try juggling instead of playing the violin for his school talent show, he was aiming high. I admire his eagerness to learn something new, and we always support that kind of growth. But that night, he didn’t think much about two important things: timing and trajectory.
This idea connects to how we approach building your brand. Knowing your competition is a key part of our Brand Seasoning collaboration. Along with understanding your audience, it’s one of the most important pieces of your strategy. You need to know where you stand now, who you’re up against today, and where your audience is at the moment. You also need to know what external factors are shaping your industry (timing). Are there any regulations preventing you and others from growing? Are there cultural shifts happening that would help or hurt you? What new innovations are shaking up the entire category and introducing new threats? All of this gives us a starting point to build from.
Then we look at where you want your brand to go and grow (trajectory). That helps us map the challenges and rivals you might face in the future. By studying your competition, we can create a brand that’s ready to handle today’s struggles and tomorrow’s opportunities.
Doing a competitive audit is like going last at a talent show—it’s all about learning, adjusting, and finding a path forward. By studying your competition, you gain insight into what works, what doesn’t, and where you can shine. A competitive audit helps your brand figure out where it fits in your industry and how to connect with your audience in a way that’s all your own.
Just like my son learned, success isn’t about copying others—it’s about understanding the competition and using that knowledge to create something fresh and unforgettable. A strong competitive audit ensures your brand is ready to thrive in its own unique way.
Are you and your team tackling a rebrand?
Get a head start with your competitive audit by downloading our Brand Thinkbook.