News and Insights

Using segmentation to decode competitor strategy – and why it starts with research

August 6, 2025

In today’s markets, knowing who your competitors are isn’t enough. To truly stay ahead, brands need to understand why those competitors succeed (or fail) with specific customer segments, and how they position themselves to win. That’s where market segmentation becomes a powerful lens; not just to understand your audience, but to decode your competitors’ strategies too.

At its core, competitor analysis through segmentation allows you to map the terrain more intelligently: who’s targeting what, where the overlaps are, and (most importantly) where the white space lies. And it all starts with research.

In the FINN research & insights team, we often guide clients through a 5-stage research approach that turns segmentation into a strategic tool for competitor intelligence. From landscape analysis to strategic decision-making, here’s how to embed segmentation into every stage of your competitor research:

 1. Start with a clear view of the competitive landscape

Before you can dissect strategy, you need a solid grasp of who your competitors actually are. That might sound obvious; but in a fragmented, multi-platform world, your competition isn’t always who you think.

This is where general market research plays a foundational role. By combining desk research, web analytics, and third-party tools like SimilarWeb or Google Trends, you can paint a picture of the major players -those with reach, visibility, and influence across specific customer groups. It’s not just about size or fame; it’s about relevance to your market.

From there, segmentation helps sharpen the focus. Who’s speaking to the same audiences you’re trying to reach? Who’s creeping into new territory with crossover appeal? Competitive threats can often be indirect, and segmentation helps you spot them before they become disruptive.

2. Unpack how they segment and position themselves

Once the key players are identified, the next step is to analyse their segmentation strategies. This is about understanding what customer variables they use (whether it’s geography, psychographics, purchasing behaviour, or lifestyle) and how they tailor their offerings and messaging accordingly.

Often, this insight comes not just from what brands say, but from how they show up. Social content, advertising, email campaigns, product variations, influencer collaborations, brand tone: all of these are clues. Qualitative analysis of their communications and customer-facing content can reveal the emotional levers they’re pulling, and the positioning they want to own in the minds of their audience.

Research teams can also dig deeper into how these strategies land – through sentiment analysis, audience profiling, and digital listening.

3. Map their strengths and gaps by segment

Not all competitors are strong across the board – and that’s good news. With structured competitor benchmarking and SWOT-style analysis, you can break down which brands dominate specific segments, and which ones are vulnerable.

Some players may excel with affluent Millennials but struggle to gain traction with Gen Z. Others might lead in product innovation but fall short on customer loyalty. Segment-level evaluation, backed by hard data (from sales trends to customer satisfaction metrics), lets you spot these gaps and adapt your approach accordingly.

This is where the intelligence really kicks in: when we move from “what they do” to “where they win, and where they don’t.”

4. Understand where you stand

The most impactful competitor analysis doesn’t just spotlight others; it sharpens your own position.

Using perceptual mapping and competitive profiling, you can visualise where your brand sits in the minds of your shared audience. Is your value proposition clearly differentiated? Do customers associate you with premium quality, affordability, innovation, or something else entirely?

Quantitative surveys and qualitative feedback can help build a clearer picture of your perceived strengths, giving you a stronger foundation to position and pivot strategically.

5. Use insights to build (or refine) brand strategy

Armed with segmentation-based competitor intelligence, you’re in a stronger position to make confident, strategic decisions.

Should you double down on your niche and strengthen loyalty? Expand into a new audience segment that your rivals are overlooking? Adjust strategy to match value perception? Introduce a new messaging approach that fills a competitive gap?

Here’s where strategic research and intelligence models can help frame your next move. But it’s the segmentation and competitor data that provide the clarity and confidence to act.

Segmentation isn’t just about marketing – it’s a strategic tool that, when combined with robust research, gives you a clearer view of your competitors, your customers, and your competitive advantage.

From market mapping to qualitative audits, perception studies to performance benchmarking, embedding research into every stage of your segmentation work gives you the edge.

Because the brands that win are the ones who don’t just guess who they’re up against. They know. And they act accordingly.

Insight is power

Marketing without research is like launching a ship without a destination. You might move – but not necessarily in the right direction.

Let’s stop treating market research as an afterthought and start embedding it into the DNA of every strategy, campaign and creative decision. Because when you lead with insight, everything else follows.

Find out how FINN Partners can help you understand what drives your audience, and discover our research and insights capabilities.