Me too marketing takes place when a company starts a product which is just like its competitors. There are hardly any differentiating factors. When there are no differentiating factors, a Me too marketing company can give stiff competition and take away the market share of the leading company.
An example of Me too marketing can be seen in the satellite television space in India. Tata Sky was the first brand to take satellite television to new heights. It introduced fantastic schemes and plans and was soon becoming a household name. However, within months Tata sky was followerd by Airtel, reliance and Videocon which gave an almost similar product with some added features and lesser price than Tata Sky. This is the perfect example of Me too marketing.
The me-too marketing strategy is adopted for several reasons.
1) A competitor has introduced a product which is unique
2) The competitor is taking away the market due to the unique product
3) The competitor is also getting skimming price because he does not have much competition in the sector in which the unique product was introduced.
All of the above situations can be reasons for a company to introduce me too product. If the competitor has introduced a unique product, then the company will also copy the tactic and introduce a unique product. If the competitor is taking away the market, than by introducing a similar product, some market share can be taken up by this company. And finally, if the competitor is getting a skimming price, than this company might introduce penetrating pricing and get market share.
Can me too marketing be avoided today?
Yes. Me-too marketing can definitely be avoided and it SHOULD be avoided at all costs if you want to make good profit margins. Remember that the motive of a business is to make profit. With me too marketing, although you may have market share, you will not have as much profit margin as compared to the first entrant in the sector. You will always be the second company, which can be harmful to your brand.
However, with markets becoming saturated, me too marketing is becoming a good resort for people who want to start a new business with minimum time investment. Take for example the restaurant segments. There are many pizza chains and burger outlets today as well as south Indian restaurants which copy each other. This is because, the space is so saturated, that differentiation will carry huge costs. And a starting company might not be able to bear such costs. Thus, it is becoming difficult to avoid me too marketing.
Here are two great articles which can show how to avoid a me too marketing strategy and have your own independent personality.
Do you think that me too marketing is a good marketing strategy or a bad marketing strategy?