It is important that companies do not sacrifice quality why trying to achieve low prices. Many times large competitors can reduce prices on select items either because of efficiencies and economies of scale or because the can afford to make a minimal profit or even take a temporary loss on a product while capturing market share and possibly eliminating the competition.
However, every rival cannot be the low-cost leader so organizations must find other ways to differentiate themselves. Customer service, personalization, company culture, and the customer experience of interaction with an organization are important points of differentiation.
A company needs to understand how their organization is perceived by customers compared to rivals and they must decide how to position themselves through marketing strategies. For example, chocolate milk was commonly viewed by consumers as a kid's drink that was a little healthier than soda or high sugar juices.
To stimulate demand for the product and reposition the product in consumer's minds, the company employed marketing strategies to promote chocolate milk to women as a nutritious and tasty beverage that offers calcium, vitamin D, and other key nutrients that diet soda, tea, or other common beverages do not offer.
The company saw an increase in sales because they marketed their product differently, but did not change the price or the product itself.
Can you think of any other products that have been marketed differently to capture market share?