How to Compete in Perfect Competition (aka pharmacies, kiosks)
First of all, what’s a Perfect Competition? Perfect Competition is when you offer the exact same products – nothing differentiates the quality of the product (think of Panadol and any medical supplement in pharmacies and 1L local milk bottles in kiosks) and they all have the same information, aka your customer knows exactly what the price is to your competitor.
So, how do you compete in this industry? How do you make your brand stand out, as you have no control over the price and the brands and products are the exact same?
Let’s see the x ways we recommend and how to actually make your business stand out.
1. Give Value
What do we mean: Usually in these kinds of businesses, customers know exactly what they get, as either they have been using it for years or it is a necessity – f.e. Prescription from doctor. The point is that they just need that product, so no one ever “needed” to educate them, like in other products’ industries f.e. In custom made silk scarfs or an eco friendly all natural face cream.
Nowadays, authenticity, the get to know you, the feeling of being priority and unique strives into customers’ decisions. So, provide quality value to your customers. Let them know how panadol should be used. Or recipes to use their milk before the soon expiry date.
- Propose Solutions
- Make a live or event with a certain authenticity or brand for a solution for the products
2. Good old classic – Excellent service
Let me tell you a story. In my neighborhood, which happens to also be my childhood neighborhood, there are a lot of pharmacies. Imagine that I pretty much lived there for 28 something years if you exclude years abroad and in other cities. So, I had the opportunity when I went back to just visit the pharmacy that my mum and my family were using. Even though I was going to this pharmacy for 25+ years, I never felt like this is My to Go pharmacy. I know the pharmacy’s owner’s name, her kids, even where she lives. Never disappointed me on the things I needed, etc etc. So when I went back to live with my family, I stopped at any pharmacy that was on my way.
Two years later, a new pharmacy opened up again in the neighborhood. In Cyprus, every 1Km there is a pharmacy so, it is pretty common. So, one day, I have a prescription to get. I go into this new one (firstly as curiosity to his wow exterior decoration). The new pharmacy was all smiley, in his professional robe. I got whatever was in the prescription and left. I don’t even remember giving him my name, I just said that I am from the neighborhood. Two weeks later, I needed a new toothpaste. I went in, randomly to the same pharmacy, and the guy was like, Hi Electra! How are you? I hope everything worked out with your x issue? And I was like, WTF? I replied with yeah, everything is good, thank you so much. And then, how can I help you today? Umm just a toothpaste, I usually get this one. (Him) Actually, it’s a pretty good one, but let me give you a sample of this one as well, and let me know how it feels. In the next 3 visits, he was joking with my kid and telling him how important it is to brush his teeth twice a day and giving him some pictures to explain how it works. I mean, come on. Can I go anywhere else? And on top, when I was in Thailand, and obviously got myself food poisoning, he was replying and helping me through IG messages. What not to love? He knows me now, all my health conditions and needs. He even gave me a face cleansing sample for my trips.
Does this pharmacy sell the same toothpaste with the other 10 pharmacies in a 5KM radar? Yes! At the same price? Absolutely, yes! Will I ever go somewhere else provided that this business keep being so polite and helpful? No way. There you go! Actual care for your customers, being polite yet professional gives you the grand gold ticket for the next 5 visits unless you mess it up pretty good and then you make sure, you will never leave this ticket to expire.
3. Experience
Remember in the above story how I got into that new pharmacy? It was the exterior design. While all pharmacies have pretty much the same decoration and design, this pharmacy went beyond that. It had a wooden decoration from floor to ceiling. That’s it. Then, going in, I was pleasantly surprised by how spacious it was, and how not overpacked the items were on the display. They even have a big plant in the middle. It was breathable for me.
That experience even though it can be a more pleasant decoration, it can be many more than that. It can be a self check out process (hands up all introverts like me), it can be an e-receipt that nowadays, I value a lot, it can be a customized solution to an issue, f.e. A tablet in the store by the toothpastes collection, where by replying to 5 questions, I get my perfect match in flavor, need and/or brand. The options are limitless guys, just try to be innovative, think out of the box and be yourself the client.
4. Speed and Convenience
Now, imagine going into the same pharmacy on one of my busy days, and the owner is into chit chat (not a chit chat person myself). Would I avoid it at least on my busy days? Of course! My time is so important for me. I usually love talking randomly for 5 minutes, but after that you are killing me slowly. Or when I am busy, I need to just have my order ready to be picked in 5 seconds and be on my way. If he couldn’t sense these two different kinds of days, most probably, I would go with anonymity for most of my days, choosing random pharmacies. Or imagine going there to find a 5 or 10 minutes queue everytime. If you find your business having more than 5 minutes queue quite often and you work in a necessity products kind of business consider adding staff members.
In addition, let’s see more conveniences. Just think how can I offer my products in more ways than the traditional one or the way I am now. Think of your own website, marketplaces, or a pick up service through phone, or again website/marketplace, self check out, a corner to a bigger shop like a supermarket or a big relevant provider. The more the merrier in this case, but always start with your own channels.
5. Build Customer Benefit Schemes/Loyal schemes
I remember living abroad and still getting all my cosmetics from a chain in Cyprus. I still do. Sometimes, I value my loyalty scheme over brands I can’t find there. Why? It saves money and makes me feel important. At some point, I made the calculations and it was more cost efficient to buy my cosmetics from that shop instead of Duty Free, so it was no brain …
Conclusion:
In a world where everything is so easily available, with so many substitutions, make your brand stand out, especially if your product is identical and can be substituted with a shop right next to you.
So, again, remember what I am saying to all of my clients; In whatever business you are, even when you are selling products you are in the business of service. Serve your customers, treat them with respect, professionalism and make them feel important. Show them your journey and let them know about you, make them care about your business.