Strategies for New Companies to Enter Saturated Markets
Entrepreneurs looking to establish themselves in saturated markets have many challenges to overcome. At first, this may appear to be an insurmountable undertaking, but upon closer examination there are things that can be done to facilitate entry into new markets. In fact, experts do not recommend avoiding a market simply because it is saturated.
On the contrary, saturated markets indicate that there is demand for a company’s products and services. Effective integration into a crowded market requires a unique approach to targeting the customer, and offering a range of services that will benefit that customer.
A niche marketing strategy is what separates one company from the next, and emphasis should be placed on this during marketing campaigns. New companies that rush into the market – with no plan in mind – against established companies will soon find themselves out-of-pocket, and out of luck.
Instead of butting heads with your competition, it’s always strategically better to outflank your opponents by catering to the untapped market. Non-bank lenders and online loans providers did precisely that in the United Kingdom by catering to the underbanked and the un-banked sectors of society. High Street banks with all their money soon found themselves on the back foot, scrambling to catch up.
Case Study of Sail.com.au
Sail.com.au is a success story on so many levels. For starters, this online loan company opened its doors in 2016, and has already established itself as a power player in the Australian online loans market. The way it did this is ingenious. Sail caters to people with bad credit, and the company has some of the lowest minimum loan requirements in the industry. In November 2016, Sail got off the ground with an $8 million launch and was featured prominently in the press.
The CEO of the company, Yanir Yakutiel had 15 years of extensive experience in the finance industry before he launched this online loan company down under. The secret to the success of the company may lie in its unique algorithm which is used to determine how people qualify for loans.
Among the many pros offered by Sail include the following:
- 24-hour approval response times
- Loans from $5,000-$100,000 with no hidden fees
- Clutter-free, user-friendly website with professional design
- Loan tools and resources such as loan calculators, articles, and guides
- Attentive and professional customer support and courteous management
- 5/5 rating on TrustPilot with 88% excellent reviews and 12% great reviews
- Unsecured business loans, aboriginal business loans, indigenous business loans
- Sail takes the financial jargon out of the picture and makes it easy to apply for loans
Targeting a Niche Segment of the Market
By targeting a specific segment, and catering to their needs, a company can establish itself alongside the heavy hitters of the industry. Whatever market you’re entering, there are a few golden rules that must be followed. For starters, always offer premium-grade customer service to all clients. People appreciate integrity, credibility, and personal communication – irrespective of how technologically advanced the world becomes. Sometimes, you may find yourself in a situation where it is difficult to establish your personal brand.
This may be because you don’t have the necessary financial capital to promote yourself effectively online, and via traditional media channels. In cases like this, it may be beneficial to consider franchising opportunities. A franchise has already established a name for itself, and you can simply piggyback off that name with standardized products and/or services. By building up the requisite experience through a franchise, you can position yourself strongly while you’re building your own brand.
As a newcomer to the scene, it’s equally important to arm yourself with the most relevant, and up-to-date information. This includes staying abreast of the latest developments relevant to your business and the market.
Remember, you don’t get a second chance to make a good first impression!