Cornering the market
SEE ALSO :The 4 rules that give you the edgeThere is also the time aspect. For one to find a quality product, they need time to look for it and consumers are either not patient enough or don’t have that time to focus on this search. The economy has also affected how the manufacturer designs and delivers products to the market. For instance, I’m sure you have seen detergents sold in large volumes, and the same product in small quantities that cost not more than Sh10. Another example is Safaricom. The telecommunications company has a membership package that costs almost Sh10,000 and has a product that costs Sh10. On enquiry, I found out that Safaricom’s major sales come from the products that are below Sh100. I also realised that they’re always pushing new campaigns every two to three months, exciting their audience with new packages around the Sh100 price.
SEE ALSO :How to spot opportunities and grab themCapturing the mass market Why is it important for a multi-billion-shilling company to make a product that costs less than Sh100? Because it’s an effective way of capturing the mass market. These industries have learnt their market and found out what it needs. Sometimes we, as entrepreneurs, don’t take the time to learn what the client wants while we’re building our product. Product development should be based on consumer feedback. That’s why when you call customer care, they give you a disclaimer that they’re recording the call – they want to improve from the feedback they get.
SEE ALSO :The dark side of entrepreneurshipSometimes establishments have questionnaires just so they can make ‘perfect’ adjustments. The process of acquiring feedback is continual because as time goes by, consumer patterns change. So whatever works now might not necessarily work next year. And that’s why it’s important to check on consumer patterns. However, some entrepreneurs may argue that when you build your product based on feedback, you’re moving with the wind, and in the process you’ll lose your initial vision and goal. Keeping your customers loyal The days of monopolies are long gone. When you open a business, just give it a few weeks and a replica of it will be out there. And the fact that you haven’t signed any contract with your consumer means their loyalty is not guaranteed. So how do you ensure that loyalty is a priority? The irony is that you need big budgets to feed the mass market, even though the profit margins are small. But mass purchases help determine your return on investment.
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