Question

Topic: Advertising/PR

Defending Market Share Strategies...how?

Posted by sqawasmi on 7/8/2005 at 1:59 PM ET 125 Points
I am an account executive for a brand of dippers that currently has the largest share in the market we’re in. A new brand has just entered and I am trying to think of strategies and tactics to implement as a defense plan in order for us to protect our market share. What advices would you give me? I would appreciate a fast response.
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RESPONSES

  • Posted by michael on 7/8/2005 at 2:36 PM Accepted
    Being the market leader you're always under attack, you just happen to know it this time. Don't look at it as a short term strategy.

    What don't they have that you continue to provide? If you are talking about diapers, they are really a commodity so you may need to provide something else...a newsletter, that mothers can sign up for, that ranks area schools, day care centers etc.

    If you're dependent on support from the retailer you have a larger issue that is probably already being considered by your management.

    Michael
  • Posted by sqawasmi on 7/8/2005 at 3:10 PM Author
    Sorry I misspelled diapers…the answers I got sound good but what about specific tactics you recommend? I liked the idea of having a newsletter. I am thinking of having a direct marketing / promotional campaign touring day care centers and kindergartens especially that we are geographically in a small market.
    Any more tactics? Ideas? Strategies?
  • Posted by sqawasmi on 7/8/2005 at 3:33 PM Author
    amy.connell,
    Great comments and I will use your advice to try to implement a long term plan. I totally agree with the saying “If you don't obsolete your product, a competitor will”. As a company, we are currently in the process of looking at the issue from a long term perspective. As of now though, we’re seeing it vital to have a well planned defense plan since we don’t have much time till our competitor starts putting his product on the shelf of almost every supermarket in the area. I am thinking of a plan for the next 3 months. Meanwhile, we’ll be researching cutting cost methods and operating efficiencies that could be implemented to assist us in sustaining the market share we want.
  • Posted by mgoodman on 7/8/2005 at 10:30 PM Accepted
    Be sure your cost-cutting doesn't extend to the marketing budget. You could end up accelerating your decline if you do that.

    The long-term answer is product innovation. Short-term you need to add some value without cutting price. Perhaps some in-packed premium items, mail-in offers (self-liquidating or low net cost to you), or bonus packs.

    Another approach might be new celebrity endorsement that will pre-empt your competition, heavy-up advertising, and/or packaging innovation (e.g., print helpful information on the inside of the package, etc.).

    You're being challenged, but you're currently king of the mountain. You have a positioning advantage and you need to use it and punctuate it before the new kid on the block has a chance to upstage you. That costs money, but not nearly as much as you stand to lose if you do nothing.

    Cost-cutting sounds great, but you can't let the cost-saving mentality creep into the marketing area at the time you need marketing most.
  • Posted by sqawasmi on 7/9/2005 at 4:27 PM Author
    Dear mgoodman and all,
    What you said above is great. I started thinking of many new ideas that didn't come to me before.
    I would appreciate any more tactics and specific strategies that I can implement.
    Thanks
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