How do I compete with businesses that can offer similar products/services at a lower cost?

Think about drinks. How many options do we have?

How do companies compete in such a competitive market?

Example:

According to business insider, approximately 94% of the world population is aware of the red & white logo of Coca-Cola.

How has Cola-Cola stayed ahead of the crowd?

Coca-Cola has focused on selling an abstract positive concept such as happiness, family, and sharing, rather than attempting to sell a drink.

Most of their marketing efforts are focused on the experience and the lifestyle associated with its brand, rather than the soda.

Coca-Cola sells “happiness” in a bottle.

Image result for give huge get a free coca cola

We find a similar strategy used by Red Bull.

Red Bull's is NOT focused on promoting an energy drink, but on creating a brand that represents the energy-packed lifestyle that their audience loves.

Image result for marketing wings red bull

So, to answer your question, how do I compete with businesses that can offer similar products/services at a lower cost?

You need a differentiation strategy.

Stop focusing your sales effort on the “commodity” you’re trying to sell. Focus on what your product delivers to your customers, and make this the focus of your marketing efforts.

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