How to ensure success in a already dominated market

Every company needs a marketing plan to get business.The other day I wrote about the 6 steps of creating a marketing plan. However, the only difference is that the plan varies depending on the size of the company and reach it enjoys.If your are the first in a line of business or if your line of business has few players, then you have it relatively easy. Less competition means that you can build up your business fast enough. But what about a small business start-up?What happens when you decide to enter into a market that already has many well established players? What do you do to capture your share of the market? Listed below are some steps that you must take to ensure a successful and profitable entry into a market dominated by big players.

1) Play the Price card:

a)Offer your product or service for a price lower than your competitor. Everybody wants to save money. If the same product can be bought by paying less, why would anybody go for a higher price. However, keep in mind that you are in the business to make money. so the price should be lower than your competitor but high enough to make you money.

b)Offer your product or service for a price higher than your competitor. Contrary to popular beliefs, a high priced product works very well too. High price adds credibility to the product and has a psychological effect on the consumers, where they associate high price with high quality. Add to that your profit margin because of the high price.

2) Be a creator: Let’s say your company sells baby soap and baby powder. There are many other companies who sell the same product. How do you get in and make money in a market that is already saturated with products? Why not create one? Baby powder and soap are bought by parents who have kids between the age of a few months to about 3 years. How about a baby soap and powder that takes care of the very sensitive skin of small babies and which is exclusively for babies who are 9 months or under? Remember, there is no market for this yet. You are creating a new segment. This gives you a ‘first mover’ advantage. But wait, if you are ‘creating’ the market, where will you get business from? From your competition of course. Parents of babies under the age of 9 months will come for they have a product which is exclusively made for their babies.

3) Spread your distribution network: Create your distribution system in such a way that your products reach every corner of your target area. Apart from the usual methods, try and find different ways of distributing your product. Tie up with companies who are not your competitors and have a wide distribution network.

4) Don’t detach the engine: Once you create a market for yourself and gain success, remember not to lose momentum. A moving train without it’s engine cannot retain it’s velocity on the track for very long. To keep on moving at a steady pace, it has to have the engine pulling it at the front. Don’t lose your momentum once you gain market. Your competitors will enter the market as soon as you create it. Make sure you don’t lose your home ground.

5) Evolve and Evolve fast: It won’t take time for your competition to enter your domain and challenge your position. You need to constantly innovate and bring in new products and services to stay one step ahead of your competition.

To summarize, you need to have foresight to think ahead of your competition and you need speed to consolidate your position as it won’t take long for your competitors to enter the market and try and yank you off the top slot.