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.
Why is Me Too Marketing Adopted?
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.
Why Me Too Marketing is on the rise?
A reader might ask the question, that why do business owners adopt a Me too marketing strategy? Why don’t businesses always start with their own unique products? There are several reasons to adopt a me too strategy.
1) Using another company’s brand equity – Me too marketing is a sure shot way to come up in the business world because you already have another company’s brand equity to use. The company has done the hard work of bringing in the product, and by imitating it, you can also rise up to fame.
2) Penetrating the market is easier – It is a market follower strategy, in which the company waits for a good product to come in the market. Then, once it finds a product which has good potential, the company starts manufacturing a similar product. Thus it brings down the skimming price.
3) Me too marketing is good for consumers – It is always good for consumers when there is more competition in the market. More competition means that the companies are on their toes and none of them is relaxed. Each of them knows that if they do not cater to the customer, the competition will.
4) It is good for the market too – By creating more products in the same niche, there is more opportunity for growth, more taxes generated for the nation, and more employment opportunities for job seekers. Thus, me too marketing is good for the market too.
Me too marketing is on the rise because manufacturing technology is very much upgraded today and is available at low cost. China as a nation has risen because of me too marketing. China has always given products at very low cost which is because it manufactures me too products in bulk and enjoys economies of scale. Thus, me too marketing is on the rise.
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?