When you set out to build your brand strategy – it’s always best to be number 1 in a new market – then number 2 or number 3 in an already crowded market. But, how do you build a great foundation for your venture?
The answer? A SWOT Analysis.
WHAT IS A SWOT ANALYSIS?
A SWOT analysis of your brand strategy would give you an idea about the strengths (S), weaknesses (W), Opportunities (O), and threats (T) of your brand’s ability to dominate the market.
SWOT ANALYSIS EXAMPLE
Let’s take real-life scenarios. A good friend of the writer named Sameer was starting a business where he would buy journals from India and sell it to the United States through an e-commerce store.
After a lot of research, he found a journal he liked and took his first step towards his goal. Upon the advice of the writer, he followed this step-by-step SWOT analysis for his product.
1 – Evaluate the Strength of your Idea
Sameer first did a quick Google research for the following keywords.
1 – Journals USA Buy
2 – Journals California Buy
3 – Self-improvement Journals USA Buy
4 – Gratitude Journals California Buy
He found some common denominators in the competitor’s websites.
Firstly, he found that there was virtually no copy under any of the products.
Secondly, he found that each of these websites had multiple journals for sale.
So, he found where his strengths lay;
- He would sell just one journal on his website.
- He would focus on a benefit-driven copy for his website.
2 – Swallow your Pride and Admit your Weakness
Next, Sameer needed to closely look at his weaknesses.
His biggest weakness was his marketing budget. If he were to take the Ad words route based on the projections, it would cost him close to $25 dollars to acquire a sale.
With a marketing budget of $500, he couldn’t risk running out of capital. So, he decided to explore alternate forms of advertising instead of Ad words.
3 – Look for Opportunities in Lesser Crowded Areas
Sameer had been hearing a lot about Instagram shoutouts.
Upon some quick research on Instagram hashtags, he found that the yoga handle has closed to 2 million posts.
Now, coincidentally Sameer practiced Yoga as well. So he decided to put his $500 dollars into marketing his business through shoutouts.
He found the best handles related to yoga and spirituality wrote a quick starter e-book on yoga which he used as a low tripwire offer of about $7 and then created an upsell page with the journal with a tagline “Journal like a Yogi”.
4 – Search for threats that can effectively shut you down
Sameer’s biggest threat now was the long lead time that comes with going through the funnel approach.
Upon his first couple of shoutout tests, he found that he got a 2% conversion on each shoutout expenditure.
So, at about $50 per shoutout – he would get close to 5 sales of his e-book. But no one was buying his journal.
He was $200 short and had just about $300 left before he ran out of his capital.
After looking at the analytics on his Upsell page – he found that a majority of the users bounced off within the first 10 seconds.
After a lot of dwelling, he decided to test a down sell page.
So after a user purchased his e-book he would then send them to the Upsell page for his journal.
Once a user clicks away from the page – he sent them to a down sell page where he gave the customer $20 off their first purchase.
After sending about 5000 people to his website – he saw that his tripwire e-book sales remained the same but this time he managed to sell one journal which helped break even on his shoutout expenditure.
This was a promising enough start for Sameer to continue on with this venture.
A SWOT analysis is just a tool you use to fine tune your business strategy. Do not make the mistake of spiraling down the analysis rabbit hole. An action is the greatest key to finding out if your theories are based on sound results or not.
Result driven advertising should help you here. Closely monitor what effect each one of your USP’s or offers has on your customer. Evaluate your cost per lead and lead time and then go about fine tuning it until you can fully automate the process.
Once you have found a good marketing strategy you need to scale up your operations and the best way for you to do that is to use a CRM software for marketing.
Kapture CRM is a cloud-based marketing SaaS provider that helps you automate a lot of the key tasks in your business.
Kapture CRM customizes its offerings according to the needs of your industry. The cloud-based platform can be used over a mobile application as well that is integrated over both iOS and Android platforms as well. Currently, Kapture powers 500+ brands in 12 countries.