Here’s How Homegrown And Premium Brands Penetrate Hyper-local Markets & Explode Their Sales
So let us for a moment take stock of the world we are living in and in a lot of ways have gotten used to.
We now purchase online more than we ever thought we would
We have some behemoth e-commerce aggregators and social media websites that offer tremendous opportunities to start a business.
The consumer goods and retail industry which was once a difficult industry to enter has now been thrown wide open because of these facilities available.
Anyone who has any creative bone can now confidently build a brand that is an extension of themselves and start selling.
Now for the unfortunate realities that come with all this.
Legacy brands now invest more in digital marketing than they do in conventional media.
Due to the algorithms set on e-commerce aggregators and social media networks, preference in visibility obviously goes to the highest bidder.
With the number of variables, an algorithm takes into account when showing a user a post is insane, many times the team themselves can’t figure how a certain post will perform.
The explosion of the D2C space in e-commerce has led to every market being commoditized.
Hence, small brands not only need to compete with others within their space for visibility, but they also somehow are in the situation where they either need to invest big bucks in digital marketing and content creation or take the long road and wait like patience on a monument for their day in the sun.
These problems not only exist online, but it is pretty much the same in offline retail and shops in shop models where a brand needs to actively compete for shelf space.
All these collectively present the brand, however good their product may be, with challenges that can stunt product adoption and revenue.
If we look at it from the consumers perspective:
Consumers are now so overexposed to multiple brands in each category, that it has become harder than it ever was to get them to notice you.
Consumers, in India at least, have become super value-conscious and refer to at least 2 data points before making a purchase, and I am not talking about hedonic goods, I am referring also to Utilitarian products.
While the ever-increasing access to the internet and e-commerce has increased the number of consumers, It has also increased the number of brands and the amount of money that is being pumped into marketing and advertising, and whether you believe it or not it is still a 99% — 1% ratio where a massive chunk of eyeballs and revenue is going to a select few.
What do you imagine then will happen to a homegrown brand, which has just started, has phenomenal products to offer, with a budget of about 50k INR per month to market themselves or approximately USD 800 to market themselves?
This includes building brand positioning, brand identity, creating a communication strategy. Then creating content regularly and focussing on running poorly targeted ads which cost a bomb to convert.
One may argue, the idea is to appeal to a niche, and we do not want to target the whole country. Fair enough, point taken, you will still find at least 2 brands to compete with if not more, within the same space, with the same or similar USP.
How then can a brand be smart about it and build a circle of users around it?
Not the run of the mill shit that is peddled on Instagram / Tik Tok etc. where the user makes a stupid video (some are indeed creative no argument there) while holding the product in their hand and their followers like the reel itself, but the product goes unnoticed.
I am talking about actual user-generated content, that is created by people who have tried the product and are incentivized enough to write about it.
And the brand is able to use that valuable content to tell the people who matter, “Look, check out what this guy said”.
Teamed up with an intense and insanely consumer-centric retention strategy is the Normandy that your brand needs to get in.
At my company, I put a hard stop to the conventional ways in which brands try to gain users and an SOV (Even if it meant a revenue loss) and we have come up with a strategy that will help brands penetrate hyperlocal markets and increase product adoption, all through some smart and effective positioning where the Brand in itself needn’t do anything, it manages itself ;)
I can get into more detail, just ask me on my email if you are interested, no strings attached and no commitment needed.
The email to write me on is email@example.com
You will either ways hear about it soon enough ;)