Run time: 58 seconds
Prefer to read this week’s Ideal Marketing Minute?
Could value creation provide a better position in your marketplace?
In a competitive landscape, value creation can distinguish businesses that compete on price from those enhancing their offerings for comprehensive value. Price-driven companies may attract low-cost customers but often face thin margins and a race to the bottom. On the other hand, businesses focused on value creation—improving quality, offering exceptional service, or unique features—can charge higher prices and build strong customer relationships. This strategy boosts profit margins and fosters loyalty, leading to stable revenues and sustainable growth.
Delivering unique value that competitors don’t offer means you’re not just competing; your product can carve out a new niche or create a new market. Consider Nespresso versus instant coffee or Red Bull versus traditional drinks. They command higher prices by appealing to values others don’t, thus taking a distinct position.
Reviewing potential elements of value from Bains Elements of Value. Can you introduce some that offer a new, more profitable, and sustainable position in your market?
With a new month starting next week, we’re switching the theme to planning your marketing.
Resources
- The inspiration behind the Nespresso and Redbull examples – Love your competitors – how great businesses do strategy | Alex Smith | TEDxFolkeston
Join the Ideal Marketing Minute
This video was made for the Ideal Marketing Minute – A weekly email that asks a key question about your marketing and business that you can review in under a minute. Make sure you don’t miss another email by signing up here. You’ll also be able to view previous emails and access the resources for this video.
