How do you compete in a crowded market?
Updated: Sep 7, 2019
Short answer, you don’t! When I first started in cakes the fact that it was a crowded market didn’t put me off, the goal of any entrepreneur is to find the blue ocean 🌊 and avoid the red ❌ ocean, in every industry there is both. ⠀⠀ Red Ocean = ❌ competing against other similar businesses constantly pegging yourself against them and struggling to be seen amongst the noise and price competition and only using your personal brand to differentiate. ⠀⠀
Blue Ocean = 🌊 looking for a gap in the industry where there are few competitors (a different angle/ USP). Examples 👉 Netflix, Aldi, Cirque de Soliel. ⠀⠀ This is something I help my clients with, we step back and look at their industry as a whole looking for the blue 🌊. We do an industry analysis and look at what competitors are not doing, what does your customer want that is not currently being catered to? How can you create a business and brand that caters to that?
⠀⠀ With Planet Cake I saw the gaps clearly. I jumped in and bought the cake shop when no one was interested, I saw what #marthstewart was doing in the US and predicted the trend would emerge in Australia. I approached cakes as a fashion product not a food product. I launched a cake decorating school when no one was offering education, I offered 5 ⭐️ service when other cake shops were failing with theirs. Mix it up with a strategic brand and marketing strategy and a unique and dynamic culture and you find the blue ocean 🌊 in the crowd! ⠀⠀ First step: stop 🛑 looking at your competition for guidance
Second step: run a quantitative marketing analysis/focus groups on buyers, consumers and influencers, what do they want?👥
Third step: think outside the industry, what’s happening in other industries that you could adopt in yours? 👀
Fourth step: Look at what would functionally or emotionally appeal to buyers and why? ❤️
Fifth Step: Look out 2-5 years, do not create a product/service for now, create your business to piggy back on emerging trends. Don’t make this tricky, think macro, what is happening with the economy? What’s happening with social media platforms? Speak to a futurist! 🗣
Blue Ocean Strategy defined by Professors W. Chan Kim and Renee Mauborgne in their book ‘Blue Ocean Strategy: How to Create Uncontested Market Space and the Make Competition Irrelevant.”