Find out in which type of market your company is in: Blue Ocean vs Red Ocean
3 min read
Index:
1º What is a Red Ocean?
2º Strategies for Red Oceans
3º What is a Blue Ocean?
4º Strategies for Blue Oceans
In today's business universe, companies are faced with a constant challenge, and it is nothing more or less than finding their place in the market and being able to grow. To meet this objective, it is vital to understand the different strategies that can be adopted to dive into the business oceans and either know the sharks with which we compete or know for sure that we are in a completely lonely and abundant ocean for us.
In this blog we will talk about key concepts about blue oceans and red oceans, what they are, and how we can navigate correctly in each of them.
The blog is inspired by the book "The Blue Ocean Strategy", written by W. Chan Kim and Renée Mauborgne.
What is a red ocean?
A red ocean represents existing markets that are already saturated with competition. In these spaces, companies fight for a smaller and smaller slice of this pie. This leads to price wars, narrower profit margins, and even a constant struggle for incremental innovation.
This does not mean that navigating in a red ocean is impossible, evidently these are cases of fish that enter existing oceans, probably to compete for sharks, so they are sometimes eaten.
However, there are fish that are capable of surpassing sharks in speed, and are quite possibly unreachable.
How can you leverage competing in a red ocean from digital marketing?
Red oceans are obviously challenging environments that of course offer opportunities for those companies that are able to differentiate themselves from the competition.
Digital marketing strategies for red oceans
Emphasize and emphasize differentiation: Identify the special features of your product or service, and highlight how they meet customer needs in a way that is superior to the competition. In other words, if you enter a red ocean, you cannot enter by offering exactly the same as other companies. In that case you will only be able to compete on price and obviously margins are reduced.
If your product or service is special, you offer something that the competition doesn't have, and higher profits, your slice of the pie in this red ocean will probably be bigger.
Build a strong brand: It is critical in red oceans to create a unique and memorable brand identity that is consistent across all digital channels. Authority plays a key role in gaining a greater number of customers.
We have talked about this in other blogs. If you decide to go for dinner, and in the same street there are two restaurants, one full and you have to wait a few minutes to be seated, and another practically empty, in which one would you sit? Obviously the one with more people, because it shows more authority and we tend to think that if there are more people, it is because what they offer is of higher quality.
Harness the power of content: Create content that is valuable and informative, that is highly engaging for your audience. In this field, originality plays a very important role. Seducing the audience with the emotion that we transmit about the benefits offered by our product or service, helps directly to receive a much greater consideration towards our company.
Position your website: Another big mistake made by many people who decide to enter a red ocean, is to create a website and expect it to be magically flooded with visitors. If you have no idea what to do to get your website well positioned, contact a marketing professional to help you create an optimal strategy for your business. This is where budget comes into play and whether you require a timeless strategy.
To appear in the first positions more immediately, we recommend investing in SEM advertising and approaching it with a very solid sales and landing page strategy.
Analysis and measurement: Constantly monitor the performance, not only of your campaigns, but also of your products and everything you can measure in your business. Which product is selling the most, which generates the most satisfaction, or what is working best in your digital marketing strategy. Make adjustments when necessary and innovate if you want to follow a path of growth. And don't just study yourself, keep an eye on the market and the competition to know what's going on at all times.
Remember that being in a red ocean you must be the fastest, if you don't want to be eaten soon by sharks.
What are blue oceans?
In contrast to red oceans, a blue ocean represents uncovered market spaces, therefore without competition. Here it is a matter of thinking, being innovative, and creating needs that generate new demands. The opportunity for growth here is far greater.
In this case, you're a little shark going out into the ocean and you've got it all to yourself. How much more fun does that sound?
The question in this area is to be able to find that blue ocean.
How can blue oceans be leveraged from digital marketing?
To navigate blue oceans, digital marketing is more focused on educating the market, and creating demand for the innovative product or service.
Marketing strategies for blue oceans
Emphasize innovation: Clearly communicate the disruptive benefits and unique value of your product or service. Remember that you are unique in your ocean, so focusing on educating the audience is critical. Just because you have the whole ocean to yourself, doesn't mean you've directly succeeded.
Focus on generating the need and demand for the product or service offered. Being attentive to early observations and customer reviews can help guide you on your way to success.
Create content: In the previous point we talked about how important it is to educate your audience, first so they get to know you, second so they think they have an unsolved problem, and third, that problem can be solved by you.
Focus on entertaining first, capturing attention will create a winning product. This attention is key to use it to educate the audience. Of course, creating and generating a community can help you grow even faster. If the product is very good and the content is quality, you will probably go viral or have an audience of thousands or hundreds of thousands of people.
Collaborate with influencers : Building relationships with influencers can give you a boost to amplify the reach of the product or service you offer. It is important that they are influencers who have a relationship with or are relevant to the industry, in order to reach a more relevant audience that resonates with the product or service offered.
Branding campaigns: They don't know you, and if they don't know you, no one can find you. Branding campaigns can encompass several strategies. It's critical to talk to a marketing expert who can help you focus on how to most effectively capture the attention of your audience.
Here the message and creativity play a crucial role to attract your audience and generate a great experience and emotion.
Concluding this blog, both blue and red oceans offer opportunities for companies that know how to navigate them effectively. By understanding the characteristics of each, you will know how to implement the right strategies for each environment.
Having effective marketing strategies for every ocean is key to increasing your chances of success and thriving in today's dynamic business world.
Remember that success is focused on innovation, differentiation, and of course value creation for the customer.
And you, to which ocean do you belong?
We wish you every success in your adventure to your chosen sea!
Greetings and see you next time!
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