Uncategorized

The Power of Picking on the Big Guy: How Small Brands Can Leverage Positioning Against Market Leaders

When breaking into a market as a small brand, resources are often limited, making it challenging to create a strong share of voice. Mark Ritson, a professor at the Mini MBA, suggests a strategic approach for small businesses to position themselves against well-established market leaders, leveraging their distinctiveness and taking advantage of the “shadow salience” […]

Table of Contents

When breaking into a market as a small brand, resources are often limited, making it challenging to create a strong share of voice. Mark Ritson, a professor at the Mini MBA, suggests a strategic approach for small businesses to position themselves against well-established market leaders, leveraging their distinctiveness and taking advantage of the “shadow salience” that comes with challenging the top dogs.

Two Ways to Position Your Brand

  1. Position to the target customer: Clearly communicate what your brand offers and how it benefits your target audience.
  2. Position against an alternative, more famous brand: Showcase what your brand stands for by highlighting the differences between your offering and that of a well-known competitor.

Why Picking on the Big Guy Works

  1. Shadow Salience: By positioning your brand against a well-known competitor, you benefit from their existing market presence and recognition, increasing your brand’s visibility.
  2. Second-Mover Positioning Advantage: As a new entrant, you can identify gaps or weaknesses in the market leader’s positioning and exploit them to create a unique, compelling brand proposition.
  3. Exclusive Opportunity for Small Brands: Larger brands are unlikely to engage in this type of competitive positioning, as it doesn’t make strategic sense for them. This creates an opportunity for smaller brands to gain a competitive edge.

Notable Examples of Successful Positioning Against Market Leaders

  • Avis successfully positioned itself as a brand that tries harder, as they were second to Hertz, the market leader.
  • Virgin Airlines built a strong reputation by positioning itself against British Airways, focusing on its differences and shortcomings.
  • Ben & Jerry’s strategically waged a “war” against Haagen-Dazs in the 1980s, helping them establish their brand identity and market presence.

Conclusion: Embrace the David vs. Goliath Strategy

Positioning your small brand against market leaders can be a powerful way to gain visibility, create a unique brand proposition, and carve out a niche in the market.

By leveraging the shadow salience and second-mover advantage that comes with challenging the big guys, small businesses can effectively compete and make a name for themselves in a crowded marketplace. Embrace the David vs. Goliath strategy and watch your brand grow.