Business is never simple. There are so many dynamics involved in our day to day business lives that we sometimes don’t know which work to do on which day. But due to this busy status, many times our competitors take the lead from us. Quite simply, either we were complacent, or they were smart or it was simple bad luck.
If our competitors are less and the market share belongs majorly to us, then we need defensive marketing strategies. However, if our market share is under attack, or competitors have taken a majority market share, then we need strategies in place to gain market share. Instead of complicating this article for you, I have made it pretty simple.
Step 1 – Analyse your competition
In the article on How to analyse your direct competition, I have given several steps to finalise who your main competitors are. The market analysis begins from this step and then goes on to the other steps. One of the crucial thing here is to be realistic about your competitors. Generally, if you are doing such an analysis for the first time, only observe direct competition and not indirect.
Step 2 – Make a comparison
An excellent way to understand why your customers are leaving you, is to do a business to business comparison. Here’s how you can do it.
- Calculate all direct competitors in your region
- List down all their products and their complete product portfolio
- Compare the product portfolio of all those who are above you or below you
- Analyse the features which are absolutely missing in your portfolio or things which you are doing incorrectly
- Do a SWOT analysis for yourself and find our your strengths, weaknesses, opportunities and threats.
Once you have such a comparison ready, you will know why your customers are choosing your competition over you and why they are shifting base to competition.
Step 3 – Add value to your products
Now that you know your competition thoroughly, it is time to act on the Analysis. Add as much value as possible to your products so that you gain market share slowly but surely.
- Add more products to your portfolio if possible to attract new set of customers
- Add more features in existing products
- Reduce the cost so that you can fight on the basis of price
- Increase the service delivery levels so that your customer always leaves happy
- Invest in business and increase the infrastructure if you have to
Above are some of the ways to add value and gain market share in your market. Remember that this methodology works best when you have analysed your competition thoroughly. The more you analyse, the better it is for you, and the more insights will be received by you.
These insights can help you defeat competition altogether. When you want to gain market share, you have to remember that Holistic marketing is the best marketing strategy to help you. You need to improve the organization at its core to gain a solid market share and reach the dominant position.
Many a times, you can use the competitive ladder approach. First, beat the single competitor who is just above you. Then the one after him, and then the one after him. This systematic approach means you have to invest only to beat your next in line competitor.
It also means that you will probably not get a lot of market share fast. But hey, doesn’t the tortoise always win from the hare? At least that’s what we were taught.