Assessing Positions

position brands on a scale from low to high quality and price

A basic way to look at strategic positioning within a market is to position brands on a scale from low to high quality and price. The example below maps out how a number of car brands might position themselves in a typical national market. Each has chosen to focus on particular market segments, and so reduce the number of competitors they have. Brand C, for example sells budget-range cars at the lower end of the price scale and so avoids competition with brands that are targeting customers with more money to spend.

STRATEGIC POSITION OF CAR BRANDS WITHIN A MARKET

• Brand A - $ Budget to $$Mid Range
• Brand B - $$Mid Range to $$$Executive
• Brand C - $ Budget
• Brand D - $Budget to $$Mid Range
• Brand E - $$$Executive to $$$$Luxury
• Brand F - $Budget to $$Mid Range
• Brand G - $$Mid Range to Executive
• Brand H - $$$$Luxury

ACTION POINT: Identify your target segment and know that of your competitors.