One mistake a lot of people make is to start by collecting information without thinking how the information will be used. The Key Intelligence Topic (KIT) process enables you to separate the "must know" type information from the "nice to have to satisfy curiousity" type information.

Without the former, you risk making a wrong decision.
Without the latter, no harm is done unless a lot of time and money was spent collecting this kind of information. (If a lot of time or money was spent, then you need to ask how effective your CI processes actually are!).

The KIT process involves interviewing users of competitive intelligence to identify (and then answer) the key questions they have on competitors and the competitive environment so as to reduce the risk involved in making decisions.

In essence, a KIT is the information or intelligence that you need to enable you to make a business decision.

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Competitor Profiles

Competitor profiles enable you to see at a glance the information you need on your competitors. Depending on the format and content, they can provide anything from the background information required by the sales force to the information that the board needs when investigating potential acquisitions or deciding major strategic initiatives against a competitor. The exact format will depend on your needs and the key intelligence topics you want covered.

Each competitor profile should be customised so that the focus is on a specific aspect. For example the sales force need to know your competitive situation:

Who else is selling similar products and services?
How?
At what price?
Through which channel?
What promotional materials are used?
What sales tactics are used?

and so on.

This sales focused kind of profile will include information that will help your sales team to sell effectively answering customer queries about your products or services compared to competitor equivalents, However it would have no or less information on the competitor's strategies, operations or finances. Such information would be included in a profile drafted for senior / board level management, which might have less of the sales-type data.

Our approach to creating competitor profiles

For CI to be used, it must be targeted at each intelligence user and fulfil their information needs. Before compiling a competitor profile, we encourage clients to think about how they will use the information presented in their business operations. This way we can ensure that you get what you need, and not extraneous detail used to give an impression of depth but with little strategic or tactical value.

We do not follow a rigid template, but tailor the content of each profile following client discussions. Typically profiles fall into one of three categories and price levels.

Basic giving the key details on a competitor. The purpose for this may be as a preliminary exercise looking at competitors so as to assess overall risk. Where key factors are identified then a more in-depth analysis would follow. Alternatively, a basic competitor profile may be used to identify potential suppliers, or as described above, as an aide-memoire for the sales force, so that they know who they may encounter in the field and what is offered. The type of information included will typically come from company annual reports, product brochures, business directories, recent news reports, etc. There will be minimal primary research (interviewing) and most information will come from secondary sources.
Detailed, containing key competitor details as well as news stories and basic analysis, thus giving a more thorough look at a competitor, These profiles give a greater understanding of the competitor and allow decisions to be made on next steps to take with respect to competing with the target company. They may also look at specific aspects - for example a financial analysis of a company to identify whether or not it has the money to expand. The detailed profile adds to the information held in the basic profile by including more analysis - basic product analysis, financial analysis, etc. as well as more in-depth searching for secondary sources. Some primary research aimed at filling in gaps will also be included.
In-depth, containing the above but backed up by custom research looking at strategies, processes and involving interviews with the competitor's customers, suppliers and others with a close knowledge of the competitor. In-depth profiles are prepared on key competitors, when you need to know their thinking, their planning, what they are likely to do next and how best to counter the threat that they pose and/or take advantage of any opportunities resulting from identified weaknesses. They are also essential prior to any joint-venture or merger and acquisition involving the target company, and should be part of the due diligence process.