Competing Against Yourself For A Bigger Marketshare
By Gauher Chaudhry
This scenario all to often happens...
A company or individual develops and markets a new product or
service that takes the world by storm. Orders start pouring in
and everyone is thrilled with the results. Then all of a sudden
there is a large drop in sales?
Why? Because a knock-off of that product or service has emerged
onto the market at a lower price.
One prime example is the fitness product "SoloFlex" that used to
be advertised in the form of infomercials on late night
television. This fitness product was unique because they used
rubber to form resistance rather than weights.
Once the product or service is deemed to be a success, pretty
soon knock off products emerged such as BowFlex, NordicFlex,
etc... and they took a nice chunk out of SoloFlex's profits.
How does a good marketer compete against these marketing
conditions? They introduce a knock-off of their own product
onto the market.
This helps the company or individual dominate the market and
makes it harder for other companies to compete with a similar
Some people might not think that it makes sense because the
company or individual will be taking orders away from their
first product. But it may work in the companies favour.
Let me explain.
For example, lets assume you have developed a new invention that
cleans carpets in only five minutes. Your product receives rave
reviews and has become a huge hit. When you introduce a knock-
off product that does that same thing your are also increasing
brand awareness for the invention.
When brand awareness increases, so do orders. So in some cases,
introducing a knock-off product could even increase your sales.
A customer faced with only one ad may not be tempted enough to
purchase the product. But when faced with two or three
competing ads, will increase the chances of the customer
Of course the negative factors of introducing a knock-off
product is that it can be quite costly. Also the advertising
costs or the knock-off product may not be entirely recouped.
A lot of research and profit analysis should be done before a
decision to launch a knock-off product is made. But if you have
a developed a product or service that can be easily copied,
developing a knock-off version might be your only alternative to
maintaining your market share.
Copyright © by Gauher Chaudhry
Gauher Chaudhry is editor of Cool Cash Ezine. You can subscribe by sending
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