Innovation brands in high growth markets

Positioning innovation brands for sustainable competitive advantage in high growth markets

Just like us, industries go through life cycles

they begin, they grow and they eventually mature and decline.

5there are five stages in an industry's life cycle.

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the development stage

1

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the growth stage

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the shakeout stage

3

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the maturity stage

4

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the decline stage

5

12 34 5these lifecycle stages are often plotted on a industry life cycle graph.

A typical Industry Life Cycle curve looks like

this.....

The consumer LED lighting market in currently in a growth phase, characterised by high growth & low barriers to market entry.

High growth markets, like the current consumer LED lighting market, are characterised by relatively low rivalry and plenty of market opportunity for everyone.

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Buyers in high growth markets are often keen to secure products due to external drivers (like high electricity prices) but lack sophistication about what they are buying, so diminishing their buying power.

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The marketing goal in high growth markets is all about growing market share and building a strong brand ready for the onslaught of competition that will arrive in the late growth stage and into the shakeout stage.

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In this high growth markets, traditional broadcast media channels like TV, radio and direct marketing work well because of the abundance of buyers and limited competition. gr

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On the downside, high growth markets have low barriers to entry, meaning new competitors can easily enter and pick up market share quickly, This is because existing competitors may not have built scale, experience or customer loyalty.

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In a typical growth market, competition is present but there is more than enough business for everyone. The aim of the growth phase is to build market share.

After the growth stage an industry moves into the shakeout stage. sh

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In the shakeout stage there is much higher levels of competition, the growth rate starts to decline and increased rivalry forces the weakest players and brands out of the business.

TV + PRICE

In the shakeout stage broadcast promotion and big budgets won't ensure success as there will be many companies vying for a share of the consumers mind. At this point, brand strength is critical. sh

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Similar to the way brands like Canon means something in printer and photocopier markets, and a 're-seller' brands like Aussie home loans means something in the mortgage market, Brands in high growth markets needs to develop a strong brand that is different from competitors in a way that matters to me.

At Aussie they'll save me!

...and Bunnings means much more to me than just lower prices

So why should I remembering your brand?

why does it matter to me?

How is your brand different in a way that matters?

Being a strong brand that is different and valuable doesn't mean so much in a high growth market.

but it means everything when things get crowded and you don't want to get caught up competing on price alone.

..to win, build a brand that matters

..or it's LED lights out.

the end