Having doubts - overcoming fear of competition.

[TheCountess]

I'm planning a range of nutraceutical products - for my target market there isn't anything like it in the UK. I was really motivated and have meeting set up with a business advisor and manufacturer next week.

However, as part of my research this week I looked at distribution channels and found a US-based company making what I planned to make - they could launch here before I got started.

I also had a look at my biggest UK-based competitor and wondered what's to stop them doing what I do but with a bigger budget and their good reputation?

I don't expect or want to operate in a competition-free market but the gap between my idea and their products seems huge and overwhelming.


I'm planning market research to gain some assurance that my product has demand which I think will help.

Any suggestions for not letting comparison with competitors stop you starting up?

 

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[Eskil]

Hey there,
No doubt there are some huge players with big wallets in the nutraceutical business. I, and a couple of other people here, are entering this space too. But the most important thing you have against even the biggest competitors is bringing your own uniqueness to your product.

If you come across to consumers as just another "me too" product, you will be largely ignored. In your case - you have a leg up in knowing what's about to come from the potentially major competitors. You can use this to your advantage and try to plan your product in a way that differentiates it from what they will bring on. I understand you can't compare against the US company's products yet entirely since they probably haven't completed it yet. But take a look at the trends for this product type and see what people are after. Then - get creative! (Check out the book "The Purple Cow" by Seth Godin).

Don't be afraid to be different, and don't be afraid to face the giants either. There are always gonna be giants in any industry that hold a huge share of brand awareness or marketing power over consumers. But that doesn't mean that "the little guy" (someone like you starting out with a low budget) can't get in and make a name for themselves. Plenty of examples have shown this. Sure, you might have to fight a little harder than the big boys do at first - but if you are really passionate about your product and can build a following for what only YOU have (only YOUR brand is YOU) - then you stand a bette chance you might think right now.

Remember - every brand started somewhere, with clean slates and no customers.

 

[Rafal]

Any suggestions for not letting comparison with competitors stop you starting up?

I remember this story. I was watching some documentary about gangs and some cop who was there undercover. If they only knew - he's dead meat.

So, interviewer asks him - how could you not to be scared, knowing that they gonna kill you if they only find out?

And the guys says: You know, when I was a small boy I was affraid because some bigger guy said he's gonna beat me. And I was scared. Than my father said to me: never think about what they can do to you. What you should think is what you can do to them!

So - you'd better think how you can hurt them!

 

[TheCountess]

I'm reply during a break in an event I'm at today but I wanted to say these are great replies thank you!

I will reply properly again this evening.

 

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[Vick]

Remember - every brand started somewhere, with clean slates and no customers.

I like this

 

[Bigguns50]

Good conversation people.
I think about competition with my startup also. Currently, no one is doing what I'm doing..well, not online in the way im doing it. I think if I'm successful, others with more $ will jump in asap. For me to not fear, I stay focused. I know exactly what I'm offering. I know my market well. I think if others jump in...fine. Good luck. I'll be the first, and I'll remind people of this. I will also look forward, not over my shoulder at my competition. I believe it's good to know what your competition is doing, but important to set the bar for them...not react to them.

Continue to do your homework. Be creative. Be different. Give them what they want. You'll be fine.

 

[Twiki]

I'll give you an example from the consumer end of things in the Nootropics category. I've been trying out various nootropic compounds, each type should be pretty much the same molecule (as long as they are genuine pure compounds). You might think, how can someone compete when there's really no proprietary molecule, that people would just choose based on cheapest provider based on price per gram. But I find that I'm making initial and repeat purchase choices based on little things like whether or not they include a 2-cent plastic scoop in their packaging, the type of container used, the tracking info provided, whether they provide third-party certificate of analysis to ensure purity, and their customer service presence on social media. So you can differentiate in lots of different ways. Including a 2-cent plastic scoop isn't exactly a purple cow, but it's enough to make me go with one brand vs. the other.

