Every businessman wants his product to be a hit. But every entrepreneur should be aware that, unless his product is wholly original, it’s probably already out there, being sold by someone else.
For most, the problem lies in selling a product in an already saturated market. How do you make a profit in these conditions? How do you avoid becoming stale?
Keeping it Fresh
You don’t bring sand to the beach. Your product should be unique, and offer something your competitors don’t. This is your unique service proposition, which is all about bringing something fresh. ; Being fresh, or new, doesn’t have to be complicated, it just means finding a segment of the market that isn’t being served, and positioning yourself around that. An example is Tom’s. They could have just come in as a footwear brand, but the fact that they took an advocacy approach has made them hugely successful. Many businesses tend to pattern their strategies after their competition. But if you’re just doing what your competition is doing, and they’ve been doing it longer, how can you hope to succeed? Look at your product, your customer’s journey, and the segments in your market. From concept to actual product, at least one big thing should be fresh and something consumers have not seen before. Don’t be afraid to reinvent.
Quality vs. quantity
Consumers want the best buck for their money. This is why all-you-can-eat places are successful. Inflation is constant, so people are becoming more conscious about their spending. In a survey conducted by the Global Consumer Confidence Index, consumers more than half of the 64 countries surveyed are spending less, as uncertainty about the political and economic situation grows. How do you sell in conditions like these? Think of it as an opportunity. Discount brands, or brands that highlight value for money like TJ Maxx or Target, are making a killing. Consider your market position and leverage your price points and discounts to win your customer’s hard-earned spending dollars. And ask yourself: How will I make sure this customer comes back?
Finding that balance between sales and margins can be tough, but getting to the right price point will spell the difference between your business thriving or sinking. Weigh your strengths and be aware of the competitive landscape.
Pick a good location
Business owners should treat accessibility as important as quality and quantity. Location is your niche. It is where you want to penetrate. For example, schools and sports arenas are a good consideration for hot dog franchise opportunities. Do your location scouting and come up with data to back your decisions. Weigh foot traffic numbers with your customer profile. Children are big hot dog fanatics, and so are sports fans, who want a quick bite during the game, so it would make sense to put up a concession stand for hotdog and soda. ; If you can’t find an ideal location that works for your budget, then maybe you should figure out the costs for a delivery service or online sales platform.
Boost your online presence
Nowadays, you see more people busy with their smartphones than anything else. For example, there are about 650,000 searches on Google per second. And 20% of those searches are either transactional or navigational—people looking for a store location or looking to buy something specific. Facebook is another fertile spot for marketers. Nine out of ten social media marketers rely on Facebook ads. Digital marketing is now the great equalizer—the big brands are now sharing online space with smaller, more search-optimized companies.
Digital marketing may seem like an arcane art, but the fundamentals are simple enough and can be learned online. Like traditional marketing, what will set you head and shoulders above your competitors is a thorough understanding of what your customers want. Just because your product isn’t particularly new or innovative doesn’t mean that your business venture is doomed from the start. With some creative application of price, positioning, location, and online marketing, you can thrive in the most competitive of environments.