Hey everyone, welcome to Digital Branding with LEAD, where we bring you valuable information, tips, and opportunities to assist you in building your brand. Today’s topic in relation to digital branding is, “the law of fellowship.”
Now this is for those of you that have developed a brand, gained a share of the market, and now you have become the leader in your category. At this point, you must know that as a dominate brand you must tolerate competitors and you should welcome them. The best thing to happen to Coca-Cola was Pepsi-Cola. A staunch competitor that brought even more attention to cola products.
Choice stimulates demand. The competition between Coke and Pepsi makes customers more cola conscious. Per capita cola consumption goes up. Remember, customers have choices even when there is no competition. They can choose to drink beer, water, ginger ale, or orange juice instead of cola. Competition increases the noise level and tends to increase sales in the category.
This law implies growth and maturation because instead of welcoming competition, companies often feel threatened because they believe that future market shares will be based on the merits of the individual brands. An even playing field is not what most companies want. They want an unfair advantage, a playing field titled to their side. Therefore, they think, let’s try to drive out competitors before they get too established.
Understand, market share is not based on merit, but on the power of the brand in the mind. In the long run, a brand is not necessarily a higher-quality product, but a higher-quality name. Your brand should welcome healthy competition. It often brings more customers into the category. And realize that no brand can ever own the entire market.
So, make sure you take from this video that healthy competition is okay. If you are the leader within your category, you have your share of the market, welcome that competition so the market itself can grow. If you are a weaker brand, understand that your brand is weak because its name is not in the mind of the people, and maybe you should be changing your name or narrowing your focus to be in the right category. We’ll have more on this in future videos.
That’s all we have today on Digital Branding with LEAD. Remember with LEAD it is all about turning your business into a leading brand. Make sure you visit leadmediallc.com to book a consultation with us and learn how you can grow your brand within the digital world today.