---
title: "Price War: You Fight Your Way, I Fight Mine"
description: "We must first break out of the chaotic battlefield of price wars and fight effectively on another front. Don't be fooled by the false purchasing power created by \"price cuts\"; instead, focus on your product's target consumer group, and you'll soon discover that beyond price competition, the market offers other opportunities."
author: "叶茂中"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
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published: "2015-04-04"
language: "en"
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---

# Price War: You Fight Your Way, I Fight Mine

> We must first break out of the chaotic battlefield of price wars and fight effectively on another front. Don't be fooled by the false purchasing power created by "price cuts"; instead, focus on your product's target consumer group, and you'll soon discover that beyond price competition, the market offers other opportunities.

We must first break out of the chaotic battlefield of price wars and fight effectively on another front. Don't be fooled by the false purchasing power created by "price cuts"; instead, focus on your product's target consumer group, and you'll soon discover that beyond price competition, the market offers other opportunities.
□ Two teams battle on the green field; to defeat the opponent, you must study their tactics to arrange your own. But even if you can't figure out how the opponent plays, you can still take the initiative and stick to your own style, carrying that tactic through the entire contest. The essence of this tactic is: you fight your way, I fight mine, not changing because of the opponent's changes. This way, you can still gain the upper hand, create opportunities for attack, and ultimately win.
□ This principle of "you fight your way, I fight mine" can be applied to business warfare, especially when there is little rational room for price wars, to avoid exhausting your strength in a head-on collision that harms both sides. It is quite worth borrowing.
□ Recently, some analysts believe that the nationwide wave of price promotions reflects a kind of market immaturity, causing the market to swing wildly and leading to disastrous consequences of abnormal consumption. These analyses are sharp, but the key is: what can we do to quickly curb the "price cut" beast that is devouring the market, and create a more rational and orderly environment for competition?
□ Over the years in marketing planning, we have paid great attention to market price trends. To launch a product, without an appropriate price, you can neither ensure the manufacturer's profit nor give the product a price advantage compared to other brands, so the importance of price is self-evident. Even if the product already has a good brand image and the sales channels are basically complete, consumers at the market's end will inevitably be affected by price competition. In fact, customers who prefer cheap goods are increasing day by day. In such situations, brand image, advertising, and PR seem ineffective, leaving only a magic hand driving the market chariot recklessly—that magic hand is "price cuts."
□ We must first break out of the chaotic battlefield of price wars and fight effectively on another front. Don't be fooled by the false purchasing power created by "price cuts"; instead, focus on your product's target consumer group, and you'll soon discover that beyond price competition, the market offers other opportunities.
□ To divert your target consumers' attention from "cheapness," what you need to do is go all out on product value proposition. Confirm that consumers are not all fools; as long as your product is priced not too high and not too low, then playing the value card well is the right move.
□ A small convenience store selling cigarettes is very good at playing this card. It is near my residence, with three or five similar convenience stores around it, and their prices are lower. But this newly opened small store keenly seized on consumers' fear of buying counterfeit brand-name cigarettes, and by signing a quality guarantee for newly sold cigarettes, it created the value of "worry-free purchase," quickly gaining a commanding position in sales, which is impressive.
□ The key is to stay calm, which requires a "heavenly eye" for observing the market. Haier has such an "eye." While air conditioners, refrigerators, and washing machines were all cutting prices, Haier insisted on "you fight your way, I fight mine," quietly weaving their "star service network." The success of this network is proven by the following example: a consumer in Guangzhou called Haier's service center to buy an air conditioner, and just ten minutes after hanging up, a young man in Haier work clothes delivered and installed it.
□ Such service is enough to firmly attract consumers' attention to your unique value. In today's increasingly homogeneous air conditioner products, only service can create differentiation, and this differentiation is enormous value for consumers.
□ Service is a more attractive value, and this value is precisely what those merchants who use price cuts lack. Using your strengths to attack others' weaknesses, the result can be predicted, and you also gain a good living space because your customers are more rational and highly loyal. Once you win their hearts, they will stay with your product for a long time and never forget it.
□ Marketing, in plain terms, is to do your utmost to influence your target consumers. This influence can be achieved through brand, service, advertising, and even educational means, because every link in the market contains some education.
□ Thomas Winninger is an expert in consumer education. He said a very insightful sentence that impressed me deeply: "In the commodity environment, one commodity is weighed against another; customers will definitely compare apples with apples, but the key is not to let them compare that way." How to compare? Make your competitor the apple, and you the peach. This relies on educating and guiding consumers.
□ Once, we did market planning for a laundry detergent. This detergent had no brand awareness and no price advantage. The original product appeal was vague and failed to highlight its USP. We knew this detergent had a super-concentrated feature, with the same amount of use achieving much better washing results than other products. To guide consumers to notice this feature, we suggested highlighting the concept of "one bag equals two bags" on the packaging. The idea was to teach consumers a technique for weighing prices: with the price of one bag, you get the value of two bags—which is more cost-effective! This is consumer education. Through this education, your product becomes a peach, though not cheap; rather than a shoddy apple, though cheap. In price competition, this principle is called the non-equivalence principle.
□ The smart way to deal with a price war is to resolutely step out of it. This is my advice; believe it or not.
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