Marketing: price war is not suitable for coating enterprises in mature market

Core tip: private coating enterprises in China are in fierce competition Many coating enterprises are fighting price wars in the industry competition to gain market share In particular, small-scale coating enterprises do not invest in brand building, and the channel resources are not enough When products enter the market, they usually use a very low price to enter This kind of behavior may lead other coating enterprises to follow suit and enter the market with low price products Some coating enterprises that depend on the market scale for profit have to invest in market construction because of the high cost of channel and sales management Compared with small enterprises, the product price does not have much advantage, only depends on the share Paint knowledge | precautions for wall paint color selection Recommended introduction: when painting the wall, the owner sometimes has difficulty in choosing what color of the wall paint to paint In fact, there is no ugly color in the wall paint, only the disharmonious color matching The use of wall color contains the knowledge of health Too strong color will stimulate people's perception, make people have a sense of fidgety, affect people's mental health Grasp the basic principles of wall color and paint a colorful space 1、 Wall paint color selection notice 1 Light color is generally used for the top surface Light colors make people feel light, dark colors make people feel heavy Usually, the treatment of rooms is from top to bottom, from shallow to deep For example, the ceiling and walls of rooms are white and Home of coatings news: China's private coating enterprises compete fiercely, many coating enterprises in the industry competition in the price war, in order to obtain market share In particular, small-scale coating enterprises do not invest in brand building, and the channel resources are not enough When products enter the market, they usually use a very low price to enter This kind of behavior may lead other coating enterprises to follow suit and enter the market with low price products Due to the high cost of channel and sales management, the product price of some coating enterprises which depend on the market scale for profit has not much advantage compared with small enterprises, and only rely on the share to support the growth of the market When they see that small-scale coating enterprises use price to seize market share, in order to protect their share, they will use price strategy to resist and try to squeeze small enterprises out For the coating enterprises with certain brand awareness, they are not afraid of the price squeeze of other coating enterprises due to their high product profit If the marketing ability and level of the coating enterprise are very high, the enterprise will not press the product price too low when it is in the growth period, and there will be space for brand construction when it is in the mature period, and it will not be afraid of the impact of the newly added enterprise with low price Because at this time, the position and market space of coating enterprises are different from those of new enterprises, and each product has its own positioning Coating enterprises are in different development periods, with different goals, market conditions and price strategies In the growth stage, coating enterprises can gain profits through low-cost products, but in the mature stage, they should consider clearly whether their goal is to enhance the brand, increase the value, or expand the market scale, rather than simply using the price to compete for the share of the mature market In the growing market, enterprises use price to expand the scale of the market, in order to make themselves occupy a favorable position, and at the same time, expand the scale rapidly and plunder more market shares But after entering the mature market, if the enterprise has a large market share, and then carries on the price war, it is suicide The reason is that at this time, we don't need to plunder the share, but to keep the share The low price strategy is to give up fighting the market Therefore, we do not advocate price war in mature markets When it comes to price war, it seems to be all about price reduction, but mature markets are not suitable for price reduction In terms of marketing behavior, price wars are all aimed at promoting sales, most of which take the form of disguised price fluctuations in the form of year, festival, or light or peak season promotions But the price war in the coating industry is different from the price war in the marketing behavior In a word, when the coating enterprises develop to a certain scale and enter the mature market, more consideration should be given to brand building Only in this way can the marketing be improved from products to brands Why don't coating enterprises start "public welfare marketing" as soon as possible? 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