We always talk about positioning, so what is the core of positioning? The core of positioning is actually differentiated competition. I call it misplaced competition. Just like off-peak travel, the local competition of the people's congress is fierce, and the traffic jam is serious, so the best way is to avoid its edge.
For example, New Oriental does English training, and Xueersi does Olympiad training.
The best strategy is not to meet the brave and win, but not to compete with him, choose a point of difference, do a good job of yourself, and become bigger and stronger.
Many times we think that competition is about price wars, but in fact, the value proposition provides a different way of thinking.
Here we share and introduce 5 common sales price differentiation competition strategies, hoping to help business bosses effectively avoid price wars between peers and allow themselves to obtain better sales performance. Straight to the dry goods.
"The value proposition of 5 types of price differentiation competition": high quality and high price, high quality and same price, homogeneous low price, low quality and lower price, and high quality and low price.
1. High quality and high price: take the high-end route
One of the advantages of this is that we have differentiated the positioning of the group, because these people have requirements for quality, and can afford a higher price, most of these people are high-end, and when competing with similar competitors, we can also improve the price and quality at the same time.
Such a high-quality and high-price competition strategy is more suitable for economic boom times and can ensure a good sales volume, but if it encounters a recession and downturn, it will create great risks, because many middle and wealthy people will become more cautious in spending money.
2. High quality and the same price: so that ordinary people can afford better goods
The price remains the same, but the quality of the product is upgraded to a higher level, and the more classic one is Uniqlo. A 79 yuan T-shirt, if you are in other similar brand stores, you may only be able to buy an acrylic chemical fiber texture T-shirt. But at Uniqlo, you can buy a dress with a cotton texture designed by a top designer.
Consumers will find such a product to be very cost-effective, and at the same time take into account the needs of different groups of people for quality.
3. Homogeneous low price: save money for consumers and make price-sensitive users happy
For example, Wal-Mart's discount store is based on the value proposition of daily parity, providing the same quality goods, but at a much lower price.
This strategy is especially suitable for some price-sensitive customers, who may not have many additional requirements for the quality of the product, but for the price, it can be cheap, so they will choose such products.
4. Low quality and lower price: suitable for the strategy of opening up new low-end markets
This strategy is especially suitable for developing low-end people in a slightly leading field. This is what we often call the "sinking market" recently. The more representative is Pinduoduo, which at the beginning used strategies such as low quality and lower prices to avoid competition from JD.com and Tmall.
5. High quality and low price: reduce the fixed rate, and all businesses are worth doing all over again with Internet thinking
What is constant magnification?
The multiple of the retail price of a general commodity divided by the cost price is called a fixed magnification. We know that cosmetics that cost thousands of dollars at every turn, in fact, its cost price is sometimes only a few dozen yuan. Then its magnification is about 100 times.
This is where Internet entrepreneurship has been more popular in recent years, such as Hey Tea, Luckin Coffee, etc., all of which have reduced the number of trips in a certain industry through the operation of the Internet.
Improving quality through supply chain and brand empowerment on the one hand, and reducing prices on the other, is a particularly successful value proposition.
These strategies essentially adjust the target customers through product quality and price points, avoid going head-to-head with existing big brands, and participate in different brand value propositions to find their own survival strategies.
Make good use of brand positioning and brand value proposition and the above 5 differentiated sales price strategies, why can enterprises improve profitability.
I hope the above can help the business owners.
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