Est. reading time: 6 minutes
You would probably never start any business if you were thinking of how to go into a market that is not crowded. Let’s be honest. At this stage, virtually every market is saturated or about to be saturated. So, you know what? Dead that thought and instead, think of what steps or magic you should perform to compete and thrive in a saturated market.
Good news! We will be looking at 10 tips for your business to win in a saturated market, but before we do that, let’s get the basics right by discussing what a saturated market means.
Understanding Market Saturation
A market becomes saturated when there is little or no space for new markets or new consumers to play in the game. There are two ways for this to happen. One, market saturation occurs when a market has reached its full potential and the demand for the product or service has been fully met so that there is no room for new consumers to be made. For this, it means that the market has been booming to the extent that everyone who wants the product already has it.
Likewise, market saturation can happen when many organisations are offering similar values to the same audience. Here, we have companies vying for the attention of the same pool of customers, which consequently results in higher quantity supplied compared to quantity demanded. And it doesn’t matter whether you are a small brand or a big brand; market saturation can find its way into your industry.
Flags That Give off a Saturated Market
If, as a business owner, you start noticing these signs in your business, then you need to be on the lookout, as they could be flags that the market is becoming or is already saturated. Let’s have it.
1. Setback in sales growth
This is probably the first flag-screaming saturated market. If there is a constant decline in your sales growth, either in the customers or expansion, then it could be that the market is becoming saturated. For example, the smartphone market has been experiencing saturation, with many companies producing more phones than consumers were willing to buy.
2. Fierce Competition
With more people coming into an industry than it used to be, the more competition. So, when the industry is becoming highly competitive, it is a sign of a market getting to its peak.
3. Decline in Customer Loyalty
Due to competition flying all about and the target audience having multiple options to choose from, businesses can experience a decline in their loyal customers not demanding their offers like they used to.
10 Tips Businesses Must Use to Win When Competing in a Saturated Market
In a saturated market where every business is fighting and screaming to be heard and seen by the same pool of target audience, the very spark to light up the room and make your brand noticeable is in you differentiating yourself. Now, let’s explore how you can make your brand stand out in a crowded market.
1. Build a niche
Don’t try to be everything to everyone, and you can’t solve everyone’s problem. Find a niche in your industry and solve specific demands. It’s one of the ways you can make a name for your business in a saturated market.
For instance, let’s assume you are a writer just like everyone else in the industry. However, this is a broader segment that can still be narrowed down. Then, you can choose to focus on copywriting. Now, you are getting closer. As a copywriter, you can still narrow down by focusing on a particular field you want to write for. It could be the medical field, tech, real estate, etc.
Even if you have a smaller target audience now, those who need your service will come to you because they know you can solve their pressing needs better than any other vague writers.
2. Research your competitors
Keep your friends close, but keep your competitors closer. Tell us how you want to stand out in a sea of similar businesses if you don’t know those you are competing with. You have already lost the battle before getting started. Researching your competitors coupled with knowing yourself gives you an edge in the competitive environment. What are you doing? What are your competitors doing? Place them side by side and brainstorm on what you can do differently.
Your competitors are just as good, smart, and hardworking as you are. So, when you see them implementing changes to their offers, you should find out why. Albeit, this does not mean you should copy their every action—hook, line, and sinker—because your brand values differ, and they can also make mistakes. It simply means you should not slack and be ready to up your game as well.
3. Find your Unique Selling Point
After you have researched your competitors, it makes it easier for you to pin down that peculiar quality that will make your customers stick with you. You don’t have to think too hard because it doesn’t have to be something so big. It can be your values as a brand. Anything significant that will resonate with the target audience.
4. Innovate and Diversify
Another tip to win in a saturated market is innovation and diversification. The number one constant thing in life is change. Don’t do the usual. Spice it up. Show your customers new things and let them be wowed.
A perfect example of this is Apple. Apple is not like every other brand out there. Apple is constantly innovating by adding new features to its products and producing new models. It wouldn’t be a surprise if they should release another model of their products today. If you are willing to do what others are not doing, you will get the results others are not getting.
5. Build a strong brand identity
Your business is just one out of thousands of businesses in the market. You must be willing to go the extra mile. Create a brand identity for your business: brand purpose, value, logo, colour, and even a brand story.
6. Leverage your brand story
Every business has a story, and while others can copy your products, no one can tell your story the exact way you will do. Humans have been built to resonate with stories, and with good brand storytelling ideas, your brand can lead in a saturated market. Take advantage of that.
7. Consistency in your communication
Being on social media is not a discovery because there are other businesses on it too. Remember that we have earlier pointed out that your competitors are just as smart as you are, but you can be different by constantly posting and interacting with your audience on these platforms. Don’t make it one-in-a-blue-moon stuff, and you must maintain a consistent identity while you are at it so you don’t confuse your target audience.
8. Prioritize your customers and invest in customer service
While people can sometimes forget your name, it takes a while for them to forget, if they ever will, how you make them feel. Your customers want to feel valued and needed. Show them they matter by honouring them with extraordinary service. And no, you don’t have to reduce your price to achieve this. Something simple yet significant as a quick response to their complaints, prompt delivery, easy-to-place orders, free delivery, or even ‘we appreciate you’ messages will do. These things can propel your customers to choose you over other brands.
9. Use social media to your advantage
The world as we know it has gone digital, and one of the active digital channels a business can have access to an unlimited audience is social media. With social media, brands can bridge the gap and build a good rapport with their audience by creating content and responding to feedback.
10. Build on your strengths
While it is okay to add new features to your products, likewise, it is good for you to focus on your strengths. Sometimes, it is all right if your value has fewer features compared to your competitors, with the exception that those few features are the best any consumer would want to have.
As innovative as Apple’s iPhone is, not everyone wants it. Some prefer Samsung and other brands to it. Just ensure that whatever it is your product or service is lacking, make up for it in what you have.
Final thoughts
One thing is evident from the 10 tips needed to thrive in a crowded market discussed above. Competing in a saturated market, although challenging, is a sure way for any business to walk out of its comfort zone, think outside the box, and display its best game to the audience. Do not be intimidated by the sea of competitors; rather, focus on being different by embracing the 10 tips we have discussed, and if you are unsure of where to start, just get on the track, set, and connect with Kian Consult because we can’t wait to see you win.
