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This question has been closed, and points have been awarded.
Closing Down Says Competitor
Posted By: william* on 9/4/2006 1:02 AM (CST) 250 Points
Rumour from the market place has it that our company is closing down, at least this appears to be the disinformation being spread by a competitor (or not). How best to tackle:
1) MARKET PERCEPTIONS
2) Competitor

Posted by: mbarber Accepted Answer
9/4/2006 4:52 AM (CST)
Gidday William - hard to give more specific advice without knowing what you actually sell. Armed with that knowledge I might also be able to suggest specific actions I would take.

Righto then. First is it true? If yes then you are in the position to off load stock at far greater volumes than your competitor is prepared for (depending on what type of item you have)

Maybe you sell a service - there's things you could do to maximise the departure. There is absolutely NOTHING wrong with closing a business down if it is a deliberate and chosen action. Handled well it can be very lucrative. Unfortunately too many businesses that should close down don't making things far worse than they needed to be for everyone.

Okay what if it's not true. First thing I would do it get a letter out to all of your significant customers from your CEO along with a very personal phone call from the CEO or a high ranking manager. The trouble with these types of rumours is that some people will believe them. That might be a short term way for your competitor to capture business that might otherwise have gone your way because of the customer's fear over lack of servicing, quality issues etc. So get on the front foot and meet with everyone.

You'll also need to discuss rumours with ALL staff to set the record straight - last thing you need are staff wondering if they'll have a job next week because they might just decide to get proactive and ensure they have a job next week by going somewhere else!

Next you launch a PR campaign titled 'Closing Down? - They Wish!' In it you discuss the fact that your company is being maligned by competitors (without EVER mentioning who they are) around the idea that you are closing down. You deny it categorically and then you go on the attack
"Here's why our competitors are spreading rumours about us...
1. We provide better service than they can ever dream of
2. Our products are of a higher quality at better prices than they can offer
3. Our follow up leads the industry

Now if you were our competitor you'd probably wish we were going out of business too - after all how could you possibly compete with a business that is so much better than yours....But unfortunately for them and great for you - we continue to grow bigger and better"

Finally within the PR campaign you add a final element. You go to your best customers and ask them for a favour - tell them what is happening at that you need a testimonial from them. You then get positive testimonial style comments from the CEO's of your best known customers which is worded something like 'Here's why we use TWR Transport..."

This campaign can be delivered via press, TV, Radio or just about any other means.
 
Posted by: W.M.M.A. Member Response
9/4/2006 9:50 AM (CST)
***DO NOT AWARD ME ANY POINTS FOR THIS***
I AM PILING ON....

Nothing I could add to mbarber's advice except for this....DO IT. Do exactly as said. Begin NOW. Bury your competitor in positive PR. You gained new accounts, your clients love you, you donated $$$ to local charity...keep it coming.

Your PR program must ramp up to its fullest.Get out and join NFP organizations and participate...Be visible.

Keep us informed as to your progress..

***NO POINTS FOR THIS POSTING***

Randall
WMMA
 
Posted by: wnelson Accepted Answer
9/4/2006 10:31 AM (CST)
William,

Quality problem solving has several elements: Problem identification, containment (short term actions to stop the blood loss), root cause analysis, and corrective action (things you will do differently so that the problem doesn't occur again. You have excellent input for the containment. My input has more to do with understanding root cause and corrective action. Why the competitor would do this. A competitor doesn't wake up one morning and say, "I think I'll start a rumor that my competitor is going out of business." There must be something that he can see or that your company has done to make him believe that your longevity is in question. Maybe he even heard this from customers? Before you launch the very fine campaign our colleague from Down Under, Marcus, has expertly laid out for you, understanding the root of the rumor is important. In your Re-information campaign, including explanations of actions that may have been misinterpreted is warranted.

Is your company healthy financially? If your latest financials state you are not doing well, what actions has management taken to remedy this? Did you just have a major restructuring or layoff? Did you close plants recently? If so, why? Have you made significant changes to your sales channel? If so, why? Has your company been "quiet" lately in terms of launching new products or services? What are your plans? Might you have salesmen or other employees who are fueling the rumor with customers or competitors based on their dissatisfaction, fear, or misinterpretation?

Think through all of the things that would spell "a company going out of business" and what your company has been doing lately and address the common elements and explain what it is you are doing and why. It could be that the root of the rumor is in not communicating effectively with customers (and employees). Then, make sure as you include response to these things in your containment PR campaign, and also incorporate processes and procedures to make sure this can't happen again.

I hope this helps.

Wayde
 
Posted by: re* Accepted Answer
9/4/2006 11:09 AM (CST)
The truth will set you free.

The best advice you can get is short and sweet.

First, determine factually the source of the rumours. Then spread the truth in the form of viral rumour. Only viral will counter viral. If you don't know how, get professional advice.

