So what do you do when you have a small marketing budget and you have a large competitor move into your market that can easily outspend you?
This is something that my agency comes across quite frequently when we speak to our clients.
I’m making this article because I have a really good example of a current client who is experiencing this.
Currently, the client has a competitor with a cheaper product and who can outspend their company in marketing.
And so the question is, what do you do as a business when this happens?
Do not compete on price.
This is an absolutely essential thing to do because they can more than likely run a loss and outlast you. So, you need to avoid competing on price.
You need to start establishing yourself from a different perspective.
You need to distance yourself from that same market.
My current client who is struggling with this issue has a product that’s very similar to their competitors.
So, what we’re actually working with them on is to effectively move the marketplace into a slightly better and higher-end type of customer.
We want them to instead start going after a different type of consumer and establishing themselves as different from their competitor through branding.
So, the second thing you want to do now is look at your competitor in a different way…
What are they good at? What are they bad at?
Typically when you’re looking at a big competitor you can quickly see faults. One of the things bigger competitors suffer from the most is actually making the customer feel special.
It’s just the natural progression of any large company.
The bigger you get, the harder it is to make the customer feel like they are getting a one on one interaction.
We explained to the client we are working with that they can use things like that to their advantage.
Consumers are starting to get more weary of larger corporations so any business who is competing with larger competitors can use this.
Give the consumer a better customer experience and you will build more integrity.
The next thing to consider is…
What are they slow to adjust to?
The bigger the company the harder change is.
In this particular example, I have been referring to, what we actually said to our client was, “what your competitor can’t do is change their product very quickly.”
The market is changing in terms of its needs and desires and bigger companies are going to be very slow to adjust to this.
Now, this is where my client can actually really pick up the slack because they’re smaller, they’re more agile, so they’re able to turn almost on a dime.
So what’s happening is that they’re actually refining the product that they’re offering in ways that the consumer is looking for.
They can offer the consumer EXACTLY what they are looking for.
Now a bigger competitor has a dedicated marketing team, a dedicated sales team, a dedicated branding team. It takes dozens of meetings to even get a change as simple as a new font implemented.
Use this against them!
These three tips are some of the best things you can use to your advantage when a bigger competitor moves in and starts outspending you.
While larger corporations have a lot of advantages, they also have their own disadvantages. By figuring out what those disadvantages are you can use them in your favor.
Comment down below other techniques you know of for getting ahead of your competitors.