Increasing your market share means better business. Better business means more profit or building your goodwill. Even if profits are lower with a bigger market share, goodwill will fetch a better price if and when you decide to sell your business.
Analyze your market share
There are many ways to increase your market share. First of all, consider the business you are running. Following are few questions you have to analyze before setting out to increase your market share.
- Do you have a monopoly in your area with your product or services?
Having a monopoly in your area with your product or services ensures steady income. You can increase your market share by creating more demand for your product by extending to neighboring areas.
- Are you one of many competitors with your product or services?
More competitors imply there is existing business and market. To increase your market share you must consider dealing in volumes and charging a price lower than your competitors. But if you are a company, select an advertising agency with a proven track record for increasing your market share with your products. The advertising agency will help you provide high visibility to your product or service. Many end-customers do feel justified paying a higher cost to companies who don’t mind spending on advertising.
- Are you introducing a new product or service?
You will already have a market share with any product with your family and friends. But you can increase your market share through the contacts and network of your family and friends. If your product or service has some unique features other than those existing or available in the market, that will help you increase your market share.
- Has your trademark or brand name stagnated?
If your business has stagnated for a period of time, then it is time to repackage your product by changing your trademark or brand name and leveraging the same by increased visibility. You must also consider if your product or service is suffering from lack of quality or service. Your new platform must address these issues if you wish to increase your market share. You can also consider a tagline that appropriately describes your product.
- By products and off shoots of your existing products?
Another way of increasing your market share is to see if your main product has any by products or if you can develop any new products based on your existing one. This will help you increase production with your existing infrastructure and create savings for your business. If your existing customers are happy and satisfied with your existing product, they will most definitely want to try out your new products thereby increasing your market share.
Remember that you cannot increase your market share if you cannot retain your old customers while adding new ones!
It does not matter whether you are selling only to your neighborhood or dealing with international markets. The principle is the same. Many multi-national companies started off from their neighborhood before becoming internationally recognized trademarks.