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 Last week, We delved into two ways an organization can strategically position itself in the market, Differentiation and Competition analysis. This week we will round up our discussion on strategic positioning by discussing the third way an organization can strategically position itself in the market.

MEETING CUSTOMERS NEEDS.

The success of any product or service is hinged upon its ability to address a specific need or solve a problem for the customer. Essentially, businesses exist to identify a problem and provide a solution for it. Some of the most successful companies have achieved this by creating a need and then fulfilling it. A notable example is the introduction of smartphones, which successfully addressed a need that consumers were not even aware of until the product was available. Similarly, electric car manufacturer Tesla tapped into a need for sustainable transportation that consumers didn’t know they had. Additionally, Netflix pioneered a platform that fulfilled the need for convenient access to a wide array of entertainment content.

The primary objective of any business is to cater to the needs of its consumers. To achieve this, businesses must be adept at anticipating and effectively responding to these needs. Essentially, entrepreneurs should view themselves as the initial consumers of their product or service. If a product or service successfully meets its own needs, it is likely to have the potential to fulfil the needs of other customers as well. However, it’s crucial to recognize that not every product or service will be suitable for every customer; rather, they will specifically serve those for whom the product provides a viable solution.

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Last week, we discussed the three key factors that an organization must consider before strategically positioning itself in the market: the WHO, WHAT & WHERE. This week, we will delve into two of the three ways an organization can strategically position itself in the market.

 

Differentiation:

Your business’s uniqueness should be a key differentiator in the market. This distinctiveness may come from innovative features, exceptional quality, superior customer service, or unique value propositions. Your business needs to offer something that cannot be easily replicated or obtained elsewhere. This uniqueness should be integrated into your branding, marketing, and overall business strategy to effectively communicate and showcase the exceptional value that your products or services offer compared to those of your competitors. This clear distinction is crucial for persuading consumers to choose your offerings over others.

 

Competitor Analysis:

As a business owner, it is crucial to thoroughly analyze your competitors to gain a comprehensive understanding of their strengths and weaknesses. This in-depth knowledge is vital for strategically positioning your business in the market, allowing you to understand the competitive landscape and use it to your advantage.

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In our previous discussion, strategic positioning was introduced with a focus on how organizations can position themselves effectively in the market. This week, we will conduct an in-depth analysis of the three pivotal factors essential for strategic positioning, namely WHO, WHAT, and WHERE.

WHO:

Every business must discern its specific market and target audience. While a business may offer a solution to society, it is crucial to recognize that its offerings are not universally applicable. It is essential to gain a clear understanding of the intended beneficiaries of the business, their requirements, socioeconomic status, and annual income. Identifying these factors empowers companies to pinpoint their target audience. For instance, a company specializing in the sale of milk and dairy products provides a solution to society but specifically caters to families, nursing mothers, and health and fitness trainers. Conversely, individuals with lactose intolerance or other health issues are unlikely to utilize their products.

WHAT:

Identifying the problem that the business solution addresses in the lives of the target audience is paramount. The business should effectively meet the immediate needs of the target audience, positioning the service as indispensable to them. Using the example of a company selling milk and dairy products, it becomes evident that nursing mothers and families with children aged 0-18 are the primary beneficiaries of their products. The “what” of the service is just as crucial as the “who” the products and services were designed for.

WHERE:

The geographical location is of utmost importance. Understanding where the target audience is situated and where the business’s operations are based significantly influences the approach to engaging the audience. Whether the business operates online or through a physical store, its presence should align with the accessibility and convenience of the target audience.

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Strategic positioning is a crucial consideration in business, as it involves differentiating an organization from its competitors by offering superior value to customers. The value proposition of a company is significantly influenced by its positioning within the market, location, and society. To strategically position a company, it is essential to consider three key factors: WHO, WHAT, and WHERE.

Firstly, identifying the target audience (WHO) is fundamental. Understanding the needs and desires of the target market (WHAT) is equally important, followed by determining how the company can best fulfill those needs through its products and services in the target market’s location (WHERE).

Once these factors are established, the organization can strategically position itself through the following steps:

1. Differentiation: Highlighting what makes the product or service unique and emphasizing the reasons for consumers to choose it. By creating a differentiated offering with a unique selling point, the organization can showcase its value, leading to increased demand.
2. Competitor Analysis: Understanding the strengths and weaknesses of competitors and utilizing this knowledge to capitalize on their weaknesses while building upon the organization’s strengths.
3.  Providing Better Value for Customers: Offering superior value to customers through various means such as competitive pricing, perceived product quality, and exceptional customer service. Tailoring products and services to meet diverse customer needs is essential in strategically positioning the organization in the market. In conclusion, strategic positioning is vital for creating a competitive advantage, as it emphasizes the unique value that the organization offers to its customers. By differentiating products and services, understanding competitors, and delivering superior value, a business can effectively position itself for success in the market.