Every problem is an opportunity. Often overlooked. Don't overlook this opportunity. Mine it for everything it has. Your market share could double.

As the bible says, the truth will set you free.
 
Posted by: stevea Accepted Answer
9/4/2006 6:41 PM (CST)
Dear William

Sadly, spreading rumours about the premature demise of a competitor is and always has been a common, if stupid activity of the insecure.

I respect the points which everyone has made so far and you have to bury the rumours, but don’t go overboard. It was William Shakespeare who coined the phrase “The lady doth protest too much, methinks – “in Hamlet, where the guiltier the person in who defends a position is, the louder are their protestations of innocence.

George Silverman of Market Navigation Inc. wrote an interesting thread on this concerning false advertising and word of mouth claims (WOM) which would well apply here to your competitors, but it could apply both ways and bounce back on you.

(http://ads.womma.org/2005/08/consider_this_1.html)

If your competitors are lying, by subtle rebuttal, as advised, they will protest too loudly and will destroy their own efforts to slander you and damage themselves in the process. If you go overboard in rebuttal, your market may think that YOU are the one who protests too loudly. Have you ever wondered about the curious correlation between enthusiastic expressions of rude financial health from corporations which go under only a week before they spent their last resources on explaining to the world just how strong they are?

Take the advice offered by Wayde, Randall and Marcus, but temper your enthusiasm to put the record straight by being masterful with understatement. You have to act quickly, but you have a business lifetime to prove the slander-merchants both wrong and foolish.

Good luck!

Yours sincerely

Steve Alker
Unimax Solutions
 
Posted by: stlubahn Accepted Answer
9/4/2006 7:35 PM (CST)
I have a local competitor who is always looking for new ways to discredit our firm. We have not tried to combat them directly, but instead have kept a steady stream of direct mail and special offers to our clients and local prospects in the area.

There are two major benefits to this approach. The prospects see us as the leader, and ever direct mail piece we send builds on that standing. By offering various offers and switching up the product offerings we empahsis, we keep the competitor making the negative claims off balance.

Keep positive messages going out and you will do fine without having to bash the competition.

Steve
 
Posted by: Frank Hurtte Accepted Answer
9/5/2006 9:52 AM (CST)
I tend to agree more with Steve. The best way to handle competition is to ignore it. Have a business plan and continue to work your plan. Agressively attack new business... Continuously work to provide strong service to existing business.
 
Posted by: rbauman* Accepted Answer
9/5/2006 2:43 PM (CST)
The best way to tackle market perceptions, or mis-perceptions as they may be, is to remain active in the marketplace. In your marketing efforts include references to future events, products or specials to let people know you have future plans and are not going away.

As far as dealing with the competitor, consider consulting your corporate counsel about your legal options or having your CEO send a letter to their CEO asking them to stop spreading false information.
 
Posted by: Harish Accepted Answer
9/7/2006 12:23 PM (CST)
Be happy that you have something to talk about to your customers.
It calls for a war and get your troops ready. The only thing that you should be worrying is your key accounts. Make sure that your major accounts are convinced about the health of the company.

Once it is done , organise a mega event / party for your customers celebrating some nth successful years of existance. Pay the media some money to cover the event. Don't mention the competition anywhere. Start giving ads in key media with customer endorsement and striking directly on the negatives of your competition. Make sure that your salesforce concentrate on the competitors customers and take the war to their teritorry

All the best
 
Posted by: william* Author Response
9/11/2006 4:06 AM (CST)
Thank you for the great input

Our course of action will be as follows:
1) We will become more visible in the marketplace
(We've recently exhibited at two trade shows)
2) Some careful introspection as to Wayde's comments
( not comfotable but necessary)
3) Accentuate the positive via staff, key customer
contact dtriven by senior management.
4) Our focus will remain on customer service

We elect not to give our competitors much credit

 
Posted by: vivek_shrivastava1 Accepted Answer
9/11/2006 12:57 PM (CST)
Give some time to your org. and do a SWOT analysis of your competitors vis-vis yours without doing any marketing communication activity for mkt.

If rumour is originated from your competitor,then they are likely to be 2 cases:
a)Your competitor is loosing out to you.
b)Is taking your co. for granted.

After a thorough SWOT analysis,you should be able to get the answer,if you get the 1st conclusion as your answer then you don't have to do anything as its mkt. dynamics but if second conclusion is the case then hit it
real hard through some innovation in your offering and an effective corporate communication to make the market realise your presence.
 
Posted by: carrie77 Moderator Response
9/12/2006 6:39 AM (CST)
Hello Everyone,

I am closing this question since it's more than 2 weeks old. We do this to reward the contributions of participants in a timely manner + to give increased visibility to the newer questions.

Thanks for participating!
Carrie (Production Editor)
 


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