A competitive analysis is an essential component of any successful business strategy, providing valuable insights into the strengths, weaknesses, opportunities, and threats that exist within the competitive landscape.


Unfortunately doing this kind of research can be time very consuming.


AI tools like ChatGPT can now help us in both, building frameworks to speed up the documentation process, as well as analyzing and organizing potential information that would normally take days to assemble by a team of assistants .


As an example, we decided to act as a small, startup, soft drink company in Germany and do a competitive analysis on both competitors and potential product flavors.


We still have to take under consideration that ChatGPT is still using online data from September 2021, but the results were still extremely useful as a starting point.


Here was the prompt:

"We are a small startup soft drink company located in Mainz, Germany and we would like to launch into the local marketplace. We currently have 3 beverage flavors that we will launch first: caramel apple, lemon mint, and strawberry thyme.


Could you do a competitive analysis of the German soft drink industry in order to determine if our flavor choices would be popular, and if not, please make some alternative suggestions."


ChatGPT Results:

Of course! Here's a competitive analysis of the soft drink industry in Mainz, Germany, focusing on flavor choices and the local market preferences. Please note that this analysis is based on information available until September 2021, and you might need to validate the findings with the latest market research data.


Market overview:

  • Germany has a large and mature soft drink market, with a variety of local and international brands.
  • Consumer preferences are shifting towards healthier options, natural ingredients, and unique flavor combinations.
  • Key market segments include carbonated soft drinks, bottled water, juices, energy drinks, and ready-to-drink teas.


Key trends in the German soft drink startup market:

  • Health-conscious products: Startups are offering low-calorie, low-sugar, or sugar-free alternatives, with many using natural sweeteners like stevia or agave.
  • Unique flavors: Small brands are experimenting with unusual flavor combinations, often inspired by local ingredients and culinary traditions.
  • Functional beverages: Startups are incorporating functional ingredients, such as vitamins, minerals, or probiotics, to add value to their products.
  • Sustainability and local sourcing: Startups are emphasizing eco-friendly packaging, as well as sourcing ingredients from local or regional suppliers.


Major local soft drink startups in the German market:

  • Bionade: A popular organic, non-alcoholic fermented beverage made from malt, available in several flavors such as elderberry, ginger-orange, and herbs.
  • Fritz-Kola: A Hamburg-based startup offering various cola and lemonade flavors, known for its high caffeine content and eye-catching designs.
  • Lemonaid: A social enterprise producing organic, fair-trade lemonades in various flavors like passion fruit, lime, and blood orange, with a portion of sales going to charity.
  • Aqua Monaco: A Munich-based company offering a range of mineral water and soft drinks, with flavors like grapefruit-mint and cherry-blossom tonic.


Analysis of your flavor choices:

  • Caramel apple: This flavor could cater to consumers looking for a unique and indulgent taste. However, it might be perceived as less healthy due to the association with caramel.
  • Lemon mint: A refreshing flavor combination that could appeal to a wide audience, particularly during the warmer months. This flavor has the potential to perform well in the market.
  • Strawberry thyme: A unique and sophisticated flavor profile that could attract consumers seeking new taste experiences. It might cater to a niche audience interested in artisanal or craft beverages.



  • Your flavors seem to cover a good range of taste profiles, from indulgent (caramel apple) to refreshing (lemon mint) and sophisticated (strawberry thyme). However, considering the shift towards healthier options in the soft drink market, you may want to consider adding a flavor that emphasizes natural ingredients or functional benefits.


Possible alternate flavor suggestions:

  • Apple ginger: A combination of sweet apple and spicy ginger, which could provide a healthy and refreshing taste profile.
  • Elderflower lime: A blend of floral elderflower and zesty lime, offering a unique and light flavor.
  • Grapefruit rosemary: A mix of tangy grapefruit and aromatic rosemary, providing a sophisticated and natural taste.


Marketing and positioning strategies:

  • Emphasize the use of natural ingredients and the absence of artificial flavors or colors in your beverages.
  • Highlight any health benefits, such as reduced sugar content or the use of organic ingredients.
  • Create eye-catching packaging designs that reflect the unique flavors and artisanal nature of your products.
  • Collaborate with local restaurants, cafes, and retailers to offer your beverages and increase brand visibility.
  • Leverage social media and influencer marketing to create awareness and engage with your target audience.


In conclusion, your proposed flavors have the potential to attract a diverse range of consumers in Mainz, Germany. By emphasizing natural ingredients, unique flavor combinations, and potentially adding a flavor with a healthier profile, you could position your brand as a refreshing and innovative alternative in the local soft drink market.



Going Deeper

Obviously, the information in this article is just scratching the surface of all of the data and research needed for a thorough CA, but with the right prompts, we can clearly start to gather a significant amount of useful info in a short amount of time.


In addition to conducting the analysis, ChatGPT can also help to educate you and your employees on what additional info is needed to conduct an effective CA.


Try prompts like:

  • What information do I need to do a competitive analysis?
  • How can you help me write a thorough competitive analysis for my company?


Once you start to gather information, you can further dial things in:

  • Make a table that lists the names of the companies, the location, size of company, annual revenue, target audience, direct or indirect competitors
  • What are some differentiators of our product from our competitors? Please reference this link of our product as an example: (Include a URL to your product page. GPT4 can reference external links)
  • What are the common customer complaints about our competitors?
  • Make a list of the competitors’ strengths and weaknesses.



In conclusion, ChatGPT is an invaluable, time saving research tool for conducting competitive analysis and ideation, offering a wealth of information and insights to help your business stay ahead of the competition.


By leveraging its capabilities in identifying competitors, gathering data, analyzing strengths and weaknesses, monitoring online presence, generating keyword lists, and crafting content ideas, you can develop effective strategies to differentiate your business and capitalize on opportunities within your industry.


Note: Just remember to always validate the findings with the latest market research data to ensure the accuracy and relevance of the insights provided.

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Sean Earley
CIO / Exec. Editor

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