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Negotiation is the process encompassing discussions aimed at achieving an agreement. The significance of negotiation in business, whether with suppliers or clients, cannot be overstated, as it directly impacts profit margins. The outcome of negotiations may well determine the difference between profitability and losses.

From my perspective, negotiations resemble a carefully choreographed dance between the buyer and the seller, culminating in a business transaction that ideally leaves both parties content with the arrangement, or at the very least convinced that they have secured the most favourable terms. Yet, in circumstances where understanding is lacking, one party may emerge as the beneficiary of a more advantageous deal. Here are some strategies to assist in negotiating effectively and forestall the risk of exploitation:

1. Recognize your worth: It is imperative to comprehend the value of your goods and services, their market value, and the unique attributes that distinguish your offerings. This insight will empower you to negotiate without diminishing the perceived value of your offerings.

2. Discern the focal point of negotiation: It is essential to recognize that what is being negotiated is your inherent value, not merely the price or quality of your goods or services. Your clients are likely cognizant of the value and quality of your offerings yet are inclined to seek reduced pricing to circumvent post-purchase regret.

3. Establish a “stop-loss” threshold: Analogous to trading securities, it is prudent for businesses to establish a mental “stop-loss” threshold during negotiations to safeguard against compromising their position.

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In light of the evolving global landscape, an increasing number of angel investors are expressing interest in investment opportunities within the African continent, while aspiring entrepreneurs are seeking to establish businesses in various African countries. It is crucial to acknowledge that each African nation possesses distinct business climates, which are influenced by the diversity of their respective cultures.

Today, I will impart valuable insights and strategies to navigate the business environment in Nigeria. Below are key considerations relevant to the Nigerian business climate:

– Dynamic Nature: The Nigerian business environment is characterized by volatility and continual evolution. As an entrepreneur or investor, cultivating adaptability and flexibility is imperative to effectively respond to market fluctuations.

– Negotiation Principles: It is essential to stand firm in negotiations, distinguishing between negotiable and non-negotiable terms, and steadfastly adhering to them irrespective of potential challenges. While this may deter certain clients, it ultimately serves to attract the most suitable partners for your business and investments.

– Prudent Evaluation: Refrain from succumbing to prevailing trends and unsubstantiated claims. Thorough research and due diligence are indispensable for gaining accurate insights.

– Competitive Pricing: Embrace the understanding that there is often an alternative provider capable of delivering superior services at a reduced cost. Hence, it is prudent to refrain from accepting initial price quotations without exploring alternative options.

– Risk Mitigation: Avoid overcommitting to a singular opportunity, as it may carry inherent vulnerabilities. Distributing resources across multiple viable avenues mitigates risk exposure.

– Strategic Investment: Recognize that the returns on your investment correspond directly to the quality and discernment exercised in selecting opportunities and collaborators.

– Cultivating Relationships: Emphasize the longstanding nature of business partnerships in Nigeria. Prioritize the establishment of trust and rapport with local stakeholders, and endeavour to acclimate to the prevailing cultural norms. By doing so, you can anticipate a more favourable trajectory for your business endeavours. Adhering to these foundational precautionary measures and strategic principles will undoubtedly enhance your prospects of navigating the Nigerian business landscape proficiently.

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In our modern capitalist society, consumer demand greatly influences supply and pricing. As demand rises, supply decreases and prices go up, and vice versa. With the ongoing global economic crisis, we’re seeing a surge in demand for goods, leading to increased prices. This is not necessarily a bad thing for business owners and service providers because it is a golden opportunity to gain a competitive advantage over competitors through data drive strategies and engage customers through various low-cost platforms. These strategies include:

SOCIAL MEDIA:

The world is a global village and your social media page is the real estate of your business. Whether you are using Instagram, X, Facebook, discord, threads or LinkedIn to market your business depending on your target audience and purpose of business, you must engage and communicate your brand identity and purpose effectively and efficiently, you are the best advocate for your brand, show your audience the promise of your product, engage your audience through your content and take the relationship to the next level by directing them to a call to action which tells your potential customers how you would like them to engage with your product or service. Expand your network with other brands to receive community engagement which will solidify your relationship with your customers.

PHYSICAL-PRESENCES:

whilst social media may be a great way to grow your audience and engage with customers from across the world, it should not be your only mode of engagement. The physical presence of your business is needed. Whether it’s at a pop event, farmers market, a trade fair, a networking event, an accelerator program or even a competition for businesses, make your presence felt. Physical presence and intimate conversations still reign supreme because they allow your potential customers to really understand the purpose of your business and how it can truly benefit them, they can ask questions and you can sell your business directly to your target audience.

It is said that “ The road to success and greatness is always paved with consistent hard work. Outwork your competitors and be relentless.”

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