Blue Ocean Strategy | Different than other Demand Generation Strategies
Different Demand Generation Strategies are coming newly and there are certain trends marketers cannot neglect. One of them is Blue Ocean strategy & demand generation is the key element for this new marketing methods. Demand generation is generally associated with early-stage marketing or in other words brand awareness. Why not take a look at a new method which will help you to dominate the market for decades.
Today’s market is ever growing with an increasing number of competitors. When there are so many competitors, consumers have more choices. This has made it difficult for businesses to establish themselves as a well-known entity in a short period.
What is the solution? Blue Ocean strategy! What is the Blue Ocean strategy?
First of all, let us understand the red ocean strategy and blue ocean strategy.
Red oceans are all the existing industries in today – the known market space. Imagine you are competing in an environment where there is a lot of competition. This is the Red Ocean.
How do consumers know that you really are better? Blue Ocean strategy is completely different than rest of the Demand Generation Strategies. Here you don’t show yourself better than anyone else but make the competition irrelevant. Blue oceans are all the industries with untapped market opportunities – the unknown market space. You differentiate yourself as the only option available
There are 3 types of businesses –
- ‘Me too’ businesses –These businesses provide similar solutions as their competitors.
- ‘Me better’ businesses – There is also ‘me better’ strategy where you claim to be better than everyone else but this doesn’t help.
- ‘Me Only’ Businesses – Only being ‘me only’ business helps. This is the way to dominate the market.
In order to grow your business, you don’t need to beat the competition. According to W. Chan Kim & Renee Mauborgne striving to beat the competition in an established market is a bad business strategy. If you try to enter into an established market, you are adopting a red ocean strategy. This ends up in saturating the market because of which you have to battle for market shares. Instead, if you opt for sailing in a blue ocean and opt for untapped market opportunities, you are likely to succeed.
After the study of 108 new businesses with 30 different industries, in which 90% of the businesses opted for Red ocean strategy and remaining others stood out unique in the competition by following the Blue Ocean strategy. 39% of profit was achieved by red ocean strategy and 61% by industries which followed the Blue Ocean strategy.
How can one company implement such a practice?
Casella Wines implemented blue ocean strategy where they focused on the frustration of their customers outside of their current market space. They also studied current products and services available in the market. And then they integrated 4 points into their strategy to attract infrequent or absent customers which are as described below –
- Eliminate – What are the factors that can be eliminated
- Reduce – What factors can be reduced
These 2 points will help in reducing the cost while still implementing quality innovation.
- Raise – Where can you give better performance?
- Create – What unique offering are you going to provide?
Researching on these points can help you grow in the market. So Stop focusing on how you can beat the competition and focus on how you can make the competition irrelevant.
How does the Blue Ocean strategy help you in your Demand Generation Strategies plan?
Demand Generation Strategies are important in creating brand awareness and increasing the value of the product in a highly competitive market. Demand generation increases people’s interest in your product by utilizing different online marketing methods. Blue Ocean strategy completely lifts up the product value by making the competition irrelevant, unlike other Demand Generation Strategies.
Let us see an example –
Moz wanted to rank better but they had no idea how they are going to do it. They focused on the non-customers i.e., SMEs which were not able to afford to hire SEO agencies and only relied on adding a few links. Moz changed this situation completely by creating a paid product that gives a wealth of SEO data. Moz created a free tool which made SMEs aware of the facilities they can provide. This way Moz started catering their services to them. This created a lot of demand for Moz amongst the market. This is an application of the Blue Ocean strategy to increase demand.
The Effect of implementing Blue Ocean Strategy
As a marketer how can you implement this Demand Generation strategy which helps us be away from the tiring process of being able to compete in the market? Follow these four steps we mentioned above and you can shift from being a Red Ocean Industry to Blue Ocean Industry.
Please comment in the section below if you have any question about this new method. You might be using some other Demand Generation Strategies. Why not share your experience with us?