saturated market
Tricks of the trade to compete in saturated market

Tricks of the trade to compete in saturated market


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Every business needs to examine the aesthetics of its market future before stepping inside. Each kind of market has its elements to work upon. You need to find the one that suits you. Of all the types of market, the saturated market is the most typically difficult one. So let us explore the tricks of the trade to compete in a saturated market.

Many people believe a saturated market is too difficult to conquer especially by a newcomer. A saturated market is an analogy used for any specific line of products which finds it hard to trigger the consumers to purchase. There is no set parameter to measure it. It is specific to one market variable which is ‘sales’. This is what makes it an even bigger challenge to compete in a saturated market.

What is market saturation?

When a crowd of business engage in the same field, it becomes difficult to stand out of the league. The situation of such market is tough and business consume a significant effort in creating a space of their own. Thousands of competitors try to capitalize on your slightest of mistakes. To compete in a saturated market, the business has to rise to the challenge and get a hold on the consumers against all odds. This can be done through good analysis and market research.

Saturated market

Source – business2community

Every market has a point of saturation. It can be different for every market but nevertheless, it does exist. Extempore opportunity and high profitability always attract more business towards a market. But such markets can only grow for a limited time. There comes a time when the growth rate stabilizes on a flat trajectory.

“Be composed, stay aware and understand what is to be done before you do it.”

The path to success ought to be challenging. You have to dare and keep moving one step at a time. The saturated market gives you the option to do your homework. If you prepare alright, then success isn’t too far a dream. Preparation will empower you with all the essential tools you will need in your journey. You have to figure out the perfect way to tackle the challenges ahead of you. One such way which has been greatly supported by the online marketplace platforms.

How to tell if a market is saturated?

Challenges for a business in a saturated marketSource – Hanover Research

There are many small and big issues to compete in a saturated market out of proportions.

  • You have to go through a cut-throat competition to compete in a saturated market. Many other brands are selling the same product or service, a few even at a cheaper price than yours.
  • The saturated market is usually lead by a very selective few undisputed leaders of the product. Their brand name turns into a synonym for the product category. For instance, the Nestle Noodles known by the brand name Maggi have become a synonym for Noodles. Market monopoly isn’t a small hurdle.
  • Every new business faces a serious challenge of dwarfing under the weight of the big brands.
  • The saturated market is usually crowded with companies and products. This usually decreases the product value as the competitive pricing between the business can go beyond the threshold of profit.
  • Every saturated market has predators who vouch to sell cheaper imitations or dummy at significantly low prices.
  • All general marketing and advertising tactics are already employed by the businesses in their pursuit of survival. It is difficult for new businesses as they need a unique approach to present themselves.

Essentials to Compete in a Saturated Market?

business in a saturated market

Source – Smart Insights

You need sound preparation to start a business irrespective of the marketplace. A well-prepared business venture has more chances of survival in a saturated market. It is risky to explore unknown territory. You can’t prepare for such ventures because you don’t know the difficulties lying ahead. It almost always takes more time, money & risk to succeed in a fresh market. Contrary to it, a saturated market is well mapped. 

Do you know why B2B startup’s fail too often? Let’s take an instance wherein there are two identical products sold in 2 different B2B businesses. Both use a different approach to reach out to their target audiences. First one researches the consumer behaviour patterns to develop a more tenable approach to pitch the product. The second one couldn’t care less and blindly goes the old-school way. Of the two, who is more likely to convince its audience for sale?

Positive influence does alter the market. It can diminish the market saturation level altogether. The online B2B platforms have completely taken over the dominant offline saturated markets known for years. Many regional multi-vendor eCommerce marketplaces stand right next to the brands that were ruling the markets for decades. Eventually, the credible brand names in the retail sector had to mould themselves as their saturated markets were not safe anymore.

This simply tells you can prepare to compete in a saturated market and overcome them with the right efforts placed on market research. It can be utilized to create a competitive advantage over the preceding leaders of the marketplace and put them out of the safe zone.

