21 Jul
“Hill,” the homogenization of the market more easily
Posted in Uncategorized on 21.07.10 by Merlyn
Analyzing “ends” of the market prospects and the possibility of entering the market and value, we again see “the end” market, that is, “Hill,” the market will be a problem.
The author’s view is that “mountainside” The market’s biggest problem is easy to homogeneous and easier to engage in price wars, more easily trapped in a “colorless”, “no difference” in the abyss.
Because “mountainside” market is “better” behavior of flooding areas of marketing. Better quality, lower prices; more features, more benefits; more promotions, more violent propaganda. Into the “mountainside” market the brand, without exception, have adopted this strategy.
However, this “better” strategy to give us what? More are: duplication of efforts, and even into the loss of your edge. If you are a “hillside” market brand and dare I say: you better than anyone else usually busy, but a year down the money earned was not very satisfactory.
Why? The reason is simple. You can do “better”, competitors can do. This is the end result, the difference between brands is getting shorter, until the only remaining trump card is the price. The adverse effects of excessive use of a price war is a loss, and even the collapse of capital chain and the entire industry reshuffle.
Now, a lot of infant formula milk brands have entered the market, trying to slice in this market. Unfortunately, most brands are targeting the “mountainside” market, trying to “superior quality”, “affordable” way to compete. This is a dangerous strategy, even a naive strategy, the end result is empty-handed. Think about why the San Yuan excellent Cong (moderately priced) who once Synutra UB (high price) over? Why Mengniu milk powder so far no satisfactory development? These living cases can tell us, targeting “mountainside” market, more harm than good, evil is greater than blessing.
So, I finally once again remind you: When you approach a new brand into a market, they must carefully select the “mountainside” market, the strategy must do a thorough job, a clear advantage and to prevent their opponents to follow up barriers, as much as possible to avoid entering into or never return after the doldrums.