By:Glenn Harrington Coca-Cola and Pepsi-Cola have been engaged in direct competition for over100 years, which is about 99 years too long. Originally marketed as health tonics, the two products are very similar, cost about the same, cater to the same market, and have never established any meaningful product differentiation. Such protracted, intense competition would be very, very costly to most businesses in most industries. There’s a lesson in it for all of us, though. prosper in peace Direct competition is an unnecessarily difficult way to do business. The level of difficulty relates to the maturity of the market and the innovative capacity of the competitors. Yet, all markets mature and it’s better to prosper in peace than to fight and starve. fill a niche To enjoy a more comfortable place in a competitive market, it is wise to identify and satisfy an under-served niche through differentiation from competitors. This way, you strive not to dominate the game but to dominate one particular aspect of the game – your own. cheap like Cott Even if your product was a knock-off of Coke or Pepsi, you could claim market share by selling it at a lower price. This way, you could attract the most price-conscious segment of the market through price-based positioning and avoid the Coke-Pepsi fight. This is how Cott has prospered in the cola market. different like Jones An alternative way to create a niche through differentiation is to create a strong brand image that attracts people to your product – even if the product is essentially the same as everybody else’s. The Jones Soda Company does this. Its clear-glass bottles labelled with black-and white photos and overtly modest writing are a hit with the market segment that likes quirky originality. position for profit The principles of avoiding direct competition extend well beyond the convenient examples of niche marketing in the soft drink business. Every enterprise has its competitors, but intelligent market positioning can make an enormous difference in how fun and how profitable life can be. At Harrington Newsletter, we enjoy helping businesses achieve profitable positioning and have helped to create effective brands. Contact us with your thoughts. by Glenn Harrington www.newsletterdoctor.ca Article Source: http://www.redsofts.com/articles/ Glenn Harrington is Principal Consultant of the Harrington Newsletter Company in Victoria. www.newsletterdoctor.ca doctor@harringtonnewsletter.ca More Articles from Marketing Category: The Best Way To Save Money On Advertising - Target Locally Various Ways of Printing Posters Free Web Site Promotion By Writing Articles. The 7 Most Common Marketing Mistakes Do You Have The Millionaire Mind? Newsletter pain or pleasure? Article Marketing & Free Publicity For Your Website What to Know Before Printing a Poster The Best Out of Catalog Printing 5 Tips To Roll Customers Your Way With Promotional Items So You Got The Sale, Now What? Communicating Our Attitude Your Marketing Efforts Sink, Swim Or Soar Depending On How Well You Satisfy The Nation Branding and Place Marketing - I. The Marketing Plan Sales Training: Beginning Now

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