Launching their products “to the masses”, many brands having all conditions and ambitions to become, if not mega famous, than at least really popular in the circles of the target audience, forget the most important aspect of marketing – the right promotion of brand in the market. They tend to focus on the product itself and its maximum improvement, completely forgetting the fact that the most ideal product will become favorite without the development and implementation of its promotion strategy. Penetrating into the market without a specific plan these companies are doomed to failure.
However, focusing on the experience of others and other people’s strategies is also not a good idea: what went well in some situation can become a disaster in yours. After all each product – is unique (even if there are a lot of similar in the market) and the strategy that should bring it to the desired level, should also be unique.
What is “penetration of the product into the market”?
In the global marketing this concept sounds like go to market strategy. Globally the strategy development process consists of several stages:
- SWOT-analysis, that helps identifying the strengths and weaknesses of the product (this step will help to minimize the risks associated with the promotion and use of brand)
- Price determination
- The penetration of the product into the market
- Formation of popularity, finding the most effective channels of communication with the user
- The path to customer loyalty
Every marketer uses this standard set of steps. However, given the trends in the global advertising and total digitalization of business the approach and strategy implementation tools have somewhat changed, modernized.
Freemium as part of a modern brand promotion strategy
Developing any product in the market marketers even more often use the freemium model, allowing bringing the business at the high level within a short time using guerrilla marketing techniques. In other words, it is “free of cost” for the buyer, thanks to what the company increases its customer base and, hence, profits.
Freemium helps earn clients’ loyalty before the product fully reaches the market. Through “yummy” offers (offer your client a product… for free, almost free, or make a person think it is free) the information about the brand spreads as quickly as possible, goods are recommended to friends and relatives. When the “jungle telegraph” has helped to get awareness, it is about time to offer the next “yummy” staff, but not for free anymore.
This model does not work towards ruining the new company, but solely at its strengthening: a stable income, reducing the cost of customer acquisition, effective advertising.
Features of brand promotion strategy implementation
If you seriously intend to capture the market and turn a good idea into a brilliant idea, we recommend considering the advice listed below while working.
1. Positioning in a new way
The position of the manufacturer and brand message should maximize the focus on the uniqueness of the product and its benefits, its relevance in a given time and for a specific target audience. Use innovations for brand positioning, but remember that it must be clear to the consumer.
2. Proper price determinationе
There are 3 strategies of brand products price determination: Maximization, Penetration, and Sliding. After careful study of the market, try realistically assess your niche as much as possible and select the correct pricing plan.
Maximization – dramatically rapid revenue growth. The strategy is aimed at maximizing profits in the shortest possible time. It is worth choosing in two cases: if the optimal short-term cost is approximately the same as a long-term and, if the company has no clear idea about the solvency of its target audience.
Penetration strategy is aimed at expanding the market share: initially the company sets a low price for the unit of goods. Here we apply the bottoms-up tactics: gaining a large market share at the minimum price, the company raises prices and steadily moves up the market ladder, holding on the hook loyal customers and thereby attracting new ones. Such price determination is ideally combined with the freemium model.
Price determination on the basis of Sliding principle is opposite to Penetration: in this case the company initially chooses the high price for the product in the process of its penetration into the market. Gradually, occurs an expansion of market segments due to periodic price reductions (promotions, discounts). Actually, the selected price determination type identifies the method of product penetration into the market.
3. Targeted distribution
Having analyzed and even tested all possible channels of communication with the consumer choose the most effective. These will become a priority. These should be the channels through which the end user will most likely search out the product or information about it. The work through these channels should be continuous and systematic.
Thinking over the strategy of ” penetration into the market ” of the brand, remember that your main task – tell about the uniqueness of the product, convince the consumer in its necessity, and without giving the possibility to be disappointed, earn customer loyalty. If you want a real breakthrough, you should work on this issue with the same efforts as on the product itself.
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