A customer asks for a discount only under two conditions (i) when he has options, and (ii) when he has objections. If you are selling what others are also selling then a customer may or may not buy from you because he has options. If the customer is finding faults in your product/ service, he may or may not buy from you. And, he will ask for a discount because he has objections. ### **Eliminate Options and Objections** If you are able to eliminate "the options and objections” associated with your product/ service in the market, you will never have to give any discount and your market share will increase. If you are doing what no one else is doing, then the entire market share will be yours. Also, you will be able to create a monopoly in the market, without any options and objections. Therefore, ► Figure out the objections the customer has against your product/ service. ► Save yourself from giving discounts and increase your market share by killing the Options and Objections. ### **Identity Your Perfect /Target Audience** Whether you are an entrepreneur or an organizational leader, one mistake you may have also made sometime in your life - trying to sell your product/ service to the customers “outside your target audience”. Sometimes, you don’t really pay attention to the fact that every product/ service has a “specific client” base. But, a successful entrepreneur/ leader is the one who is able to identify them. Identifying your “perfect customers” on the basis of the “NICE analysis”: NICE stands for **N**eeds| **I**nterests | **C**oncerns |**E**xpectations. **For Example:** The perfect customer for Domino’s is: ► Men/ boys in the age group of 7 - 45 years. ► Monthly income is between 30K and 1-1.5 L per month. ► Literate youth who is indecisive, not ambitious, and casual. ► An unmarried/ single person living in a city who likes to experiment and eat as per convenience. Similarly, you also need to ► Identify the Psychographics and Demographics and Socio-economic background of your customer. ► Identify what should be your perfect customer’s age bracket, income bracket, gender, marital status, social status, economic background/ lifestyle, education, mindset, interests, culture, aspirations, location, etc. ### **Identity Portfolio of Products/Services** Once you’ve identified your perfect customer, now give a look at “portfolio of your products/ services”. Identify the bouquet of your products/ services that you offer to your customers. For example of Domino’s product portfolio would include, Multiple Variants of Veg and Non-Veg Pizza with a Large Variety of Choice of Crust and Toppings, Burger Pizza, Veg and Non-Veg Taco, Bread – Dips, variants of Pasta, Desserts, etc. Similarly, you have to also list down a portfolio of your products/ services. ### **How Can You Create an Entry Barrier in Your Industry?** You can create an entry barrier in your industry, and monopolize the whole market through the following tips: ### **#1. Intellectual Property Rights** Intellectual property rights are the rights given to persons over the “creations of their minds”. They give the creator an exclusive right over the use of his/her creation for a certain period of time. Intellectual property includes intangible creations of the human intellect and primarily encompasses copyrights, patents, and trademarks. Example: Microsoft. ### **#2. Patents and Licensing** A strong and well-drafted utility patent gives the owner the right to prevent any other party from making, using or selling the patented invention in the territory covered by the patent. For example, Pharmaceutical companies, where patents may bar a new company from manufacturing medicines until the original company holds the patent. ### **#3. Distribution Network** If a company has been operating in an industry for a number of years, they have had the time to build up a strong distribution network. They know all the key persons in the process that takes their product to the customer, and are able to “streamline it’s working to perfection”. Example: Samsung, Oppo, and Vivo. ### **#4. Exclusive Rights** If an incumbent has the “exclusive legal rights” to resources required by the industry, then the newcomer may be put in the position to purchase resources from their own competitor. For example, Amazon and Flipkart hold exclusive rights to sell a few products. ### **#5. Economies of Scale** Manufacturing a product in larger quantities often reduces the total cost of the product. This is known as economies of scale. Achieving this scale advantage requires a lot of initial inflow of investment to pay for the setup costs associated with large scale manufacturing. This is not possible for newer smaller businesses and often acts as a significant barrier to entry. Example: Big Bazaar, Walmart, etc. ### **#6. Proprietary Technology** An organization creating a technology that cannot be easily copied also creates an entry barrier for others. Example: Windows, iTunes, Pringles, etc. ### **#7. Brand Equity** Brand equity refers to a value premium that a company generates from a product with a recognizable name when compared to a generic equivalent. Companies can create brand equity for their products by making them memorable, easily recognizable, and superior in quality and reliability. Example: MSeal (Epoxy Compound), Fevicol (Adhesive), Dettol (Antiseptic Liquid) ### **#8. National Sentiments** A significant barrier to entry is also created when people start associating your product/ service with the Nation. Example: Patanjali by Baba Ramdev ### **#9. Subscription (Memberships/ Reward Points)** Entry barrier can be created by introducing subscriptions, and memberships. This increases loyalty and repeat customers. For Example, India Today is one of the largest selling business magazines today. ### **#10. Product Differentiation (Price | Durability | Style | Quality)** It is when you create a differentiator for your product in the form of either price or durability or style or quality. For example, Apple is known for its quality and Xiaomi is known for its reasonable price. ### **#11. Manufacturing Efficiency** Entry barrier can also be created when the manufacturing efficiency is so high that the competitors cannot match it. For example, Mc Donald’s Drive Thru. You place your order and make the payment on one counter and by the time you reach the next counter, your order is ready to be delivered. ### **#12. Trade Secret** It could be a formula, a process, an algorithm, a recipe or any similar information that allows you to compete successfully, but that is unknown to your competitors. For Example, the Coca-Cola formula is the Coca-Cola Company's secret recipe for Coca-Cola syrup, which bottlers combine with carbonated water to create the company's flagship cola soft drink. While several alternatives, each purporting to be the authentic formula, have been produced, the company maintains that the actual formula remains a secret, known only to a very few selected employees. ### **Conclusion** Now, it is time to kill the AATNA (Another Alternative to Negotiated Agreement) or popularly called BATNA (Best  Alternative to Negotiated Agreement). You have to now create a strategy for yourself. Brainstorm and identify the new changes you would bring in your product/service that will create an entry barrier and create a monopoly in the market. # Framework for Execution ![[MONOPOLISE THE WHOLE MARKET.jpeg]]