Yes, you got it right! I meant the same when I said "Create Demand with Supply". The economies have started looking up once again but still the level of demand, that was there two and a half years back, is still not there and organizations are working under capacity. In these times, you might think that creating more supply (and capacity) in market will only block working capital and will result in huge unused inventories. Well, in normal circumstances, this is right but have you looked at some of the scenarios where supply created demand on its own? Yes, there are so many examples in the world where we saw supply creating demand and not only companies but industries could turn around their performance levels riding on this. Why not, resort to one of the strategies of creating demand with supply and surge ahead of your competition? Let me discuss about some of the ways with which you can create demand... with your supply, but yes the strategy has to be right:
Innovate: Starting with the most obvious, innovation is the key to explosive demand. Innovation, on its won can create the demand and even turnaround the organizations - not only this, it can also create another industry. We all saw what happened to Apple with the introduction of iPhone and then iPod recently - Steve Jobs just was selected as the CEO of the decade. So, if you come up with a innovative product, you have the easiest of the keys in your hand to unlock the hidden demand in the market even in tough times. Time for the gray matter to exert more and create innovative supply to in-turn create demand and hence dollars for us
Competitive Price: Time and again, we have seen that a small manipulation (reduction) in prices of a product or service has created a huge demand and the capacity, what-so-ever was available, became eventually very less to cater to this created demand with supply. Now, whether it was china made economical goods or tickets of airline or tariff of cellular phone - everything carved their own demand by adopting a policy of offering a more competitive price to the customer and flooding the market with huge supplies of the product or services
Introduce Novelty: Indian car industry got a 500% jump in demand when a small car model called Maruti 800 was launched in 1982. It was not that cars were not available in the country before that but the novelty that was brought with this model attracted lot of people to buy this and hence demand was created with this supply. Likewise there are numerous examples where people were far from the urge of buying a product or service but a small novelty brought into that product or service not only revived the demand for the product but could outpace the supply ultimately
Right Marketing Campaign: You must have noticed that there is always a huge supply available in the market for the time share holidays and new capacity is being added every year. Inspite of this being a luxury buy, this is creating demand for themselves by rightly marketing their services. I am sure at least 70% of us would have been contacted by one or other time share marketer and we would have given a serious thought of buying this if not bought it already. This is the magic of right marketing and it can create demand for your dormant supply. So go ahead, pick the right marketing campaign for your offering and flood the market with it
So, the supply can also create demand in a way if right techniques are used to compliment the supply. Why not, give it a try and reap the benefits? Think about it!