Great Marketing Plan=success In Any Industry No Matter What Compeititon?

ruskent

I was thinking of adventually expanding into another industry. A few people told me no to waste my time since that industry was locked up by a few big corporations in my area.

However, i am not impressed with those companies marketing attempts or overall image and feel that with a strong marketing plan, i could really capture a good peice of their pie.


Do you think that it stands true that with a good marketing plan you could enter any industry that is crowded and still do well?

PressurePros

Couple it with above and beyond customer service and I would say.. absolutely. I can go anywhere, do anything and I would kick and fight until I captured a good portion of the market share. People are starting to get away from "price is king". People want what they percieve as fair pricing but some support and customer service. The big corporations, for the most part, suck at that.

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Ken Fenner
Pressure Washing PA
Roof Cleaning Services PA

w6ire

Unfortunately in my opinion the answer is no. Industries that are crowded with competitors are always zones of low profitability. Marketing is expensive and will cause you to price your offering at a price point that will price you out of the market.

You could position yourself as an elite, premium provider and thus justify your higher price, but the problem is the market is already crowded, so this is a risky proposition.

An example is the lawn mowing business, many competitors and low profits, none of the players can afford any serious marketing plan.

Whenever you examine an industry and you recognise that the majority of players have poor, substandard offerings, you need to realize that there's a reason for that. Low profit markets which are by defintion markets crowded with competition, attract only low caliber participants.

If you are a sophisticated, high quality businessman, you will only become bitter and frustrated trying to market yourself in markets dominated by poor businessmen.

PressurePros

Is that what happened to starbucks when they decided to sell a $5 cup of coffee?

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Ken Fenner
Pressure Washing PA
Roof Cleaning Services PA

POOLMANinCT

perception is reality

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......Less with the jaw & More with the paw.....

KentWhitten

Starbucks I think was more the "supply and demand" type thing. People visited Seattle and "oooh, ahhhh, great coffee!" (though I have my opinion about it) They were in demand, had a good marketing strategy and went public and voila!

Most of us out there now are doing the same thing with the huge amounts of foreign/illegal/immigrant workers. I am out there competing against these guys and I'm doing OK, but it's obviously taking a bite out of my wallet. I have worked on my efficiency and production to the point where I can still compete at lower prices and make good money.

I was told long ago, find the niche in the sea. You will make money. If you are into building cars and competing against GM, Ford, Toyota, etc, you will lose. If you are building cars that has something special about them, like mass production of fuel cell cars, then you have something.

Also, you need to look at your profit percentage. We all are in a minimal profit percentage business. 10-20% is nothing compared to one of my clients who is a jeweler. His markup? 10,000% he said. THAT'S a profitable business!

GregS

Depends on your competition and how deep their pockets are.

The advantage to the small business man is they can be more nimble.

The advantage to the big company is they can afford things like marketing groups, product testing, and if needed, lawyers.

PressurePros

Starbucks is a classic example of what Ruskent is speaking.

Saturated market? I'd say so since every convenience store, street vendor and Dunkin Donuts sells it.

Lowballers? There is nice margin in coffee but the majority charged betwen 25 cents and a dollar for a 16 oz cup when Starbucks went into production.

Is it the world's best coffee? I think it sucks. Its too bitter for my taste.

So whats it come down to? A very smart business man (Schultz) looked at all those variables and said I am going to sell high quality coffee for $5 per cup (or whatever the price was). His friends and relatives probably thought he was nuts. He had very little money to advertise but he knew how to market and make things count. Isn't that the point of this thread?

I've said it before and have been hung out to dry for it. I am a firm believer that business is about sales and marketing. If you have these skills and you are 100% honest, there is almost no way to fail.

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Ken Fenner
Pressure Washing PA
Roof Cleaning Services PA

Mike Finley

There are literally a million failed companies that thought all they had to do was ___Fill in the blank______.

I can remember back in 2001 when the internet finally met reality. I could have swore I saw a few guys jumping out of windows like it was 1929 again.

Also Starbucks was only about the coffee for about 5 years, it's never been about the coffee since.

PressurePros

That dot.com stuff and all the ridiculously overpriced IPO's was all based on fluff. That was doomed to burst (so to speak)

You are right about Starbucks, Mike..thats what makes them great. Their ability to market image. I once again contend that this supports Ruskents position.

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Ken Fenner
Pressure Washing PA
Roof Cleaning Services PA

dougchips

Random thoughts:

Starbucks is around $2.00 a cup in my market. Not sure if they are building a customer base and then increasing their price.

Mike is correct, it is not about the coffee, it is about the experience. They speak English, they are friendly, you can kick back and relax in their coffee dens, they have "cute" food and everything that DD lacks.

IMHO their coffee is great.

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