Know-How Exchange : Strategy

kss.sharma,

I'm not sure I understand you well.You say you have 17% market share and there are 4 major players dominating the market meaning the 4 have together 83% market share.It wouldmean that you are not that small player you say you are.
From what you say all the players are represent commodity-mindset thus no wonder the market is price-driven only.
IMHO reactive policy will never prove successful.In order to change it you would have to overhaul your marketing strategy along following lines:

1. analyse who your customers are and what are they needs as per customer segments

2. how can you best satisfy your customers' needs and expectations

3.what will be the best way to communicate with your customers as per segments

4. what partners will help you achieve best your goals

5.who are your competitors and what are their respective market shares

6.how well your competitors are satisfying your customers needs as per segments

7. which of your company's capabilities answer best your customers' needs and expectations

8. which of your customers' needs come unmet by your competitors

9. how can you fulfill those needs to make your customers happy

Having answered those questions think of your Unique Selling Proposition you can come up with to your customers(segments).It will be the unique benefits you promise to give them and not the lower price.You shift your positionig to the value they will be getting from you as opposed to your competitors.Think well ahead and be fair to your customers as of course, you have to deliver on your promise.

Adam

kss.sharma,

Despite appearances the largest one with 50% market share is the most vulnerable to suffer when a new strategy is implemented as it has the most to lose.
It comes to me as no surprise that the defection rate is high.When price is the only differentiator customers are switching constantly whenever a bargain pops up.You can prevent it only by creating real value to customers.No other barrier will stop them.Hence again the importance of finding out what real needs and expectations of your customers are and how to exceed them.You need a healthy research as to it what brings real value to them.Even with not so well developed& affluent markets customers find it much more valuable to pay more for what they really value than just to pay less for something which is not 100% what they find precious.
Think of it also in terms of offering your customers solutions to their problems rather than commodities only when your products support the solutions you offer.Think of bundle sales,priority service, bundle sales, consulatative sales where your salesforce enhance your sales channels whatever they might be.Think of the way you can help your customers improve their business offering them new tools to do their business etc.
That's what I can suggest not knowing your target customers, sales channels, market expectations and needs.

Adam