Thread by @oluwole_dada

HOW TO DEAL WITH COMPETITION
A week ago, a Russian Professor came into TwitterNG conversation on how not to be a businessman. However, I wrote a thread on what a particular businessman is doing to deal with competition which was Cost Leadership. I also mentioned Differentiation.

Although, this particular businessman isn't employing differentiation because he is mostly selling commodities. However, another strategy to ensure you take over the market from your competitors is what I will be discussing today. This will take us into the 7Ps of Marketing.

The 7Ps of marketing was developed by E Jerome McCarthy. It was designed to ensure organizations have a right mix of the elements of marketing in order to satisfy the customers and enable them review their strategies from time to time most especially with consumer changing needs.

The 7Ps of marketing is used for products and services. In order words, it is used for both tangible and intangible offerings. Organizations must be sensitive to changing environmental conditions which will give necessary signals of where they need to change their marketing mix.

The 7Ps of Marketing are:
1. Product
2. Price
3. Promotion
4. Place
5. People
6. Process
7. Physical Evidence.

When you are confused, you can have it as 7Cs
1. Customer
2. Cost
3. Communication
4. Convenience
5. Caring
6. Coordinated
7. Confirmation.

A product that will deal with its competitor will have to take one and most importantly more of the elements of the marketing mix and ensure you out wit your competition in that area. You can deal with your competitors in the area of product, promotion and physical evidence.

In the case of iPhone, they took product by giving the customer a very good and quality product with special features of packaging. They differentiated their phones from other phones and that distinguished them. They went further by promoting their product. That is another P.

They communicated the product to the consumers in a way that is different. The adverts and communications of iPhones are special and distinct. Another thing they did was the area of Physical evidence. Physical Evidence is about the colour, style, brochure, packaging and labelling

iPhone was able to have a firm grip of product, promotion and physical evidence and that enabled them to play with price by selling the product at a premium. Today, there are people who will do anything to get an iPhone. They have communicated it so much to our minds.

One brand that was tackled recently is the Cocacola brand. He and his co-traveller (Pepsi) were really dealt with by underdogs (Big Cola, Bigi Cola and RC Cola) who just came into the market in 2015, 2016 and 2018 respectively. These three brands especially Bigi Cola made waves.

They took advantage of changing environmental conditions and in this case, the economy, to strike the market leaders. They tweaked the price element of the marketing mix. They knew that the country was heading for recession, unemployment was increasing, purchasing power was low..

.... and inflation was rising hence the people needed something cheaper than what they were getting before. They fought the war on the platform of price although Bigi Cola added promotion to its mix. Bigi Cola was always in the face of everyone. They were everywhere.

Cocacola thought they could fight the battle with the popularity of their brand but they forgot that when a man is hungry, the power of a brand never matters to him again. These underdogs had to force Cocacola to reduce their price. They did this in Q4 2019 after 4 years of pride

An agile organization who wants to continue to win in the market must be sensitive to changing consumer behaviour and must never ignore the activities of its competitors. Cocacola ignored these two and they suffered for it. They are gradually recovering after the decision of 2019

Marketing is a warfare and you must be ready for it. In war, your enemy will never tell you that he is coming, so also is it in marketing. Your competitors will be planning to take you off the shelf and take over the market. You must not be caught napping. You may never recover.

Below is a compilation of my writings on the Cola War in Nigeria. It was written 2 years ago but it remains relevant most especially for those who want to deal with their competitors and those who also do not want to lose their market share to underdogs

https://twitter.com/brandspur_ng/status/1162470883178496000?s=19

Another example of an underdog who dealt with a behemoth is Molfix, a brand of Hayat Kimya. Pampers was the market leader of the diaper market with a 76% market share. They were the known brand when it comes to diapers. No other brand comes close to Pampers but that's history now

Molfix dealt with Pampers on the platform of product, price, promotion and place. Place is the ability to distribute your product effectively that it becomes most convenient for your customers and consumers to get your product. In Nigeria today, I will recommend three companies.

These three companies have a distribution network that you can study and model your element of (Place) after them. They are Cocacola, Dufil Prima Foods, makers of Indomie and MTN. They have mastered the element of Place that it is very convenient for consumers to get them.

Back to the Molfix-Pampers story. Pampers had limited distributors across the country. They were what is sometimes referred to as Mega distributors. When Molfix came, they went to appoint distributors in almost every town. You can imagine how convenient it will be for consumers.

Also, Molfix realized that the quality of Pampers was dropping and consumers were already complaining so they brought in a better product and that was it. Pampers started going down. Molfix also played with Price. They made their pricing more competitive than Pampers.

Before you know it, Molfix had taken over the market and as at the last time I checked, Molfix has over 60% of the market. This was achieved in less than 5 years. They've become the leading diaper brand displacing a one time heavy weight champion. These are lessons for companies

Should we talk about how SAB Miller which was later acquired by AB InBev took over the second position in Nigerian market from Guinness and gave Nigerian Breweries a run for their money?

Or we talk about how WAW detergent displaced the well known brands?

Or we talk about how Indomie noodles never gave Dangote noodles a chance?

Or we talk about how Milo has dominated the market for several years?

Or we talk about how Maggi seasoning cubes was challenged by Gino, Terra cube, Knorr, Onga, Dancube, Kings, Mamador but stood firm?

There are many ways to deal with your competitors but I have highlighted another one today and hopefully, I will share more in the coming days. No professional worth his salt takes it easy with a competitor. You either eat or be eaten. You conquer or you are conquered.