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How to win the competition without lowering prices

How to win the competition without lowering prices

Price dumping - often the first thing that comes to mind when developing the strategy managers of competition.

However, in order to increase its own market share, does not necessarily reduce the profitability of the business and the price, there are other effective measures.

When sales began to fall, or the company is far behind on this indicator from the competition, it's time to find out the causes and develop effective market positioning strategy.

To win the competition, the most important thing - to understand the needs of its customers

The first thing to do - understand the keyFactors that influence the selection of consumer goods. Thus, according to the study The Forum Group, the high price of goods makes the buyers refuse to buy only 15% of cases. The main reasons are the same in the service offer - bad service (45%) and insufficient attention paid to the client managers (20%). That is why the market can often find companies offering products at a reasonable price, and the sale of one of them, an order of magnitude higher than that of a competitor.
Thus, the price reduction does not guarantee growthsales. Frequent and the situation when a company sells the same product even more expensive (for example, hair shampoo or toothpaste) and, thus, more effectively than its competitors. This is due to the fact that she was able to correctly identify customer requirements and correctly positions your product in the market.
Based on the analysis of consumers, makeconclusions as you can to increase the value of goods for customers. Communicated to the consumer any additional benefits he will get when purchasing a product. For example, by pointing to the special unique functional product.

Identify your key competitive advantage and briefly specify it as part of the USP (unique selling proposition). That it should be the leitmotif of your marketing policy.

It is also important to understand what factors are servicerelevance to your customers. For example, you can sell more expensive cars, but at the same time offering a free set of options that are not available from competitors. Either increase the warranty period from one year to two.

Please rate the competitive position of the goods

Product Evaluation competitiveness is also based on the study of buyers.

Competitiveness analysis of the problem of the goods not only in the assessment, but also in the forecast of the competitiveness of products, as well as the study of the factors that affect it.

To goods to satisfy customers' needs, it must meet certain criteria:
- Technical (product features, its scope and purpose) -
- Ergonomic and esteticheskim-
- Regulatory (compliance with current regulations and product standards) -
- Economic (the price level of goods, its after-sales service).
Based on the analysis of competitivenessneed to develop measures to ensure the necessary level of competitiveness. For example, to change the product packaging or to increase ease of use.

Analyze competitors' activities

The reasons for the ineffectiveness of the sales in the most general formcan be reduced to the low competitiveness of the product itself, or insufficiently high level of service in relation to other market participants. Therefore, once you decide to customer needs, it's time to analyze in detail the activities of competitors:
- Evaluate their strengths and weaknesses (market share, the level of customer loyalty and so forth.) -
- Be their client and look for a job inside the company.
Decide on the basis of its own analysis of the market positions and weaknesses and try to be "one step ahead" of competitors.

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