Nowadays, there are many businesses competing for a piece of the market and this makes it more difficult than ever to succeed. However, it’s not all doom and gloom; an oversaturated market proves that there are ready buyers and plenty of opportunities out there, you simply have to know how to capitalise upon them.
Let’s take a look at five ways to succeed in an oversaturated market.
What Does an Oversaturated Market Mean?
Over saturation means that there are too many businesses competing for a share of the same market. This means that the market is no longer generating new demand, which makes it more difficult for businesses to grow.
There are several reasons why market oversaturation happens. The most common ones are:
● The product or service has become obsolete - think about DVDs in the late 2000s and early 2010s.
● Decreased need
● Increased competition
In the case of the latter, customers have too much choice and can't decide which business they want to buy from. This leads to “behavioural paralysis” which means that they don’t buy anything at all.
Tip #1 - Re-Examine Your Business Model and Add Value
The first step in overcoming over saturation is to examine your business model and make sure that it truly has a place in the market. If you are going into an oversaturated market, then there needs to be something unique about what you have created or how you go about selling it.
One of the best ways to establish yourself is by creating additional value for your customers or clients. If you are able to offer them something better than they can get from your competitors, then they will be more likely to buy from you. For example, if you and your chief competitor are offering the same service but you are offering a more flexible contract, a faster turnaround or a more personalised service, the lion’s share of sales will go to you.
Tip #2 - Stand Out
The second tip for succeeding in a crowded marketplace is to have a unique selling point or USP. This means that you must offer customers value that they can’t get elsewhere, as discussed above. Then, you need to take your USP and run with it. Make it the centre of your marketing campaign and focus entirely on what makes you different from other companies so that you’re the one customers stop and notice.
Tip #3 - Identify an Underserved Niche
If you can identify a niche that has been thus far overlooked by your competitors, then you will really be able to use this to your advantage. If you are the first business in your industry to cater to niche customers with specific problems and pains, you will dominate this niche and build a loyal community.
These niche customers may be currently patronising your competitors, but only because there isn’t an option that caters specifically to them. However, if you are able to swoop in with a better alternative then you will successfully capture a larger share of the market.
Tip #4 - Pay Attention to Pricing
When serving an oversaturated market, many business owners simply slash their prices but this isn’t always the best possible strategy. Consider offering different pricing tiers instead, such as a more basic service bundle for budget-conscious customers so that they can simply pay for the services they wish to use. You can then include bigger bundles with higher price tags for customers with the means or the need to do more.
Tip #5 - Personality is Key
A strong and appealing brand personality is key to succeeding in an oversaturated market. If you can build a strong and recognisable image for your company, then people will remember who you are. This will also encourage your customers to develop a strong emotional connection with your business and cultivate brand loyalty.
Over saturation is a difficult obstacle to overcome as a small business owner but it's certainly not impossible. It’s all about differentiating yourself by offering something unique and using that to stand out from the crowd. If you can offer your customers something that they can’t get elsewhere, then there will be plenty of room for you to grow, even in an oversaturated market.