Module 1: Market Position
At the very beginning of any project, it is important that you choose a position in your market with very little competition. To do that you will need to draw up an Axis to plot the position of your rivals. Once you have done this, you will be able to see any potential gaps and can set about choosing which gap in the market you wish to serve.
1.1 - decide on your axis labels
The qualities you choose have to matter to your customers, not necessarily what you think is important. Below are some examples to help you:
- Price - Cheap clothing vs Haute Couture
- Time - Instant Coffee vs Pour over Coffee
- Convenience - Frozen Pizza vs Gourmet restaurant pizza
- Temperature - Holidays on a beach vs Holidays in the snow.
1.2 - write down on your axis labels
Choose one theme for your A&B values and another for your X&Y values.
For example: Price - A: Cheap / B: Expensive and X: Fast / Y: Slow.
1.3 - DRaw up your axis
List as many brands that are in your industry, both close rivals and non rivals. Now plot their position on the Axis. When you have finished you should be able to see gaps within the market where there is little or no competition.
To give you an idea of what a finished axis looks like, I have filled out one for Pizza Brands. As you can see I chose Price - Cheap to Expensive and Convenience - Frozen Pizza at home vs Visiting a Pizza Restaurant. What the Axis shows is that as the price increases, the Pizzas become slower to make. It show the opportunity to create a Gourmet Frozen Pizza that could sell for around £15-£18.
1.4 - Plot the position of your rivals
List as many brands that are in your industry, both close rivals and non rivals. Now plot their position on the Axis. When yo have finished you should be able to see gaps within the market where there is little or no competition.
1.5 - Choose you position
Pick a market that excites you and that you would like to serve. Make sure it is practical and that there is a genuine opportunity missed, rather than picking somewhere that clearly isn’t popular for good reason.