Large companies have millionaire budgets for advertising, consolidated structures and a solid positioning in the consumer’s mind. For a small or medium -sized company (SME), competing against these giants may seem like a difficult, but not impossible task. Jonathan López, strategist in business and digital marketing, explains that there are ways to do it without the need for large investments.
“The advantage of an SME is not in the resources it has, but in its ability to move faster, adapt better and generate closer connections with its customers,” says López. For him, the problem is that many little entrepreneurs try to compete with the same strategies that large brands use when, in reality, they should take advantage of their own strengths.
According to López, there are five key strategies that can help SMEs to stand out and attract customers even in markets dominated by large companies.
One of the most common mistakes is to try to compete by lowering prices. While this can attract customers in the short term, it is not a sustainable strategy. “If you try to reduce your prices to compete with a large company, you are at a disadvantage because they can optimize costs thanks to their production volume,” says López.
Instead of focusing on the price, he recommends betting on quality, experience and exclusivity. “If you sell coffee, do not try to be cheaper than the big brands. Focus on offering artisanal coffee, more personalized attention or a unique experience,” he suggests.
The big brands invest great sums in advertising, but SMEs can attract customers in an organic way through content marketing. “Instead of spending on ads that many times people ignore, generate useful content that really helps your customers,” López recommends.
For example, if an SME sells skin care products, instead of limiting your creams, you can share tips on how to maintain healthy skin, explain the benefits of the ingredients you use or show real testimonies of satisfied customers. “When you share valuable information, people trust you and you are more likely to buy you without the need for you directly,” he explains.
Large companies have customers, but SMEs can build a loyal community. “A community not only buys, but recommends and defends the brand,” says López.
To strengthen that relationship, he suggests interacting with customers on social networks, answering questions, conducting surveys and creating spaces where consumers can share their experiences. “SMEs can take advantage of their closeness with customers to build stronger relationships, something that large companies hardly achieve,” he adds.
Many small companies see technology as an unnecessary or complicated expense to implement, but today there are accessible tools that can improve the operation without the need for large investments. “Technology allows an SME to operate more efficiently and professionally, either in customer service, in inventory management or in process automation,” says López.
Some solutions that can make a difference include chatbots, which allow answering frequent questions without hiring more personnel, CRM, which help organize contacts, monitor sales and improve communication with customers, and marketing automation platforms, which facilitate the sending of emails, social networks programming and other promotional strategies without manual effort.
“SMEs that use technology in their favor can operate with the efficiency of a large company without having a millionaire budget,” López adds.
Allying with other companies is a strategy that many SMEs overlook. “If you find a partner with a similar audience, but not your direct competition, they can work together to promote each other,” López suggests.
For example, a sustainable clothing store can be associated with an ecological cafeteria to offer cross discounts or hold events together. “These types of alliances help expand the scope without spending on advertising,” he says.
SMEs do not need large budgets to compete with large brands. Instead of trying to follow their same rules, they must focus on their own advantages: the proximity to customers, flexibility to adapt rapidly and the ability to differentiate themselves in value.
“If you have an SME, do not try to be cheaper, try to be better. If you build a community, create useful content and use technology in your favor, you can compete without spending millions,” López concludes.
The contents signed as “content” are the exclusive responsibility of the brands and their spokesmen or agents, and are independent of the Posture and Editorial Line of Forbes Mexico.
