Every business owner and leader will tell you that if businesses don’t sell, it dies. Indeed that is true. But what many business owners & leaders might forget to tell you is Death by Commodity is very real~ When prospect consumers don’t know how your product or service is different from competitors in the market. These products or services can be cheaper; easier to deploy; easier to access (availability); come as value adds too, or as other marketings idea that the competitor marketing team arrived at. So how can your business survive ?
HOW CAN YOU AVOID DEATH BY COMMODITY?
Take a few minutes to internalise why consumer are willing to spend premiums for Nike products when they can get a functional equivalent elsewhere or a duplicate at a far lower cost.
Parallels can be drawn across products and services in all categories. Consumers perceive products or services as a commodity when they are unable to distinguish a Value Proposition that resonates with them. When consumers perceive your product or service as a commodity they negotiate; discount; replace; upgrade.
Because businesses haven’t built a Brand of Trust that consumers can latch onto.
IF BUSINESSES CONTINUE TO RELY & COMPETE ON PRICE THEY WILL DIE A COMMODITY.
Food Aggregator Companies have built their business around discounts. They commoditised the F&B of local restaurants with the promise of more customers. While these local restaurants continually feel the pressure of lower business margins; they hope that volume sales will offset this. What they need to realise is that the survival of their business lies in their - THE BRAND (rather The Branded Experience of their restaurant). This is something that food aggregators cannot replace or replicate.
DEATH BY COMMODITY OR LIFE AS A BRAND
Unfortunately businesses cannot start thinking & building a brand only when business get tough; margins are low; consumer retention is weak; competitors are growing. Businesses start from Day 1 of being in business; even before going out into the market looking for your first paying consumer.
HOW DO BRANDS STACK-UP AGAINST PRODUCTS?
BRANDS ARE RESILIENT
PRODUCTS ARE VULNERABLE
BRANDS HAVE WELL-ROUNDED MARKETING TECHNIQUES
PRODUCTS RELY ON QUICK HACKS AND GIMMICKS
BRANDS LIVE ON
PRODUCTS HAVE A DEFINITIVE LIFE CYCLE
BRANDS STAND FOR ONE BIG THING
PRODUCTS STAND FOR EVERYTHING
BRANDS CANNOT BE COMMODITISED
PRODUCTS ARE ONLY COMMODITISED
LIVE LIFE AS A BRAND
To live life as a Brand, businesses need to continuously de-commoditise their solutions. Why? Because the minute businesses come up with something new, a competitor will try and copy it. Over time, these solutions become commoditised; profit margins will get waiver thin and soon companies will have no choice but to remove the same from their portfolio.
For your businesses to succeed in a commodity marketplace you need to start functioning beyond the dynamics of commodities - finding the value proposition that others haven’t seen as yet.
Trigger Worldwide is a Growth Marketing Agency, built specifically for SME’s and Startups to create Sustainable Business Growth. Our proprietary tools and process methodologies harness Technology, Creativity & Innovation, leverage Economic Drivers and Consumer Beliefs to help SME’s achieve their Growth Agenda’s.