When Competitors Hit Back

This is my theory. I have no evidence to back this up, only strings of events that lead me to believe that when certain competitors hit back, huge sales are lost. 

This story revolves around a specific market and product which I shall keep the details secret for privacy purpose (like you've never read these words before, right?).

Product A is the product of our company to treat male-related disease. Products in this specialty were trendy a few years ago. There were only 3 leading players of the same class of product that fight for market share. So product A is one of the players.

This particular market segment is very dynamic. Many events took place that colors the progress.

Competition, I can say, was very stiff but healthy, up to a certain point.

One company decided to play it half-dirty. What it did back then was paid full-page ads for its product. I mean, there was nothing wrong with paying for ads but the page belongs to a free magazine, and the products is a prescription product.

Such a combination is unlawful, even today. But the damage had been done. As they said, there's no such thing as "bad publicity." No Sir!

The company got its exposure and was fined for much less than potential earning. At least, that was what I thought. I have no way to snipe into the whole "exposure-return" data. It would be fantastic if I could do it though...

The pioneer product for this segment had already enjoyed a right amount of profits. I do not assume this is true because I did work for that particular company, and the amount it spent on marketing was very lavish. That includes what it pays sales reps who promoted the product - huge incentives payout per box and overseas trips.

I was told that the product launch took place on a cruise. How's that for lavish?

My current company product, product A, is the third player to enter the market segment. It came with unique differentiation, and it was putting high expectation that it's going to make a kill. It did not...

End users still stick to the pioneer product, and other products eventually took the back seats or served as alternatives to users who really not suitable for the pioneer product.

The market changes a few times, and our company changes too. One of the things it did with Product A was to outsource its promotion. The reason seems to be the status of the product and its reach. It almost reaches "over the counter" state. It almost reaches a "lifestyle" product status.

And market change again...

This time around, the selling and marketing of product A were given back, or rather, were taken back from the outsource company. The new episode begins. The team that promotes this product looks eager to go out and sell, and haul in some incentives payout.

At first, everything looks pretty smooth. One after another sales campaign, materials and promotion were run. The outcomes were still less than what the company expected, but they showed signs of potential success. The competitors were showing very few reactions to these promotional moves, so things look perfect and promising.

Then one thing just snapped...

The pioneer product's company raised the price. Our company realized this. To us, it means market loading is about to happen anytime soon. Sure enough, the pioneer was crazily throwing samples products and stealth discount tactics before the price increase.

And if that's not enough, the other player follows suits. It, too, started discount promotion and robust product sampling. Things began to look quite chaotic right now.

Our company just find itself in the middle of the war zone...

Maybe, our situation is more like trapped in low ground and getting fired from all directions by enemies who occupied higher grounds. I don't exaggerate this. Our competitors were seasoned players in this particular market segment. They've been through multiple battles, and they're still breathing with scars to boast.

"We've been there son, and you're not going to teach us how to fight this war. Shut up and listen!" seems to be the message they're sending us.

And this is where I chunk up my theory...

Our company thought that the "silence" of the competitors and dormant, inactive, or dying off. But in reality, we can't see what they were cooking up. The fact of the matter is, they were here before us. They have occupied higher grounds. They fought each other before we make our entrance into the warzone. Perhaps, we're so full of ourselves and take the whole situation lightly. Probably, we did underestimate the competitors' strength.

When we thought we've got them cornered, they suddenly hit back, and they were running back hard...

This battle could be just another drill for them. They have learned valuable lessons from their past. They know lots of things that might be new to us, and now, they might be using them against us.
A good measure that they hit hard is the number of sales generated through this period. Such evidence could not have a point otherwise. Clear signs that competitors are running back...

We might not be able to get up with the same tactics, ever. The things that take us here are not going to take us to where we want to go. It's utterly insane to expect different results doing the same things.

What do you think?...