Floor price competition is not as good as "value competition"

With the continuous development of the market economy, the competition among the floor companies is becoming more and more fierce. In the context of the downturn in the 2012 environment, how do the flooring companies face market competition? The essence is to return to the customer's value, raw material prices continue to soar, companies simply rely on reducing spending more and more difficult to support, price increases? Mengniu Erie agreed to raise the price on the same day, but still hold the soldiers still, because it is too easy to be replaced, what should I do?

The basis of price competition is to meet the value of the demand to meet the customer's value up and down the two, the value of the upswing is to save time, higher efficiency, happy process, more secure and reliable. Downward value means lower price. The downward value is always down, there is no minimum, only lower, until the enterprise is unprofitable, or it goes bankrupt, or it decrements.

Floor price competition is not as good as "value competition"

Wyeth milk powder emphasizes the taste closest to breastmilk and children are more receptive. Most dairy products in China emphasize price competitiveness. What is the result? After years of simmering in the South Black Sesame Enterprise, it finally found a breakthrough in value. It took out the black sesame paste from the bag and put it into a tea-like “Love Cup”. The value of fashion and convenience was immediately favored by young consumers.

Flooring companies are constantly looking for the upward demand that meets customer value. If the upward demand satisfies the stagnation, the industry as a whole will lack innovation and product convergence. At this point the customer’s most concerned element becomes price. When the flooring products are very much the same, the floors bought at 50 yuan/square meter and 150 yuan/square meter are almost indistinguishable, and the price will become the decisive factor. This is the fundamental reason why innumerable enterprises can not get rid of the quagmire of price war.

Only price competition based on satisfying value needs can really be lethal. Apple ipad a price cut immediately hit a large number of opponents, cottage products have almost become a cannon fodder; Wal-Mart emphasized the low price, but also to ensure the reliability, convenience, and function based on price competition.

Two levels of customer value enhancement define customer value, and innovation and upgrading may be targeted. For the flooring industry, there are two main levels of customer value.

First, the value of product attributes, namely safety and comfort. The food and clothing have been solved, and health is of the utmost importance. You don’t see many flooring companies playing the “healthy” concept in advertisements, and stir up the speculation.

The value of product attributes, like air, is extremely important but easily overlooked. Take the example of an instant noodle: Dougu Douchang regards non-fried as a sword, thinking that nutrition and health are what consumers like, and the result? Manage your COFCO's efforts to push hard, not to eat consumers is not to buy it.

This is why some of the seemingly mundane main road goods still survive, and many innovative new products have come and gone. Look at the little peanuts, "Huang Feihong" and even advertising are rarely done, but it quickly rises, and the value of product attributes is still worth the company to do more work!

Second, subdividing the value of effectiveness means that the targeted customer is not satisfied with the efficacy requirements. Different customer values ​​are satisfied, naturally there is a difference, so this level of value is most likely to produce market segments and innovative categories. For example, the same beverage, to solve the fire demand achieved "Wang Lao Ji"; quench their thirst and beauty to achieve a "fresh orange"; occasionally need to overdraft to achieve a "Red Bull."

Finding problems is more important than solving them. Valuable efficacy needs must be clear, not vague, must be unsatisfied, not resolved.

There are two main reasons why the floor companies are digging down the effectiveness of subdivision. One is the change in the direction of the opponent as the value of the customer, and the nesting of cottages, advertising, promotions, price cuts, followed by others running madly, satisfying others Satisfied, unsuccessful can only rely on luck; First, subjectively cut off customer value, the customer does not accept, only God knows.

By clarifying and satisfying the customer's upward trend, we can find the starting point for innovation and upgrading. Products that are derived from customer value and higher than customer value can firmly attract consumers. With solid consumer loyalty, timely and dynamic price war is the weapon of competition. Flooring companies are far from pure price competition, and survival and development are certainly not difficult.