What’s the point of entering a saturated market? The pie is already taken, right? Wrong. Customers are always looking for more, they are looking for value more than product aesthetics, functionality over form. Of course, the right price will be an added advantage too.
Businesspeople respond to a saturated market in a variety of ways. Many are discouraged by the prospect of entering a saturated market; others find it challenging to survive in such a market. Nonetheless, there are some who not only survive but thrive in such a market. Then there are some who are just starting out in business yet are unafraid to enter a market packed with possible competitors and carve out a niche for themselves.
The greatest examples come from retailers. Costco first entered the Australian market in 2009 with a single shop in Melbourne. Their prices were on average 20% lower than the competition. Local players have been losing market share to it and Aldi, a bargain supermarket company. Aldi’s special deals, in particular, have propelled the company to greater heights, bringing in the much-needed market share and revenues. So, it is possible.
If you are reading this article, you are possibly one of the brave ones looking to beat the odds and face the competition and you just want more information on how to strategically enter and win your share of the market. Here’s how.
Understand the Market First
Saturated markets are active markets. Why? Because numerous competitors sell identical items or services in a saturated market, proving there are a big number of purchasers. As the number of competitors grows, each one makes every effort to reach the greatest number of customers possible, extending the market’s size and providing enough opportunity to anyone wanting to enter the saturated market.
Try Niche Positioning
To break into a saturated market, identify the unfavorable preconceptions that exist in the industry and position your service or product offering as a solution to the problem.
That’s exactly what Subway did. The fast-food market was saturated when it first entered, but it carved out a space for itself by promoting itself as a healthy and fresh fast food alternative to the often unhealthy burgers and pizzas.
Offer Value-Added Services
Another popular strategy for breaking into a crowded market is to offer value-added services. Value-added services are a terrific way to set yourself apart from your competition and get a significant competitive advantage. A great example is how Uber did this. To go along with its main business of ferrying people, Uber established Uber Eats to deliver food through its app. Likewise, the vehicle aggregator Jugnoo developed a number of value-added services such as cash collection, wedding card delivery, milk delivery, and so on.
Offer the Right Price
Most well-known businesses demand a significant premium for their services or products, which customers are willing to pay for. At the same time, there are price-conscious clients in every market to whom you can appeal and sell your goods. Look at Apple and Samsung vs. Huawei; Nike and Adidas vs. New Balance.
Keep in mind that all you need to do is price your goods in a range that is comparable to your competitors’ products and services, and then give clients a discount. This way, you not only keep your consumers happy, but you also inform them of the genuine price of your goods, so you don’t have to deal with angry customers if you remove the discount in the future.
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