Think about drinks, how many options do we have?
How do companies compete in such a competitive market?
According to business insider, approximately 94% of the world population is aware of the red & white logo of Coca-Cola.
How does Cola-Cola stay ahead of the crowd?
Coca-Cola focuses on selling an abstract positive concept such as happiness, family, and sharing, rather than attempting to sell a drink.
Most of their marketing efforts are focused on the experience and the lifestyle associated with its brand, rather than the soda.
Colca-Cola sells “happiness” in a bottle.
We find a similar strategy with Red Bull.
Red Bull’s is NOT focused on promoting an energy drink, but on creating a brand that represents the energy-packed lifestyle that their audience loves.
So, to answer your question, how do I compete with businesses that can offer similar products/services at a lower cost?
You need a differentiation strategy.
Stop focusing your sales efforts on the “commodity” you’re trying to sell, focus on what your product delivers to your customers, and make this the focus of your marketing efforts.