Are you tired of being dictated to by the top 100 production builders? Of being beaten up on price — and competing with other suppliers for shrinking margins?
Now’s the time for a blue ocean strategy.
In the book of the same name, the authors describe how companies traditionally battle each other for a share of the marketplace, drawing blood that creates red oceans. Conversely, blue oceans are created by companies that seek out uncontested market space ripe for growth, creating new demand through the pursuit of differentiation.
This is exactly what building products marketers need to do in a market characterized by heavy competition in one segment, and untapped opportunities in the other.
Enter what we refer to as The Forgotten. The smaller builders. The regional builders. The custom builders. The businesses that altogether represented a cool 46.37% market share of the U.S. homebuilding market in 2015.
It’s a lot of market opportunity — close to half of the market. Which is why we’re focusing our blog posts this month on marketing to this audience.
This is the first in a Point to Point blog series explaining the importance of engaging this segment now. We’ll also explore business concerns of a few of these niche players and share strategies on how to reach the Forgotten market, tied to the perspectives they share.
For The Forgotten, it’s all about value — not price. About being problem-centric versus product-centric. When these builders look for solutions to their problems, you must be found. You must be there with the knowledge and expertise they need.
But what about the distributor, you say. Shouldn’t they be on the frontlines to solve these problems? Yes, but there’s a catch:
While builders look to distributors for information, distributors are overtaxed and need more support.
That should be part of your blue ocean strategy.
As a building products brand, you’re in the best position to provide the information and resources that both distributors and builders need to solve their problems.
It’s how you’ll create transparency throughout the channel, building the relationships and the loyalty that will ultimately grow your market share.
By becoming a knowledge provider, you’ll differentiate yourself and move into a blue ocean of opportunity.
We can help by aligning your expertise with the needs of these channels, through content and strategies that engage them at the right time and place.
If you’re ready for details, contact me at firstname.lastname@example.org.
Or, to learn more about this strategy, look for our next blog in this series, a Q&A with custom builder Alan Brown, who describes the opportunities distributors now have that could help them increase product sales.