4 Ways Small Businesses Can Compete Against Major Competitors
April 19, 2017
For a small business to strive and win competitors in an industry, use these strategies.
Moving into a new city or job can be daunting, the hassle of finding accommodation, the stress of moving personal items and most especially the people or city accepting someone new might not be pleasing.
The same applies to small businesses that are launching into an industry ridden with bigger competitors. For an SMB, finding a niche can be time-consuming but rewarding on the long-term.
In a recent article published in Entrepreneur.com, the writer shares 4 effective marketing strategies for SMB’s against bigger competitors.
1. Niche down
Small businesses need to go laser focused on a chosen market segment. I am talking hyper focused, zeroed down to the barest minimum then expand from there as they grow.
To compete and beat bigger rivals in the industry, SMB’s need to focus on their basic consumers. Basic consumers can range from college students to a particular demographic. Recognizing and marketing to the basic consumers allow for quick sales, more revenue for marketing and the ability to grow a following.
A perfect example can be found in Red Bull. Co-founder Dietrich Mateschitz started his little-canned drink with no specific market in mind, and even with no competition in the energy drink industry, sales were slow. Consumers could not decide if Red Bull was a sports stimulant or a soft drink. So, Mateschitz went back to the drawing board and laser-targeted a market segment (students) and marketed to them relentlessly by sponsoring events, throwing campaigns, devotional social media challenges.
By targeting a specific market, Red Bull was able to build a following, sales skyrocketed and growth exploded. Right now, Red Bull can be found in almost every athletic or sports events holding a market share of 50 percent in Canada and 46 percent in the US as at 2011.
Key Takeaway: If you’re starting a business in a market that has established competitors, you need to niche down to strive then win it. Dig deeper and find untapped subcategories in your market, sell to that core customer then expand.
Visit Entrepreneur.com for the rest of the story.
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