Nowadays, the business market is saturated, because there are many merchants selling similar goods or services. So, this indirectly means that any market that you choose to enter will make you a market challenger. In order to reduce the number of competitors, you must inject fear for future market entrants.
The common mistake that most companies do is that they only think about beating the top player in the industry. They are unaware that other brands, placing second or third can also challenge them.
Here, we list five best market challenger strategies that you should to know to protect your business:
This is a direct attack based on the competitors’ strength. Usually the attack is done by offering lower price, better quality product, aggressive advertising, or better service quality to customers. This kind of attack is risky because if you lose, your sales, customers and public image will be in vain.
There are several types of frontal attack:
- Pure frontal attack: neck and neck marketing battle
- Limited frontal attack: focused on specific customers
- Research and development based frontal attack: Develop a product to compete directly with the market leader.
Whichever approach you choose depends on market you are in and how fierce the competition is.
This means attacking the competitors’ weak points. Market challenger can identify the weak points based on geographic. This means challenger find the area competitors are under performing and develop marketing strategy to cater that area. Other than that, they can also challenge the competitors based on segmentation. This is where challenger identifies the segment that competitors left out and create a product to satisfy them. This strategy, if done the right way, can alleviate your rank in the marketplace and bring outstanding results.
This means attacking the competitors based on their strengths and weaknesses at the same time. Simply put, encirclement attack is the combination of frontal and the flank attacks. If a company wants to use this strategy, they must have superiority in all areas. Market challenger can do this by launching some promotional strategies in order to attack competitors and force them to defend themselves. In this way, the market challenger will be able to gain market share.
This is an indirect attack where market challenger bypasses the leader and attacks easier market to broaden its resource base. There are several ways to do this. Such ways are developing new product, diversifying into unrelated product or expanding into new geographical market with existing products. This strategy is done to achieve dominance in the market you are working in for a long term and is actually a very good one if the industry you are currently working in is very competitive.
Guerrilla marketing means gaining small victories that can over time give huge impact for you to increase your market share. Usually, this strategy is done by a small company that first makes it a success in the local market. After that, they usually introduce the price and trade discounts. This is because every large player at some point was small in the industry. Besides, this strategy is known to demoralize the competitors and eventually help you to secure your place in the industry.
We have already written about Guerrilla marketing and you can read more about it here.
Therefore, market challenger needs to be aware of the macro-environment and try their best to alleviate their ranking in the market. Thus, these are the market challenger strategies that they can choose to use.
So, as a market challenger, you need to do your best in order to survive in the market because you don’t want to be left behind in the competitive battle. As the saying goes, ‘There’s only one winner’ and thus, choose the best strategy for your company and be a winner!