Looking to take your company from market leader to household name overnight? A new research study finds that marketers who build excitement, early impressions, and trust among consumers are the ones who will ultimately be successful. Efforts to increase customer satisfaction and reduce costs have only increased the confidence of consumers in businesses and products. But as some of these efforts may go unheeded, others are being overlooked. Read on for a look at some market leader strategies and action plan ways to implement them wisely.
The Need for Strategy as A Market Leader
In an ever-changing world, the competition for business is intense. Companies compete head-on with one another to A Complete SWOT Analysis Of Swiggy. While this may seem like a constant source of stress and anxiety for businesses, it actually makes sense from a business standpoint. It’s not always possible to control the choices available and what services or products are available. However, there are a variety of ways you can manage your environment to increase your chances of attracting and retaining customers. While it may feel intense, you can learn from some market leader strategies that can help you stand out.
The global marketplace is still in flux, and the market remains unpredictable. However, there are a number of factors that have conspired to make the current period an exciting one for digital transformation and e-commerce marketers. Here’s why you should learn and implement market leader strategies:
- The potential for growth is now bigger than ever.
- Second, as we enter what will be a critical period for digital transformation and e-commerce marketing, we see opportunities that were non-existent a few years ago.
- Third, the competition is fierce. Learning from market leader strategies can help you stand out from the crowd.
- Finally, as we enter this critical phase of our transformation and e-commerce transformation journey, we’re seeing new types of marketers. They are capitalizing on the unique benefits of digital transformation and e-commerce to drive more extraordinary customer experiences.
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Now that we have gone through the need to come up with ideal strategies as a market leader, let’s look at the best market leader strategies:
Undeniably, Apple is one of the finest examples of leadership in marketing in the electronics industry. In the early 1980s, Apple was facing financial problems that led to a decline in market share. This decline resulted from an inability to produce products fast enough and at a low enough cost to compete with IBM. They also were losing market share because they were not able to react quickly enough to changing technology, customer needs, and preferences.
Apple had a very centralized structure that made it difficult for them to respond quickly enough because everything had to go through the CEO for approval. They also lacked vertical integration, which meant they could not control all aspects of production from start to finish, which led them to have less control over quality and costs, especially when outsourcing production overseas.
The company’s response was the “Apple Turnaround” plan, where they would decentralize their organization and create six autonomous business units. These units would be responsible for designing, manufacturing, and marketing their own products with little oversight from headquarters. This remains one of the best market leader strategies. It also led to them gaining and maintaining a market share leadership in the phone industry.
Apple also has an excellent supply chain strategy. They have worked with suppliers to create a closed-loop supply chain that allows them to monitor all aspects of production from start to finish. This allows them to track problems quickly and correct them in a timely manner which helps keep costs low while also ensuring product quality remains high.
- High-quality products based on the latest technology
- Strong brand image and loyal customer base
- Excellent supply chain strategy that allows them to monitor all aspects of production from start to finish.
- A closed-loop system that allows them to monitor all aspects of production from start to finish.
- This also helps them track problems quickly and correct them in a timely manner which helps keep costs low while also ensuring product quality remains high.
- Highly centralized, which can lead to lower quality control in some locations.
- Lack of vertical integration can lead to higher costs and less flexibility.
Apple has had a very successful market leadership strategy. They have been able to maintain its strong brand image by consistently producing high-quality products and providing excellent customer service.
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Coca-Cola is another example of excellent market leadership that has done exceptionally well in its industry. The company began by promoting its brand through local bottlers but soon gained enough popularity that it began selling directly to consumers as well as bottlers, distributors, retailers, and even restaurants under license agreements.
They have also created a variety of new flavors for their products to help keep up with the ever-changing wants of consumers. It is no wonder that Coca-Cola has been able to maintain its market dominance in the soft drink industry.
Coca-Cola develops a long-term relationship with customers through consistent, high-quality products and services, such as customer loyalty programs (Coca-Cola Rewards), to help develop a brand identity in customers’ minds; this helps increase brand loyalty.
- Focus on the product.
- Focus on the distribution channel.
- Focus on the customer.
- Focus on the competition.
- Stay current with trends and technology.
- Use creativity and innovation to solve problems and create new opportunities for growth
- Develop new products and services that meet customer needs or fill new niches in the market.
- High levels of competition
- Limited resources required to enter the market (e.g., distribution networks, equipment.)
- Consumers have a high degree of loyalty to other brands (especially Pepsi) and are not easily persuaded to switch brands.
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How can we talk about market leader strategies and not talk about McDonald’s? McDonald’s is another one of many market leader examples that have done exceptionally well in its industry. The company began by franchising restaurants to local owners who would buy the rights to use the McDonald’s name and recipes. This strategy allowed the company to expand into different regions without having to build and maintain restaurants in those areas.
The company has also expanded its menu to include other items in order to compete with other food chains. In addition, it has also pioneered offering fast delivery services for customers who want their food quickly.
McDonald’s expands into different countries by franchising restaurants instead of building them from scratch. This allows them to make a lot more money than if they had to maintain all of the franchises themselves.
- They can expand very quickly with little or no capital expenditures on their part since they don’t have to build any new buildings or hire any new employees. The franchise owners do this for them, which means that they have more money left over for advertising and promotions while still making a profit on each franchise (as long as they have an excellent franchisee).
- Also, since many of the risk factors are taken care of by the franchisees, McDonald’s can concentrate on business expansion instead of worrying about how many burgers are actually being sold at each restaurant. Example: Instead of opening up its own store in Russia, McDonald’s decided to sell franchises there (and in other countries).
- This way, it doesn’t have to worry about finding local suppliers and managing Russian operations because its franchisees handle that side of things.
- It also has guaranteed revenue streams because it gets a cut of the franchise fees, which is much more predictable than having to deal with fluctuating sales.
- The main disadvantage is that they don’t have as much direct control over what happens at the franchises. For example, if a franchisee suddenly goes out of business, then McDonald’s loses money because it doesn’t get any cut of whatever sales are made there.
- They also can’t make any changes to the menu or decor at the franchises without getting permission from the franchisee first.
However, McDonald’s has been very successful in mitigating these risks by requiring its franchisees to sign contracts that give them control over nearly every aspect of their business (from how many employees they can hire to where they can advertise) and by heavily promoting itself as a brand name so that people will buy it regardless of who owns or runs each restaurant.
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Frequently Asked Questions
How Important is Brand Identity to Establish Yourself as A Market Leader?
The term brand identity refers to the visual and verbal representation of a brand that is used in marketing materials. The term branding refers to how consumers perceive a brand. It also relates to how a company markets its products and what strategies it uses for promotion.
Why is Coca-Cola so Successful?
Coca-Cola has been able to dominate the soft drink industry for over 100 years because of its marketing strategies. Along with that, a strong focus on the product, distribution channel, customer, and competition helped.
Should A Business Focus on a Niche Market?
A niche market is a smaller subset of a larger market. It is crucial that you start catering to a niche. After that, you can eventually advance to becoming a more general company.
Apple, Coca-Cola, and McDonald’s strategies are the best market leader strategies we can take inspiration from. Standing out from the competition may be accomplished by studying market leader strategies. Businesses that create anticipation, favorable first impressions, and customer trust will eventually succeed.
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