Most of the entrepreneurs take a step back from entering into a saturated market. Reason? Stiff competition, too much noise and less chances of getting visibility.
But there are few business owners who would exactly want such a market for carving out a niche for their brand. Why? Because when the market is filled with so many players it gives a clear indication that it is a thriving industry and each and every competitor is doing their best to reach out to maximum audience, thereby expanding the overall consumer base.
This is the right space and time to break some negative stereotypes, bring out a different tone and more personalized aesthetic to your brand that resonates with your direct consumer.
Picture courtesy: Pexels
Challenges of a saturated market:
Why exactly people are intimidated by such a crowded market?
All of the players are competing cut to throat with each other contending for the attention of the eager buyers. This makes all the contenders spend heavily on marketing to be heard or seen. Real challenge is to come up with unique selling strategies.
2. Price Vs Value
To beat the competition, the game becomes ugly on the price point and the contemporaries start to cut down their prices and run business on thin margins making it even more difficult to sustain. Here the focus should be on providing more value to the consumer without actually undermining the price of your brand.
3. Value proposition aka creating a worthy product
This funnels down the challenge to create something of high worth where consumer themselves are attracted towards you amidst this whole competition and wouldn’t mind to spend a penny extra. Remember, there is no scope of mediocrity when the demand and competition is so high.
Formula of winning this red ocean
1. Creating a niche
You can create your niche in many ways such as
Either you can break the negative stereotypes involved such as our usual toiletry products contains sulphates and parabens so you can create a natural product free from harsh chemicals.
Or you can create a whole new personality of your brand based on your vision and mission and the stand you want to take for the society. Consumers who would identify themselves with your thoughts and views will automatically become inclined towards your brand.
2. Strategic pricing
Right pricing always plays a crucial role on how your product will be perceived. Though you can always ask for a premium price and your target customers would also pay the same but in a stiff competition market there are many price-conscious buyers as well. You can win the game if you can include them as well in your target group.
A great way of doing this is pricing your product competitively and then further offering some discounts. In this way, your original consumers will be happy as they know the true worth of your products and you would also be able to capture some new price-sensitive customers. An example for this is, personal care brands such as Plum, Juicy Chemistry, Mama Earth etc.
3. Extra value points
Another way to capture greater market is offering additional benefits along with your standard product offering. Give your customer the trust they are looking for and become indispensable such as the case of Paytm, as it's not only a wallet but a convenience for making centralized direct payments to so many utilities like electricity, LPG booking, phone bills, recharge, fastag and most of all a Covid Vaccine slot finder.
Sometimes, brands think that they are giving away freebies to lure more customers, but ask this question to yourself, is this actually providing any good value?
4. Delightful customer service
It is needless to mention the importance of a good customer service. Gone are the days where brands could sustain with a satisfactory customer service. In order to beat the struggle in rival market, you have to provide exceptional customer service where your customer is always delighted and immediately forms a relationship with the brand.
Customer service is one such milestone which gives buyers the actual sense of their worthiness irrespective of their social class, purchasing capacity and demographics. At this point, you will earn their immediate trust and respect. A good example for this is Decathlon, which not only provides high value products but also gives exemplary customer service.