In today’s blog I will show you how to know when your product is saturated and you need to change
- What is saturation?
Market saturation happens when the demand for some products/services in the current market is lower than the production, and consequently result is a decline in sales. It shows that this niche of product/service was what people were looking for, but at this moment they are satisfied, isn’t a need anymore.
The main challenge when market gets saturated is to continue generating profit in the same niche. Saturation is an indicator that you have to change your product or the way you are selling it. There are 2 cases of saturated markets: The first one is when there is no going back, the product is obsolete and people don’t have the desire for it anymore, so the solution would be change the product; The second case is the one that you can proceed with the same product, and just adjust the sales method, considering people still want this, you should reinvent your offerings and sales platforms.
- Signals of Saturation:
You will notice that your product is obsolete when:
1. Sales decrease;
2. The production is bigger than the demand;
3. Prices consequently decreases;
4. Lower number of online searches;
5. People spend less time in the product web-page;
6. Products from the same niche is getting saturated;
7. It became old-fashioned and people don’t have the desire to buy it anymore.
8. * The number of companies in the same market may even serve as a support for your analysis, but you cannot rely on this number alone.
There are plenty of different ways to innovate your business, including an innovative web-page, different sources of customer communication, reinvent the offers and many other ways, but among the best is the implementation of AR to the products. With this technology the products that were already considered old fashioned become attractive again in the eyes of the buyer and, in comparison with the competitors, the one who is using AR is in advantage and is more likely to convert a bigger number of products into sales.
In this Online shopping generation, people are looking for innovative ideas, and they tend to get more attracted and buy products when the website page bring the physical stores characteristics, when people can feel like having the product, and AR enables it to happen.
- Example – case
An interesting case that represents a saturated product that succeeded after a makeover is the cereal bar. The morning cereal category was becoming an increasingly saturated product, as the demand did not develop but production continued increasing. Then came a solution, where the functions of the cereal were redefined: It was changed to a chocolate bar shape where people could carry it anywhere and eat on different occasions, and due to these changes, people started to see it differently. A new function was found for cereal, and it began to be sold as a healthy snack for any time of the day. When released, this product was considered revolutionary and a new form of consumption was born.
Today AR is a way to stand out from thousands of products, just as cereal bars have been successful for their authenticity. In both cases, a way of re-positioning the product in an innovative way is perceived.
- When is a product saturated ?
Many times, we follow the work of “our peers” to get some inspiration and see how the marketing is reacting to changes, but it may lead us to think: “There are so many people doing it, I’ll just be one more.” This is a thought we are all susceptible to and this false alarm can take many believe that it is impossible to start a business in such a saturated market. In order to know if the market is saturated, you must know the marketing: if the changes are typical, if the decrease in sales is normal and how the target public is reacting to those products.
In a nutshell, my recommendations are, study your target public to know what they really want, price your products or services competitively and always innovate, due to the fact that if you have innovative ideas (such as AR) for products that people believe that are “saturated” (and you know that still have market for it) you will surely stand out from the crowd and your chances of success will increase.