How Brands Compete in a Saturated Market

The world is an increasingly competitive space for businesses big and small, with even the latest innovations seemingly having competition within a matter of months. So, trying to break into or compete within any market, let alone a particularly saturated market, can seem like a daunting task. However, many brands are proving to be up to the challenge, proceeding to play the game at hand to remain at the forefront.

A key to finding success in a particularly saturated market is not to ask how a business can compete with others, but how it can enhance and improve upon what’s out there already. By making a brand stand out in some way, offering some form of incentive to customers, and appealing to the most important needs can all help a brand to compete in even the most saturated markets.

Play on customer psychology with product placement and presentation tips

Product placement and the presentation of a brand’s section, store, or website can make a tremendous difference to customers. Not only can brands play to a sense of natural convenience, but they can stand out from competitors by offering a better experience or by appearing more prominent.

For a brand’s own experience, online or in-store, the ambience and lighting need to both suit the brand’s image, if applicable, and be pleasing to visitors. For example, Ikea is all about being simple, clear-cut, and mostly white in design, so their stores are brightly lit, with the layout being very easy to navigate. While some brands opt for darker or dim lighting, such as some fashion brands, fairly bright lights tends to be the way forward. Getting this element of the experience right can go a long way towards being a preferred brand.

Product placement is also a subtle but integral part of being competitive. Online, placement can mean having a higher rank with search engines or paying for advertising space, but the in-store placement method is much more nuanced. Being associated with a larger brand by positioning close by, branding a section in the business’ colours, and being at eye level are all ways in which individual products compete for their brands in shops like supermarkets and DIY stores.

Emphasise a strong, unique selling point

In most industries, it’s the unique selling point (USP) of a small business that allows it to muscle in and draw customers away from the big brands. The first step to achieving this is to advertise and emphasise the USP whenever possible. Optimally infused in a clear-cut slogan, it needs to be a claim that can be defended, assert that the brand is the best, and tap into the desires of potential customers by focussing what they would value from a brand in the given industry.

Another way to integrate a USP for the brand is to delve deeper into the existing offering, presenting more depth or variety than any other brand. This is known as creating a sub-niche, granting access to a less-saturated segment of the market while also helping the competitive effort. For example, there are many chocolate brands out there, but Cadbury’s range of regular chocolate bars expands from standard dark chocolate all the way to the likes of jelly popping candy ‘Darkmilk’ and everything in between.

Give them what every customer wants

saturated market
Source: Pixabay

It’s certainly not a new technique, particularly among new brands, but offering a free sample or bonus of some sort to new customers has now evolved into a key battleground for many online-based industries. Many online banks offer bonuses to new customers; energy companies offer the chance to get bonuses for referring a friend; and the online casino bonus is now a standard part of online gaming. In each of these cases, customers are either given free money or bonus funds to use on the service.

Whether it’s presented as a special offer or a free gift, people will automatically be drawn to the offering. If it proves to be to their liking, they’re even more likely to become repeat or long-lasting customers. Doing this can be used as a method of bolstering the unique selling point, such as if a brand offers customers membership to reward them with vouchers or free samples regularly. Furthermore, it helps to build upon a core foundation of being competitive these days: customer service. Giving customers the chance to try before they buy is a terrific way to show that the brand is welcoming and very confident in the product.

Breaking into or just competing in a saturated market is difficult, but as long as a brand provides and emphasises the providing of a superior customer experience and product, they can come out on top.

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