Market research tools and business modelcompetitive advantage

market research

Source – Hanover Research

A business must conduct mind-storming market research about the market it is about to enter. This helps you in understanding the consumer behaviour, market share exposed to you and things that can prove game-changer for your pursuit of competing in a saturated market. You can always exploit the fact that nothing is perfect. Be sharp in your market research. You can trace a few loopholes to work with. For instance, you can get a progressive website based eCommerce to capture your own niche in mobile-savvy age.

“An innovative idea is the guiding principle that can drive any business to success.”

Your market research tools must try to find answers to these elementary aspects of the business model;

  • Consumer Retention Potential: Does your product or service serves the desired solution regularly? Is it a one-time purchase product or service?
  • The Size of Market: What is the ratio of your potential consumers in the market?
  • Economic Indicators: What is the economic state of your target consumers? What is the pricing strategy for your product?
  • Location: What is the density of your probable consumer base? How capable is your business to reach them?
  • Market saturation: Are there alternatives available for your product? If so, what is the average expenditure done by the target consumer base? What is the point of saturation you will deal with?

Proposing product value for a competitive advantage

saturated market

Source – Hanover Research

Once you know the basic parameters of the business model, you can assess your competitive advantage different from the rest of the crowd. Now the next key thing to determine the competition product value. You should examine the direct rivals which are approaching your potential consumer base. You can assess the factors which work and the ones which don’t from the sales statistics of the previous years.

Evaluation of competitive advantage enlightens you about the sales triggers. You have to figure out specific trends suitable for your product and use them for leverage in sales. One can also exploit the sales patterns of competitive brands and how they performed in the last few years. You can learn a lot about consumer behaviour from your competitors.

Here are a few key factors you should emphasize while doing competitive analysis;

  • Market share of dominant competition.
  • The areas of strength and weakness of competitors.
  • The window of advantage available in the market.
  • Consumer response to different marketing approaches of your competitors.
  • Factors that can prove hurdles or make your business vulnerable.
  • Qualities of your competitor that can impact your sales.

The ‘Five Forces Analysis’ of Porter is one of the best methods for market research that helps in cracking the competitive advantage you can capitalize upon. It provides an in-depth analysis of your market research. Thereby helping you figure out a competitive advantage and devise a strategic edge over the market competitors.

Strategy to develop a market share 

develop a market shareSource – Smart Insights

Once your operations start rolling, you got to employ an essential emphasis on customer retention to get a sustainable business model. Customer retention plays a very crucial in a saturated market. In such a congested ecosystem, you must ensure that you grow your market share with every sale. Those who undermine its strategic importance are prone to suffer consequences. A buyer who buys a product from you offers you a chance to add one permanent consumer and develop the market share with each sale.

Satisfied consumers are the biggest asset for a business in any saturated market. Many business models undermine the importance of consumer satisfaction unless they start drowning. Consumer satisfaction a crucial part of your business operations. It is the most challenging task for any business to develop a market share in such a condition, especially the newcomers in the market.

If you please your consumer, you are on the right path. Happy customers turn into the biggest influencers for a business. They not only ensure a permanent sale but also make for a promoter in disguise. The ‘word of mouth’ publicity is the most influential marketing trick in the book. To compete in a saturated market, you need your own passive influence among visitors who develop a market share from the background.


Saturation point often turns out a make-believe barrier by businesses when they are unable to convince consumers with the traditional approach. Though consumers can change their opinion with one trend and the market embraces it. The approach of a consumer is a major factor in his decision about a purchase. All you need to do is research the mindset of your target audience and present your product smartly. Keep a competitive edge that makes you different from the market competition.

Stop dreaming about the overnight change of fortune. Such things can make for compelling fiction, but nowhere close to reality. So, you should always strive to do the hard work for achieving success. The overnight turnaround is a rarest of rare occurrence and it never lasts long. Move gradually but ensure your gain are permanent and develop a market share over time.

So better aim for realistic targets to achieve a sustainable business model. It is a challenge to make your own niche in a crowded saturated market. But it is much better to follow a difficult path rather than roaming around without any target.

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