This week I had the second round of so-called “call it a day” with the dissatisfied customer. I had presented him with the results of the market study the first time and after receiving his feedback I had to agree with him. I hadn’t given it my all. That’s why I invested twice as much time to make sure he was going to be happy the second time and I did.
In the end a small discussion arose between them. I mean in a positive way because “discussion” in Spanish always has a negative connotation. And here the idea for this strategy arose.
Strategy on Amazon to take over the entire market
When I say “all” I am obviously exaggerating but I am convinced that you will be able to take a large part of it. I must also say that I did not overseas data invent this because many companies are already doing it utside of Amazon and possibly some within as well.
Simplifying a lot for most markets there are two types of customers
Those who buy only the cheapest product.
Those who buy premium brands.
This leads us to the following conclusion: if you have a premium brand, no matter how much advertising you do, there is a segment ian all aspects of your business of the market that you will never convince simply because you are not the cheapest. With a premium brand, it makes no sense to want to be the cheapest. Solution?
Launch a second brand, but this time attack the segment of buyers looking for cheap!
Requirements to execute this strategy
Ok, now we are clear that having two brands in parallel could be a good idea to take a large part of the market. There are two requirements that you have to meet.
Be a manufacturer of the product to have powder data a competitive advantage at the level of margins.
Be able to act both in a B2B market and in a B2C market. B2B is more suitable for premium because the purchasing manager will not want to be accused of something not working because he has bought the cheapest product. This also applies to the selection of service providers. Being the cheapest here is counterproductive.
With these two points you can execute the two-brand strategy even better.
You will have more room to invest more money in Ads for the premium brand. You take away room for maneuver from your competitors, sellers who come from courses on how to make money with Amazon. They buy from manufacturers, so they will not be able to invest as much per click as you, and they will not be able to lower the price as much in the case of the low-cost brand.