A few tips on how to standout among competitors
Let assume you cannot reduce costs to compete on price, here are some options you can work with :

1. Differentiate by product quality. Increase the cost and quality of your product, (more features, better service, premium-category marketing) that would justify a higher price for some consumers and hit the "premium" side of the market. Benz does not compete with Toyota on price.
3. Differentiate by placement and convenience. Customers satisfaction should be your priority (e.g. through better/cheaper customer service, guarantees, proximity to support, this really depends on your business) or offer convenience in the purchase (better placement, local presence). The idea here is that the cost to the consumer is not just the price - a 100 naira bread next door is "cheaper" than a 70 naira bread on the other side of town.
4. Differentiate by segment specialization. Co-exist with the competitor by targeting a specific niche. You can often position a product by changing it to be more relevant/valuable to a specific type of customer (either with actual changes or with marketing it that way) without changing the actual cost of production (sometimes you can lower the cost this way by offering a subset of the features that fits the segment). You can segment the product and target 2-3 specific market niches while your competitor has a more generic mass market product
5. Differentiate on perception. Good marketing can make a product be perceived as more valuable by attaching "badge value" to it, or simply by getting mindshare on specific consumers and make them think of it as a better option. While this looks a lot like deception, it is not. Gucci does not make bags that are strictly so much better than their competition, but carrying one has value beyond the actual materials and service.

1. Note that all suggestions have one thing in common: differentiation. Commoditization is bad for you. If the product is or is perceived as identical to the competition, then consumers choose only based on price. In reality there are more factors in consumer decisions and products can (and should) be differentiated by design, service and marketing in ways that cause consumers to weigh in additional considerations such as relevance, situational value, badge value, etc, in their buying decision.
2. If your product is genuinely a commodity (think hard before you say it is, there are very few truely non-differentiated product classes) then either make it cheap or make something else. (or be the best marketer in history)
Feel free to ask questions or drop your option.

#reflection

Let us use drinks as an example this time . How many options do we have?
How do companies compete in such a competitive market?
Example:
According to business insider, approximately 94% of the world population is aware of the red & white logo of Coca-Cola.
How has Cola-Cola stayed ahead of the crowd?
Coca-Cola has focused on selling an abstract positive concept such as happiness, family, and sharing, rather than attempting to sell a drink.
Most of their marketing efforts are focused on the experience and the lifestyle associated with its brand, rather than the soda.
Coca-Cola sells “happiness” in a bottle.

We find a similar strategy used by Red Bull.
Red Bull's is NOT focused on promoting an energy drink, but on creating a brand that represents the energy-packed lifestyle that their audience loves.