 

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[Rafal]

you gotta be first or you gotta be different

simple as that

 

[Eskil]

But I find that I'm making initial and repeat purchase choices based on little things like whether or not they include a 2-cent plastic scoop in their packaging, the type of container used, the tracking info provided, whether they provide third-party certificate of analysis to ensure purity, and their customer service presence on social media. So you can differentiate in lots of different ways. Including a 2-cent plastic scoop isn't exactly a purple cow, but it's enough to make me go with one brand vs. the other.

Yes exactly. And if you think about most purchase decisions that people make - they are most often NOT based on price alone. That would only hold true for commodities like gas, sugar, flour, etc. Most often - people shop with their emotions and perceptions (conscious or subconscious), just like the example you mentioned here.

It isn't about which products IS better, or DOES provide most value.

It is about what product is PERCEIVED to be better, or PERCEIVED to provide more value....for EACH individual person at that given time (and everyone has different likes, wants, needs, tastes, social status, etc etc).

 

[TheCountess]

Hey there,
No doubt there are some huge players with big wallets in the nutraceutical business. I, and a couple of other people here, are entering this space too. But the most important thing you have against even the biggest competitors is bringing your own uniqueness to your product.

If you come across to consumers as just another "me too" product, you will be largely ignored. In your case - you have a leg up in knowing what's about to come from the potentially major competitors. You can use this to your advantage and try to plan your product in a way that differentiates it from what they will bring on. I understand you can't compare against the US company's products yet entirely since they probably haven't completed it yet. But take a look at the trends for this product type and see what people are after. Then - get creative! (Check out the book "The Purple Cow" by Seth Godin).

Don't be afraid to be different, and don't be afraid to face the giants either. There are always gonna be giants in any industry that hold a huge share of brand awareness or marketing power over consumers. But that doesn't mean that "the little guy" (someone like you starting out with a low budget) can't get in and make a name for themselves. Plenty of examples have shown this. Sure, you might have to fight a little harder than the big boys do at first - but if you are really passionate about your product and can build a following for what only YOU have (only YOUR brand is YOU) - then you stand a bette chance you might think right now.

Remember - every brand started somewhere, with clean slates and no customers.

Thanks so much Eskil! I read this a few times and it really made me think. My product idea is different and unique (in the UK at least) and I felt much more positive after reading the replies on this thread. I will check out that book this week. I was talking to a friend last week who has created a product which has been picked up by a big supermarket here. His turnover was less than £40k last year but they liked his product and now he's got a big contract. I went into the supermarket last week and saw an store-brand version of what he's selling and yet they still want his product. I thought that was really positive.

Good conversation people.
I think about competition with my startup also. Currently, no one is doing what I'm doing..well, not online in the way im doing it. I think if I'm successful, others with more $ will jump in asap. For me to not fear, I stay focused. I know exactly what I'm offering. I know my market well. I think if others jump in...fine. Good luck. I'll be the first, and I'll remind people of this. I will also look forward, not over my shoulder at my competition. I believe it's good to know what your competition is doing, but important to set the bar for them...not react to them.

Continue to do your homework. Be creative. Be different. Give them what they want. You'll be fine.

I'm doing my homework - I have a background in working with my target market/niche and that is what gave me the idea that there could be demand for this product. I have followed it up with a course in nutrition and am looking at doing some market research. My first quote came back at £6k ($9k) so I am going to go out and do it myself. I think I will learn more that way anyway.

Someone else said to me "Don't compare your beginning to someone else's end" which I liked too.

Thanks for the replies. They were a real boost!

 

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[DeletedUser2]

Last Year at this time, we were thinking the same thing....


WE have entered the market in the US, and in Canada.

very competitive.

here is what we have discovered.

there is no real competition except yourself.

There is more traffic than competition.

its like going to the beach to get a bucket of water.

your not going to get it until you show up.

but if you do, well, getting a bucket of water from the ocean, is just the act of doing it. not to many people there to stop you...



stop being scared.

you might find that its ok after all. heck, you might even like it.

Z